This week’s top air transport stories include the US Department of Justice suing to block New York-based JetBlue’s acquisition of Florida-based ULCC Spirit Airlines and the European Commission giving a second nod to the merger of Irish wet-lease operator CityJet and Spanish regional Air Nostrum.
The US Department of Justice (DOJ) sued to block JetBlue’s $3.8 billion acquisition of Spirit Airlines, saying the move would eliminate “about half” of all ULCC seats in the industry and harm fare-friendly competition. “If the acquisition is approved, JetBlue plans to abandon Spirit’s business model, remove seats from Spirit’s planes, and charge Spirit’s customers higher prices,” the March 7 filing stated. “JetBlue’s plan would eliminate the unique competition that Spirit provides.”
The European Commission (EC) renewed its joint venture (JV) approval for Spanish regional carrier Air Nostrum and Irish wet-lease operator CityJet, paving the way for the two carriers to join forces, as first introduced in summer 2018. “The Commission has now concluded that the competitive landscape and market conditions remained broadly the same, and that the transaction would still not raise competition concerns,” the EC said in a March 2 ruling.
In other government news, Portugal removed TAP Portugal CEO Christine Ourmières-Widener and chairman of the board of directors Manuel Beja from their positions. Ourmières-Widener, who has been CEO of the Star Alliance partner since June 2021, will be replaced by SATA Group president and CEO Luís Rodrigues, who will also act as non-executive chairman. The layoffs come after a number of irregularities at TAP, following a General Finance Inspection (IGF) report on the departure of former executive board member Alexandra Reis from the company in 2022 regarding a controversial severance payment for €500,000 ($532,780). This payment was illegal, according to Portugal’s Minister of Finance Fernando Medina. Minister of Infrastructure João Galamba confirmed the entire TAP executive committee will not leave and the government wants to concentrate on the announced privatization of the airline.
In startup news, Alaska-based Northern Pacific Airways plans to launch inaugural operations with service between southern California and Las Vegas (LAS) from June 4. The startup will operate from Ontario (ONT) in California, a secondary airport in the Los Angeles area some 60 mi. from LAX, to LAS 1X-weekly using a Boeing 757-200.
This week also saw orders and leases for aircraft. Luxembourg-based Luxair placed an order with Boeing for two 737 MAX 8s, which will be delivered in the first quarter of 2026. As a bridge solution, Luxair will temporarily lease from Boeing another pair, which are likely to be replaced with two more purchased aircraft in 2027. The two leased MAXs will enter service in summer 2023.
Hong Kong’s Greater Bay Airlines (GBA) confirmed it will order 15 Boeing 737 MAX aircraft, and the carrier also intends to add 787s to its fleet. The first of the MAXs is reportedly scheduled to be delivered in 2024. The LCC launched scheduled service in July 2022.
Air France signed a long-term lease placement for three new Airbus A350-900s with Air Lease Corp., scheduled for delivery in the 2024 second quarter.
Latvian carrier airBaltic will wet lease four Airbus A320s in summer 2023, adding capacity at three Baltic bases, without compromising its recently transitioned all-A220 fleet.
In other major airline news, Qantas plans to establish its own engineering training academy as part of efforts to meet ambitious staff hiring goals over the next 10 years. Australia’s flag carrier said the engineering academy will have the capacity to train up to 300 engineers per year. Qantas aims to select a location for the facility in 2023, and it plans to begin training the first students in 2025.
Lufthansa plans to base its incoming fleet of 10 Airbus A350-1000s at its second hub in Munich, as the Germany flag carrier seeks to become less dependent on its main base in Frankfurt. The 10 aircraft are part of a larger order for 22 additional widebodies approved by Lufthansa’s board of directors March 2.
In airport news, the UK Civil Aviation Authority (CAA) ruled that London Heathrow Airport’s (LHR) charges for 2023 will remain fixed at the level set out in its interim decision earlier this year: £31.57 ($37.36) per passenger. Average maximum price per passenger will then fall by about 20% to £25.43 per passenger in 2024 and will remain broadly at that level until the end of 2026. The move was met with displeasure by LHR, saying, the decision “makes no sense and will do nothing for consumers at a time when the CAA should be incentivizing investment to rebuild service.” The airport added it will now take some time to “carefully consider our next steps.”
Brussels Airport Company (BAC) and Changi Airport Group (CAG) signed an MOU to build on their existing strategic partnership in air cargo development. The airports’ initiative will focus on projects to advance sustainability, air cargo and pharmaceutical logistics. Changi and Brussels also hope to strengthen passenger and cargo connectivity between the two cities.
