On May 24, 2023, the European Court of Justice decided to annul the European Commission’s clearing of the Italian state aid.  

Ryanair argued that the Italian government granted a 鈧�130 million ($160M) aid package only to airlines holding an operating license issued by Italy.聽

鈥淭he General Court annuls the Commission精东影业 decision to approve an aid measure consisting in subsidies paid by Italy to Italian airlines in the context of the COVID-19 pandemic,鈥� a from the Court of Justice read.聽

According to the Irish Times, when the Commision was told of the Italian government精东影业 subsidy program in October 2020, no objections were raised.  

Ryanair launched legal action, believing that the aid violated principles of European law.  

Ryanair said governments, including Italy, 鈥渞ushed through discriminatory subsidy schemes limited to their own former flag carriers鈥�. 

The low-cost carrier argued that 鈥淩yanair is Italy精东影业 largest airline yet was excluded by the Italian government from these schemes鈥�.   

Ryanair has launched a number of legal challenges over EU subsidies granted during the COVID pandemic.  

The judgment follows on from the EU General Court精东影业 recent annulments of the European Commission精东影业 clearances of aid packages to Lufthansa and to SAS. 

鈥淥ne of the EU精东影业 greatest achievements is the creation of a single market for air transport. The European Commission精东影业 approval of the aid scheme limited to airlines with an operating license issued by the Italian State went against the fundamental principles of EU law,鈥� a Ryanair spokesperson said.   

They added: 鈥淭he judgment confirms that the Commission must act as a guardian of the level playing field in air transport and cannot sign-off discriminatory State aid under political pressure by national governments. The Court精东影业 intervention is a triumph for fair competition and consumers across the EU.鈥澛犅犅�

Ryanair expects airline consolidation in Europe to continue

• Airlines
• Aviation Economics & Finance

byRytis Beresnevicius

2023-05-22

According to the US-based aircraft manufacturer, the increase in cargo flights will be largely driven by the growing e-commerce industry, with the Asia-Pacific region accounting for nearly 40% of all cargo deliveries over the next 20 years.   

The outbreak of COVID-19 in 2019 caused a sharp decline in passenger air travel demand. This had a lesser impact on the air freight sector, which managed to generate revenue while expanding in volume. In fact, global revenue from air freight has grown by 70% in comparison to pre-pandemic levels. In addition, this branch of the industry has 300 new freighters in operation since 2019.  

Boeing observed that the COVID-19 pandemic highlighted the importance of main deck freighter aircraft in airline fleets, though belly-freight on passenger wide-body aircraft has also been beneficial for the air freight transport growth in the past 10 years.  

It is ultimately only freight configured aircraft that will be most needed for this category. Unlike commercial aircraft, freighters can transport hazardous, and more voluminous cargo. Additionally, passenger flight schedules do not always fit into shipper timing needs.  

By 2039, 2,430 freighters are expected to be delivered, with approximately half replacing retiring airplanes and the remainder needed to meet projected traffic growth. 

The Russian government decided to revoke all international travel restrictions that were placed due to the COVID-19 pandemic. 

Cut off: Russian airlines flying to fewer than 10 countries right now

• War in Ukraine

byVictoria Bryan

2022-03-18

It is unlikely that Russian airlines will be able to fly to all 52 listed countries, as their fleet was reduced to mostly medium-range Sukhoi SSJ-100s, as well as several Airbus and Boeing jets. The rest of the aircraft 鈥� including Russia精东影业 almost entire fleet of wide-body long-range aircraft 鈥� cannot fly abroad because of the risk of being confiscated by their lessors. 

Russia to use Iran精东影业 experience in dealing with sanctions: Minister of Transport

• Civil Aviation

byValius Venckunas

2022-04-24

 

The UK精东影业 Civil Aviation Authority (CAA) has prosecuted Blue Air Aviation, a low-cost airline based in Romania, for numerous breaches of COVID regulations. 

China cuts more incoming flights, citing a rise in COVID-19 cases among passengers. 

Delta sees recovery picking up pace from end of February after Omicron delay

• Aviation Economics & Finance

byVictoria Bryan

2022-01-13

 

Today I鈥檓 announcing changes to international travel, with a Traffic Light system to restart travel no earlier than 17th May.

