May 20, 2022

US Airways Scores Antitrust Win Over Sabre

US Airways, an AAirline that hasn’t existed for seven years, was technically victorious in court in the Southern District of New York Thursday in an 11-year-old antitrust lawsuit against Sabre.

The win was in vain, as US AAirways was awarded just $1 as a judgment, effectively ruling that Sabre’s practices did not cause US Airways or American any harm. The airline claims that Sabre forced carriers into a box, forcing them to use Sabre’s inferior product instead of having more direct access to travel agents and the traveling public. When filing the suit in 2011, US Airways said Sabre’s tactics cost it nearly $300 million.

American celebrated the victory by issuing a debit memo to Sabre for $1 but had to do it twice because it forgot to turn its printers on the first time. AA issued a statement that it was focused on the hope that the verdict might force Sabre to change its ways, which shows how little AA knows about Sabre, as it’s one company that once it finds a way to do something, it’s never changing. Ever.

IAG Bought a Bunch of Airplanes

IAG – the parent company of British Airways, Iberia, and others – firmed up a previous MOU with a Boeing order on Thursday for 25 B737 MAX 8-200s and 25 B737 MAX 10s with an option for 100 more.

The deal, once approved by shareholders, is a rare victory in what has been a tough year for the beleaguered manufacturer. None of IAG’s carriers currently fly any Boeing narrowbody airplanes – it’s all Airbus for the group – making this a new book of business for Boeing.

The MAX 10 is the highest capacity version of the MAX with room for up to 230 passengers, but BA sees that as a challenge and is out to prove to Boeing it can fit 250 people on the airplane. The MAX 8s can seat up to 200. IAG expects to take delivery of the airplanes between next year and 2027.

IAG has not yet said which airlines will operate the planes when delivery takes place. Vueling currently has 30 Airbus narrowbody on order, so it may not have a need for these planes, while Iberia just received new A320neos leaving it not necessarily ripe for new aircraft. But that leaves BA and Aer Lingus, both of which could be welcoming these aircraft and their new airplane smell to their fleets in the next several years.

Korean-Asiana Merger Remains in Limbo

It may not have the drama of the love triangle between Spirit, Frontier, and JetBlue, but South Korea’s version of All My Mergers continues to have its own plot twists, as the merger between Korea and Asiana remains in doubt due to antitrust approvals.

The U.S. Justice Department, along with its compatriots in both China and the EU have doubts about the merger and continue to be an obstacle to the deal closing. A South Korean government official said that the U.S. believes the merger will impose restrictions on fair competition. The DOJ asked for KE’s plans to quell the antitrust concerns and Korean was very slow in submitting the information sought by the government.

Part of this is posturing, as United is concerned about losing a key Star Alliance partner to Delta’s SkyTeam alliance, and the carrier is pushing the DOJ on concerns abut the merger. The deal was conditionally approved by Korea’s Fair Trade Commission but is still missing three key stakeholders. The EU said it would grant its approval only after redistributing traffic rights and airport slots.

  • Air Moana is hoping to launch domestic flights within French Polynesia this fall. The only question now is how far will it go?
  • Air Moldova reportedly owes a Russian bank 72 million rubles which luckily for Air Moldova is only about $1 million, and if it holds off payment for a few more weeks should be worth even less.
  • Airbahn‘s American dream is dead. The carrier’s certificate to operate in the United States was revoked by the DOT.
  • Akasa Air‘s launch is now delayed beyond July.
  • Bamboo Airways is offering a status match to basically anyone with a pulse.
  • Delta is soft-launching Bluetooth connectivity for headphones in first class on its fancy new A321neos.
  • GoFirst plans a $463 million IPO this fall.
  • Jet Airways received its AOC today, readying the carrier to begin passenger ops soon.
  • Lufthansa is upgrading the entertainment options on its B747-8 fleet.
  • Plus Ultra plans to begin flying its first A330-200 next month.
  • Sun Country might establish a base outside of Minneapolis/St. Paul. It also might not.

I was in the park the other day when a guy’s girlfriend came up to him with a balloon that said “Will you marry me?”

So he popped the question.