LATAM Airlines expects to see a recovery in its key Brazilian market in H2 2017 as it pares its fleet and rolls out a low-cost model in Chile to remain competitive, its CE said Monday. Battered by Brazil's recent economic downturn, Latin America's largest airline does not expect a return to its former investment grade status much before 2019, Enrique Cueto said. "To return to what we were before, that will take some time," he said. "(But) we are going to see positive results from the second half." LATAM Airlines was formed in a 2012 merger between Brazil's TAM and Chile's LAN. The carrier's leading position in the continent's air traffic has few parallels. But economic downturn in the region left the group struggling to live up to its early promise. Last week, it posted its first full-year profit since the merger. LATAM has cut capacity, reduced costs and chopped fleet commitments in a bid to remain competitive and is now in good shape to face a quickly evolving market, Cueto said. The company is rolling out a partial low-cost model in Chile this year as it faces a flurry of new entrants in South America and deals such as Avianca's proposed tie-up with United. "We're not going to be a low-cost company, but we will have a structure approximating the low-cost model," he said. "We want to look after our business passengers but also the kid who just wants to take a carry-on bag on the plane and pay less."<br/>
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British Airways will hand staff 400 pounds ($496) and a free return flight to help make up for missed bonus payments. The payout, detailed in a letter to workers seen by Bloomberg and confirmed by BA, will be made to all UK employees. Staff were due to receive only a fraction of their standard bonus because earnings fell short of a GBP1.5b threshold and the carrier missed customer service and punctuality goals. “The 2016 all-colleague bonus scheme has triggered at a much lower level than in previous years,” the London-based unit of IAG SA said in the staff letter. “However, the British Airways board has decided that all eligible colleagues in the UK will receive a bonus with their March pay.” Alex Cruz, who took over as head of BA last April, needs the support of staff after embarking on a four-year program to boost margins. Measures include cutting almost 700 back-office jobs, as well as some maintenance posts, switching to paid-for food on short-haul flights and adding extra seats across the fleet to bring seat density into line with rivals. Employees will still receive a small part of their usual bonus for meeting on-time performance targets in one quarter. For much of the year the carrier struggled to integrate a new check-in system, delaying flights and weighing on customer ratings, while air traffic control strikes also disrupted schedules. No profit-related bonus will be paid after BA’s earnings were held back by a slowdown in business travel ahead of the June 23 referendum on Britain’s membership of the EU, together with an over-supply of short-haul seats as a string of terrorist attacks crimped demand. Confirming the one-time payments and additional free flights, British Airways said that it was “proud of how hard our colleagues work to support our customers.” <br/>
American Airlines is bringing free food back to the economy cabin on two of its high-profile of cross-country routes. The change mirrors a similar move announced last month by rival Delta. Beginning May 1, American will add complimentary meals for all customers on “select coast-to-coast flights” operated with its Airbus A321T aircraft. American’s A321Ts are configured for long transcontinental flights and include lie-flat seats in first- and business-class. The “select” routes will be American’s non-stop flights connecting New York JFK to the California cities of Los Angeles and San Francisco. “Some of our best customers fly our trans-continental routes and we want to give them a top-notch onboard experience,” said Fernand Fernandez, American’s VP – Global Marketing. “Providing complimentary meals in the Main Cabin is yet another step we’re taking to enhance our service in this competitive market.” What will economy fliers get on American’s JFK-California routes? The carrier says that “depending on the time of day, customers will be offered a continental breakfast or a boxed meal with a sandwich wrap, kettle chips and dessert. The menu also includes a vegetarian option and a fruit and cheese plate.”<br/>