Sky Regional Airlines will cease operations after Air Canada transferred all of its Air Canada Express flying to Jazz Aviation, according to numerous reports in Canadian media. The carrier, which flew 25 Embraer 175 jets for the legacy carrier, will be shuttering on 31 March. “Despite a very successful 10-year relationship, Air Canada has advised us that they have made the difficult decision to terminate our capacity purchase agreement as of March 31, which will result in the transfer of our 25 Embraer aircraft to Air Canada,” the company’s chief executive Russ Payson says according to the reports. “Sadly, as a result, we will be forced to shut down our operations, despite our many adjustments in the face of the various travel restrictions imposed by governments, thus far without any sector-specific support.” Several emails to Sky Regional were not answered. According to the carrier’s website, it employs ”over 650 people in Toronto and Montreal”. On 1 March, Air Canada had said it intended to transfer the operation of 25 E175s from Sky Regional to Jazz Aviation, making Jazz the sole operator of Air Canada Express flights. The Montreal-based carrier said the consolidation was due to the coronavirus-driven crisis in Canada’s air transport industry. The change remains subject to approval by Jazz’s pilot union, the Air Line Pilots Association, International (ALPA), Air Canada said. With the shift, the airline will save up to C$400 million ($316 million) over the course of 15 years – C$43 million annually until 2026 and C$18 million annually thereafter. Of the 25 E175s to be transferred, 16 are in service and nine are in storage. Jazz parent Chorus Aviation says that with the acquisition of the jets, it will be phasing out its 20 De Havilland Canada Dash 8-300s.

AerCap chief executive Aengus Kelly believes Boeing is facing an "extremely difficult" time as it tackles problems with its 787 production programme, but he is confident the US manufacturer can resolve its issues. Briefing analysts on 2 March, Kelly said that the pace at which AerCap could receive six on-order 787-9s would depend on how quickly Boeing was able to make necessary repairs, and on the US Federal Aviation Administration. While it is hard to tell how much the schedule will be delayed, Kelly concedes that a number or all of the deliveries are likely to slide to the right. "I do think that Boeing will fix those issues – they will get them resolved. It's an extraordinarily difficult time for the company," he says. "I am sure they will get through it." Kelly says the current tariff dispute between the USA and European Union over subsidies to Airbus and Boeing will be resolved, noting that tens of thousands of high-tech jobs at dependent on the trade flow of the two aircraft manufacturers. "It has to get resolved. There are no winners out of this... I know the people who run both of these businesses; I know that is what they want to see," he says. Kelly says AerCap remains a "big believer" in the widebody market, despite the impact from a lack of international travel demand. He declares himself "very confident" in aircraft such as the 787-9 and the A350-900. Other large jets such as the 777X and the A380 may take longer but are likely to find a "sweet spot", he believes. AerCap has been able to re-lease two 787s previously placed with Norwegian, and has signed letters of intent for others. The Irish lessor has also sold one 787 since the end of the fourth quarter. Kelly re-emphasises that AerCap avoids holding on to "end of the line" widebodies and warns of the pitfalls of owning older A330 and 777s. While acknowledging that it can be "very tempting" to own these types as they provide a "big lease rental" for a short period of time, he warns that anyone who bought these types over the last five to six years is going to "get what's coming to you" as they are replaced by airlines. "You won't get 25 years out of them," he asserts. AerCap has been "very deliberately" avoiding the types for a decade, he adds, noting that while you can avoid near-term impairments while the aircraft are on lease, "reality bites" when they come off lease. Kelly says only 3% of AerCap's orderbook consists of "very old" A330s, and 4% of 777s that are also "very old – and declining rapidly".

Saudi Arabia’s civil aviation regulator has become the latest to approve operations with the Boeing 737 Max, although none of the kingdom’s airlines yet operates the type. Flag carrier Saudia’s budget airline Flyadeal had been in line to acquire the 737 Max, through a provisional $5.9 billion agreement for 30 Max 8s unveiled at the end of 2018 – less than three months before the worldwide grounding of the type. Flyadeal, which had also intended to take options on another 20, subsequently abandoned the Max for an equivalent agreement to acquire the rival Airbus A320neo. Saudi Arabia’s General Authority of Civil Aviation says the Max will be “allowed to return to service” within the country following its review. “Several foreign airlines operate flights to and from Saudi airports, and several flights cross [our] airspace with the same model,” says the regulator. GACA says it has co-ordinated with international aviation authorities over the modification of the aircraft, as well as training of pilot, to “ensure the highest level of safety”. Alongside the return-to-service approvals it will issue a type certification notification once the first example of the Max is introduced to the Saudi Arabian registry. Middle Eastern operators of the Max include Flydubai and Oman Air, while Qatar Airways has a small number in storage previously associated with its Air Italy operation. Kuwaiti lessor ALAFCO is also a customer.