ARC NEWS
Southwest faces class-action suit centred on scheduling systems
January 23, 2023
A class-action suit has been filed against Southwest Airlines, accusing the US carrier of having misled investors about its ability to operate during severe weather. New York-based law firm Bronstein, Gewirtz & Grossman filed the lawsuit against Dallas-based Southwest and certain of its officers on behalf of all persons and entities that purchased or otherwise acquired Southwest securities between 13 June 2020 and 31 December 2022. The law firm is encouraging such investors to join the class action, which seeks to recover damages for alleged violations of federal securities laws. The firm's complaint challenges the accuracy of Southwest statements about its operations and contends that the airline failed to disclose certain issues related to its scheduling technology and flight schedule. Southwest, the suit also argues, "did not discuss how its unique point-to-point service and aggressive flight schedule could leave it prone in the event of inclement weather". The airline says that it does not "have anything to share at this time on that pending litigation". Flight cancellation rates for US majors Southwest, American Airlines, Delta Air Lines and United Airlines increased sharply after 20 December as a severe storm swept eastward from the Midwest and temperatures plummeted. Southwest suffered the worst operational disruption among US majors during the holiday period spanning 20 December 2022 to 2 January 2023


​Air France-KLM drops out of ITA bidding
January 20, 2023
Air France-KLM has confirmed that it will not make an approach for a stake in ITA, following the disclosure of Lufthansa's bid for the Italian carrier on 18 January. In a statement, Air France-KLM says it has "informed the Italian government that the group will not participate in the bidding process for the acquisition of an equity stake in ITA". It notes that a decree issued by the Italian government in December "requires the involved airlines to acquire the majority of the shares in ITA object of privatisation in each phase and to ultimately hold the majority of capital of ITA at the date of the total exit of the Italian government". Air France-KLM previously explored becoming a commercial partner to ITA alongside US airline Delta Air Lines, as part of a bid by New York investment fund Certares. The consortium was nominated as the sole bidder for negotiations with the Italian government in September, but the talks later concluded without agreement. Air France-KLM says it will "continue to closely monitor the privatisation process and hereby reasserts its strong interest to maintain its commercial relationship with ITA, which is a SkyTeam member". ITA was launched as a successor to former flag carrier Alitalia in October 2021, taking on much of its fleet, staff, branding and other assets.


FAA says 11 January outage due to 'unintentionally deleted files'
January 20, 2023
The US Federal Aviation Administration (FAA) has preliminarily found that the unintentional deletion of files during system synchronisation caused the Notice to Air Missions (NOTAM) outage on 11 January that briefly grounded thousands of domestic departures. In its preliminary review of the incident, the FAA has determined that the outage of the NOTAM system was because "contract personnel unintentionally deleted files while working to correct synchronisation between the live primary database and a backup database". The agency says it "has so far found no evidence of a cyber-attack or malicious intent". "The FAA made the necessary repairs to the system and has taken steps to make the NOTAM system more resilient. The agency is acting quickly to adopt any other lessons learned in our efforts to ensure the continuing robustness of the nation’s air traffic control system," it states. Thousands of domestic flights across the USA were delayed on the morning of 11 January after the FAA briefly suspended domestic departures due to an overnight outage to its NOTAM system, which provides safety information to flight crews. The FAA had initially suspended all domestic departures for a nearly two-hour period, until 09:00 ET, after failing to resolve the glitch, but the ground stop was lifted shortly after at 08:50 ET.


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