The US Federal Aviation Administration has approved a plan to start returning 171 grounded Boeing 737 Max 9s to service but will not allow the airframer to expand production rates across the Max programme. The FAA says that a comprehensive inspection and maintenance process for mid cabin door plugs will have to be completed on each Max 9 to allow them to return to service. This includes sections of specific bolts, guide tracks and fittings, retorquing fasteners and correcting any damage to the plugs and their fittings. "The exhaustive, enhanced review our team completed after several weeks of information gathering gives me and the FAA confidence to proceed to the inspection and maintenance phase," says FAA administrator Mike Whitaker. "However, let me be clear: This won’t be back to business as usual for Boeing. We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 Max until we are satisfied that the quality control issues uncovered during this process are resolved." Fleets data shows that Boeing delivered 386 Max jets in 2023, lower than its original target of 400-450 as the programme was beset by quality issues stemming from key supplier Spirit AeroSystems. The FAA adds that it will increase its scrutiny of the airframer's production and manufacturing activities, including "increased floor presence at all Boeing facilities", and an investigation into its compliance and manufacturing requirements. In response Boeing issued a short statement that reads: "We will continue to cooperate fully and transparently with the FAA and follow their direction as we take action to strengthen safety and quality at Boeing. We will also work closely with our airline customers as they complete the required inspection procedures to safely return their 737-9 airplanes to service." Soon after the FAA announcement, Alaska Airlines said that the first of its 65 Max 9s would start returning to service from 26 January following the inspection process. The carrier estimates it will take to take around 12 hours per aircraft to complete the process and should complete those inspections over the next week. United Airlines advised staff that its 79 Max 9s would undergo the inspections and start re-entering scheduled service from 28 January.

The European Commission is launching an in-depth investigation into Lufthansa Group’s bid to take joint control of Italian airline ITA, amid concerns that it could harm competition in Italy. Authorities are worried that the transaction, under which the Germany-based airline would purchase a 41% stake in ITA from Italy’s finance ministry, could weaken competition between its home country and Central Europe, where the two airlines currently both operate. There are also implications for long-haul routes to North America and Asia, the European Commission believes, particularly given that Lufthansa, United Airlines and Air Canada operate a joint-venture partnership, sharing revenues on transatlantic routes. Lufthansa and ITA are currently “strong and close competitors” on certain routes to and from the country, it notes. Although the Italian market is also deeply integrated into the networks of low-cost airlines such as Ryanair, they tend to fly to more remote airports than the two full-service airlines. The European Commission adds that the deal could strengthen ITA’s dominant position at Milan-Linate, shutting rival airlines out of the facility. “By opening the in-depth investigation, we want to further assess the transaction and ensure that the acquisition of ITA does not reduce competition in short-haul and long-haul traffic and that it will not lead to higher prices, less capacity or lower quality for passenger air transport services in and out of Italy,” states Margrethe Vestager, the European Commission’s head of competition policy. The parties announced in May last year that Lufthansa would purchase a 41% stake in ITA for €325 million ($348 million), notifying the commission on 30 November 2023. As part of the deal, the German company has a right to buy the remaining shares in ITA at a later date. On 8 January, Lufthansa submitted commitments to address some preliminary competition concerns from the European Commission, although these were viewed as unsatisfactory. The European body now has 90 working days, until 6 June, to take a decision on whether to approve, deny the deal, or to seek more changes. Lufthansa has said that by taking control of ITA it will be able to develop Rome Fiumicino into a new long-haul hub for the airline group, joining existing ones in Frankfurt, Munich, Vienna and Zurich. The German group also believes that ITA can play a role in feeding traffic into its current network, as well as in cementing its presence in Italy – already its third-most-important market after its home countries and the USA. ITA commenced operations on 15 October 2021 as a replacement for former flag carrier Alitalia.

The US Treasury has imposed sanctions on Fly Baghdad and its chief executive for allegedly assisting Iran’s Revolutionary Guards military force and alleged proxy forces in Iraq, Syria and Lebanon. US authorities say that Fly Baghdad has for “several years” supported the Iranian security force and its proxies by delivering materiel and personnel throughout the region, including shipments of weapons to Syria for use by militias. US authorities consider the Revolutionary Guards a terrorist group. They contend that Iran-linked militia Kata’ib Hizballah (KH) “has been using Fly Baghdad to transport fighters, weapons, and money to Syria and Lebanon to prop up the Syrian regime”, adding that “KH leaders used Fly Baghdad flights on multiple occasions to transport bags of US currency and US-made weapons obtained through battlefield collection from Iraq to Lebanon.” Likewise chief executive Basheer Abdulkadhim Alwan al-Shabbani “is being designated for owning or controlling, directly or indirectly, Fly Baghdad,” the Treasury adds. Two aircraft owned by Fly Baghdad, with tail numbers YI-BAF and YI-BAN, have been designated as blocked aircraft. Data shows the two jets are a Boeing 737-800 and a 737-700, respectively, owned by the company. Sanctions will freeze any assets of the airline and al-Shabbani in the USA and stop financial institutions with links to the US from dealing with the airline. Fly Baghdad’s website is offline. Fleet data shows that the airline operates a total of 11 aircraft, nine of them 737 NGs, all but one of which are in service. The carrier also operates one Bombardier CRJ200 and one CRJ900, one of which is in storage. Four of the 737s are leased from DAE Capital, while FTAI Aviation and Deucalion Aviation each lease one 737 NG to the carrier. The CRJ900 is from Avmax Aircraft Leasing, while the CRJ200 is owned by the carrier. Fly Baghdad launched operations in 2015 and is listed by Cirium as being owned by private Iraqi investors.