ARC NEWS
Hainan Airlines to restart Shenzhen-Vienna route on 29 May
April 08, 2024
Hainan Airlines will reinstate twice weekly flights between Shenzhen and Austria's capital Vienna from 29 May. The route marks its first direct international route to Vienna since the pandemic and is also its ninth international route out of Shenzhen, the Chinese carrier says. Schedules data shows that it is the only carrier to fly between the two cities. It will also be the third route between Vienna and China as Air China flies to the Austrian capital from Beijing Capital, while Austrian serves Shanghai Pudong. From Shenzhen, Hainan also operates direct flights to Vancouver, Paris, Rome, Milan, Brussels, Auckland, Tel Aviv and Cairo.


Alaska gets $160 million from Boeing over Max 9 grounding
April 05, 2024
Alaska Airlines received $160 million in cash from Boeing in the first quarter as part of compensation for the grounding of its 737 Max 9 fleet following the door-plug blowout accident in January, according to a regulatory filing. The airline says its results were "significantly impacted" by Flight 1282 and the subsequent grounding which extended into February. "As a result of the Flight 1282 accident and the Boeing 737-9 Max grounding, we lost approximately $160 million in Q1 pretax profit, primarily comprising lost revenues, costs due to irregular operations, and costs to restore our fleet to operating service," it says in a 4 April Form 8-K filing to the US Securities and Exchange Commission. Alaska expects additional compensation to be provided by Boeing beyond the first quarter, but says the "complete terms" of that compensation are confidential. In January, Alaska grounded its fleet of 65 Max 9 jets after one of the aircraft was forced to return to Portland International shortly after take-off following a door-plug blowout. The US Federal Aviation Administration subsequently ordered the temporary grounding of "certain Boeing 737 Max 9 aircraft operated by US airlines or in US territory".


LATAM pursues relisting on New York Stock Exchange
April 05, 2024
LATAM Airlines Group's board has approved commencement of efforts to reopen and relist American depositary shares (ADRs) on the New York Stock Exchange. The Chile-based group notes that the process involves several procedures and requirements with regard to the US Securities and Exchange Commission and the NYSE. LATAM's board subsequently "will decide whether or not to approve and make effective LATAM's relisting on the NYSE". It adds that the relisting of LATAM's ADR programme can take up to six months. The 4 April disclosure of LATAM's initiation of the relisting process coincides with the resignation of Bouk Van Geloven from the company's board. The group emerged from its US Chapter 11 restructuring process in November 2022. LATAM and its affiliates in Chile, Peru, Colombia and Ecuador had on 11 May 2020 filed for Chapter 11 amid a near-shutdown of global aviation in the early months of the pandemic. The group shuttered its Argentinian affiliate on 17 June, and on 9 July 2020 included its Brazilian affiliate in the Chapter 11 filing. In the fourth quarter of 2023, LATAM made an operating profit of $304 million, more than doubling its $140 million profit made during the same period in 2022. Brazilian carrier Gol – one of two main competitors to LATAM's affiliate in that country – on 25 January 2024 filed for Chapter 11 bankruptcy protection with the US Bankruptcy Court for the Southern District of New York. The Brazilian government during the pandemic provided little support to domestic carriers, which quickly became saddled with mounting debts owed to lessors, in particular. Speaking during an earnings call on 28 March, John Rodgerson, chief executive of third Brazilian rival Azul, noted that lately "there's been a great dialogue with the Brazilian government". Rodgerson adds: "The three airlines are working jointly to kind of show some of the main concerns that the Brazilian industry has faced over the last few years... there's a significant burden on the airlines because the cost of capital has gone up significantly and because the Brazilian industry did not get any government aid at all."


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.