Air France-KLM would examine taking an ownership stake in Italian carrier ITA Airways should its joint bid with US investment fund Certares and airline Delta be successful. It follows the granting to the consortium of exclusive negotiations over a controlling stake in the company, which was formed as a successor to bankrupt legacy airline Alitalia. Welcoming the decision, Air France-KLM comments that an agreement would see it become a commercial and operational partner of ITA, although not yet an investor in its capital structure. “However, Air France-KLM Group could consider in the medium term to take a minority stake in ITA,” it states. Air France-KLM has had a lengthy relationship with ITA and before that Alitalia. The new airline was quickly welcomed into the SkyTeam alliance, of which AF-KLM and Delta are key members, with the parties rapidly establishing codeshare agreements. “Air France-KLM would like to thank the Italian government for its consideration throughout the bidding process, during which Certares, Air France-KLM and Delta Air Lines notably emphasized the strong commercial opportunities this deal would bring ITA subject to obtaining all relevant approvals,” it comments. “This includes an increased presence on the North Atlantic axis, on which Air France-KLM, Delta and Virgin Atlantic operate the largest joint venture, as well as the opportunity to build an exclusive partnership between Air France-KLM’s Flying Blue, Delta’s Sky Miles and ITA’s Volare – one of Italy’s largest frequent flyer programmes - to the benefit of the Italian carrier’s customers.”

The UK government has launched an independent review of the Civil Aviation Authority to ensure that the body can provide “world-leading regulation and public services for decades to come”. It will examine the CAA’s capacity to drive modernisation and innovation in the sector while protecting consumer rights, and is part of a wider review of government agencies to examine their performance. The CAA’s remit includes aviation safety and security, the efficient use of airspace, space operations and protecting consumer rights. “Civil aviation regulation is the lynchpin of an industry which pre-pandemic carried millions of passengers every year, contributed £22 billion ($25.6 billion) to our economy and supported nearly one million jobs,” says transport secretary Grant Shapps. “This review will ensure UK civil aviation regulation continues to be world-leading on safety, security, environmental considerations, economic regulation and consumer protection – which often supports other countries in driving up global standards.” It will run in parallel, but entirely separate to, the International Civil Aviation Organisation safety audit due to take place. Jeremy Newman, an independent panel member at the UK’s Competition and Markets Authority, will lead the process, which will run until spring 2023. The CAA has faced industry criticism in recent months over the setting of airport charges, particularly at Heathrow. The facility had argued that its charges, already the highest in the world, should be increased further, drawing outrage from airlines. A preliminary decision made in June will now see charges at Heathrow cut through to 2026. The CAA is also consulting on a post-Brexit shake-up of passenger compensation legislation which could include cash payments for customers who experience delays of as little as one hour on domestic flights – albeit at a relatively low level. This would be expected to reduce the overall compensation bill for airlines.

Taiwan's China Airlines has placed an order with Boeing for 16 787-9 aircraft, to replace its Airbus A330-300 fleet. The carrier discloses in a 30 August notice to the Taiwan Stock Exchange that it has ordered the 16 widebodies "to replace [its] ageing fleet and to improve operating efficiency". China Airlines revealed earlier this year that it was "exploring" the possibility of replacing its A330-300 fleet. Data shows that the carrier has 22 A330-300s, four of which are listed as being in storage. Most of the aircraft are leased. Its widebody passenger fleet also includes 14 A350-900s and 10 777-300ERs.