Lufthansa has begun the European approval process for its takeover of large parts of insolvent Air Berlin. The deal has come under fire from airlines and consumer groups who fear it will give Lufthansa dominance of German domestic routes and in Austria. A spokesman for Lufthansa said Wednesday it had notified the EC, which was not immediately available for comment, and expected a decision to be taken in December. Lufthansa last month said it planned to acquire Air Berlin units Niki and LG Walter, plus additional aircraft in a deal that will grow its fleet by 81 aircraft. The purchase price is E210m (US$244m) but Lufthansa expects to invest around E1.5b in total, including paying for the planes and other items such as staff training and repainting planes. <br/>
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ANA upgraded its full-year forecasts Wednesday as profits soared to new records due to solid demand. ANA Holdings said net profits for the first-half period from April to September had more than doubled from a year earlier to a record JPY118.4b. However, this rise was mainly due to income gained from integrating budget carrier Peach Aviation onto its books as well as a strong performance in international passenger and cargo services. ANA Holdings has soared in recent years, booking an all-time high net profit for the last fiscal year on gains in its international business. By putting Peach under its umbrella ANA, which also controls budget carrier Vanilla Air, is aiming to grab a bigger portion of Japan's LCC market, analysts said. For the first 6 months to September, operating profits jumped 28.5%. <br/>
SIA, the first carrier to put a double bed in its cabins, is preparing to take airborne luxury up another notch -- and catch up with a key rival. The airline Thursday will unveil its first major overhaul across cabin classes of its Airbus A380s since 2007, when it became the first carrier to fly the double-decker aircraft. SIA has revealed scant details, other than the likelihood of fewer suites and that the changes will be introduced in 5 new super-jumbo planes it will receive progressively from this year. Airlines have been trying to outdo each other when it comes to pampering the upscale business traveller. SIA CE Goh Choon Phong is fending off intensifying competition, particularly from Middle Eastern carriers like Emirates, which in August introduced a revamped lounge inspired by private yacht cabins on its own A380s. <br/>
Deputy president Cyril Ramaphosa says the govt had no option but to pump billions into recapitalising South African Airways because letting it fail would have catastrophic consequences for the economy. Ramaphosa was challenged over why the govt was throwing good money after bad to keep the airline afloat. Ramaphosa explained that the govt is the guarantor of last resort for the debt carried not only by SAA but a number of state-owned enterprises. “Now if SAA were to default, that defaulting would run right across other govt guarantees. Govt has given, not only to SAA, to Transnet, to Eskom, to Prasa and a number of other govt-owned entities” It would mean the govt would have to repay that debt in one go, with further impact on the bonds it has issued. <br/>