Jet fuel supply to Air India has been stopped at 6 domestic airports because of unpaid dues to fuel provider Indian Oil Corp, 3 sources said Thursday. India, for years, has propped up the debt-laden airline by infusing equity to keep it alive - the govt injected US$553m into Air India in the fiscal year that ended March 31. "In the absence of equity support Air India cannot handle the huge debt service liabilities," the airline said, adding its financial performance was improving. Fuel supply to Air India has been halted since Thursday evening at 6 cities across the country including Mohali in the north, Vishakapatnam and Kochi in the south, Pune in the west and Ranchi and Patna in the east, one of the sources said. <br/>
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Air NZ has cited higher fuel costs, the Rolls-Royce Trent 1000 engine issues, and a lower demand environment in the second half as drivers of a 31% fall in its underlying earnings to NZ$374m (US$239m) for the year ended June 30. While the underlying result was consistent with its last guidance of exceeding $350m issued in March, it was down significantly from the $425m to $525m figure that was issued at the end of June 2018. “While we are disappointed that we did not meet the expectations we first set for ourselves at the start of the financial year, the fact is we are operating in a different demand environment than we were 12 months ago. To have achieved a solid result despite these headwinds speaks volumes about the extraordinary dedication and commitment of our people," says chairman Tony Carter. <br/>
Lufthansa and charter carrier Condor are discussing a possible code-sharing deal that could help save both money on long haul routes, sources familiar with the matter said. A deal is possible by the end of the year that would allow the airlines to offer tickets on the same plane under different flight numbers, helping reduce the number of empty seats on flights. Both companies declined to comment. Lufthansa had offered to buy Condor, but the sale has been put on hold while the charter airline's cash-strapped owner, Thomas Cook, holds talks on a rescue deal with China's Fosun Tourism. CE Carsten Spohr is meanwhile under pressure to boost efficiency and profitability at Lufthansa. According to a report in Germany's Manager Magazine Thursday, he plans to raise his medium-term profit target to E3b from E2b. <br/>
United Airlines is adding several new routes to Europe, underscoring the pursuit by airlines of high-fare passengers. United said Thursday that it will add European flights from Newark, New Jersey; Chicago; Denver and San Francisco. It's adding destinations such as Nice, France, and Palermo, Italy, to woo premium leisure travellers. And it's adding flights to places it already flies, like London, that appeal to business travellers. Many of the flights will use a version of Boeing's 767 jet that United is configuring with fewer seats than planes it is replacing — but crucially, with more business-class seats that generate much higher fares. Like most airlines, United uses so-called widebody planes on international routes, so trans-Atlantic growth isn't slowed by the grounding of the smaller Boeing 737 Max. <br/>