ARC NEWS
FAA restores Malaysia's category 1 safety rating
October 04, 2022
The US Federal Aviation Administration (FAA) has restored Malaysia's category 1 rating safety rating, paving the way for the country's airlines to expand services to destinations in the USA. "Under a Category 1 rating, properly authorised Malaysian air carriers are permitted to serve the United States and enter into code-share agreements with US carriers without limitation," the FAA states. The return to category 1 status follows "a thorough review of [Malaysia's] progress in improving its safety oversight processes". The FAA had downgraded Malaysia to a category 2 rating in November 2019, deeming it noncompliant with ICAO (International Civil Aviation Organization) safety standards following an audit in April 2019. Countries are either listed as either category 1 or 2, depending on whether it meets ICAO safety standards. Malaysia's downgraded safety rating spurred American Airlines to unilaterally remove its codeshare on services operated by flag carrier Malaysian Airlines, which stressed then it still planned to place its code on American-operated services. AirAsia X, the only Malaysian carrier with scheduled services to the USA, welcomed the reinstatement. "The reinstatement is set to open more opportunities for its future medium to long-haul network plans especially to the US, and other Asian countries including Japan and Korea as they will grant the relevant regulatory approvals based on FAA standards," it says. AirAsia Aviation Group's group chief executive Bo Lingam states: "After an industry reset following the pandemic, this announcement could not have come at a better time as travel demand picks up. Category 1 safety rating will not only allow us to expand our future network plans but also stabilise the country’s aviation industry as a whole." AAX operates direct flights to Honolulu, Hawaii via Osaka, Japan. Data shows that AAX was the sole Malaysian carrier operating to the USA when it launched services between Kuala Lumpur and Honolulu in July 2017 until March 2020, amid the pandemic. It will resume eight weekly services on the route from February 2023. Malaysia Airlines exited the US market in April 2014, after it ceased its sole Los Angeles service. The carrier also previously offered flights to Newark Liberty International airport, but suspended the service from October 2009.


Korean Air signs SAF purchase agreement with Shell
October 03, 2022
Korean Air has signed a memorandum of understanding with energy company Shell to purchase sustainable aviation fuel (SAF). The MoU explores the supply and purchase of SAF from Shell at major airports in Asia-Pacific and the Middle East from 2026 for five years, the airline says in a release today. The airline will work with Shell and continue to expand cooperation with other global oil companies to secure SAF supply for other regions including Europe and the USA, it adds. Korean Air says it became the first Korean airline in November 2017 to use SAF on a flight departing from Chicago to Seoul Incheon. In February this year, the airline also started using SAF on flights from Paris to Seoul Incheon. Last year, the airline partnered with Hyundai Oilbank and SK Energy, to adopt SAF and carbon-neutral jet fuel, respectively. In February this year, Korean Air also signed a MoU with Incheon International Airport Corporation, Airbus, and Air Liquide to cooperate on supplying aviation hydrogen fuel and developing relevant infrastructure in South Korea.


​Portugal to privatise TAP, next year: prime minister
October 03, 2022
Portugal's government plans to return flag carrier TAP to private ownership next year, prime minster Antonio Costa has reportedly told parliament. Local newspaper Renascenca quotes Costa as saying, on 29 September, in response to a question on whether the government intended to privatise TAP within the next 12 months: "I hope so. That is what is planned." He was then asked whether the government would make a loss on the transaction, to which he replied: "I hope not. I believe it can happen. I can't guarantee that it will be so, but I hope not." The carrier has struggled since the pandemic, reporting a loss of €202 million ($198 million) for the second quarter. The Portuguese government took full control of TAP amid the pandemic in 2020, and has since provided it with €2.55 billion in state aid.


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