Brussels Airlines plans to cut its costs by between 10 and 15% in the coming years in order to remain competitive with low-cost rivals, its CE told Belgian daily De Tijd. The Belgian carrier, which Lufthansa took full control of in December 2016, has already reduced costs by 15% in the past three years through savings on staff and more efficient baggage and catering operations. Bernard Gustin told De Tijd in an interview published on Saturday that cost-cutting had to continue. Passengers would pay a little more to travel with Brussels Airlines compared with a low-cost carrier, but that premium had to be kept to a minimum. "We need to bring our costs down by at least 10-15%. This year already they have fallen by 5%," he said. Brussels Airlines expects to carry a record 9m passengers in 2017 and Gustin said he was targeting an increase to 10m in 2018.<br/>
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The German government will probably lose a E150m government-backed loan to insolvent Air Berlin because the EU opposed Lufthansa’s purchase of Air Berlin’s Austrian unit, Niki, a senior member of Chancellor Angela Merkel’s conservatives said Sunday. IAG said Friday that it would buy Niki for E20m and provide additional liquidity to the company of up to E16.5m, closing the final chapter in the demise of Air Berlin. Air Berlin filed for insolvency earlier this year. “The damages will be borne by creditors and German taxpayers, who will see nothing of the Air Berlin bridging loan in the amount of 150 million euros,” said Hans Michelbach, deputy leader of the Bavarian CSU party in parliament and financial spokesman for the conservative bloc. The situation would have been different if Lufthansa had been allowed to buy the airline for nearly E200m, Michelbach said. Lufthansa backed out of an agreement to buy Niki after the EC indicated it would block the sale. The German government had also criticized the Commission’s position earlier this month, forecasting that only part of the bridging loan from the KfW bank would be repaid. The Bavarian lawmaker called for a detailed investigation of the Air Berlin and Niki insolvencies and the actions of the EC Margrethe Vestager. He said details that had emerged appeared to show that the EU had carried out secret negotiations and provoked Lufthansa’s withdrawal of its takeover offer for Niki in order to “make possible the takeover by a certain investor at a bargain price.” “By doing so, the Commission violated its neutrality obligation in the worst sense and acted against the interests of creditors,” he said. No further details were provided. Michelbach also called for a detailed examination of whether Niki’s landing rights in Germany could legally be sold to IAG.<br/>
EgyptAir Holding Company has confirmed its order for 12 Bombardier CSeries CS300 regional jets, along with purchase rights for a further 12. The Dec. 29 commitment firms up an LOI announced Nov. 14 at the Dubai Air Show. Based on the CS300 list price, the firm part of the order is valued at approximately US$1.1b. Exercising the purchase rights would double that figure. “The CS300’s unique profitability profile will allow us to open up new opportunities and fits perfectly into our growth strategy,” EgyptAir chairman and CEO Safwat Musallam said. The aircraft will be used by Egyptair Express, the company’s regional subsidiary, on both domestic and short-haul international routes. Bombardier Commercial Aircraft president Fred Cromer said the CSeries has been performing "exceptionally well" since its 2016 entry into service with SWISS. <br/>
Canadian investigators have disclosed that an EVA Air Boeing 777-300ER crew followed an incorrect taxiway line before striking a pair of light poles. The aircraft had been taxiing at Toronto for departure to Taipei on 2 December. Transportation Safety Board of Canada says the aircraft had been cleared to taxi to runway 33R after de-icing, via taxiways V, E and D. While passing through a pad on the airport's main de-icing facility, the 777 followed the southern taxi line marked '1S' rather than the central line '1C'. The two are parallel and separated by around 30m. As a result the aircraft's right wing struck two light poles, one of which broke off at its base and fell. The 777 (B-16718) sustained substantial damage to the leading edge of its wing and outboard slats. No fuel leak or fire occurred and none of the 240 passengers and 22 crew members was injured.<br/>