ARC NEWS
Airlink loses latest court bid to recover funds from SAA
July 28, 2023
A court in South Africa has dismissed an application from Airlink to recover R890 million ($51 million) from its former franchise and commercial partner South African Airways. The Johannesburg High Court ruled on 25 July that SAA did not owe funds derived from ticket sales for Airlink flights prior to the flag carrier's voluntarily placing itself in business rescue on 5 December 2019 but payable after that date. SAA says the ruling upheld two previous judgements on the same matter, by the South African Supreme Court of Appeal and the High Court in 2020. Airlink had requested that payments owed for flown and unflown tickets before SAA went into business rescue in 2019 not be treated as "pre-commencement debts" under the restructuring process, as Airlink would otherwise not be deemed a concurrent creditor under the plan. SAA says this application was dismissed and that Airlink was ordered to pay costs. "We welcome the judgement and hope this finally lays this matter to rest," states SAA interim chief executive John Lamola. "SAA's journey through business rescue was both painful and necessary." Airlink's managing director Rodger Foster says he respects the court's decision. "It is, after all, the duty of the company's leadership to explore every available avenue to recover the funds," he adds. "Meanwhile, we will continue to focus on growing Airlink as an independent, financially robust, commercially vibrant, competitive and sustainable airline."


​Etihad returns A380 to service
July 27, 2023
Etihad Airways has reactivated a first Airbus A380, deploying it on the London Heathrow route. "The aircraft adds much-needed capacity connecting Abu Dhabi with London Heathrow, and allows us to build our network and increase frequencies across the network," states Etihad chief executive Antonoaldo Neves. "With a surge in demand for travel over the summer, the return of our much-loved A380 comes at the perfect time." In December 2022, Etihad disclosed a plan to reactivate four of its 10 A380s from this year's summer season. The fleet had been placed in storage in 2020, amid the pandemic.


​Lufthansa questions SAF quota
July 27, 2023
Lufthansa Group has raised concerns about a blending quota for sustainable aviation fuels that was adopted as part of the EU's "Fit for 55" climate-protection package. The German airline group argues that both the quota and a proposing tightening of the Emissions Trading System create "unfair competitive conditions, as they primarily affect European airlines". The SAF quota, Lufthansa complains, unilaterally increases the costs of connecting flights through European hub airports, giving an advantage to airlines with hubs at the gateways of Europe, such as Istanbul or Doha. "This quota is detrimental in terms of both industrial and climate policy, as it merely shifts emissions instead of reducing transport-related CO2 emissions (carbon leakage)," adds the group. It estimates that biogenic SAF is about five times more expensive than fossil kerosene, while electricity-based fuels (power-to-liquid, or PtL) are up to 10 times more expensive, and warns that limited availability of biomass is likely to keep costs high. "If the fuel blending requirements increase in the EU over the years without a decrease of SAF prices, the gap between competitors will continue to widen," Lufthansa asserts. The group is urging the German government to take account of the EU harmonisation of PtL quotas and refrain from unilateral national initiatives before 2030, and wants the EU to review and redesign the SAF quotas to ensure a level playing field for airlines in the EU versus non-European competitors. "In addition, an EU-wide SAF funding programme is necessary," the group suggests, adding: "As an international climate-protection instrument, CORSIA must be systematically implemented and further developed. A global SAF quota would be the right instrument to ensure fair international competition and accelerate market development."


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