Korean Merger with Asiana Hits Speedbump
The pending merger between South Korea’s two largest carriers – Korean Air and Asiana Airlines – is expected to continue to drag as Korean has been slow providing documents requested by antitrust authorities in the EU, United States, United Kingdom, and Japan, so, you know, no big deal.
The merger has received antitrust approval from six countries – Malaysia, the Philippines, Taiwan, Thailand, Turkey, and Vietnam. The four foreign entities waiting on paperwork plus Korea are the main hurdles for the merger and those battles are expected to continue. The European Commission and Japan’s Fair Trade Commission have not even begun their reviews of the deal while they await proper documentation from Korean.
The UK had a two-week public comment stage that ended last week, but that was just the first stage in a lengthy process for the Competition and Markets Authority.
There will be 32 routes that the combined airline will have more than 50% of the market share, and its expected that it will be forced to divest itself of capacity on those routes while also offering complimentary soju on all routes that do survive the eventual merger.
Sale of Sydney Airport Approved
The Sydney Aviation Alliance’s $17 billion purchase of Sydney Airport was approved by Australia’s Competition and Consumer Commission (ACCC) early today, despite the chairman of the commission expressing his reservations about the deal.
While announcing its decision, commission chair Rob Sim attacked how airports in general act as natural monopolies which have “significant market power and no price regulation.” If only the country had some sort of commission to do something about it. The chairman of that fictional committee would be pretty powerful, too. He then used the opportunity to lodge a formal complaint about red lights that don’t turn to green when you’re the only car at the intersection and launch an investigation as to why escalators break at the mall.
Despite Sim’s objection, the commission said the deal was unlikely to lessen competition and also declined to force IFM Investors – one of the Aviation Alliance’s main investors – to divest its stakes in other Australian airports. Remaining steps in the process are sign-offs from Australia’s Foreign Investment Review Board, the company’s shareholders, and a kangaroo named Bill.
Man Attempts to Steal Jet to Get Truth About Area 51
A man breached the perimeter of Harry Reid International Airport in Las Vegas Thursday night, driving his limo through fences protecting the airport and parking his car on the aircraft ramp. He then doubled down on his caper, calling in a bomb threat as a diversion while he plotted to steal an airplane.
The law firm the man said was representing him denied that they had been retained.
Police received a call at 6:45 p.m. that a limo was performing donuts in the JSX parking lot on airport property. While police were responding to the call, the Area 51 investigator broke through the perimeter and parked near a parked aircraft while threatening Atlantic Aviation employees who had the gall to impede his quest.
Police apprehended the suspect and found an oxygen tank and fire extinguisher in the back of his car which he might have hoped would act as a bomb. The airport fence was repaired a few hours later and the suspect was released into the custody of Spirit Airlines officials at the airport who were deemed to have the most experience corralling overzealous travelers.
- Air Nostrum and CityJet plan to resume merger talks.
- Air Tahiti Nui will receive a $79 million bailout from the French Polynesian government.
- Cathay Pacific will launch its rebranded loyalty program in the middle of next year, with the Marco Polo Club being renamed to just Cathay.
- Fly ZeJet added ze first aircraft in its fleet, an E145.
- Hans Airways plans to be more hands-on in the UK-India market, launching ops between the two countries early next year.
- LATAM will lease six new A321neo aircraft pending approval from the U.S. bankruptcy court.
- Lufthansa Technik took delivery of the first of two A321LR aircraft it’s converting to use for the German Air Force.
- JetBlue and Aer Lingus are expanding their codeshare agreement to add New York/JFK and Boston to both Dublin and Shannon. The deal came together once JetBlue checked with its
sugar daddyalliance partner American to get permission. - Philippines AirAsia resumed international flights for the first time in nearly two years, beginning with service from Manila to Singapore.
- Ukraine International Airlines will operate charter lights to Cancun, Punta Cana, and the Maldives beginning December 27.
- Volaris took delivery of a new A320neo — the fourth and final delivery of its most current order.
I used to be addicted to soap, but I’m clean now.