Wednesday, October 31, 2012

Virgin Australia Attempts to Consolidate Australian Market

Virgin Australia has announced plans to acquire regional Australian carrier Skywest Airlines as well as a 60% stake in Tiger Airways, but the moves will need to pass muster with Australian competition authorities. In a related move, Virgin Australia sold a 10% stake to Singapore Airlines.

October 31, 2012 | Permalink | Comments (0) | TrackBack (0)

Wednesday, October 24, 2012

Canada Approves Air Canada/United Continental Joint Venture

The Canadian Competition Bureau has reached an agreement with Air Canada and United Continental to allow the two carriers to proceed with a joint venture, first announced in 2010, on 14 routes between the two countries. The agreement bars the airlines from coordinating on prices, seat availability, pooling revenue or costs, and sharing commercially sensitive information.

October 24, 2012 | Permalink | Comments (0) | TrackBack (0)

Tuesday, October 23, 2012

HNA Acquires Stake in French Carrier

HNA Group, the Chinese conglomerate that owns Hainan Airlines, has reached an agreement to purchase a 48% interest in French carrier Aigle Azur.

October 23, 2012 | Permalink | Comments (0) | TrackBack (0)

Monday, October 22, 2012

Greek Carriers Give Combination Another Try

Aegean Airlines reportedly plans to purchase Olympic Air and operate Greece's former state carrier as a subsidiary. Those plans will be contingent upon approval from the European Commission, which blocked a proposed merger between the two Greek carriers in early 2011. 

October 22, 2012 | Permalink | Comments (0) | TrackBack (0)

Friday, October 19, 2012

Canada Moving Closer to Cape Town Ratification?

It appears that the Canadian government is considering ratification of the Convention on International Interests in Mobile Equipment and its related Aircraft Protocol (often referred to collectively as the Cape Town Convention). Canada would be the 53rd contracting party to the convention.

October 19, 2012 | Permalink | Comments (0) | TrackBack (0)

Thursday, October 18, 2012

Portugal Selects Tap Bidder

Portugal has chosen Brazil's Synergy Aerospace, the majority owner of AviancaTaca, to purchase flag carrier Tap Air Portugal. Both Tap and AviancaTaca belong to the Star Alliance, simplifying that part of the deal. However, it is as of yet unclear how the parties intend to work around EU's 49% foreign ownership cap. This is yet one more example of the emerging trend toward cross-border consolidation. Restrictions on foreign ownership are looking increasingly obsolete.

October 18, 2012 | Permalink | Comments (0) | TrackBack (0)

Wednesday, October 17, 2012

Gulf Carriers Brought Into Fold

A fairly sharp article in Reuters today recaps the recent developments involving the three prominent Gulf carriers and briefly discusses the significance of their incorporation into the alliance system. Last week, Qatar Airway joined the oneworld alliance, following Etihad's codeshare agreement with Air France-KLM and Emirates' codeshare with Qantas.

October 17, 2012 | Permalink | Comments (0) | TrackBack (0)

Monday, October 15, 2012

Turkey Bans Syrian Aircraft From Airspace

As tensions escalate between the two States, Turkey has barred all Syrian aircraft from entering Turkish airspace, one day after Syria imposed a similar ban on Turkish aircraft.

October 15, 2012 | Permalink | Comments (0) | TrackBack (0)

Friday, October 12, 2012

Emirates Fined for Price Fixing in Australia

An Australian Court has hit Emirates with a $10 million fine for price fixing on cargo routes between Indonesia and Australia from 2001 to 2006.

October 12, 2012 | Permalink | Comments (0) | TrackBack (0)

Thursday, October 11, 2012

Potential ICAO Solution on Emissions?

An intriguing report surfaced in the Economic Times today of a potential ICAO-designed market-based-mechanism for aviation emissions that could prove acceptable to India and presumably other countries that have so far resisted the idea. According to the article, the proposal would only apply to developed countries at first, but would eventually encompass developing countries as well. Once it is fully in place, revenues from developing countries' carriers would be directed back to those countries to be used for aviation emissions reductions while revenues from carriers in developed countries would be shared globally. 

October 11, 2012 | Permalink | Comments (0) | TrackBack (0)

Wednesday, October 10, 2012

The Argument for Incremental Emissions Regulation

In Defense of Incrementalism for International Aviation Emissions Regulation, by Gabriel S. Sanchez, is now available via the Virginia Journal of International Law.

October 10, 2012 | Permalink | Comments (0) | TrackBack (0)

Tuesday, October 9, 2012

Regulator Intervenes with Kingfisher Ticket Sales

Kingfisher Airlines, which temporarily suspended operations last week in response to an employee strike, has been prohibited from selling tickets by India's Directorate General of Civil Aviation. The regulator is scrutinizing Kingfisher's continued viability.

October 9, 2012 | Permalink | Comments (0) | TrackBack (0)

Monday, October 8, 2012

Air France, Etihad Enter Code-Share Agreement

In what may be the first step toward a deeper integration, Air France and Etihad have announced a code-share agreement.

October 8, 2012 | Permalink | Comments (0) | TrackBack (0)

Friday, October 5, 2012

CJEU Requires Compensation for Passengers Delayed by Strike

The Court of Justice for the European Union (CJEU) has delivered its judgment in Case C-22/11, Finnair Oyj v Timy Lassooy. The Court ruled that Regulation (EC) No 261/2004, which requires carriers to compensate passengers for delayed or cancelled flights, applies to delays caused by employee strikes. Finnair had attempted to argue that strikes constitute "extraordinary circumstances" under Article 5(3) of the regulation, and thus carriers should be exempt from their compensation obligations when delays are caused by strikes. The Court rejected this interpretation, decreeing that the Article 5(3) exemption was intended for events that "could not have been avoided even if all reasonable measures had been taken."

This ruling should give industry employees additional leverage in future labor disputes, and given the frequency of airline strikes within the EU, could prove costly for Europe's already struggling carriers.

October 5, 2012 | Permalink | Comments (0) | TrackBack (0)