Aviation

Australian regulator denies approval for Qantas-Japan Airlines deal

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Qantas and Japan Airlines (JAL) have expressed their disappointment at the Australian Competition and Consumer Commission’s (ACCC) decision to block the airlines’ plans to form a joint business that would have boosted the recovery of tourism when international borders reopen.

The airlines had sought approval from the ACCC in December 2020 to work more closely together to better serve customers travelling between Australia, New Zealand and Japan and ensure a faster and sustained recovery from COVID.

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As part of the agreement the airlines had proposed:

An expanded codeshare relationship to up to 29 destinations and better flight schedules between Australia, New Zealand and Japan.
A new direct route Cairns – Tokyo operated by Qantas.
Coordination of pricing, schedules, sales and tourism marketing supporting growth in key tourism markets.
Enhanced frequent flyer benefits and more premium travel opportunities for Qantas and JAL customers.
Qantas and JAL will continue their existing codeshare and oneworld partnership, which do not provide the same benefits than would have been possible under a joint business. Qantas and JAL have been partners in Jetstar Japan, one of the largest domestic low cost carriers in Japan, since 2012.

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Japan is the world’s third largest economy and one of Australia’s largest trade and investment partners. In 2019 half a million of its residents visited Australia, meaning it is one of the most important tourism and corporate markets as the recovery begins.

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Related Topics:JAL Japan Airlines (JAL)qantas

Aviation

Aeroflot Buys Used Planes for Spare Parts Amid Sanctions

In the face of ongoing Western sanctions that have severely impacted Russia’s aviation industry, Aeroflot, the country’s largest airline, has devised a strategic plan to bolster its fleet’s spare parts inventory.

The airline is set to acquire five Boeing 737-800BCF freighters from Atran Airlines, a move that will allow it to dismantle the aircraft for critical components. The planes, which will be transferred to Aeroflot’s low-cost subsidiary Pobeda, will not be converted into passenger jets but instead will be stripped for valuable parts to support existing operations.

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Aeroflot’s plan to purchase these Boeing 737-800BCF freighters comes as part of a broader strategy to mitigate the effects of Western sanctions, which have crippled the Russian aviation sector. With the sanctions restricting access to essential aircraft parts and spare components, Aeroflot is exploring alternative ways to maintain and repair its fleet.

Instead of converting the freighters from cargo to passenger planes, a process deemed “unreasonably expensive” under current sanctions, the airline intends to focus on extracting high-value components such as engines, landing gear, avionics, and other essential systems.

The deal will be structured in a way that allows Aeroflot to indirectly purchase the freighters through an insurance settlement with the aircraft’s lessor, AerCap.

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The Russian government’s insurance company will reimburse the aircraft’s value, and the planes will then be leased back to local operators. This method circumvents some of the restrictions imposed by international sanctions while ensuring that the airline gains access to the necessary components to support its fleet.

By dismantling the aircraft for spare parts, Aeroflot aims to secure critical resources for the ongoing maintenance of its existing fleet. Components from the Boeing 737-800BCF freighters, such as engines and avionics, are expected to be reused in other aircraft within Aeroflot’s network, ensuring that the airline can keep its operations running smoothly