Air NZ posted a 24% fall in first-half pre-tax profit in the face of increasing competition into the domestic market. Pre-tax earnings fell to NZ$349m in the 6 months ended Dec 31 from $457m in the same period a year earlier, the company said. Net profit in the first half fell 24% to $256m. Operating revenue was $2.22b versus $2.31b in the prior year. The carrier was forecast to post a 45% decline in first-half earnings to $186.5m on a 2.6% decline in revenue to $2.63b, according to Forsyth Barr analyst Andy Bowley. While net profit was sharply lower, the airline said it was the second highest result for an interim period in the airline's history. "Passenger revenue was the main driver of the decline, as a significant level of new competitors entered the New Zealand market in the period," said CE Christopher Luxon. <br/>
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Air NZ has joined the panel of carriers providing air services in the govt's cross-agency contract designed to get the best deal for the taxpayer. Subject to govt sign-off, the carrier will be another addition to the panel, which expanded the number of airlines govt departments can fly with. The new agreement is for a 4-year term, with potential for three 2-year rights of renewal. Air NZ and other unnamed airlines were still in negotiations when the Ministry of Business, Innovation and Employment announced a number of carriers allowed to ferry public servants earlier this month. Former Economic Development minister Steven Joyce asked for the contract to be retendered last year as heightened competition prompted a review of the benefits from all-of-govt procurement. <br/>
Five airlines that fly into Europe have been told they must pay compensation to passengers for delays. American, Etihad, Emirates, SIA and Turkish Airlines will have to obey European laws or be taken to court. All had told the Civil Aviation Authority that they did not pay compensation when their delays meant passengers missed a connecting flight. But compensation is in fact due if passengers arrive at their final destination more than 3 hours late. Richard Moriarty, Director of Consumers and Markets at the CAA, said he was disappointed at the airlines' stance. "Airlines' first responsibility should be looking after their passengers, not finding ways in which they can prevent passengers upholding their rights. So it's disappointing to see a small number of airlines continuing to let a number of their passengers down”. \ <br/>
Lufthansa will take delivery of the second of 25 Airbus A350 XWBs in Munich Feb 24, which will be used on Munich-Boston Logan scheduled services beginning March 14. The airline took delivery of its first A350-900 Dec 21, 2016, and launched its first A350 scheduled services Feb 10, from Munich to Delhi, India. The first 10 A350s will be deployed on long-haul routes from Munich; a further 6 of the type will be delivered this year. The next delivery is scheduled for summer 2017. The A350 will gradually replace Lufthansa’s A340-600 fleet. The 293-seat aircraft is configured for 48 seats in business, 21 in premium economy and 224 in economy class. The A350 is equipped with Lufthansa’s latest cabin products, including new seats, inflight entertainment and connectivity in all classes. <br/>