Air NZ looks set to take a A$117m (US$89.83m) bath on its investment in Virgin Australia if it sells out of the airline. Air NZ flagged its intention to sell the stake this week following concerns about Virgin's long-term balance sheet viability. Air NZ's review of its stake in Virgin came shortly after it, and fellow minority shareholders SIA and Etihad Airways, stumped up a $425m loan to Virgin. Air NZ's share of the 12-month emergency line of finance is $131.2m. The flagged sale by Air NZ sparked speculation the local aviation industry could be ripe for a shake-up, with many expecting that Virgin's other minority shareholders could look to make a tilt for the financially struggling Virgin. Air NZ's stake was worth $328m at the close of trade Thursday. <br/>
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Lufthansa, which will base its first 10 Airbus A350-900s at its Munich hub from Jan 2017, has disclosed several cabin features of the new aircraft. The carrier’s A350 XWBs will accommodate 293 passengers, comprising 48 seats in business, 21 in premium economy and 224 in economy class. Initial destinations are likely to be Delhi and Boston, Lufthansa said. The carrier said that it will offer a new service in business class where passengers will be able to serve themselves refreshments between meals in a specially designed self-service area. Economy class features ergonomically designed seats that include more room to stow personal items. Lufthansa’s on-board Internet system, FlyNet, will be provided in all classes. Features also include a larger personal TV screens featuring the most advanced user interface. <br/>
Lufthansa has taken delivery of a second Airbus A320neo, but the airline said engine issues which had delayed its taking delivery of the plane were not yet fully resolved. Lufthansa stepped in as the first operator of the A320neo after it was found that the Geared Turbofan engines made by Pratt & Whitney needed longer than usual to start under some circumstances. As a result, Lufthansa is only operating its first A320neo on routes within Germany, where it has a large base of engineers. The second aircraft will also be used only on domestic routes for now. It took delivery of its first A320neo in January. A Lufthansa spokeswoman said that a working group from Airbus and Pratt & Whitney was still investigating the problems, but the carrier had come to an arrangement with Airbus over compensation for the restrictions on operation. <br/>
Avianca Holdings has named Microsoft Latin America president Hernán Rincón as its new CE, replacing Fabio Villegas, who resigned in January. Rincón will also be CE of Avianca. Rincón’s appointment ends a CE search that began when Villegas announced his intention to step down last July. Alvaro Jaramillo Buitrago had served as interim CE since Villegas’s Jan 17 departure. Rincón will formally take over April 4. Avianca Holdings also controls San Salvador-based TACA, Costa Rica’s LACSA, Taca Peru, Guatemala’s Aviateca, Ecuador’s Aerogal, Avianca Brazil, Taca de Honduras and Avianca Cargo. According to Microsoft, Rincón had been “responsible for the long-term business strategy for the 46 countries and territories in Latin America and the Caribbean in which Microsoft has presence. <br/>