Colombian ULCC Viva suspended operations this week saying it was in “critical financial distress” as it continued a long wait for government approval for a merger with Avianca that could make the difference between survival or failure.
In other major airline news, Korean Air gained approval from UK regulators for its proposed merger with Asiana, marking an important step in Korean’s efforts to secure acceptance for the deal from overseas authorities. The UK’s Competition and Markets Authority (CMA) ruled that the competition remedies proposed by Korean Air are sufficient to offset any reduction in competition on routes between the countries.
International Airlines Group (IAG) agreed to take full control of Air Europa and has signaled an interest in acquiring TAP Air Portugal.
This week also saw plans revealed for the launch of Dubai-headquartered all-premium leisure carrier Fly BeOnd, which is looking to begin Airbus A321neo operations from the Maldives this summer.
Virgin Atlantic formally joined the SkyTeam alliance March 2, becoming the grouping’s first UK member and enhancing the alliance’s transatlantic network.
In aircraft news, Lufthansa Group ordered 10 Airbus A350-1000s and 5 more Airbus A350-900s, bringing its A350 fleet to a total of 60 aircraft. In addition to the agreement on the purchase of the new aircraft, Airbus and Lufthansa have also signed an MOU to further strengthen their cooperation in the field of sustainability and future technologies.
In addition, it was reported the Russian government will spend almost RUB377 billion ($5 billion) through 2036 to support production of commercial aircraft intended to replace the Western-made fleets of the country’s airlines. The subsidies will compensate 50% of the loans taken by Russian manufacturers to expand the output of aircraft, engines, instruments and components.
In Boeing news, 787 deliveries have been halted because of what the US manufacturer called an “engineering analysis error” linked to the redesigned forward pressure bulkhead supplied by Spirit Aerosystems. In what will be seen as a key breakthrough for Boeing’s delayed 777X development, the European Union Safety Agency (EASA) and the US manufacturer reached an understanding on common mode failure certification criteria for the large new twinjet, according to industry sources. Although details of the compromise remain sparse, sources say EASA has given up its demands for fundamental flight control system changes to comply with its definition of redundancy. In return, Boeing has agreed to a protocol under which the system performance and any potential failures will be closely monitored for at least the first several years of 777X operations.
Australia’s Alliance Aviation Services signed an agreement to purchase 30 used Embraer E190s from Dublin-based lessor AerCap. Alliance offers charter and contract services, and wet leases its jets to other Australian carriers. The deal will boost Alliance’s fleet to up to 63 E190s.
Air Arabia is sourcing three Airbus A320ceo family aircraft beginning this summer from Bulgarian wet-lease and charter specialist Fly2Sky Airlines, providing additional lift for its Moroccan operations. The aircraft will be based out of Morocco and operate flights to various destinations.
In sustainability news, Airbus said it believes Australia—with the continent’s abundance of land and access to solar energy—could become a “world leader” in the production of green hydrogen, which will in turn power future zero-emission aircraft. The company’s partnership with Qantas to identify and fund startups is also gaining traction, with announcements expected in March.
Porter Aviation Holdings signed a partnership with Montréal Saint-Hubert Airport (YHU) to develop a new 225,000 sq. ft. terminal into a net-zero facility. The YHU passenger terminal complex will be a fully electric facility, connected to the Québec electrical grid powered by hydroelectric and wind energy sources. Ground vehicles will also be electric, when available. Construction on the new nine-gate terminal is expected to begin in spring 2023 and be completed by late 2024.
In other airport news, New York JFK International Airport (JFK) broke ground on Terminal 6, the 1.2 million sq. ft. facility that will serve as JetBlue Airways’ primary home. The $4.2 billion construction project will add 10 new gates to JFK, including nine widebody gates. The new terminal will be developed in two phases, with a partial opening in 2026 and construction fully completed in 2028.
Kansas City International Airport (MCI) opened its new passenger terminal, shutting down the two terminals that had been handling all of the airport’s flights. The $1.5 billion, 1-million sq. ft. terminal is the first major update since the airport’s opening in 1972.
