ARC NEWS
Air China plans to buy controlling stake in Shandong Aviation
May 31, 2022
Air China is planning to buy a controlling stake in Shandong Aviation Group, and thereby acquire control of Shandong Airlines. “The transaction is currently at negotiation stage and no due diligence, audit, valuation and other related works have been complete,” the carrier says in a filing to the Stock Exchange of Hong Kong. However, there is no assurance that the parties will enter into a definitive agreement or that the transaction will be implemented or finalised, it adds. Air China has a 49.4% stake in Shandong Aviation Group and is an associate of the airline. Air China has a 22.8% stake in Shandong Airlines, whereas Shandong Aviation Group has a 42% stake.


Air Botswana reinstates E170 into commercial service
May 30, 2022
Air Botswana has reinstated its Embraer E170 aircraft into commercial service following the completion of safety inspections. The aircraft was recently grounded to carry out safety checks recommended by Civil Aviation Authority of Botswana (CAAB), the flag carrier says. No issues were detected during inspections and the aircraft was found to be fit for commercial operation as of 27 May, it notes. The airline adds that CAAB has also reinstated the airworthiness certificate of the aircraft.


Delta cuts summer schedule despite rising demand for travel
May 30, 2022
Delta Air Lines has trimmed its flight schedule for summer 2022 as part of an effort to avoid flight cancellations and delays that might be caused by staff shortages and weather conditions amid surging demand for travel. The Atlanta-based carrier has disclosed that it will reduce by 100 the number of daily flights scheduled for 1 July to 7 August. Most of the reductions in the number of flights will affect Delta's US and Latin America markets. Delta says the cuts in its summer schedule will "build additional resilience in our system and improve operational reliability for our customers and employees". Delta's chief customer experience officer Allison Ausband states: "More than any time in our history, the various factors currently impacting our operation – weather and air traffic control, vendor staffing, increased Covid case rates contributing to higher-than-planned unscheduled absences in some work groups – are resulting in an operation that isn’t consistently up to the standards Delta has set for the industry in recent years.” At 27 May, Delta's domestic capacity in July and August is set to be down 6% versus the same period in pre-pandemic 2019, data shows. At least one of Delta's US competitors is also concerned about its ability to manage summer travel demand. American Airlines' chief commercial officer Vasu Raja said at the Wolfe Research Global Transportation and Industrials Conference on 26 May that unlike some other US carriers, the Fort Worth-based carrier would not update its second-quarter guidance until it sees how well it handles travel demand during Memorial Day weekend. "We want to see how this weekend comes in," Raja says. "It's the first indication of how the summer will look, not just on demand but on how the airlines are able to meet demand. We're not ready to prognosticate."


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