Cubana crash; IAG continues its bid for Norwegian
21st May 2018
The European Commission has approved AerCap’s acquisition of sole control over GE Capital Aviation Services (GECAS) as well as engine lessor Shannon Engine Support Limited (SES).
The Commission stated that its investigation into the proposed transaction showed that, following the deal, the companies' combined market shares would “remain modest”, and that a sufficient number of competitors will stay on the markets. As a result, the Commission concluded that the transaction was unlikely to give rise to serious competition concerns in the markets for aircraft and aircraft engine leasing. In addition, the Commission also examined the vertical aspects arising from the transaction, and concluded that it is unlikely that GE would use its minority shareholding in AerCap to affect competition for aircraft engines, aircraft leasing or engine leasing.
Meanwhile, the “pingdemic” has affecting fuel supplies for airlines, to the extent that American Airlines has warned that fuel delivery delays may cause flights to be grounded at some smaller and midsized airports, according to a report on CNBC. This is only the latest in a series of curve balls this pandemic crisis has thrown at the aviation sector. Airlines have certainly increased their flexibility to react more rapidly and efficiently to rapid changes in the operating environment but these latest challenges are stretching companies to the limit. On the flip side, the fact that airline demand for fuel is rising shows a substantial increase in flights, particularly in domestic US, for which many airlines are reporting levels back to 2019.
In the UK, the government is preparing to issue exemptions from self-isolation rules for key workers, however airline continues to be hampered by restrictions on travel, not least the ongoing ban on UK/EU transatlantic travel, which was renewed by the US president recently. The UK is reported to be close to lifting quarantine and other requirements for vaccinated US travellers to the country but there is so far no sign that the US could reciprocate. Until that corridor is reopened, the UK and EU international air travel markets will continue to suffer along with the many international travellers itching to travel to visit clients and revitalise business relationships.