Asiana ordered to suspend operations to San Francisco for 45 days
November 30, 2014
South Korean operator, Asiana Airlines, has been ordered by the South Korean Ministry of Land, Infrastructure and Transport, to suspend operations to San Francisco as a penalty for its undershoot and tail-strike accident at San Francisco International Airport in July 2013. The ministry noted that this punitive action was undertaken due to the final investigation report determining that deficiencies in Asiana’s operations were the primary contributory factors that lead to the accident. The airline does have the option of determining when the ban will commence, which will most likely be aligned with the off-peak season.
Etihad’s 49% share acquisition of Alitalia receives regulatory approval
November 30, 2014
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.
Hunnu Air returns aircraft and suspends major international routes
November 30, 2014
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.