ARC NEWS
LATAM expects 15 Airbus deliveries in 2023
February 22, 2023
LATAM Airlines Group expects to have 31 Airbus A320neo-family aircraft in its fleet by the end of 2023, up from the 16 currently in operation. Among the 15 Airbus aircraft entering LATAM's fleet this year will be the Chilean group's first A321neo. LATAM's first A321XLR will be delivered in 2025. The 15 Airbus deliveries in 2023, disclosed 21 February, put LATAM on a path to have more than 100 A320neo, A321neo and A321XLR aircraft in its fleet by the end of the current decade, it says. "The renewal of the fleet that we are carrying out is fully aligned with our commitment to sustainability and brings us closer to the goal of becoming a carbon-neutral group by 2050," Sebastian Acuto, LATAM's director of fleet and projects, states. "The Airbus A320neo aircraft has more efficient engines, aerodynamic improvements and technologies that provide a 20% lower fuel consumption, with a 50% reduction in nitrogen oxide emissions." LATAM's current fleet includes 311 aircraft, 57 of which are Boeing jets (767s, 777s and 787s) and 238 of which are Airbus aircraft (A319s, A320s, A320neos and A321s), the group says. Additionally, LATAM's cargo operations in Chile, Colombia and Brazil have a joint fleet of 16 cargo aircraft, which will gradually expand to 20 cargo aircraft by 2024. The group has 19 A320neos, 47 A321neos and three Boeing 787s on order, Cirium fleets data shows.


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.


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