United said Tuesday it expects a non-cash impairment charge of $90m in Q4 related to its Hong Kong routes, following anti-government protests in the city. The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement. "Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired," the US carrier said. Several airlines including India's SpiceJet, Malaysia's AirAsia Group, South Korea's JejuAir reduced the number of flights to the city in Q4 as the protests grew increasingly violent, disrupting daily life.<br/>
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Latin American airline Avianca has reached an agreement with airplane manufacturer Airbus to reduce the number of planes it was set to buy by 20, the company said Tuesday. The airline has been struggling amid corporate turmoil - last year United Airlines ousted its chairman and controlling shareholder, revamping leadership. Avianca will now buy 88 A320neo planes from Airbus, instead of 108, and delay their entrance to its fleet until between 2025 and 2029, instead of between this year and 2024, it said. The airline has also reached an “agreement of mutual benefit” with Boeing in relation to a pending order for two 787-9 planes originally meant to join its fleet in 2021, it said, without providing further details. From 2023, Avianca will sign rental contracts with BOC Aviation to rent 12 A320neo planes for 12 years, the statement added. Avianca did not say how much money it might save because of the changes, but chief financial officer Adrian Neuhauser said in the statement the effort had contributed to the company being in a “solid position” as it advances with its plans.<br/>
A commercial partnership between Lufthansa and Alitalia would boost revenues at the ailing Italian airline by E100mannually in the medium term, a Lufthansa executive said on Tuesday. Lufthansa needs a hub in Southern Europe and Rome’s Fiumicino airport could be the right one, Joerg Eberhart, the president and CEO of Lufthansa’s unit Air Dolomiti, told Italy’s Chamber of Deputies Transport Committee in a hearing. He added that Alitalia should join Lufthansa in the Star Alliance, the world’s largest group of carriers, that allows them to cooperate in marketing routes and pricing to travellers. Eberhart earlier on Tuesday told the committee that Lufthansa offered Alitalia a commercial partnership but was not ready to invest in it.<br/>