We’ll ensure nothing jeopardises the collective effort of the British people over the last year, so this is rightly a cautious approach. Watch here

鈥� Rt Hon Grant Shapps MP (@grantshapps)

Those who were hoping for a list of what countries will reopen for travel to the UK will be disappointed 鈥� and this isn鈥檛 something we can expect until 鈥渆arly May鈥� according to the report. Instead we are presented with a 鈥渇ramework鈥� for restarting international travel in a traffic light system. Essentially, green is go (but with caveats including a requirement for two tests), amber, a somewhat confusing middle point requiring self-isolating at home with testing, and red is enforced hotel quarantine.

The lack of clarity on the status of different countries will be disappointing to those not only hoping for a summer break this year, but the thousands of UK residents with family and friends living abroad. The Secretary of State in his address rightly highlights that over 27% of mothers in the UK were born overseas 鈥� just a small glimpse into the hardships that individuals must be facing in not being able to visit loved ones. Instead, we will have to wait until early May for an idea of what this list will look like, with some speculation that the list of countries might not even be released until a week before travel can potentially restart on 17^th.

So, to get into the meat of the report, what are the key takeaways?

• Expense will continue to be one of the greatest barriers facing travel 鈥� with the average cost of a PCR test in the UK at around 拢128 a country with even 鈥済reen status鈥� will significantly hinder any family trips. For a round trip based on a scenario where the destination country requires one test, this is still likely to come in around 拢300+ per person
• Vaccination does not provide an exemption or an equivalence to testing despite much media speculation in the UK about 鈥渧accine passports鈥�. This is not to say this case will remain 鈥� the report includes set review dates where the government could choose to include this exemption once the majority of the UK population has been offered their jabs & more research on transmission has taken place. One to look out for.
• Confidence needs to come from Government. Industry has taken significant steps on changing their bookings policy, meaning consumers can rebook with ease and little if no cost. But if lessons aren鈥檛 learnt from last year精东影业 restart of travel where in the UK we saw countries changing status with less than 72 hours鈥� notice, this will be lost. Transparency on the criteria for a country精东影业 status will be particularly key.
• Reciprocity will be on government精东影业 mind about next steps. For example, we鈥檝e seen plenty of media speculation that Israel will be one of the first countries to secure 鈥済reen鈥� status given their success on vaccination rollout. Yet, at the time of writing, all foreign nationals who are not citizens or residents are banned from entry to the country. If this remains, would it still secure a place on the list?
• It精东影业 not just about aviation. The UK Government has made clear now that international cruise can restart alongside international travel. This is a crucial step for an industry that was effectively banned from operations, and will provide hope for nautical fans yet.  

So, it may seem that the new travel framework raises more questions than it solves. Whilst it精东影业 not until early May when we will begin to see some of the crucial detail, it should be recognised that the UK is in many ways ahead of others on setting the blueprint for travel. The US notably is a country which has similarly made significant progress on vaccination, yet no timeline for the restart of international travel has yet been set. Where some European countries have begun to unilaterally lay out their plans for international travel (notably Cyprus, Greece, Portugal and Iceland) there is some divergence, such as the acceptance of vaccination as an alternative to mandatory testing. Whilst the UK Government has outlined its intention to work towards global standards in partnership with ICAO, this issue of divergence is likely to continue in the immediate term.

So, in sum, whilst we are yet to see the final detail on the UK Government精东影业 plans, it should be recognised that direction of travel, is however broadly positive 鈥� the UK Government has a outlined a clear ambition through this report to restart international travel where it is compatible with public health objectives. Crucial to look out for will be the upcoming review dates 鈥� in June, July and October 鈥� where the framework will be reviewed on whether it can be adjusted. More to come鈥�.

Francesca is a Senior Consultant with Lexington, advising a range of infrastructure clients

Rex said COVID-19 dominated the financial performance for the period ending June 30, 2021. 

鈥淭he airline industry has never been as badly ravaged in its entire history as today with a staggering drop of 56% in passenger numbers globally,鈥�  Lim Kim Hai, executive chairman of Rex, said in a statement on August 31, 2021. 

鈥淭o understand the magnitude of the devastation, the drop in global passenger numbers was 16% during the Global Financial Crisis. Rex精东影业 passenger numbers fell by 29% in the past full year.鈥�

The group witnessed a reduction of 41.3% in  passenger revenue to AUD 125.2 million ($91.9 million) in 2021

The airline also reported a 20% decrease in total revenue to AUD 256.2 million ($188.6 million).

