Latvia's State Audit Office has called for the viability of Air Baltic's business plan to be "assessed seriously" and for increased scrutiny of the government's shares in the carrier, after concluding that not enough action has been taken to ensure that state aid provided to the airline during the Covid-19 pandemic is paid back. The Latvian Ministry of Transport, Air Baltic Council and Cabinet of Ministers have all failed to take sufficient action to facilitate the return of the state's investment in the airline, says the State Audit Office of Latvia. It has recommended that oversight of the government's shares in Air Baltic be transferred "to another ministry or competent institution to mitigate risks to the state budget". Latvia's government has invested a total of €545 million ($621 million) in Air Baltic since the pandemic, including €340 million in 2020-22 to mitigate the effects of the crisis and an increased shareholding to 97.97% from 80.05%, say the auditors. Initially, they add, the state had "committed to recovering the €250 million allocated to Air Baltic in the first stage". "According to the strategy approved by the Cabinet of Ministers in 2021, the recovery of the investment was planned in the initial public offering (IPO) process, in which part of the state-owned shares would be sold by reducing the shareholding to 51%," notes the audit office in its report. "However, the strategy lacked a specific action plan because it was not specified how and under what conditions the investment would be recovered. "It is evidenced by the fact that the approved strategy has not been revised even once despite significant changes, including the second wave of the Covid-19 pandemic, Russia's full-scale invasion of Ukraine, aircraft engine problems and multiple changes to Air Baltic's business plans. Meanwhile, the state invested another €90 million in the company." Air Baltic first raised the possibility of an IPO in 2019, but it has been repeatedly delayed. The carrier had expected to float last year but said in November that it would wait until the first half of 2025. The IPO has yet to go ahead. Air Baltic's chief executive of 15 years, Martin Gauss, was ousted by the carrier's board in April. "The State Audit Office of Latvia considers that the viability of Air Baltic's business plan must be assessed seriously now," says Martins Abolins, a council member at the audit office. "The company's financial situation is complicated – that is evidenced by losses both last year and at the beginning of this year, negative equity and a significantly delayed and repeatedly postponed IPO process." He adds: "There is no longer any talk of the state recovering the invested funds through the IPO. On the contrary, the company indicates the need for additional state funding openly and that the implementation of the IPO is unlikely without the latter. Although the company has grown rapidly and reached the initially planned fleet size, its financial situation has deteriorated." Abolins points to "visible shortcomings" in Air Baltic's business model, and says: "In our opinion, further investment of state funds in the existing model without assessing its viability and sustainability would be unjustified." Air Baltic tells Cirium it "appreciates the constructive co-operation with the State Audit Office during the audit process and acknowledges the published report". The carrier says that throughout the audit process, it has provided "detailed information and explanations regarding the capital market situation, the specifics of a potential IPO and the content of the company's business plan". It points to adjustments it has been forced to make to its plans amid challenges including Covid-19 and Russia's full-scale invasion of Ukraine, and emphasises the need for flexibility. "The execution of the strategy, including progress toward a potential IPO, has been regularly adjusted to changing market conditions without losing a clear development course," says Air Baltic. "It should be emphasised that a potential IPO is not a technical process with a guaranteed or predictable outcome, but a complex market mechanism that is significantly influenced by various external factors and requires ability to adapt." Air Baltic adds that it will provide "all necessary support to conclude the evaluation process of the previous operational phase together with the shareholder, implement the recommendations given by the SAO and maintain a focus on sustainable development and public trust".

The US Federal Aviation Administration has issued a request for information (RFI) for a company to build a new air traffic control system, as part of President Donald Trump's and transportation secretary Sean Duffy's initiative to implement that over the next three years. In the 3 June RFI, the FAA said it is seeking an "integrator to play a key role in upgrading the National Airspace System (NAS)". "The integrator would be fully responsible for executing the secretary's vision for the brand-new ATC. The integrator will conduct all necessary activities to obtain the necessary facilities, acquire capabilities, and to deploy new technologies, including as it relates to existing FAA contracts." The agency notes it is "open to new ideas, new technologies, new procurement strategies, new implementation structures, alternative solutions, and any other considerations that will enhance the mission of a new ATC". The deadline for submissions is 16:00 US eastern time on 23 June. The FAA notes that the project is on an "accelerated timeline" and requests respondents have "the right personnel available to execute quickly", adding that it will be seeking additional support from Congress to support the new system. The agency will host industry days at the Department of Transportation headquarters in Washington, DC from 10 June to 11 June, with a virtual attendance option, as well as a tour of systems at the William J. Hughes Technical Center for Advanced Aerospace in Atlantic City, New Jersey on 12 June. It also plans to host one-on-one sessions between 16-18 June with companies who are "committed to, and capable of, competing for the role of prime integrator for this effort" and that the FAA "determines would provide helpful market research in selecting the prime integrator". "We have an antiquated air traffic control system that is showing its age," states US transportation secretary Sean Duffy. "In order to implement President Trump and I's plan for a brand new system, we need the technical expertise and management experience from the best innovators in the world."

Southwest Airlines and China Airlines are in negotiations to enter a transpacific interline partnership in early 2026. The two carriers announced the plans during the IATA AGM event in Delhi, which Southwest is attending for the first time after becoming a member earlier this year. "The initial work to partner with Taiwan-based China Airlines would allow for seamless transpacific journeys across the Southwest network," states the US carrier's chief operating officer Andrew Watterson. China Airlines president Kevin Chen adds: "Growing our long-haul network has always been China Airlines' long-term plan. As we expand our gateway operations in Los Angeles, San Francisco and Seattle, as well as Ontario, California, we are pleased to include Southwest as one of our partners, with its unique network that further expands North American connection opportunities into the Midwest and toward the East Coast." If the partnership goes ahead, Southwest and China Airlines passengers will be able to book itineraries under one ticket and travel seamlessly between the two carriers' networks. Southwest entered a similar partnership with Icelandair earlier this year, through which its passengers from Baltimore/Washington International, Denver and Nashville can connect to Icelandair's European network via Reykjavik. Orlando, Pittsburgh and Raleigh-Durham will be added to the agreement on 14 July. "We've found great interest globally in potential partnerships with Southwest and continue discussions here in New Delhi with several like-minded carriers," notes Watterson.