Two senior federal government sources have confirmed to CTV News that the federal government has sold its stake in Air Canada. The news was first reported by the Globe and Mail. During the COVID-19 pandemic in 2021, the government purchased a 6% stake in the airline for $500m as part of a bailout package. Ottawa’s rescue deal with Air Canada at the time included a $5.9b loan from the government to help support the airline after it lost billions of dollars during the pandemic. As of Thursday afternoon, Air Canada shares closed at $25.28 on the Toronto Stock Exchange, up 23 cents. CTV News reached out to the federal transport minister’s office and was referred instead to Deputy Prime Minister and Minister of Finance Chrystia Freeland’s office, who has not yet responded. Last week, Transport Minister Anita Anand told CTV News she was “examining the particular legal relationship” with Air Canada in an effort to figure out how to dissuade the airline from bringing in additional carry-on fees.<br/>
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Air Canada decided to introduce carry-on baggage fees for some customers to stay competitive with changing market forces in the country, a company executive told a parliamentary committee on Friday. Earlier this month, Air Canada said it would charge passengers for bigger carry-on bags if they opted for its lowest-priced fare for North American and Caribbean routes starting on Jan. 3. Lawmakers in Canada and the United States have criticized airlines in recent weeks for levying additional fees on luggage and seat assignments, following an outpouring of anger by passengers on social med Air Canada Executive Vice President of Revenue and Network Planning Mark Galardo told lawmakers the carrier is adding the fees to remain competitive after rival carriers such as privately-held WestJet Airlines made similar changes. Affected passengers can board with one small personal item such as a purse, but require larger items such as a duffel bag to be checked for C$35 ($24.58). The committee asked Air Canada and its competitors to submit internal documents about projected revenues from baggage fees.<br/>
Korean Air will be able to create more tangible synergy after completing its long-awaited takeover of Asiana Airlines, market watchers said Sunday. Last week, the flag carrier finished its transaction to acquire Asiana by paying the remaining cost for the high-profile acquisition. This is a symbolic milestone that the airline has achieved in almost four years after it announced the plan on November 2020. The integration of the two airlines will elevate Korea’s position in the global aviation industry, as their combined passenger transportation distance would rank among the global top 10, according to Korean Air. Industry officials said the synergy from the acquisition will materialize rapidly particularly because of Korean Air’s world-class operational expertise, which will be a significant asset for Asiana. “This merger is not about one airline disappearing, which would reduce the market and competition,” an official from the aviation industry said. “It is an opportunity to lay the foundation for healthy growth in the industry, with the potential for both airlines to rise together. With the merger, long-haul route competitiveness will be enhanced, and large-scale synergy will arise through network efficiency."<br/>
Days after the wide-body Boeing 787-9 plane arrived in Singapore from New Zealand, technicians removed its 302 seats, tore out the carpet and dismantled all its ceiling panels and overhead bins, leaving the plane’s interior entirely empty. This gutting of the Air New Zealand aircraft in October was in preparation for the world’s first nose-to-tail retrofit of a 787-9 Dreamliner, which is being done in Singapore by home-grown technology and engineering group ST Engineering. All 14 of Air New Zealand’s 787-9 aircraft will be retrofitted one at a time at ST Engineering’s airframe facility in Changi. Seven will be completed by the end of 2025, and the rest by the end of 2026. Air New Zealand CE Greg Foran put the cost of the retrofit programme at NZ$500m, or about NZ$35m per aircraft. The Dreamliners are being retrofitted to install a new in-flight entertainment system with larger screens, revamped seats in every cabin and new carpet throughout the aircraft, among other upgrades.<br/>