ARC NEWS
​Turkish Airlines and Thai Airways move towards joint venture
August 09, 2023
Turkish Airlines and Thai Airways have signed a memorandum of understanding that paves the way for joint venture operations linking Asia and Europe via Istanbul. The Star Alliance partners have agreed to “work towards” shared operations through the Turkish hub that would “maximise the synergies that this strategic partnership offers to both airlines.” As part of the agreement, signed in Turkiye earlier this month, Thai will launch a daily services in December between Istanbul and Bangkok to strengthen its position as a gateway to Asia Pacific, it says. Currently, only Turkish Airlines operates on the route. “This cooperation would enhance the efficiencies of Thai and Turkish Airlines in terms of connectivity and route network. Our customers will be able to conveniently travel between Thailand and Turkiye as well as on to Europe and other points in Asia, making full use of the extensive networks offered by Thai and Turkish Airlines,” states Chai Eamsiri, chief executive of Thai. Bilal Eksi, chief executive of Turkish Airlines, says the collaboration will “enhance connectivity between the two regions, provide seamless travel experiences, and offer passengers a wider range of destinations and services through both airlines’ networks.”


Pakistan to privatise national carrier
August 08, 2023
Pakistan announced on 7 August that it plans to privatise national carrier Pakistan International Airlines (PIA). "The CCoP (Cabinet Committee of Privatisation) after deliberation decided to include Pakistan International Airlines Co. Ltd (PIACL) in the list of active privatisation projects of the ongoing privatisation programme, following an amendment in the law by the Parliament," the government states. At the meeting, the committee also gave a nod to hiring a financial advisor to “process/structure transaction” of Roosevelt Hotel in New York, an asset of PIA Investment. PIA leased out the hotel in May to New York city’s administration for $220 million for three years. The carrier posted an operating profit of PRs767 million ($2.7 million) in the first quarter ended 31 March, reversing a loss from a year ago. However, net loss attributable to came in at PRs38 billion, widening from a PRs14.3 billion loss in the year-ago period. PIA made an operating loss of PRs11.3 billion in 2022, narrowing from the year before, although its net loss of PRs88 billion widened from the year before. The carrier has 34 aircraft in its fleet, with 16 units on lease. It has 23 aircraft in service comprising 12 Airbus A320ceos, nine Boeing 777s and two ATR42s and 11 in storage, comprising five A320ceos, three ATR 72s, one ATR42 and two 777s in storage, according to fleets data. It flies to about two dozen international destinations mostly in the Middle East and also Toronto, Beijing and Kuala Lumpur, and over a dozen destinations domestically.


​Jazz experiencing capacity constraints due to pilot shortage
August 08, 2023
Strong industrywide demand for pilots is causing capacity constraints at Canadian regional carrier Jazz Aviation, according to the chief executive of parent company Chorus Aviation. "There is a gap between pilots exiting the organisation and the time it takes to train new hires for productive flying, which temporarily constrains available flying hours," said Colin Copp during Chorus's second-quarter earnings call held on 4 August. He adds that the company is "actively recruiting" pilots and growing its pipeline of future pilots through its Jazz Pathway Program – which offers top-performing graduates the opportunity to transition to first officer positions at the carrier – as well as through its new flight training academy Cygnet Aviation. Jazz's pilot flow agreement with Air Canada is "working as intended", Copp says, adding that 300 pilots have transferred to the mainline carrier over the past year, though there has also been some attrition to other airlines. Jazz continues to see a "good supply of new hire pilots", according to Copp. He goes on to say: "The leadership team at Jazz is very focused on collaborating with our partner Air Canada to coordinate pilot flow and flying capacity. While the production in annual block hours is temporarily constrained as the pilots are getting trained, the reduction in flying does not have any impact on Jazz's earnings". Copp believes the constraints will lift later this year and next year, but it will depend on "what happens in the business big picture wise". "If things slow down a little bit then we'll recover really quickly," he adds. "If the demand continues and we see more growth in the mainline side, we're going to continue to produce lots of new pilots – that's for sure." Chorus chief financial officer Gary Osborne notes during the same earnings call that Jazz has a "fixed margin in place with Air Canada that does not vary regardless of flying". "So from an economic perspective, as far as the fixed fee... there is no impact associated with the reduced flying," he says.


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