ARC NEWS
​EasyJet details plan to stay compliant with EU ownership rules
December 24, 2020
UK low-cost carrier EasyJet has outlined a contingency plan for meeting EU ownership requirements after the scheduled end of the post-Brexit transition period on 31 December. The board-approved plan is intended to ensure that EasyJet can continue flying under its EU operating licences. To comply with the rules governing these, the airline needs a minimum EU ownership of 50% plus one share, but as of 23 December the figure stands at 47.02% if UK nationals are excluded. The contingency plan involves suspension of some shareholders' voting rights. Only "a small number of shares of non-EU nationals" would be affected by the measure, says EasyJet. It has targeted a minimum EU ownership of 50.5%, and its contingency plan kicks in if the level falls below this. Affected shareholders would receive notices about the suspension of their voting rights. EasyJet says it does not have a date for when it could implement the contingency plan, noting that the timing would "ultimately depend on the outcome of negotiations on the future EU-UK aviation relationship".


Alitalia replacement ITA to start with 52 aircraft: reports
December 24, 2020
The new Italian airline being established to replace Alitalia has outlined plans to commence operations in April 2021 with an operation about half the size of its predecessor’s, according to media reports in Italy. Citing an 18 December press conference held by the new public company, which set out a five-year plan for the carrier, Corriere della Sera reports that Italia Trasporto Aereo (ITA) hopes to begin operations with 52 yet-to-be-determined aircraft, of which 43 would be for short- and medium-haul operations and the rest for long-haul routes. More than 60 destinations would be served from next year, covering domestic and international routes, according to the report. Alitalia had just over 100 aircraft going into the pandemic – a level the new business hopes to reach by 2025. Alitalia's fleet consists of 38 Airbus A320 aircraft; 22 A319s; five A321s; 12 A330s; and 12 777 aircraft, Cirium fleets data show. Between 5,200 and 5,500 people would be employed by ITA, around half the 11,000 who worked at Alitalia, although the report notes much depends on negotiations with unions. Services would end from Milan Malpensa, with the city’s Linate airport preferred, the report suggests. The main hub would continue to be at Rome Fiumicino. According to the report, ITA chief executive Fabio Lazzerini emphasised the importance of partnerships with other operators, if the new business is to succeed. Lazzerini – who was chief business operator at Alitalia from September 2017 until taking control of the new airline in November – is joined on the board of ITA by Francesco Caio, the former chairman of oil and gas company Saipem. The Italian government and the European Commission will now need to approve the plans for the new airline, reports suggest. Italy’s government signed an air transport decree to establish a new national airline to succeed flag-carrier Alitalia in December. The latter had been unprofitable for years and had entered extraordinary administration in 2017.


US DOT approves Aer Lingus to join transatlantic venture
December 23, 2020
The US Department of Transportation has granted antitrust immunity for Dublin-based Aer Lingus to join an existing transatlantic joint venture between Oneworld member carriers American Airlines, British Airways, Level, Iberia, and Finnair, finalising tentative approval granted in November. This approval by the DOT gives Aer Lingus the ability to integrate into the joint venture’s network planning, pricing, and sales activities, giving the Oneworld carriers opportunity to expand capacity on certain routes and giving customers more options for travel to Ireland and other European destinations. American in a statement praised the DOT decision published on 21 December, adding that Aer Lingus customers would have access to more than 200 new US destinations as part of the joint venture, which first formed in 2010. Conditions set by the DOT to address any competition and public interest concerns include required compliance with slot remedies at London airports that exist as part of the Oneworld joint venture. The UK Competition and Markets Authority (CMA) in September extended its airport slot remedy commitment an additional three years until March 2024 with the aim of stabilizing the airline sector in the wake of the coronavirus pandemic, at which point it will reassess the Oneworld joint venture. Aer Lingus and the other carriers must also remove exclusivity clauses in their alliance agreements and DOT will review the alliance again in 2025. Competitors on transatlantic routes between the USA and Ireland include Delta Air Lines and Norwegian. Aer Lingus aims to fly transatlantic routes using Airbus A321 aircraft. The Dublin-based carrier has five A321-200NXneo aircraft and three A321-200 aircraft in service.


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