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Latest News Headlines

AerCap delivered (23-Dec-2025) one A321neo to Thai Airways. This marks the airline's first A321neo and the first of 10 A321neos AerCap is scheduled to deliver to Thai Airways under a lease agreement. The remaining nine A321neos will be delivered by the end of 2028. [more - original PR]

Background ✨

Thai Airways planned to introduce A321neo aircraft from 4Q2025, with a total of 17 expected by the end of 2026 and deployment on routes including Delhi, Phuket, Hong Kong and Vientiane from Jan-2026. It also secured lease agreements for additional A321neos from lessors such as SMBC Aviation Capital, BOC Aviation and China Aircraft Leasing Group, with deliveries continuing through 20281 2 3 4 5.

OAG reported (22-Dec-2025) the top domestic routes by seat numbers for 2025, as follows:

  1. Jeju-Seoul Gimpo: Capacity increased 1% year-on-year but remains 17% behind the 2019 level;
  2. Sapporo Chitose-Tokyo Haneda;
  3. Fukuoka-Tokyo Haneda;
  4. Hanoi-Ho Chi Minh City;
  5. Jeddah-Riyadh: Recorded the largest growth among the top 10 at 13%;
  6. Melbourne-Sydney;
  7. Tokyo Haneda-Okinawa;
  8. Mumbai-Delhi;
  9. Beijing Capital-Shanghai Hongqiao;
  10. Shanghai Hongqiao-Shenzhen: Capacity increased 5%, and ranking increased from 11th in 2024.

OAG chief analyst John Grant commented: "For Asia Pacific to be home to nine out of the ten largest routes in the world, all of which are domestic, is a remarkable indication of how these routes have recovered in recent times and their significance to the airlines operating those sectors". [more - original PR]

Cathay Pacific Group appointed (23-Dec-2025) Guy Bradley as chair, effective 13-May-2026. Mr Bradley will replace Patrick Healy in the role. [more - original PR]

European Commission (EC) approved (23-Dec-2025) France's restructuring aid of EUR167.8 million to Corsair. The aid consists of an EUR80 million write off on loans that were approved by EC in Dec-2020 and EUR87.8 million of additional financing. France informed EC in Sep-2023 of its intention to amend the restructuring plan initially approved by EC. EC opened an in depth investigation on 05-Feb-2024 to assess whether the amendment to Corsair's restructuring plan proposed by France is in line with EU state aid rules. EC considers that the revised restructuring plan, together with further own contributions, updated viability assumptions and adequate compensatory measures, effectively addresses the concerns identified during the investigation, and ensures Corsair's return to long term viability by the end of the restructuring period. [more - original PR]

Azul launched (22-Dec-2025) a primary public offering of common shares and preferred shares, which will consist exclusively of newly issued shares. The offering is intended to implement the mandatory capitalisation of certain indebtedness through the issuance of equity, and is an integral part of the company's Chapter 11 restructuring plan. [more - original PR]

Background ✨

Azul's Chapter 11 restructuring process included entering into restructuring support agreements with key financial stakeholders and securing approximately USD1.6 billion in debtor-in-possession financing, with a plan to eliminate over USD2 billion in debt. The US Bankruptcy Court approved Azul's disclosure statement and a Backstop Commitment Agreement for USD650 million to support its planned capitalisation and equity raise as part of the reorganisation plan1 2 3 4 5.

Malaysia Aviation Group (MAG) confirmed (22-Dec-2025) the transition of MASwings operations to AirBorneo will take effect from 01-Jan-2026. MAG completed an ownership transfer process under a sale and purchase agreement signed with the Sarawak Government on 12-Feb-2025. AirBorneo will assume full legal and operational responsibility for all services previously operated by MASwings, including flight operations, customer service and the management of all passenger related matters. During the initial phase of the transition, existing MASwings branding may continue to be visible as AirBorneo progressively establishes and rolls out a new corporate identity. As previously reported by CAPA, Sarawak's Transport Minister Lee Kim Shin stated AirBorneo will operate existing rural air services in Sarawak, Sabah and Labuan. The carrier plans to expand to regional jet operations towards the end of 2026, depending on aircraft availability, airport slots allocation and regulatory approval. [more - original PR]

Most Read News Headlines

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Volaris and Viva entered (18-Dec-2025) an agreement to create a new airline group in Mexico under a holding company structure. Details include:

  • Under the terms of the agreement, Viva and Volaris shareholders will combine their holding companies through a merger of equals. Upon closing, Viva shareholders will receive newly issued shares of the Volaris Holding Company, and Volaris shareholders will continue to hold their shares, with each shareholder group owning 50% of the Mexican airline group on a fully diluted basis;
  • Upon closing, the airline holding group will be overseen by a board of directors comprised of members from both Volaris and Viva. The new airline group will be chaired by Viva chairman of the board Roberto Alcántara Rojas;
  • The boards of directors of both airlines approved the transaction, which is subject to regulatory approvals, customary closing conditions and approval by Volaris' and Viva's shareholders. The transaction is expected to close in 2026. The shares of the holding company will remain listed publicly on the Bolsa Mexicana de Valores and the New York Stock Exchange;
  • Volaris and Viva will retain their current operations under their independent certificates and titles of concession. The carriers will preserve existing route offerings for passengers, while expanding distribution capacity and exploring collaboration on their respective frequent flyer programmes;
  • The new airline group will include the formation of new operational bases and enhanced connectivity with potential codeshare agreements between both airlines, as well as potential global codeshare partnerships;
  • The new airline group aims to invest in fleet, technology, infrastructure, training centres, maintenance facilities and tools;
  • Volaris and Viva will aim to increase operations in the Mexico City metropolitan area, including at Mexico City Felipe Angeles International Airport.

Volaris president and CEO Enrique Beltranena stated: "The economies of scale and expanded distribution capacity will allow us to compete even more effectively in domestic and international markets by lowering fleet ownership costs". [more - original PR]

Southwest Airlines and Turkish Airlines announced (17-Dec-2025) a partnership to offer passengers single ticket, trans Atlantic journeys between the US and Istanbul from early 2026. Turkish Airlines operates to more than 350 destinations in 132 countries from Istanbul Airport, including 10 airports in the US served by Southwest. International passengers will be able to connect through the shared gateway airports. Southwest announced six partnerships with overseas carriers in 2025 connecting its network to places in Asia, Europe, Middle East, and Africa. [more - original PR]

Background ✨

Southwest Airlines recently entered partnerships with Condor Flugdienst and Philippine Airlines, expanding connectivity for its passengers to Europe, Africa, Asia, and the Americas via key US gateways such as Los Angeles, San Francisco, Seattle, Boston and Honolulu, and is exploring further trans-Atlantic partnerships. The carrier also signed an interline agreement with Hahnair to broaden its global distribution reach to 100,000 travel agencies in 190 markets outside the US1 2 3.

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