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#Japan's ANA finds problem with Boeing 787 Rolls-Royce engines, cancels some flights

ANA needs to replace damaged compressor blades in the Rolls-Royce engines powering its Boeing 787s, it said Thursday, forcing it to cancel some Dreamliner flights over the coming weeks. The carrier said that under certain flying conditions the compressor blades in the engine's interior showed corrosion. ANA will cancel 9 domestic 787 flights Friday, with other cancellations likely in the coming weeks. ANA's Dreamliners are powered by Rolls-Royce Trent 1000 engines. The airline is the biggest operator of the 787 with some 49 aircraft, or around a tenth of the global fleet. Rolls-Royce did not say whether the problem had been found in 787 engines on aircraft operated by other airlines, but when asked about any requirement to take additional action a spokesman said the issue was limited to a small proportion of the ANA fleet. <br/>

Lufthansa cabin crews back contract ending their strike campaign

Lufthansa flight attendants approved a 3-year contract to end one of the airline’s long-running disputes over pay and pensions that have led to strikes. The accord with the cabin-crew union UFO will lead to savings in the mid-double-digit millions of euros in labour costs and reduce pension commitments by a high triple-digit million-euro amount, Lufthansa said Wednesday. The carrier expects the lower costs to help boost earnings before interest and taxes this year. UFO and the Vereinigung Cockpit held a series of strikes in the past 2 years as disputes over pay, benefits and retirement were exacerbated by concerns about Lufthansa’s strategy of converting its Eurowings unit into a low-cost division. The cabin-crew deal was originally reached in July. Lufthansa’s talks with the pilots ended without result Aug 12. <br/>

Air NZ full-year profits in tourism boom, but faces increased competition

Air NZ announced record results Friday amidst a tourism boom, but profits were below expectations and the company warned of increased competition. Net profit before taxation had risen 40% to NZ$663m in the year to June. Air NZ was not alone in capitalising on New Zealand's tourism boom and the company warned they were expecting increased competition as other international airlines ramped up flights and entered the New Zealand market. "There's no doubt customers have more choice," said CE Christopher Luxon. New Zealand has experienced a tourism and migration boom in the past year with visitor arrivals up 11.2% to 3.34m for the year ending July. Air NZ said it was growing both its overseas and domestic business and expected to spend $2.1b in the next 5 years on aircraft capital expenditure. <br/>

Air NZ staff get NZ$2500 bonus after airline soars to best results in 76-year history

Air NZ staff will receive a NZ$2500 bonus after the company flew to a record after tax profit of $463m. CE Christopher Luxon said it was the company's "best results ever". A $2500 bonus would be paid to 8200 of its 11,300 staff, which were those who otherwise did not have any incentives tied into their contracts. The govt, which owned 52% of the company, would also receive a $260m dividend. Luxon said the company's customer satisfaction levels were at record highs and the staff culture continued to improve. But there was also increased competition flying its way as other international airlines increase their presence in New Zealand. "I am extremely proud of the airline's achievements, our people and the contribution we make to super charging New Zealand's success," Luxon said. <br/>

SAA denies Hong Kong service in jeopardy

South African Airways has denied reports in the South African press claiming its Hong Kong Chek Lap Kok services are in jeopardy. This weekend, The Sunday Times claimed authorities in the Chinese autonomous territory had given the carrier until Sept 6 to submit its 2016 annual financial statements or face possible deregistration. “The airline has not been deregistered and is unlikely to be deregistered," a SAA spokesman said. "We constantly ensure that we meet the compliance requirements in all jurisdictions where we do business.” SAA is unlikely to submit a set of signed-off accounts by the deadline given its sole shareholder, the South African Treasury, has refused to issue a guarantee of at least US284m the carrier needs to finalise its 2014/15 financial statements as a going concern. <br/>