Avianca Holdings plunged to a record low after the airline’s chairman was seen in a leaked internal video telling employees that the company is “bankrupt.” The stock dropped as much as 15% in Bogota trading before paring losses. Chairman Roberto Kriete was trying to reiterate to employees the urgency of getting back to profitability, said Carlos Enrique Rodriguez, head of equity research at brokerage Ultraserfinco. Instead, his comments wiped out more than US$40m of market capitalisation, as the video surfaced on social media after markets closed Monday. The company quickly tried to qualify the statement. Kriete “used the colloquial term ‘bankrupt’”, though the company is not in any bankruptcy or insolvency process, the airline said. <br/>
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SAS Tuesday pledged to step-up its efficiency measures amid macroeconomic headwinds, and reiterated that achieving a positive pre-tax pre-items result this year will be challenging. Capacity outlook and a recent decline in jet-fuel price are positives but several challenges remain, including the continued weakness of the Swedish krona against the US dollar and the euro, and the slowdown in the European and global economies. “Although we are in the process of adapting to current market conditions, the journey towards an even more efficient and effective SAS will require additional time and effort,” CE Rickard Gustafson said. SAS is targeting SEK900m (US$93.6m) in savings for the fiscal year 2019 as part of a multi-year SEK3b savings program, but SAS cautioned Tuesday that costs aren’t decreasing enough. <br/>
United Airlines has added the option to pay for checked bags before you check in online or get to the airport. Travellers are now able to pay bag fees any time after they purchase the ticket. The option was added this month. United is the first major airline to offer the service, according to Linda Jojo, the airline's executive VP of technology and chief digital officer. The prepayment option gives travellers one less thing to worry about as the flight approaches, Jojo said Tuesday. Travellers cannot pay for the bag when they book their ticket, as discounters Spirit, Frontier and Allegiant allow, but can do so any time after it's ticketed. Unlike the budget airlines, though, United's bag fees are the same regardless of when you pay them: US$30 for the first bag and $40 for the second. <br/>
An Air China Airbus A330-300 was severely damaged by a cargo hold fire at Beijing Capital International Aug 27 as passengers were boarding for a flight to Tokyo Haneda. When smoke appeared from the forward cargo hold, the crew immediately ordered passengers to evacuate the aircraft, Air China said. The crew members also implemented fire extinguishing procedures, the company said. Despite their efforts, the fire was serious enough to emit black smoke thick enough to obscure part of the airport’s Terminal 3, where the A330 was standing, photographs posted on social media show. The fire appears to have burned through the top of the fuselage just ahead of the wing and just behind the forward doors. The cause is under investigation, Air China said. <br/>