Jet Airways renews air operator's certificate
August 02, 2023
Defunct Indian carrier Jet Airways has had its air operator's certificate revalidated despite reports that creditors are running out of patience with its drawn-out resolution process. The airline states that the Directorate General of Civil Aviation renewed the certificate on 28 July, "thereby reinforcing its commitment to revive India's most admired airline". Jet's AOC was last validated in May 2022 for one year, and it was unclear if it would be able to retain the crucial regulatory approval after it expired this May. The Jalan Kalrock Consortium, which was chosen in 2021 as the successful resolution applicant to revive the airline, adds that it "remains fully dedicated to the revival of Jet Airways and is committed to implementing a comprehensive strategy to ensure the airline's success". Jet ceased operations in April 2019 as fierce competition in the domestic market took its toll on the carrier, and it entered insolvency resolution. Despite JKC having been appointed as the successful bidder over two years ago, progress on the revival has been slow, and in May it admitted that there had been delays in paying Jet's creditors, which is required before it takes over the stricken airline. Recent reports from India indicate that the State Bank of India and other lenders are losing patience with the slow pace of progress on the proposed revival plan, with some suggestion that they may lodge action to wind up Jet Airways instead. The consortium is a partnership between Indian businessman and property developer Murari Lal Jalan and alternative investment firm Kalrock Capital.
ANA signs CO2 removal credit deal with 1PointFive
August 02, 2023
All Nippon Airways (ANA) has signed a carbon dioxide removal (CDR) credit purchase agreement with US-based 1PointFive. Under the agreement, the Japanese carrier will buy 10,000t of CDR credits per annum for three years beginning in 2025 from 1PointFive's direct air capture plant currently under construction in Texas. The facility, named Stratos, is expected to be commercially operational in mid-2025. "Direct air capture is a vital and scalable carbon removal technology that is necessary to help society achieve net zero," 1PointFive president Michael Avery states. "The aviation industry can uniquely benefit from DAC as a pathway to removing carbon emissions securely, practically and on a large-scale." ANA says the deal is aimed at further diversifying its decarbonisation methods to achieve carbon neutrality by 2050. The CO2 captured for the airline will be sequestered in saline reservoirs that are not used for oil and gas production, it adds.
US DOT suspends review of Allegiant Air-Viva Aerobus JV
August 02, 2023
The US Department of Transportation has suspended its review of Allegiant Air and Viva Aerobus's proposed cross-border joint venture due to concerns about Mexico's implementation of the two countries' air services agreement. The airlines filed a joint application in December 2021 requesting immunity for alliance agreements covering flights between the USA and Mexico. The procedural schedule for the review originally set a 31 July deadline for DOT action, but the department says it is pausing its review and will "therefore not be able to meet this deadline because of outstanding questions relating to the continued implementation of the US-Mexico air transportation agreement". The message was conveyed in a letter from DOT assistant secretary for aviation and international affairs Annie Petsonk to Mexico's undersecretary for transportation Rogelio Jimenez Pons. Petsonk adds: "It is longstanding DOT policy that a necessary predicate for our consideration of grants of antitrust immunity is the de jure and de facto implementation of a fully liberalised air transport agreement. "As we have discussed in our consultations, recent actions the government of Mexico has taken affecting US carrier operations at [Mexico City's] Benito Juarez International airport have, in our view, called into question the existence of this predicate." She did not provide specifics about the "recent actions" in her complaint. Petsonk adds that the DOT cannot further consider the application until it receives additional information "demonstrating compliance with, and full implementation of" the US-Mexico air transportation agreement terms. "We remain eager to continue our work with your offices to resolve these issues," she adds. Mexico's competition regulator approved the proposed alliance in October 2022, and Allegiant had signaled that it hoped to implement it during the first half of 2023, pending DOT approval. While acknowledging the suspension of the process, both carriers have remained optimistic about their proposed alliance. "We hope the United States and Mexico can resolve their differences over the bilateral agreement quickly, so travelers from both countries can benefit from the Allegiant/Viva joint venture," Allegiant says in a statement. Viva Aerobus says in its own statement: "We are confident that Mexican and United States transportation authorities will collaborate to find a resolution, allowing the approval process to resume to form this important alliance that will bring important advantages and benefits to both countries, strengthening connectivity, stimulating tourism, and connecting millions of families in the largest international air market. "Through this venture the public will gain greater access to affordable airfares, new routes and destinations, and more convenient travel options that will allow them to enjoy the incredible leisure, entertainment and family experiences that await them in both countries."