ARC NEWS
Europe misses deadline for Air Canada purchase of Transat
February 17, 2021
Air Canada's proposed acquisition of Transat AT is in doubt after the European Commission missed the 15 February deadline the companies targeted for approval of the deal amid concerns that allowing Canada's largest carrier to purchase the nation's third largest would harm competition. The Montreal-based tourism provider and parent company of Air Transat says in a statement that it is discussing "potential amendments" to the deal that could incentivise European regulators to approve the acquisition. Now that the 15 February target date has passed, however, either Air Canada or Transat could terminate the deal. Air Canada declined to comment on the deal. Termination of the deal would reopen the door for another bid to purchase Transat by billionaire investor Pierre Karl Peladeau, who is chief executive of telecom firm Quebecor. Transat rejected a takeover bid from Peladeau in January, stating that he failed to demonstrate "committed financing" that could support the company during the coronavirus pandemic. Real estate firm Group Mach had also offered to buy the company in 2019. Transport Canada on 11 February approved the flag carrier's bid to purchase Transat and the Superior Court of Quebec approved the deal in January. Terms set by Canadian regulators to address competition concerns would require Air Canada to continue employing 1,500 workers, to launch new routes within five years to increase options for customers and to maintain the Transat office in Quebec. Air Canada has attempted to buy Transat since 2019, although the coronavirus travel downturn prompted a revaluation of the purchase price. Transat shareholders in October approved a revised acquisition price of C$5 ($3.93) per share, or about C$190 million, lower than Air Canada's previous takeover bid of C$270 million. The first iteration of the deal faced competition concerns during 2020 from Canada's Competition Bureau that the merger could be harmful for Canadians traveling to sun destinations and Europe. Canada’s second-largest airline has criticised the proposed deal for years. Following approval of the merger by Canadian regulators on 11 February, WestJet chief executive Ed Sims said in statement that Transport Canada's approval effectively makes the nation's airline sector "closed to competition". “It is hard to imagine a deal as anti-competitive in any industry where the number one player buys number three without meaningful remedies,” Sims said. Air Transat suspended its flights effective 14 February through 30 April, having completed its flights to repatriate its customers home to Canada following the travel restrictions ordered by Ottawa aimed at halting the spread of coronavirus.


Australia imposes quarantine on travellers from New Zealand
February 16, 2021
Australia will impose quarantine on travellers from New Zealand following the emergence of new coronavirus cases in Auckland. The Australian Department of Health announced that all flights from New Zealand in the 72h from 12:01 on 15 February will be classified as “Red Zone” flights, meaning that passengers will need to undergo 14 days of supervised hotel quarantine. Given Auckland’s strong record of keeping Covid-19 under control, New Zealand travellers had been permitted to fly to Australia, although a ‘travel bubble’ between the two neighbours has remained elusive owing to outbreaks in Australia. “States will determine how to manage people who have already arrived in Australia from New Zealand and who may pose a risk of transmitting the Covid-19 virus,” says the department. Australian officials will also decide on whether to extend the bubble suspension based on case numbers in New Zealand. According to the New Zealand government’s Covid-19 website, three new cases have emerged in the community, with Auckland placed under lockdown until midnight on Wednesday 17 February. New Zealand prime minister Jacinda Ardern has confirmed that the three new local cases are the highly infectious B117 variant, which was originally detected in the UK.
Data shows that airlines offered just 28,000 seats on trans-Tasman routes in January 2021, a 97% decline from 944,000 seats in January 2020.


​Passengers down 70% at Dubai International last year
February 16, 2021
Dubai International's passenger numbers collapsed in 2020, but the airport operator is reporting "positive strides" in the second half of the year.Of the 25.9 million passengers passing through the airport last year, 17.8 million did so in the first quarter, much of which was unaffected by the Covid-19 crisis. Traffic picked up in the second half of the year against the April-June period, and Dubai Airports notes a "recovery in many areas, especially the return to services in global markets thanks to the strength in operations of Emirates and Flydubai, and the confidence shown by international airlines coming back into the region." For parts of the year Dubai was closed to foreign travellers altogether, including transiting passengers. The United Arab Emirates reopened to tourism from 7 July. The airport operator asserts that the 2.19 million customers processed in December exceeded industry expectations. "In the past year we have witnessed the most difficult circumstances the travel industry has ever faced," states Dubai Airports chief executive Paul Griffiths. "The impact of the Covid-19 pandemic has been felt not only in our sector, but across the entire world. These DXB [Dubai International] passenger traffic figures are reflective of that testing environment, but also come with an element of hope and confidence." He adds: "Looking forward, we are confident of a steady, but optimistic outlook." Dubai Airports is advocating a global rollout of Covid-19 vaccinations and the introduction of contactless travel as ways to improve passenger confidence and encourage customers back to the skies. "From a markets and destination perspective, the recovery is strong," argues the operator. Dubai International now serves 142 destinations, 61% of its pre-pandemic reach. Fifty-six airlines are currently flying to and from the airport, which is three-quarters of the pre-Covid figure. India was the top destination by passenger numbers, followed by the UK and Pakistan. Total air freight handled at the airport declined by a relatively moderate 23% in 2020, to 1.9 million tonnes.


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