The US Federal Aviation Administration on 5 April ordered US airlines to inspect the landing gear of 304 Embraer ERJ 135 and ERJ 145 aircraft following a similar safety notice issued in February by regulators in Brazil. The FAA airworthiness directive will take effect on 20 April, requiring operators of those Embraer jets registered in the USA to inspect and possibly replace their lower side arms and side arm struts to avoid the landing gear being locked in the down position. An investigation following the disconnection of a landing gear side arm on an Embraer jet revealed that the side arm strut lower bearing "was installed inverted on the airplane", according to the directive. "Further inspections found more instances of inverted installations on other airplanes as well as other improper installations," the FAA says.

Air Canada and Transat AT on 2 April announced they have "mutually agreed" to cancel their merger because they did not expect antitrust approval from European regulators, freeing Transat to consider other acquisition bids or to endure the coronavirus pandemic travel downturn alone. Canada's government approved the proposed merger but the European Commission on 15 February missed the deadline targeted by Canada's first- and third-largest airlines to approve the deal, allowing either company to terminate the deal. Air Canada states that it proposed remedies to the commission to assuage competition concerns but "it has become evident" that the antitrust regulator will not approve the deal. "Air Canada has concluded that providing additional, onerous remedies, which may still not secure an EC approval, would significantly compromise Air Canada's ability to compete internationally, negatively impacting customers, other stakeholders and future prospects as it recovers and rebuilds from the impact of the Covid-19 pandemic," the airline says. The flag carrier will pay Transat a termination fee of C$12.5 million ($10 million), and the parent company of Air Transat will not have to pay any fee to Air Canada if it accepts a takeover bid from a different company. While Transat chief executive Jean-Marc Eustache says he is "disappointed with this outcome" he has prepared for this possibility and alluded to a backup plan the company first mentioned in March in case the merger collapsed. This strategy includes soliciting bids from other companies to buy Transat. "We are confident in the future of Transat and look forward to building back stronger as we exit the throes of the pandemic," Eustache says. The first step of Transat's post-merger strategy is to secure at least C$500 million to fund its operations through 2021. The Montreal-based tour operator has a C$250 million short-term subordinated credit facility in place that will need to be replaced or extended by 30 June. Its search for long-term financing includes discussions about a large employer emergency financing facility or support from the Canadian government for businesses in the travel and tourism sector. Canada through 2020 provided wage subsidies to companies harmed by the pandemic but its federal government has only been debating proposals about aid specifically for airlines since November. With Transat freed from the constraints of the merger it can once again solicit new acquisition bids, which Eustache says includes an offer from billionaire investor Pierre Karl Peladeau's Gestion MTRHP to purchase the company for C$5 per share, or about C$190 million. Real estate firm Group Mach also offered to buy Transat in 2019. The leisure carrier rejected a C$5 per share takeover bid from Peladeau in January, saying that he failed to demonstrate "committed financing" that could support the company during the coronavirus pandemic. Transat shareholders approved a similar takeover offer in October from Air Canada that revised the price to $190 million, lower than Air Canada's previous bid of C$270 million made in 2019 prior to the pandemic. A private equity takeover bid would bolster Transat's liquidity during the pandemic, but it would not come with the same alliance of fleets and route networks that Air Canada offered with its merger. Canada's second-largest airline WestJet accepted a buyout from private equity firm Onex in 2019 to support its efforts to compete against Transat and Air Canada through international routes. Financial details about the Calgary-based airline have been scarce since it went private but even with this infusion of cash it has been forced to lay off staff and suspend much of its network during the coronavirus pandemic.

Middle Eastern carrier FlyDubai will return its Boeing 737 Max aircraft to service from 8 April, starting with flights to Pakistan's Sialkot International airport. "This follows the airline’s compliance with all of the requirements outlined in the Safety Decision issued by its regulator, the General Civil Aviation Authority (GCAA), to ensure the safe return of the aircraft to service," the budget airline says. The Dubai-based carrier has a fleet of 14 Boeing 737 Max aircraft, and four of its Max 8's and one of its Max 9's have received regulatory approval to return to the skies. It says the remaining nine Max aircraft will return to passenger service over the coming months. Flydubai adds that it has met and exceeded requirements set out by the USA's Federal Aviation Administration, the European Union Aviation Safety Agency and UAE's General Civil Aviation Authority, and these include installing software enhancements, completing a wire separation modification, conducting pilot training and performing thorough aircraft reactivation activities.