Reuters
• Julie Zhu, Rozanna Latiff
Malaysia is monitoring AirAsia’s liquidity and has asked Malaysia Airlines and Batik Air whether they could absorb the low-cost carrier’s domestic routes and passengers. The two airlines are willing to expand organically, rather than acquire AirAsia, which controls nearly 60% of Malaysia’s domestic traffic.
Aircraft Demand: Airline Distress & Consolidation
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India’s National Company Law Tribunal has dismissed Jet Airways liquidator Satish Kumar Gupta’s bid to recover about $92.1 million (₹500 crore) in aircraft advances and pre-delivery payments from Boeing. The tribunal held that the contract dispute requires a full trial, leaving the funds tied to undelivered aircraft unresolved.
Korean Air’s effort to loosen conditions attached to its merger faces rejection, adding regulatory friction to the airline’s consolidation strategy. The decision underscores the continuing scrutiny of remedies imposed on major airline combinations and the constraints they can place on integration and network planning.
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Malaysia is monitoring AirAsia’s liquidity and has asked Malaysia Airlines and Batik Air whether they could absorb the low-cost carrier’s domestic routes and passengers. The two airlines are willing to expand organically, rather than acquire AirAsia, which controls nearly 60% of Malaysia’s domestic traffic.
High activity
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High activity
Latvia’s national airline airBaltic has voluntarily filed for Chapter 11 protection in New York while maintaining normal flight operations. The carrier is seeking debtor-in-possession financing of up to €350 million, days after pursuing a €257 million emergency package carrying a 25% interest rate.
High activity
Czech competition authorities have conditionally cleared Pegasus Airlines’ planned acquisition of Smartwings Group, which includes Czech Airlines, after the Turkish low-cost carrier agreed to surrender summer slots on the Prague–Antalya route. The approval follows Turkey’s authorization and removes a major regulatory hurdle to closing the €154 million deal.
Transat A.T. has obtained an additional C$250 million in federal aid after higher fuel and labor costs pushed the parent of Air Transat into a fiscal third-quarter loss. The suspension of Cuba service has cost the company about US$84 million over nine months, prompting the carrier to hold capacity flat.
South Korean carrier Sirius Airlines is seeking a buyer as part of rehabilitation proceedings, opening a potential ownership or rescue process. The development places the airline’s future, including the viability of its operations and obligations, under review.
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