US Airlines Turn to Bigger Planes, Aspiring Local Pilots Take Advantage of National Pilot Shortage, and More

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Foreign Exchange Challenges Pose a Threat to Airlines Operating in Pakistan

The IATA has warned that Pakistan has become "very challenging" for airlines to serve as carriers struggle to repatriate dollars, adding to difficulties for foreign companies operating in the crisis-hit country.

Pakistan is facing an escalating financial crisis due to low levels of foreign reserves leading to shortages and rising prices of essential goods, which has caused delays in importing or converting currency. 

Airlines that sell tickets in local currency but need to repatriate dollars to pay for expenses such as fuel have been hit particularly hard, with $290mn of funds stuck in the country as of January. source

Photo by Ruth Enyedi on Unsplash

Lufthansa Sells Catering Unit to Aurelius, Focuses on Core Operations

Lufthansa has sold the remainder of its airline catering business to private equity firm Aurelius Group for an undisclosed sum. The sale of LSG Group will allow Lufthansa to reduce debt that was incurred during the Covid-19 pandemic, which grounded most of its aircraft and caused record losses.

The sale comes as Lufthansa focuses on improving the profitability of its core operations after struggling with demand for short-haul routes and competition from low-cost airlines. 

The transaction is expected to close in the third quarter, and Aurelius said the global aviation market was recovering to pre-pandemic levels. source

Photo by Alan Angelats on Unsplash