Asiana Airlines swung back into the black in its Q3 earnings, helped by an uptick in cargo revenue and a steep reduction in costs. For the quarter ended 30 September, the carrier eked out an operating profit of W5.8b ($5.2m), reversing the W45.1b loss it made during the same period last year. Revenue fell 53% year on year to W731b, led mainly by a collapse in passenger travel demand, which plummeted 83% year on year. Broken down by network, international passenger revenue saw a sharp 87% plunge year on year to W122b, while domestic passenger revenue fell 42% to W50.3b. However, any further decline was offset by a 54% increase in cargo revenue to W485b for the quarter. Expenses declined 55% year on year to W725b, which Asiana notes stemmed from reduced flying activity. The carrier also swung back to a net profit of W2.3b for the quarter, reversing last year’s net loss of W170b.<br/>
star
A high-profile aviation deal between Korean Air and Asiana Airlines is facing a continuing strong backlash from a coalition of the former's shareholders who argue the decision is aimed at defending the managerial rights of Cho Won-tae, the chairman of Hanjin Group, the airline's parent corporation. The opposition is centered on the Korea Development Bank's (KDB) participation in Korean Air's takeover of Asiana. The coalition ― consisting of former Korean Air Vice President Cho Hyun-ah, the Korea Corporate Governance Improvement (KCGI) private equity fund (PEF) and Bando Group ― is stepping up criticism of the state-run lender and Hanjin Group for pushing ahead with the deal that they argue will end up securing the leadership of Chairman Cho through the use of taxpayers' money. Following the KDB announcement Monday, the KCGI started legal consultations with its advisory firm, Bae, Kim & Lee (BKL), to block the move. The PEF denounced the alliance between the KDB and Chairman Cho claiming they carried out the deal in a slipshod and hasty manner, as Korean Air has not conducted any due diligence on Asiana. "Their plan to take over Asiana Airlines, which is in a state of capital erosion and whose total debt reaches 12 trillion won, comes at a huge cost to other shareholders," the KCGI said Tuesday. <br/>
Transat told shareholders it’s seeking to allay antitrust issues pinpointed by the EU over its takeover by Air Canada and hopes to win approval by February. The company said in a letter dated Nov. 12 that it’s working with Air Canada “to address the concerns raised” by the EC in a so-called statement of objections sent late September. Transat said efforts to win over regulators in the EU, as well as Canada, could include “the offer of remedies, which should provide a greater chance of obtaining the required approvals” by February. The EU’s antitrust arm previously warned that the deal could hamper competition by combining the two biggest airlines linking Europe and Canada. The statement of objections, not previously reported by the EU or the companies, is a typical move in complex deal reviews. Such filings raise the risks of a veto if antitrust concerns aren’t solved, often with an offer to divest operations. Transat said Tuesday that its expectations remain the same as in last week’s letter. It declined to comment on possible concessions “which are the purchaser’s responsibility.” Air Canada and the EC declined to comment. Air Canada agreed to buy Transat in August 2019 before the coronavirus pandemic shut down most air travel. <br/>
Nigeria lifted a ban on flights to the West African country by Air France, KLM, Lufthansa and Qatar Airways. Africa’s most populous country of more 200m people barred a number of airlines as it resumed international flights on Sept. 5 following a prolonged lockdown to curb spread of the coronavirus, saying it was in retaliation for similar restrictions. The government is also working to open three additional airports in the country to international flights “before the end of the year,” Aviation Minister Hadi Sirika said Tuesday.<br/>
Lufthansa has become the latest airline to scrap complimentary in-flight meals for short-haul flights as it moves to cut costs amid the aviation industry's deepening crisis. The carrier, one of the last in Europe to offer free food and drink to economy class passengers, said it will launch a new paid-for menu from next spring for both short and medium-haul routes. Christina Foerster, head of customer services at the airline, said: “Our current snack offer in economy class does not always meet the expectations of our guests. The new offer was developed on the basis of feedback from our customers.” It comes after rivals axed in-flight meals in recent years to reduce costs as the golden age of air travel came to a halt. Lufthansa’s buy-on-board service will be launched on the group’s regional carriers, Austrian Airlines and SWISS, before being introduced on the carrier’s flights next year. <br/>