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Lufthansa still interested in restructured Alitalia

Lufthansa remains interested in a restructured Alitalia and its position has not changed after Italy said this week it wanted a majority stake in the airline under government control. Lufthansa has repeatedly said that the Italian market is important for it but that loss-making Alitalia must first be restructured before it would invest. A spokesman said Lufthansa had already submitted a document to this effect to the government. “We can imagine further talks on this basis,” he said Friday. Italy’s new transport minister, Danilo Toninelli, said earlier this week there was a need for 51% of Alitalia to be kept in Italian hands.<br/>

Lufthansa Group to create African sales HQ in Brussels

The Lufthansa Group will integrate sales activities in Africa for all its airlines and establish a new sub-Saharan sales headquarters in Brussels at Brussels Airlines. Lufthansa Group airlines had already aligned their sales structures in many markets worldwide, except Africa. The joint commercial setup will take over existing local sales teams in Africa and responsibilities for all the group’s airline brands. The decision for Brussels Airlines is related to the carrier’s strong presence and expertise operating into Africa, with a dense network of 23 destinations.<br/>

LaudaMotion, Lufthansa leasing contract dispute goes to British court

A London court said July 20 it will schedule proceedings Nov. 19 to hear a case between LaudaMotion and Lufthansa over aircraft leasing contracts. Lufthansa wants to end a contract to lease aircraft to LaudaMotion, saying the Austrian carrier has failed to make payments. On July 20, the court terminated Lufthansa’s contract with LaudaMotion for 11 aircraft, even though LaudaMotion will continue to operate nine wet-leased Airbus A320 family aircraft from Lufthansa during the summer season. Ryanair — which has backed LaudaMotion — said July 13 it believed LaudaMotion was under threat by the German carrier and was attempting to remove the nine aircraft Lufthansa was obliged by the EC to provide to LaudaMotion to allow the new Austrian carrier to restart services. According to Ryanair, some of the aircraft Lufthansa had committed to deliver were being delayed until after the summer 2018 season, further reducing LaudaMotion’s ability to take up slots and offer 2018 flights and services.<br/>

Gulf giants talking with SAA, City Press says

Two United Arab Emirates airlines have held talks with South African Airways about a partnership that it says is needed to revive its business, City Press reported, citing the UAE ambassador to South Africa. Talks between Emirates Airline and SAA, which have been going on for some months, are being facilitated by the UAE’s embassy in Pretoria, the Johannesburg-based newspaper cited Mahash Alhameli as saying. Etihad has also been holding separate negotiations with SAA, he said. A spokesman for SAA didn’t respond to requests for comment. An investment in the unprofitable carrier would come after the UAE pledged to invest as much as $10b in South Africa’s economy, a commitment made during a visit by the nation’s President Cyril Ramaphosa this month. <br/>

Air China flight turns back to Beijing because of smoke in cabin

An Air China flight had to return to Beijing’s main airport shortly after it took off on Saturday when smoke appeared in the cabin, a local newspaper reports. Flight CA1639 bound for Harbin, in Heilongjiang province near China’s border with Russia, turned back at about 8.30pm after crew and passengers noticed the smoke, The Beijing News reported on Sunday. One passenger told a family member that the cabin had “filled with smoke” and they had been asked to leave the aircraft immediately after it landed and not to take their luggage with them, the report said. An Air China spokesperson told the newspaper the plane had returned because of a “strange smell” on the plane, without elaborating.<br/>

THAI chair aims high for global top five

Ekniti Nitithanprapas, the new chairman of THAI, wants to make the national carrier a premium service airline, cracking the world's top five in five years. "I dream of seeing THAI regain a top five ranking. We're now in the top tier," he said. THAI was ranked 10th-best airline in the world for 2018 by Skytrax. The company needs to allocate funds to clearly position THAI as a premium airline, Ekniti said, adding that harmonising the national airline with "Thainess and tourism" will help it achieve that goal. "The question is how to encourage foreign travellers who visit Thailand to fly THAI," he said. "Being a premium airline, I don't measure it by price but by service. Our users must feel that it's worthwhile." But he said rising oil prices will inevitably leave a dent in THAI's earnings as competition in the airline business intensifies. The strength and sustainability of THAI's financial position are part of a policy to drive the national carrier, Ekniti said.<br/>"We've cut down expenses substantially, but higher oil prices have hampered us," he said. "But we'll keep trying." THAI's average cabin factor is now 70-80%, up from 60-70% in recent years. But the carrier must focus on yield, income and expenses to strengthen its financial position amid fierce competition, Ekniti said. <br/>

Asiana plane flies back to Fukuoka due to landing gear problem

A passenger jet of Asiana Airlines departing from Japan has flown back due to a landing gear problem, causing an around eight-hour flight delay, the company said Saturday. The A350 plane bound for Incheon International Airport, west of Seoul, took off from Fukuoka Airport at 11:28 a.m. but returned for repairs as problems were discovered in the landing gear shortly after takeoff, the carrier said. <br/>