The Australian Competition and Consumer Commission (ACCC) has flagged concerns that Qantas's acquisition of a 19.9% stake in Alliance Airlines in February could reduce competition on some scheduled routes and in the charter market. The competition regulator states that Qantas and Alliance are the only two airlines that fly from Brisbane to Gladstone and Bundaberg. They also compete directly in the resource charter market, where Alliance works closely with Virgin Australia. Qantas's 19.9% stake makes it the largest shareholder in Alliance, and the ACCC notes that it did not seek an informal merger clearance before it acquired the stake. "We consider this shareholding has the potential to impact Alliance’s future growth and its ability to be a strong competitor," says ACCC chairman Rod Sims. "It may impact Alliance’s ability to grow through raising funds from investors, or to consider rival takeover approaches. It may also impact whether Alliance’s customers perceive it to be an independent rival to Qantas.”

Source: FlightGlobal

Aircalin has taken delivery of its first of two Airbus A330-900 at a delivery ceremony in Toulouse, France, with the second aircraft joining the fleet later in 2019, replacing its existing two A330s. Aircalin is also a customer for the A320neo and will replace its existing two A320s to become an operator of two A330-900s and two A320neos. Aircalin’s A330neos are configured in a comfortable three-class layout with 291 seats or 25 more seats than its existing smaller A330-200s. These include 26 business, 244 economy and for the first time, premium economy with 21 seats. The A330neos will boost capacity and nonstop connectivity between the French Pacific Island territory and markets in Japan, Australia and the Pacific Islands nations, cutting fuel burn by 25% per seat (compared with previous generation competitors) and providing passengers with the latest standards in cabin comfort. These routes provide essential links to tourism as well as business traffic, which are essential to the New Caledonia economy.

Source: World Airline News

Garuda Indonesia is optimistic that it will not breach key debt covenants as its financial situation is looking stronger this year.
The carrier says that after it restated its 2018 financial results, its capital level for the year fell to $730 million, forcing it to seek a waiver from Export Development Canada for breaching the $800 million minimum required under a debt covenant. The loan aided its acquisition of Bombardier CRJ 1000s and caps the carrier's debt-to-equity ratio at 2.5x.

During the first quarter of 2019, however, its capital level rose to $791 million. It has not yet disclosed its accounts for the second quarter. Finance director Fuad Rizal was also quoted in a 27 July CNN Indonesia article as saying that other creditors have agreed to the debt covenant proposals the airline had made, without providing any other details. Under its restated 2018 results, Garuda reported a full year operating loss of $139 million, instead of the $101 million operating profit disclosed in April.

Source: FlightGlobal