United said Wednesday it has completed repairs on its 17 Boeing 737 MAX planes that were grounded over an electrical problem, while American Airlines said it has completed repairs on 14 of 18 737 MAX planes in its fleet. Boeing last Wednesday sent affected carriers service bulletins on how to address the production issue that could have interfered with some critical systems after the fixes were approved by the FAA. The action was a relief for American carriers, which have more than 65 of the 109 aircraft affected worldwide and were eager to get planes back into the air before the summer travel season. Boeing resumed deliveries of its best-selling 737 MAX on Wednesday, following approval of the fix for the electrical grounding issue, a person familiar with the matter told Reuters.<br/>
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Europe’s second-highest court on Wednesday upheld Ryanair’s fight against billions of euros in state aid granted to its rivals KLM and TAP but dismissed its challenge to a E10b Spanish fund for virus-hit companies. “The General Court annuls the (European) Commission’s decision to approve the Netherlands financial aid for the airline KLM amid the COVID-19 pandemic on the grounds of inadequate reasoning,” the Luxembourg-based Court said. Judges also annulled the EU executive’s clearance of state aid for Portuguese carrier TAP, citing “an inadequate statement of reasons” by the Commission. The court said the annulments and recovery of the state aid would be suspended pending new decisions by the Commission. <br/>
Singapore Airlines on Wednesday posted its second-consecutive annual loss, which widened to a record S$4.27b ($3.20b), and said it would issue S$6.2b of convertible bonds to help weather the coronavirus crisis. The loss for the 12 months ended March 31 was worse than the average S$3.27b forecast by eight analysts, according to Refinitiv, and included S$2b of impairments largely on the 45 older planes surplus to requirements. It was also far bigger than the S$212m annual loss in the prior financial year, its first ever dip into the red, when only one quarter was affected by the pandemic. Annual revenue fell 76.1% to S$3.82b in the financial year ended March 31, with strong cargo revenues not enough to offset an almost 98% fall in passenger numbers. The airline said it expected passenger capacity to rise to 28% of pre-pandemic levels by June, but much of that is due to strong freight demand sustaining the number of flights. It filled just 13.4% of passenger seats in the financial year ended March 31. The airline, which has no domestic market, has been one of the world’s hardest hit in terms of passenger traffic alongside rival Cathay Pacific Airways. “This crisis is not over,” Singapore Airlines Chairman Peter Seah said. “While the growing pace of vaccinations has given us hope, new waves of infections around the world mean that restrictions on international travel largely remain in place.”<br/>
THAI’s creditors approved the airline’s debt restructuring plan, paving the way for payment extension and unpaid interest waiver on at least 170b baht ($5.41b) of its debt. The plan was backed by 91% of creditors at an online meeting, Kitipong Urapeepatanapong, chairman of Baker & McKenzie in Bangkok, the airline’s legal adviser, said by phone on Wednesday. Five people have been appointed as its administrators including acting CEO Chansin Treenuchagron and former CEO Piyasvasti Amranandthe, Thai Airways said after the meeting. “The creditors’ approval offers Thai Airways an opportunity to continue its business,” the airline said. “It will also enable the airline to maintain its competitiveness in the aviation market.” The airline in March proposed a three-year freeze on loan payments and a deferment of bond repayments for six years. To help it return to profitability after posting a record loss of 141 billion baht last year, Bangkok-based Thai Air also plans to cut its workforce by half, sell property and is seeking to raise 50 billion baht in new capital. There were some changes to the original debt proposals but not too many, Kitipong said. These include allowing some creditors to convert their debt into equity. The bankruptcy court will meet on May 28 to consider the creditors’ vote for final approval.<br/>