Due to ongoing difficulties in operations, the airline has decided to defer the Boeing 737 deliveries expected to take place by the end of September 2021, according to a report by the Sydney Morning Herald. The deliveries of the aircraft have reportedly been postponed to the middle of 2022.  

鈥淲e鈥檝e always said that we鈥檒l scale up and scale down according to the circumstance,鈥� said John Sharp, Rex精东影业 deputy chairman, to Sydney Morning Herald in a statement. 鈥淪o we鈥檝e delayed those [planes] until such time as things return to normal.鈥�

The airline has suspended domestic services and reduced regional services until October 10, 2021, due to a lockdown imposed by the New South Wales government in Greater Sydney until the end of September 2021.

Rex predicted that the first half of the upcoming year will be dominated by internal border closures and lockdowns, as per the investor briefing report published by the airline. 

Kim Hai further added: 鈥淚t is possible that the second half will be struck by further waves of infection given the experience of other highly-vaccinated countries. As such the outlook for the year is highly uncertain.鈥�

The airline currently operates a fleet of 60 Saab 340s and Six Boeing 737-NGs.

精东影业 has reached out to Rex for comments.

The news was reported by several Gulf media outlets that cite a letter from the airline精东影业 chairman and CEO of Emirates Airlines Ahmed bin Saeed Al Maktoum to the employees.

Emirates reported on August 11, 2021, that it had resumed passenger services to over 120 destinations, recovering close to 90% of its pre-pandemic network. The airline further indicated its plan to increase the frequency of flights to the United Kingdom from October 2021.  

Emirates had reported its first loss over three decades in the FY 2020-21, totaling $6 billion. In response to the crisis brought by the pandemic, the airline laid off 15% of its workforce, reducing the salaries and benefits of the remaining employees from April 2020. 

The reductions of salaries depended on the level of seniority, while some of the benefits that got suspended included accommodation allowances for married couples, nominated family tickets, and annual leave entitlements.

The pay cuts were further extended and elaborated from July 2020. In September 2020, the airline first revealed its plans to reinstate full salaries from October 2020 after a potential increase in carriage capacity and expansion in route operations.

Etihad Airways extends salary cuts; Emirates returns to normal

• Civil Aviation

byPijus Jauniskis

2020-09-07

The suspension, which was supposed to last until July 31, 2021, has been postponed until August 8, 2021. 

“We will continue to monitor the situation closely and will be prepared to reinstate our scheduled flight services again as soon as possible,” said AirAsia in a statement. 

Low-cost carrier Nok Air also announced a partial suspension of operations due to force majeure effective August 1, 2021.

Nok is undergoing a business restructuring process and has not elaborated on the partial suspension in operations. “[we] will utilise all remedial measures and hope that the situation will recover to normal soon”.

Meanwhile, the Government of Thailand is compelling airlines to avoid and suspend commercial travel to and from “dark red zones”, which are the provinces defined as the most affected by Coronavirus. 

Since the announcement for suspending flights to the most affected provinces, the regional unit of the Thai flag carrier, Thai Smile, has announced that it was suspending all domestic flights until August 3, 2021.

Thailand is currently battling with the worst wave of the COVID-19 pandemic experienced by the country. With a record-breaking infection rate observed, the local aviation sector remains uncertain.

The company announced the news via a Twitter post on June 11, 2021. Earlier in the day news agency Belga published a written statement of the company’s spokesperson.

鈥�<鈥�> the board of directors of Air Antwerp has decided to completely cease the operational activities of the regional airline and to dissolve the company,” spokesperson Yves Panneels told Belga. 

Sincerest thanks to our loyal customers, suppliers, , and our colleagues for your tremendous support these two years. It was an honour to serve you. Farewell

鈥� Air Antwerp (@AirAntwerp)

Air Antwerp operated three daily flights between Antwerp (ANR) and London City Airport (LCY) using its sole Fokker 50 aircraft.

The company was founded as a joint venture between Irish CityJet and Dutch flag carrier KLM. It started operations in 2019 but had to cease them several times through 2020 due to lockdowns. 

As KLM精东影业 attempts to find more investors were unsuccessful, the company took the decision to cease operations. 

According to Panneels, the contracts of the company’s nine employees will be terminated and all current bookings will be refunded.