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Boeing’s efforts to reassure airlines and passengers that its 737 Max jetliner will make a safe return to service won the support of Ethiopian Airlines CEO Tewolde GebreMariam, whose carrier suffered the fatal crash that led the plane’s grounding. Ethiopian has “more confidence” in the US manufacturer following its expressions of contrition and admission that it made a mistake in its handling of new systems introduced on the Max, Tewolde said Tuesday. He has met “very frequently” with Boeing managers at the expo, CEO Dennis Muilenburg among them. “They are more transparent and they are on the right track, doing the right things,” Tewolde said. “I think now that everything is in order. We are working together, so now we have more confidence. That’s good for global aviation.” His comments signaled improved relations between Boeing and Ethiopian, which had deteriorated after the March crash when the manufacturer questioned whether pilots on the flight had followed correct procedures. An official probe subsequently concluded that a new software system pushed the plane toward the ground when an erroneous sensor indicated that the jet was about to stall. A visit to Addis Ababa, Ethiopia, by Boeing’s commercial airplanes chief, Kevin McAllister, was also “helpful,” according to Tewolde. The executive had “wanted to share his condolences for the victims’ families and also for the airline. He came to show his solidarity with us.” Still, Ethiopian Airlines could be the last operator to return Max to service, reflecting the deep impact of the tragedy -- in which 157 people died -- on the airline and the wider community, Tewolde said. “It’s nothing else than because we had the accident,” he said. “We are not like the other airlines because we had the actual accident. It takes more to convince our pilots and passengers.”<br/>

Istanbul’s new airport was meant to benefit Turkey’s flag carrier, but it boosted its budget rival instead. Pegasus Hava Tasimaciligi AS stock has outperformed Turkish Airlines by more than 95 percentage points this year. The divergence is being amplified by bets that it stands to gain amid setbacks that have plagued its rival, which is now flying primarily from a new airport 20 miles outside the city centre. Istanbul Airport -- the new $11b Turkish Airlines hub opened in April on the foggy Black Sea coast -- has been mired by reports of diverted flights, delays and long taxi times on its runways that threaten to eat away at the carrier’s earnings. That’s been a boon for Pegasus, as passengers looking to avoid any inconvenience are now choosing Sabiha Gokcen International Airport, Istanbul’s second outlet on the Asian side of the city, where the company operates the bulk of its flights. While the travails for Turkish Airlines are likely temporary, “Sabiha Gokcen’s strategic importance has increased,” said Behlul Katas, an analyst at Yatirim Finansman, an Istanbul-based broker, citing the distance that passengers have to travel to reach Istanbul Airport and concerns over the costs the flag carrier needs to assume at its new hub. He has an outperform rating on both Turkish Airlines and Pegasus stocks. In the first five months through May, passenger traffic at Sabiha Gokcen rose 2% compared to the same period a year earlier while international passengers surged 19%, according to data from the Turkish airport authority. Traffic at Istanbul Airport and the retired Ataturk Airport combined fell 4% over the period, with international passengers rising a mere 0.3%. The trend is as encouraging for Pegasus as it is ominous for Turkish Airlines. With a footprint larger than Manhattan, Istanbul Airport is designed to handle 90m passengers a year by 2020 and is integral to Turkish Airlines’s bid for expansion. Turkish Airlines has discounted the potential risks “perhaps more than any other in the market,” said Julian Rimmer, a trader at Investec Bank in London. He said the stock’s stellar performance last year aggravated its drop.<br/>

Avianca has appointed former Aeromexico executive Anko van der Werff as its new CE, effective 15 July. Van der Werff was most recently chief revenue officer at Aeromexico, which he left earlier this month. He previously worked at Qatar Airways and Air France-KLM, and has more than 19 years of experience in the airline industry. "Anko will join our team to help us lead these challenging times in the industry. His ample experience in world-class airlines will not only help us continue with our transformation, but will also help us strengthen the loyalty of our customers, rekindling the commitment of our employees and reinforce our company’s competitiveness and financial situation," says Avianca chairman Roberto Kriete. Van der Werff will take over the helm of Avianca at a difficult time. The carrier was downgraded in recent months by ratings agencies concerned over its financial leverage and liquidity. The airline ended Q1 with a net loss of $67.9m. <br/>