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Altimeter Capital, a hedge fund that previously expressed concerns about United Continental Holdings, formally reported an activist position in the airline. Altimeter said it is working with fellow United shareholder PAR Investment Partners. The two firms reported a combined 5.5% stake in the airline and said they had held talks with the company over its direction. United’s Jan 6 announcement that CE Oscar Munoz underwent a heart-transplant operation raised questions about how and when the airline disclosed information about his health status since his heart attack in October. Altimeter and PAR will continue to hold discussions with United’s management and board members, and other stockholders, over topics including board composition, enhancing shareholder value and strategic alternatives. <br/>

Flying is about to get substantially cheaper, the head of Air NZ says. Lower fuel costs, an expanded fleet and increased competition from the likes of Jetstar would all pull down domestic and international prices, the airline's CE Christopher Luxon said. Although he said prices were likely to drop "substantially", Luxon said he was unable to put a figure on how much airfares could fall. "The combination of fuel, supply and competition will ultimately determine pressure on pricing. Clearly, when you fly internationally fuel becomes a bigger variable than it does in domestic New Zealand. When you fly for 12 to 14 hours, fuel can be 25% to 30% of your actual cost base." Air NZ had a successful year last year, making NZ$474m profit, before tax and paid $89m in dividends to the govt. <br/>