Korean Air filed a business combination report with the Korea Fair Trade Commission (KFTC) on 14 January for its acquisition of Asiana Airlines. The application will be reviewed over 30 days and can be extended to 90 days if necessary, the commission said in a same-day statement. This does not include the time required for data reconciliation, it adds, and the entire process may exceed 120 days. KFTC further states that Korean Air has submitted applications for the acquisition to eight foreign competition authorities, including the USA, Japan, China, and the European Union.

Chinese airframer Comac has landed on the US government’s blacklist of “communist Chinese military companies”, where it could face sanctions and an investment ban from US companies. The move by the Trump administration — in its last days before President-elect Joe Biden takes office — comes weeks after the airframer narrowly escaped being listed on the US government’s Military End User (MEU) list, where it would have been subjected to special export licensing requirements. In the latest update, Comac joins eight other Chinese firms across industries to be blacklisted by the US government, including Hainan Airlines sister carrier Grand China Air. Grand China Air, which is part of the HNA Group, has an 18.6% shareholding from US billionaire investor George Soros. While Comac does not have any shareholding from US companies, it is a major user of western aerospace technologies. At the heart of the list is the US government’s contention that Beijing is employing a “military-civil fusion development strategy” by using corporations as a means to harness civilian technologies for military purposes. The US Department of Defense states that it is “determined to highlight and counter” China’s strategy, which it adds “supports the modernisation goals of the People’s Liberation Army by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programmes that appear to be civilian entities”. The list seeks to ban future US investments, while existing investors will need to divest their shareholding by November. Comac, which manufactures the ARJ21 regional jet, as well as the in-development C919 narrowbody, did not immediately respond to requests for comment. Comac and Grand China Air join several other aerospace-linked companies blacklisted in earlier tranches, including Avic and China Aerospace Science and Industry Corporation (CASIC), which manufactures military unmanned aerial vehicles. The list originates from a 1999 law requiring the US Department of Defense to identify companies owned or controlled by the PLA. In late December, the US released its MEU list, omitting Comac, but listing several Avic units that produce military aircraft, such as Chengdu Aircraft, Guizhou Aviation, Harbin General Aircraft, Shaanxi Aircraft Industry, Shenyang Aircraft Corporation, and Xian Aircraft Corporation.

Air Canada will trim 25% of its scheduled capacity for the first quarter and make various workforce reductions impacting 1,700 employees in response to Canada's pre-flight testing mandate intended to prevent the spread of a more contagious strain of the coronavirus first diagnosed in the UK. The Montreal-based flag carrier's capacity during the first quarter following this reduced schedule will now be down 80% compared with its capacity during the first quarter of 2019, Air Canada's chief commercial officer Lucie Guillemette states. “We have seen an immediate impact to our close-in bookings and have made the difficult but necessary decision to further adjust our schedule and rationalize our transborder, Caribbean and domestic routes to better reflect expected demand and to reduce cash burn," Guillemette says. "We regret the impact these difficult decisions will have on our employees who have worked very hard during the pandemic." The carrier is encouraged that Canada has already approved two vaccines and that its government "expects the vast majority of eligible Canadians to be vaccinated by September", Guillemette says. "We look forward to seeing our business start to return to normal and to bringing back some of our more than 20,000 employees currently on furlough and layoff,” she says. Canada's second-largest airline, WestJet, has also responded to the new virus testing mandate by suspending 24 routes and making workforce reductions that will impact 1,000 of its employees. Porter Airlines has also delayed its tentative date to restart its operations from February to March as travel demand is projected to shrink amid the new government rules. The interim order from Transport Canada requires that all travellers five years of age or older must provide proof to an airline that they have tested negative for coronavirus within 72 hours before boarding a flight to Canada. This pre-departure testing is in addition to the mandatory 14-day quarantine for new arrivals to the nation and other domestic travel restrictions. The testing rule takes effect between 7 and 14 January depending on the nation. Canada's coronavirus infection rate is lower per capita than that of the USA, European Centre for Disease Prevention and Control data shows. Travel restrictions in Canada may be playing a role in that lower rate. Air Canada will disclose financial results for its fourth quarter and full-year 2020 on 12 February.