December 1st 2023

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The Cathay Group financial results, published this month, highlighted the change in market conditions over the course of 2022. Read More » Although the company reported a full-year net loss for last year, it disclosed a profitable second half of the calendar year, prompting general manager for finance and performance, Christopher Buckley, to declare the Hong Kong flag carrier was increasingly confident about the prospects for the business in the immediate and longer-term horizon.

Korean Air’s (KAL) proposed takeover of Asiana Airlines received a boost this month, when the UK Competition and Markets Authority cleared the transaction after accepting KAL’s commitment to facilitate the entry of Virgin Atlantic on the London Heathrow-Seoul Incheon route. The proposed merger still requires the green light from several regulators.

There was consolidation activity in Japan with ANA HOLDINGS INC. (ANAHD) announcing its intention to acquire Nippon Cargo Airlines from Yusen Kaisha (NYK). The purchase added NCA’s eight 747-8Fs and five 747-400Fs freighters to ANA’s cargo fleet.

Air India confirmed the Vistara brand will be retired when the merger of the two Tata Group airlines is complete.

The reopening of China’s international border remained front-and-centre this month as the country resumed issuing visas for foreign visitors to enter the mainland and reopened destinations, including Hainan, to visa-free travel.

For China’s citizens, countries Mainland tour groups could visit was increased to around 40. At the same time, the U.S. eliminated the rule that required air travellers from China, Hong Kong and Macau to provide proof of a negative PCR test for COVID-19 to enter the country.

The ongoing impact of Russia’s invasion of Ukraine continued to be felt by the aviation sector. This included lessors with aircraft unable to be repatriated from Russia. As a result lessors including Asia’s BOC Aviation posted a 96% decline in net profit after booking a half a billion U.S. dollar write down on the carrying value of its aircraft stranded in Russia.

Western Sydney International (Nancy-Bird Walton) Airport is not expected to be operational until 2026, but this month, the International Air Transport Association (IATA) confirmed its airport code will be WSI after the associatin receiving a request for an early designation.

New Thai Airways International (THAI) CEO, Chai Eamsiri, told an aviation conference this month the Thailand flag carrier was in revival mode but there would be no rush to return to pre-pandemic capacity levels. THAI prefers to focus on the quality rather than the quantity of its revenue as it rebuilds the balance sheet and shores up its financial position, he said.

In other Thailand news, former Nok Air CEO, Patee Sarasin, unveiled plans for Really Cool Airlines, to be positioned in the market mid-point between full service airlines and LCCs. It plans to start flying in 2024.