ARC NEWS
Mesa Air Group agrees to sell 18 CRJ700s to United Airlines
October 06, 2022
Mesa Air Group has entered into an agreement for the sale of 18 Bombardier CRJ700 aircraft owned by Mesa to US carrier United Airlines. The net proceeds from the sale of such aircraft will be approximately $50 million, the airline company disclosed. Under the terms of the agreement, Mesa Air says it is providing customary representations and warranties for a transaction of this type including authorisation, no conflicts, validity of agreement, regulatory matters, good and marketable title, airworthiness, no liens, aircraft records, manufacturer warranties, and no brokers' fees. In addition, United Airlines has agreed to deposit a specified sum per aircraft with the Federal Aviation Administration counsel to be applied toward the purchase of each aircraft. The closing of the sale of each aircraft is subject to certain customary closing conditions, including the execution of mutually acceptable sale and lease assignment and assumption documentation, and United's satisfactory inspection of the aircraft. The purchase agreement provides for a downward adjustment in the purchase price based on a formula set forth therein if the closing date in respect of an aircraft occurs after 31 January 2023, it adds.


IATA holds off on stripping Russian carriers of membership
October 05, 2022
IATA is prepared to suspend the membership of Russian carriers where they no longer hold the required operational safety certification, but is stopping short of automatically removing them entirely from the association, director general Willie Walsh has indicated. "We have not kicked the Russian carriers out of the association," Walsh said during a webcasted Eurocontrol conference on 4 October, but he clarified that any carrier that no longer held IATA Operational Safety Audit (IOSA) certification would have their membership suspended, as that is "what we do". "So, where somebody no longer holds the IOSA registration they are suspended from membership. If it is clear that they are not going to even try to get recertification, well then typically they are excluded from membership of the association," he says, but he stresses that suspension "does not necessarily mean they are kicked out of the association". The IATA website shows that Aeroflot, UTair, Smartavia, AirBridgeCargo, Ural Airlines, RusLine, Nordwind, Rossiya, S7, Pegas Fly and NordStar are members. Walsh also alluded to the removal of Aeroflot chief executive Mikhail Poluboyarinov from IATA's board after the Russian national carrier was sanctioned by the USA, EU and UK. The IATA director general says Russian airspace represents a "critical path" for Europe-Asia traffic, but notes that passenger numbers on these routes are still at only around 40% of 2019 levels, primarily because China is still closed as a result of Covid-related restrictions. "So it's not having a big impact on the industry today. For some airlines, it's having a huge impact: Finnair, for example, who have had to restructure their network completely," he says. Walsh disclosed that IATA has been speaking to a number of "very large" low-cost carriers about potential membership of the association. He notes that while some low-cost carriers have joined, large players such as Ryanair, EasyJet or Wizz Air are not members. "The bottom line is: there's not a lot we can offer them. Their business model doesn't really fit with the services that we offer. I think that they benefit from the advocacy work that we do – they may or may not recognise that. But that doesn't mean that IATA isn't relevant. I think it is, and will continue to be, and if they want to join us, great," he says. Walsh would not identify the airlines to which IATA had been speaking.


FAA sets 10-hour minimum rest for flight attendants
October 05, 2022
The US Federal Aviation Administration on 4 October finalised a rule requiring airlines to grant flight attendants at least 10 hours of rest between shifts of 14 hours or longer, handing a long-sought victory to labour unions. The rule first mandated by Congress in 2018 “will make it easier for flight attendants to do their jobs, which in turn will keep all of us safe in the air”, US transportation secretary Pete Buttigieg states. Previous rules already guaranteed minimum of 10-hour rest periods to pilots while airlines were only required to give flight attendants nine hours of rest between shifts and were permitted in some cases to reduce that period to eight hours. The Association of Flight Attendants applauded the new rule as its 100,000 union members face exhausting work conditions amid high rates of unruly passenger incidents. Labour unions for flight crews have also complained of being overextended on schedules as airlines work to rebuild their work force amid recovering travel demand. The FAA investigated 1,099 incidents of unruly passengers during 2021, the highest tally ever recorded by the agency. There have been 721 incidents reported so far during 2022, while that rate hovered between 100-150 incidents annually during the previous decade.


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