ARC NEWS
SAA resumes flights after year-long pause
September 24, 2021
Restructured South African Airways has resumed flights, carrying out its first service since last year on the Johannesburg-Cape Town domestic route. SAA – which has been through a formal business restructuring process – was forced to suspend passenger flights in March 2020 when South Africa locked down to counter the pandemic. While it continued to operate cargo and repatriation flights, the carrier suspended all operations at the end of September 2020 as it sought to finalise a funding package. The carrier has since secured a government bailout to support its restructuring to enable it exit business rescue, which it had first entered before the pandemic in December 2019. New investors were identified in June this year, though the deal with the Takatso consortium is still to be finalised. In August the slimmed-down carrier regained its operating licence, enabling SAA to resume services. Alongside the thrice-weekly domestic link, SAA is also planning to start flights to five African capitals: Accra, Kinshasa, Harare, Lusaka and Maputo. SAA's interim chief executive Thomas Kgokolo states: "Our journey back to the skies has not been easy. We restart this business with a new vision of pride in the brand and one that has been inculcated into every staff member. "Our first order of business is to service our start-up routes efficiently and profitably and then look to expanding the network and growing our fleet, all depending on demand and market conditions." SAA chairman John Lamola says SAA's return will provide "more market equilibrium" in fares. "Since the carrier went into and then out of business rescue there has been less local capacity and that means tickets have become more expensive. Our return to the skies will mean more competitive pricing and will enable more South Africans to fly," he states. Kgokolo has previously said he expects SAA to resume operations with a fleet of around eight aircraft.


LATAM granted another extension to submit reorganisation plan
September 24, 2021
The US bankruptcy court for the Southern District of New York has approved LATAM Airlines Group's latest request for an extension of time to submit its reorganisation plan. In late July the court had granted LATAM a similar extension to file its Chapter 11 restructuring plan. At the time, the Chile-based airline group was asked by the court to file its Chapter 11 plan by 15 September and seek acceptances of its plan by 8 November. The group had filed for Chapter 11 bankruptcy protection in the USA on 26 May 2020. LATAM on 9 September submitted to the US bankruptcy court a request for another extension of the exclusivity period to present its plan, which the court granted on 23 September. The group must now submit its reorganisation plan on 15 October. Earlier in September, LATAM had estimated that external creditor claims could peak at almost $10 billion amid its efforts secure financing to exit Chapter 11 restructuring and its negotiations with various stakeholders to formulate a reorganisation plan. Separately, the US bankruptcy court on 14 September approved Colombia flag carrier Avianca's disclosure statement describing the terms of its reorganisation plan. Avianca may now submit the plan to creditors for their approval. Avianca's next step on the road to emergence from Chapter 11 is to solicit votes on the reorganisation plan "from certain classes of creditors". Creditors' votes in support of the plan must be submitted to Avianca by 14 October. The US bankruptcy court will consider approval of Avianca's plan on 26 October.


Airbus to power Mobile plant deliveries with SAF
September 23, 2021
Airbus plans to deliver all aircraft from its Mobile, Alabama manufacturing facility with sustainable aviation fuel (SAF) on board. "No later than November 2021, all aircraft delivered to customers will be powered by a blend of SAF and conventional jet fuel," the airframer says in a 22 September release. World Energy will provide the USA-sourced SAF to Airbus at the Mobile facility, via global aviation support services provider Signature Flight Support. Airbus delivers A220 and A320 family aircraft to USA-based customers from Mobile. It says the facility has delivered more than 260 aircraft since 2016; 54 in 2021 alone. Airbus Americas’ chairman and chief executive Jeff Knittel states: "SAF is a positive contributor to enhanced sustainability in aviation since it enables up to an 80% reduction of CO2 across the fuel lifecycle. "We are committed to making sustainable fuels an everyday reality with use on an increasingly larger scale, and this announcement is further evidence of that."


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