star

Avianca has applied for approval to fly domestic and international routes in Argentina under its Avian Líneas Aéreas subsidiary. A hearing on the application is expected to take place later this month. Avianca’s parent company, Brazil’s Synergy Group, last month placed an order for 12 ATR 72-600s and 6 options for Avian Líneas Aéreas.<br/>

Trouble was brewing this summer at Avianca Holdings, Latin America’s second-biggest airline. Tight on cash, the airline needed to raise money. For many on the board, one option was selling part of the company. The company’s largest investor — a swashbuckling, Bolivian-born entrepreneur, Germán Efromovich — had other ideas. The airline was the thread holding together the remnants of his once-powerful empire spanning oil and gas businesses, shipyards, hotels and airlines. He was not about to let it go without a fight. A number of suitors, including Delta, United and Copa Airlines of Panama, indicated interest in buying a stake — including buying out Efromovich and his brother, José — but the two made it known that they were not ready to relinquish control, people with knowledge of the negotiations said. Efromovich was often at odds with Avianca’s second-biggest shareholder, Roberto Kriete. Tensions in the boardroom were so high in recent months that there were shouting matches in some meetings. But there was a struggle on another front that would soon bring the parties together. Efromovich, after making big bets on the energy industry before oil prices plummeted, was on the brink of default on hundreds of millions of dollars in loans. The lender was Paul E. Singer and his hedge fund, Elliott Management, best known for its decade-long battle with Argentina over its defaulted debt. And some of the collateral was Efromovich’s stake in Avianca. That has brought Elliott’s executives to the negotiating table in recent months, meeting with Avianca’s suitors, participating in board meetings and keeping an eye on their borrower. Late last week, Delta, United and Copa submitted bids to partner with Avianca. Lengthy piece has full details.<br/>

Asiana Airlines has come under fire for letting a co-pilot injured in a bloody fight, operate a flight bound for New York from Seoul, South Korea, last week, risking the safety of 275 passengers. According to reports, a quarrel broke out between two co-pilots of flight OZ222 that was supposed to depart from Incheon International Airport for New York at 11 a.m. Friday. The two punched and kicked each other, leaving one taken off the flight for medical treatment. Departure was delayed for about one hour. The other co-pilot was also injured, but the company’s safety director left him on the flight after checking his condition. Instead, the director used a substitute pilot to fill the vacancy. The exact cause of the fight is unknown. The country’s second-biggest airline will question the two pilots this week and take disciplinary action. Amid criticism for leaving the injured pilot in the cockpit, the company said the fight happened outside the cockpit and that Asiana’s safety director confirmed that the pilot would not compromise safety. <br/>

Singapore Airlines is "pleased" with the number of passengers flying in and out of Canberra although a federal government report has revealed lots of empty seats on its first flights. A report into international airline activity in September by the Department of Infrastructure and Regional Development showed more than 3200 people flew in and out of Canberra after the Capital Express route launched on September 21. But while the first flight that touched down was 95 per cent full, analysis has shown the six flights from Wellington to Canberra had an average of 94 seats occupied. Flights from Singapore to Canberra fared a little better, with an average of 142 seats occupied per flight. The Boeing 777-200 can carry up to 266 passengers, which includes 38 business class seats and 228 economy seats. However these figures do not take into account traffic carried via Canberra between Singapore and Wellington, a spokesman from the Department of Infrastructure noted. The carrier wasn't fussed by the low numbers either, Singapore Airlines ACT manager, Tan Chin Yu said. "We have been encouraged by the support from the local community since we went on sale in January and remain pleased with the number of customers choosing to travel on the new service, both to Singapore and beyond with direct connections to UK/Europe," he said. "There has been a good mix of business and leisure travellers in both the business and economy class cabins."<br/>

Air New Zealand premium economy seats have been ranked the best in the world, followed by its business class seats in second place. Virgin Australia took out the top spot for its business class seats, Etihad Airways for first class seats and Singapore Airlines for its economy class seats, according to global product and safety website AirlineRatings.com. Crowned the best airline overall in the world, Air New Zealand's spacious economy cabin class took sixth place in the awards. The rankings were based on space allotted to passengers, innovations in each class and product and safety reviews by experts and consumers. AirlineRatings.com's editor-in-chief Geoffrey Thomas said that Air New Zealand's premium economy seats had "shown better than any other airline that passengers will pay more if the product is right and priced accordingly". "Its efforts in this space are a lesson to all airlines that passengers want better and are prepared to pay," Thomas said.<br/>