Air Canada’s proposed acquisition of Transat AT, the parent of leisure carrier Air Transat, is to face scrutiny from European competition regulators. The European Commission is concerned that the tie-up could “significantly” reduce competition on 33 city-pairs between Canada and the 30 countries of the European Economic Area. These city-pairs comprise 29 between which both companies offer nonstop service and four between which one flies nonstop and the other flies via a hub. Preliminary market analysis, says the Commission, shows the two companies have previously competed “head-to-head” on the transatlantic routes, with Air Canada specifically developing its Air Canada Rouge division to compete with Transat AT’s low-cost and leisure services. Although WestJet has been expanding transatlantic services, and serves cities including Rome, London and Paris, the Commission says “it is unlikely” that the carrier would exert “sufficient competitive constraint” on the merged entity across the relevant city-pairs. European carriers, it adds, are also “distant” competitors, offering services on a “very small” group of routes out of their hubs. The Commission is opening an in-depth investigation into the proposed acquisition, which will take up to 90 days. It will need to make a decision by 30 September. “We will carefully assess whether the proposed transaction would negatively affect competition in these markets leading to higher prices, reduced quality or less choice for travelers flying over the Atlantic,” says competition commissioner Margrethe Vestager. “This is a challenging time, especially in markets severely impacted by the coronavirus outbreak, but a return to normal and healthy market conditions must be based on markets that remain competitive.” Air Canada and Transat AT, the regulator states, are the two largest providers of scheduled flights between Canada and the European Economic Area. It points out that tie-ups such as that proposed have “long-term structural effects” on competition which will need to be examined even during the current economic crisis. Air Canada and Transat AT chose not to submit commitments during the initial part of the investigation to address the Commission’s preliminary concerns.

Source: Cirium

The flight data and cockpit voice recorders of the Pakistan International Airlines Airbus A320 that crashed on 22 May have been recovered. Media reports from Pakistan quote PIA as saying that both devices were found on Saturday 23 May, a day after the aircraft crashed in an urban area. The aircraft had operated flight PK8303 from Lahore and crashed while the crew attempted to conduct a go-around. Video images on social media purporting to show the aircraft’s final moments indicate that it descended into a built-up area with a high nose attitude and its landing-gear deployed. The aircraft bore the registration AP-BLD (MSN 2274), and 91 passengers and eight crew were aboard. Reports from Pakistan suggest that the death toll stands at 97. While some of those on the aircraft survived the disaster, there were fatalities on the ground. Fleet data shows that AP-BLD is managed by GECAS. It served with China Eastern Airlines from 2003 to 2014, when it moved to PIA. It was powered by a pair of CFM International CFM56 engines. Pakistan will lead the inquiry with assistance from Airbus through French investigation authority BEA. PIA and CFM will also support the probe.

Source: Cirium

Fifty firefighters and other emergency personnel in Belfast have attended a blaze at the Bombardier Aerospace facility, near the city’s airport, which has been brought under control. The Northern Ireland Fire & Rescue Service says it received a call at 20:45 on 24 May alerting it to the incident. It states that it responded within two minutes to the occurrence, involving a “factory unit” on fire. Six firefighting pumping appliances and an aerial appliance, along with a high-volume pump, attended the scene. The fire service disclosed at about 23:00 that the situation was “under control” with operations being scaled back and turning to damping-down. No-one was injured. The function of the facility affected has not been specified. Bombardier Aerospace’s Belfast operation includes manufacture of a range of aerostructures including fuselage, stabiliser and nacelles for executive jets. It had also been the supplier to the commercial aircraft programmes, producing wings for the Airbus A220 – formerly the Bombardier C-series – before the production arm was sold to Spirit AeroSystems. Bombardier also produces fuselage sections for the CRJ regional jet programme, which is being divested to Mitsubishi Heavy Industries. According to the fire service, the blaze “appears to have started in machinery” but the cause is still under investigation. It states, however, that the fire is “believed to be accidental”. The extent of damage, or any disruption to operations, is not clear.

Source: Cirium