Japan Airlines to invest ¥10bn in Jetstar Japan and Spring

Australian competition watchdog denies Qantas/JAL JBA

The Australian Competition and Consumer Commission (ACCC) has rejected a proposed joint business agreement between Qantas (QF, Sydney Kingsford Smith) and JAL - Japan Airlines (JL, Tokyo Haneda), having found that the airlines would have too big a market share.

The ACCC can only authorise an agreement between competitors if it is satisfied the public benefits would outweigh any harm to the competition. "The alliance did not pass this test,” ACCC Chair Rod Sims said.

The watchdog said the proposed JBA would likely lead to reduced competition and thus harm passengers. While it admitted that the partnership could accelerate market recovery in the wake of the COVID-19, it assessed the proposal with a long-term view.

"We accepted that there was likely to be some short-term benefits from the alliance being able to jointly reinstate services more quickly when borders are reopened, which may initially stimulate tourism. However, the longer-term benefits of competition between airlines are cheaper flights and better services for consumers, which is vital to the recovery of tourism over the coming...

Japan Airlines to raise ¥300bn to bolster balance sheet

JAL - Japan Airlines (JL, Tokyo Haneda) parent JAL Group plans to raise around JPY300 billion yen (USD2.73 billion) via hybrid financing, a combination of subordinated loans and bonds, to cope with the current “severe business environment,” it revealed in a statement on September 10.

“We are having to make continuous efforts to strengthen the balance sheet further and enhance its financing capability to address drastic changes in the business environment anticipated for the post-Covid-19 era, while being able to secure the necessary liquidity [...] by achieving the goals specified in the medium-term management plan,” it said.

In the name of “sustainable growth,” proceeds will be allocated “to introduce the A350-1000 as our new flagship aircraft that reduce CO2 emissions significantly for international flights,” as well as to renewing the revenue management system for domestic routes, funds for investments and loans, the repayment of interest-bearing debt, and working capital.

JAL has thirteen A350-1000s on order, the ch-aviation fleets advanced module shows, along with eight A350-900s. It already operates ten -900s....

PW4000-powered B777-200s unlikely to fly before 2022 - media

The US Federal Aviation Administration (FAA) is unlikely to recertify Pratt & Whitney PW4000-powered B777s for revenue operations before early 2022, the Wall Street Journal has reported.

While the FAA would not comment on the ongoing work, it is expected to conclude its investigation into a February 2020 incident within a few weeks. Given an engine blade failure caused an uncontained engine failure and fire during a B777-200's climb out from Denver Int'l, the regulator will likely mandate additional requirements for the powerplants which could entail both a revised inspection routine and physical changes to engine covers. Implementing the changes is expected to take longer than previously anticipated, however.

"We are working closely with the FAA, our customers and Pratt & Whitney to safely return PW4000-112-powered B777 airplanes to service. We have identified design changes and are working to finalize them, including a robust certification effort," Boeing told Reuters in a statement.

The ongoing grounding is a particular nuisance to United Airlines, the only operator of the PW4000-powered B777-200s and B777-200(ER)s...

Japan’s Spring outlines fleet, network growth plans