A plan to sell off India’s flagship airline is facing headwinds before it even gets started. Narendra Modi’s boldest asset sale yet, the proposed divestment of Air India, has run into rough weather after some of the potential bidders opted out upset with the government’s terms. This setback, however, is the least of Modi’s problems a year before voters decide if he deserves a second term. Resistance to the sale is brewing within Modi’s own party, sundry opposition groups and unions, who could join forces and potentially scuttle the process. A similar attempt nearly two decades back failed due to the same reasons. The challenge for Modi is to convince the nation’s political class, still rooted in a socialist past, why disposing of Air India is in the country’s best interests. Also, the sale will establish his credentials as an economic reformer steering the state away from running businesses. “It’s a very tricky situation that may boomerang,” said Satish Mishra, a political analyst at the Observer Research Foundation in New Delhi. A sale would add to the opposition’s narrative that Modi is handing over state assets to the private sector, but Modi is a fighter who wouldn’t want to appear weak, he said. Story looks in detail at issues dogging Air India.<br/>
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Egypt and Russia resumed direct flights Thursday, more than two-and-a-half years after they were suspended in the wake of a bombing that brought down a Russian passenger plane over the Sinai Peninsula. EgyptAir said its Moscow-bound flight took off from Cairo on Thursday and that it will operate three such flights a week. Earlier, an Aeroflot flight from Moscow carrying 124 passengers arrived in Cairo. The move comes after prolonged negotiations, multiple Egyptian airport inspections and inking of security agreements to bring Russian tourists back to Egypt to revive the country's reeling industry. Moscow suspended flights after the 2015 attack, which killed all 224 people on board and was claimed by the extremist Islamic State group. The decision dealt Egypt's tourism industry a severe blow since the country relied heavily on the influx of Russian tourists. "Even though air service between Russia and Egypt has been interrupted for such a long time, the load factor on upcoming flights is more than 85%," Aeroflot said, adding that both airlines would offer daily flights from June 12 to July 2 to cope with heavy demand.<br/>
SAA appointed Old Mutual veteran Bob Head as interim CFO to replace the suspended Phumeza Nhantsi as the embattled state carrier strives to turn around its fortunes. The former head of insurer Old Mutual’s southern Africa operations was one of seven appointments announced by SAA Thursday. Under new Chief Executive Officer Vuyani Jarana, the airline has set a three-year recovery plan, which includes cutting routes, flights and planes, having failed to make a profit since 2011. Head will fill the gap left by Nhantsi, who is facing a disciplinary hearing alongside ex-CEO Musa Zwane following unspecified allegations made against them. Their departures came as new President Cyril Ramaphosa pledged to clean up state-owned entities that have been embroiled in allegations of mismanagement and corruption. <br/>
SAS is to acquire another Airbus A330-300E for its long-haul fleet. SAS is intending to take delivery of the twinjet – powered by Rolls-Royce Trent 700 engines – in Q2 next year. The carrier has eight A330-300s and eight A340-300s. SAS says it will use the additional aircraft, acquired through a sale-and-leaseback transaction, to replace one of its A340s. It says it has been using one of its A340s primarily as a "reserve" aircraft, and adds that the introduction of the A330 will cut fuel consumption and ensure its long-haul fleet has a consistent cabin interior. Airbus has confirmed the agreement for the twinjet, which comes just a few days after SAS's decision to order 50 A320neos for short-haul fleet modernisation.<br/>