Air Berlin is introducing business-class seats in Europe in a push to position the airline in a more lucrative segment of the market following years of losses. The carrier will begin reserving the first row of German and European flights later this year for premium customers, who will enjoy priority check-in and boarding, fast-lane security and lounge access before flights, Air Berlin said in a statement on Friday. The new offering will also include restaurant-style, in-flight food service, with customers individually served at their seats instead of a standard offering from a trolley. The switch is “the beginning of a far-reaching transformation,” CEO Stefan Pichler said. “We are making key strategic decisions that will pave the way to a sustainable future for the company and will clearly position Air Berlin in the premium sector. The new product will make us more attractive, particularly for business travellers.” Pichler, who became Air Berlin’s fourth CEO in as many years at the beginning of 2015, is under pressure to deliver a turnaround after the carrier suffered seven annual losses in eight years. So far, he has not presented the broader strategy revamp that the airline flagged last year. Etihad Airways, which owns a 29.2% stake, is demanding progress after several bailouts. <br/>
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American Airlines and a union said they have agreed on hefty pay raises for 30,000 workers. American Airlines and the TWU-IAM Association said in a joint statement on Friday that they reached an "interim agreement" on "significant pay increases" for 30,000 maintenance and fleet service workers and "other related employees." "These increases now give employees in each of these groups the highest hourly wage rates amongst their peers at other network carriers," the airline and the union said. The pay increases range from 15% to 36% for maintenance employees, 24% for fleet service employees, 31% for tower planners, who work to keep departures on schedule, and 55% for weight and balance planners, who organize the loading of aircraft. The airline had been negotiating with the union since last year.<br/>
Qantas plans to unveil its first route using Boeing's 787 at the end of this year and is considering a direct London-Perth link that would rank among the world's longest flights. The carrier, set to receive its first 787 next year, also still intends to defer deliveries of its remaining eight A380s on order from Airbus Group SE, CEO Alan Joyce said Friday. "We are continuing to push them out," he said. The range and fuel-economy of the 787, also known as the Dreamliner, has led Qantas to consider other possible connections such as Brisbane-US, Melbourne-Dallas and Sydney-Chicago, Joyce said. The carrier is holding talks with airports in state capitals across the nation about what infrastructure is required to support new Dreamliner routes. "There are plenty of different options," he said. The London-Perth connection would rival the current longest flight in the world - Emirates' Dubai-to-Auckland link, which is scheduled to switch to using the A380 from October 30. <br/>