April 13, 2012
Air India Restructuring Plan Approved
The Indian Cabinet Committee on Economic Affairs (CCEA) has approved a turnaround plan for flag carrier Air India. See Govt Approves Restructuring Plan for Air India, Times of India, April 12, 2012 (available here). Under the plan, the government will provide Air India with $5.85 billion worth of support between now and 2020. See Nikhil Gulati and Santanu Choudhury, India Approves Restructuring Plan for Air India, Wall St. J., April 12, 2012 (available here). The cabinet is expected to decide next week whether to allow foreign carriers to invest in Indian airlines.
April 12, 2012
Jeffrey Shane Interviewed for Conversations With Aviation Leaders Series
Earlier today, former U.S. Department of Transportation Undersecretary of Transportation for Policy Jeffrey N. Shane was the International Aviation Law Institute's guest for the latest recorded interview in our "Conversations With Aviation Leaders" Oral History Program. Shane, who has also served as DOT Assistant Secretary for Policy and International Affairs and Deputy Assistant Secretary of State for Transportation Affairs, spent time as the chief U.S. aviation negotiator and was integral in the formulation of the United States' Open Skies policy. Institute Director Brian F. Havel served as interlocutor for the interview. This is the sixth interview in the program, the first five of which are available for viewing here. It is expected that a transcript of Shane's interview will be included in next winter's special edition of the Institute's journal, Issues in Aviation Law and Policy. Transcripts of the first three interviews, Michael Levine, Alfred Kahn and Robert Crandall, can be found in this year's special edition which can be ordered through the Institute website here.
April 10, 2012
U.S.-Brazil Aviation Partnership
The United States and Brazil have announced a unique partnership as Brazil attempts to expand and modernize its aviation infrastructure and accompanying services in advance of the 2014 World Cup and 2016 Olympics. See Press Release, U.S. Trade and Development Agency, USTDA Launches U.S.-Brazil Aviation Partnership, April 9, 2012 (available here). Announced as a public-private partnership, it appears U.S. government agencies, including the U.S. Trade and Development Agency (USTDA), the U.S. Department of State, the FAA, and the Transportation Security Administration (TSA), will exchange information with their Brazilian counterparts on regulatory and technical issues related to airport modernization, airspace management, safety and security while U.S. private companies hope to contribute to and capitalize on the rapid development of Brazil's aviation sector through contracting, investment and export opportunities. In conjunction with the partnership, Boeing and Embraer have signed an agreement to cooperate on aircraft safety, operational efficiency and manufacturing productivity. See Press Release, Boeing, Boeing and Embraer Sign Agreement for Broad Business Cooperation to Benefit Customers and Support Industry Growth, April 9, 2012 (available here). The U.S.-Brazil Open Skies agreement, signed in December 2010, will not be fully operational until 2015.
April 9, 2012
Court Denies LAN Appeal of Merger Mitigation Measures
The Chilean Supreme Court has rejected LAN Airlines' appeal of three of the 14 mitigation measures Chile's antitrust authority attached to its approval of the merger between LAN and Brazilian carrier TAM. See Carolna Pica, Chile's LAN Clears Final TAM Merger Hurdle After High Court Ruling, Wall St. J., April 5, 2012 (available here). LAN will comply with the measures in question and the two airlines are expected to combine under the name LATAM Airlines in May. The carriers have yet to determine whether the merged entity will belong to oneworld or the Star Alliance.