India is open to listing ailing state carrier Air India, a government source said Wednesday, after failing to attract buyers for a 76% stake in the company. While the government is considering several proposals related to reviving the divestment process, it will not allow complete foreign ownership of the airline, the source said. One of the proposals could involve the government retaining a share in the debt-laden carrier and selling it at a later date so it can capitalize on any financial upside that may occur from listing the airline, the source said. The government may also consider reducing the debt it passes on to potential buyers and restructuring the large workforce, another senior government official said. “We will take a decision in next few days on changing conditions before inviting fresh bids,” the official said, adding that the government is committed to selling its stake in the national carrier in the current financial year but could defer it if it fails to get the right price. The government will soon arrange a bank loan for Air India, the second official said, to meet working capital needs and buy time for a few months before inviting fresh bids. “The heavens would not fall if the stake sale is deferred to the next fiscal year,” the official said adding that ahead of national elections next year, the government could not take the risk of selling the national carrier at a low price.<br/>
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A freak bout of electrical storms over Germany is to blame for the worst monthly punctuality record at Lufthansa in at least two years, according to the company. The country suffered more lightning strikes in the first five months than in the whole of 2017, with planes hit by an average of three bolts a week, according to Thorsten Dirks, the Lufthansa board member responsible for the group’s Eurowings division. The low-cost operator in particular has struggled to cope as it absorbs planes and businesses acquired by its parent. Aircraft have to undergo safety checks following lightning hits, taking them out of action for up to 16 hours. Airports including Munich have also suspended operations during the bad weather. “These are turbulent times,” Dirks said in a briefing in Frankfurt. Across Lufthansa as a whole in May, close to 35% of flights failed to arrive within 15 minutes of the scheduled time, the worst monthly performance since at least 2016, according to data provided by flight-scheduling firm OAG. Some 3.3% of flights were cancelled, the highest proportion this year. The situation has been exacerbated by a series of strikes by air traffic controllers in France and Italy, Dirks said. The walkouts have hurt punctuality at several carriers, especially for flights between northern Europe and the Mediterranean. Eurowings has been especially stretched as it suffers “growing pains” from taking on more than 100 aircraft over the past three years.<br/>
Air NZ still expects annual earnings to beat last year's result despite the squeeze from rising fuel costs, which it sees as an ongoing headwind into 2019. The carrier Thursday reaffirmed guidance for pre-tax earnings of more than $527m in the year ending June 30, beating what it reported in 2017. The airline told investors at a briefing in Auckland it expects annual fuel costs of $990m at US$75 per barrel. "Based upon the current market conditions and despite the increased price of jet fuel, the company continues to expect 2018 earnings before taxation to exceed the prior year," according to slides accompanying CE Christopher Luxon's presentation. "2018 will be another strong year, despite absorbing over $100m in higher fuel expense." The airline has already responded to the higher cost of fuel with increased prices on domestic and international routes. Long-haul routes have a higher sensitivity to more expensive fuel because of the longer travel times.<br/>