ARC NEWS
Stored portion of US carriers' aircraft shrinks to 21%
February 17, 2021
US carriers during the last three months have decreased by four percentage points the portion of their combined fleet being kept in storage. On 15 November 2020, 25% of US carriers' aircraft were in storage, data shows. On 16 February 2021, 21% of the combined fleet was in storage. US airlines increased the utilisation of their most-operated aircraft families during the three-month period. From 9 to 15 November 2020, 77% (1,452) of US carriers' Boeing 737 family aircraft and 79% (1,185) of Airbus A320 family aircraft were tracked in flight at least once, data shows. During the period 9-15 February 2021, 80% (1,508) of 737 family aircraft and 81% (1,210) of A320 family aircraft were flown. The relatively slow return to service of US airlines' stored aircraft could undergo a jolting acceleration during the second half of this year if, as is hoped, Covid-19 vaccines are available to nearly the entirety of the US population by the end of the summer.


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.


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