ARC NEWS
Vistara expecting delivery of third 787-9
August 08, 2022
Indian carrier Vistara is planning to ramp up frequencies on flights to and from Frankfurt in Germany and Paris in France as it gears up to receive its third Boeing 787-9 on lease. Starting 30 October, the carrier says it will operate six weekly flights between Delhi and Frankfurt, up from the current thrice weekly frequency. Meanwhile, connectivity between Delhi and Paris goes up from twice weekly to five times a week. Vistara's 787-9 comes with a three-class cabin configuration and will also feature fully flat business class seats, each with direct aisle access, and a separate premium economy cabin. In May, the airline scaled up frequencies on several international routes, including Delhi-London and Mumbai-Singapore to daily flights, besides bolstering its other international and domestic routes. Chief commercial officer Deepak Rajawat states: “Europe has been a key focus market for us since the very beginning, and we are glad that our customers appreciate our offerings on these long-haul routes. We have been wanting to ramp up frequencies on these sectors and we are delighted to be able to finally do that.”


USA identifies more aircraft violating Russia/Belarus export ban
August 05, 2022
US regulators have added 25 foreign-produced aircraft that have flown into Russia or Belarus to a list of jets that are in apparent violation of US export controls, due to them containing 25% or more US-origin parts. The US Commerce Department, through its Bureau of Industry and Security (BIS), has added the aircraft to the 158 already identified as having breached export administration regulations (EAR) after violating its de minimis threshold of US-made parts. The newly identified foreign-manufactured aircraft consist of Airbus A330-300 equipment in the fleet of Ifly, A321 and A330-200 aircraft with Nordwind, A321 aircraft with Red Wings, A320 and A321 aircraft with S7 Airlines, A320 and A321 aircraft with Ural Airlines, and A320 and A321 aircraft with Yamal Airlines “The United States and our partners applied sweeping, powerful export controls to industry sectors – such as aerospace – that Russia leverages to sustain its military aggression,” states assistant secretary of commerce for export enforcement Matthew Axelrod, adding that the new additions to the list "further degrades Russian airlines’ ability to operate their fleets of both US and EU airplanes". US law firm Katten states that the effect of violating the EAR is that such aircraft are thereafter prohibited from being sold, transferred, exported, re-exported, financed, ordered, bought, removed, concealed, stored, used, loaned, disposed of, transported, forwarded or otherwise serviced by any person anywhere who has knowledge of the violation. Subsequent actions taken with respect to the listed aircraft, including maintenance, repair, refuelling, and the provision of spare parts and services, are subject to EAR prohibitions, Katten adds. "So unless an aircraft in Russia has remained grounded since the Rules were issued, the continued leasing or financing of that aircraft (among other activities) by a party having knowledge that it had operated within Russia may be prohibited by US law," the law firm notes. Katten points out that other rules may apply to leasing and financing of commercial aircraft in Russia including the rules of the Office of Foreign Assets Control (OFAC) of the US Department of Treasury, and the rules issued by the European Union in response to the Russian invasion. "Lessee parties to a leasing transaction, including airline majority shareholders, require screening against sanction regimes to ensure OFAC violations do not occur separate from the export licensing issues," it adds. On 24 February, the BIS imposed expansive controls on aviation-related items to Russia, including a licence requirement for the export, re-export or transfer (in-country) to Russia of any aircraft or aircraft parts on the Commerce Control List.


Swiss returns to profit in first half
August 05, 2022
Lufthansa subsidiary Swiss posted an adjusted EBIT of Swfr67 million ($70.1 million) for the first half of the year, improving from an EBIT loss of Swfr398 million in the same period a year ago. Total revenues rose 180% to Swfr1.8 billion, it says in a 4 August statement. During the period, Swiss carried some 5.3 million passengers, five times as many as it had carried in the prior-year period. The increase was reflected in first-half revenues, it adds. Capacity was at 62% of that of the comparable period in 2019; by contrast, first-half capacity in 2021 was at some 26% of its 2019 level. Finance chief Markus Binkert states that Swiss returned to profit again after just the first six months of this year despite operating reduced capacities. The encouraging business development in the first few months of the year strengthened further in the second-quarter period, the airline says. Swiss benefited in particular from sizeable booking demand and from the improved profitability provided by its completed restructuring activities. For the second quarter, Swiss has reported an improved adjusted EBIT of Swfr114 million as compared to an EBIT loss of Swfr197 million in the prior-year period. Revenues increased substantially to Swfr1.1 billion from Swfr359 million in the second quarter of 2021. Swiss says it is confident of returning to profit in its 2022 full-year results despite the likelihood of an economic slowdown and high fuel prices. Chief executive Dieter Vranckx states: "Thanks to the restructuring that we conducted last year, Swiss stands today on solid financial foundations."


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