Etihad Airways has received regulatory approval from the European Commission for its 49% share acquisition of Alitalia. In 2013, after consecutive years of poor financial performance, Alitalia began seeking investors to aid the airline’s financial and operational recovery. After several months of due diligence had been completed, Etihad Airways and Alitalia agreed on a 49% share acquisition by Etihad. This agreement was then subjected to regulatory review, to ensure that the merger complied with European regulations on competition. While the two airlines were required to undertake several minor concessions as a part of their proposed merger, the EC ultimately determined that the merger adhered to all of the required regulations and was subsequently cleared. The two airlines will now initiate their strategic partnership, which will involve larger-scale fleet and network adjustments for Alitalia.

Mongolian-based operator, Hunnu Air, recently returned its Airbus A319 aircraft after experiencing poor demand on its international routes. The airline had commenced operations to Paris in early 2014. However, insufficient passenger demand and limited economic growth within Mongolia subsequently prompted the airline to suspended operations to Hong Kong, Tokyo, Shanghai, Bangkok and Paris. The airline now exclusively operates an ageing fleet of Fokker 50 turbo-prop aircraft to a number of regional destinations within Mongolia and two international destinations within China. In early 2014, fellow regional Mongolian-based carrier, Eznis Airways, also succumbed to the economic downturn within Mongolia after consecutive years of poor financial performance and diminishing passenger demand for regional destinations within Mongolia.

Russian-based airline, Polet, has officially entered a six month period of administration after the airline defaulted on a series of payments. An arbitrations court declared that the airline will be placed under the control of an external administrator in an attempt stabilise the airline’s financial position. The court noted that the airline would be under the control of administrators until May 2015, at which time the airline’s financial position will be reviewed.