ARC NEWS
Loganair calls for UK focus for vacated Heathrow slots
February 22, 2023
Scottish regional airline Loganair has called on the UK government to preserve the recently vacated slots at London Heathrow for new domestic connections. The slots are presently earmarked for Aberdeen and Edinburgh into Heathrow but those markets are well served by British Airways and others from airports across London, says chief commercial officer Luke Lovegrove in a LinkedIn post. To be able to deploy these slots onto underserved markets would be a "far better use of them", he adds. "It would be difficult to think of a better way of levelling up our regions and boosting Union connectivity. The economic benefit of increased global tourism via Heathrow into regional economies like Derry, would be game-changing", Lovegrove says.


EC deepens probe into Korean Air-Asiana merger
February 21, 2023
The European Commission will carry out an in-depth investigation into the proposed Korean Air-Asiana Airlines merger, citing concerns that the deal may reduce competition in both passenger and cargo markets between Europe and South Korea. “With our in-depth investigation, we will ensure that the acquisition of Asiana by Korean Air does not impede competition and will not lead to higher prices, less capacity or lower quality for passengers and cargo air transport services,” Margrethe Vestager, executive vice-president in charge of competition policy. The EC says its preliminary investigation indicates that the two South Korean carriers are “strong and close competitors”, and that their merger could reduce competition on four routes between South Korea and the EU. Schedules data shows that Asiana and KAL both operate services from Seoul Incheon to Paris, Frankfurt, Rome and Barcelona. In those routes, Korean Air and Asiana compete head-to-head, and in two of those routes, they are the only two companies offering direct services. Other airlines may be unlikely to exert sufficient competitive pressure on the merged entity,” the EC states. Schedules data shows that KAL and Asiana together command a 63% share of the 769 flights and 61% of nearly 230,000 seats, between Incheon and Europe. Lufthansa, their nearest competitor, comes in at only about 10% and 11%, respectively. The Commission also raised concerns over the impact on the air cargo market, where Asiana and KAL compete directly, while there are “regulatory and other barriers” that could prevent a competitor from exerting "sufficient competitive pressure" on the merged airline. It adds that “it is unlikely that Asiana and Korean Air would stop competing or be significantly less competitive absent the transaction” despite the impact of the Covid-19 pandemic on the global aviation industry. The Commission was formally notified of the transaction on 13 January and had until 17 February to decide if it would open an investigation. Now that has taken place, it has 90 business days, until 5 July, to make its decision. The merger is also pending approval from the USA and Japan, and final approval from the UK. China was the latest authority to clear the acquisition in December 2022 but will require the merged entity to reduce its market share due to competition concerns. Regulators in South Korea, Australia, Thailand, Singapore and other jurisdictions have already cleared the proposed merger. KAL's chairman and chief executive Walter Cho has reaffirmed plans to complete the acquisition in 2023, saying that it is “in the last stage with the remaining overseas competition authorities reviewing the merger”. KAL first announced its plan to take over cash-strapped Asiana in November 2020, following multiple attempts by Kumho Industrial to sell its controlling stake in the Star Alliance carrier.


​Schiphol posts ‘poor’ 2022 results
February 21, 2023
Royal Schiphol Group posted an underlying loss of €28 million ($30 million) for the full year as issues ramping up capacity stymied the company’s performance. The Amsterdam-based group, that also operates Lelystad and Rotterdam The Hague airports and owns shares in several others, said that supporting its operational performance through the recovery cost it an extra €120 million through the year. It describes its own financial performance as "poor". “Never before in Schiphol’s history have we disappointed so many travellers and airlines as in 2022,” comments chief executive Ruud Sondag. “Our efforts and hard work did not lead to the necessary improvements in the system and, as a result, we were not able to provide the service we wanted. 2022 will therefore go down as a bad chapter in our own history books.” Former chief executive Dick Benschop resigned from the role in September following criticism of the company’s summer performance. There were 397,646 air transport movements at Amsterdam Schiphol, by far the largest facility in the company’s portfolio, in the year, representing a 49% increase on 2021.


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