Lufthansa Thursday confirmed it was in talks with the German government over a E9b rescue that will see Berlin take a massive stake in the coronavirus-stricken airline. "The concept, which has not yet been finalised, provides for stabilisation measures in the amount of up to nine billion euros, of which three billion euros is in the form of a loan" from public investment bank KfW, the German aviation giant said. Under the plans mooted with the federal government's economic stabilisation fund (WSF), launched to cushion the impact of the virus pandemic, the WSF would acquire a stake of 20% in the airline group, as well as a convertible bond worth "a further 5% plus one share" in the company. The bond "can be exchanged... in the event of a public takeover offer by a third party," giving Berlin a blocking minority. If agreed, the solution would close weeks of wrangling over Lufthansa between Chancellor Angela Merkel's CDU conservatives and their centre-left junior partners the SPD. <br/>
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More than 1300 cabin crew will lose their jobs at Air New Zealand in a move one worker has called "crushing". Out of 1600 long and mid-haul crew, 950 will lose their jobs. For domestic crew, 300 workers will be made redundant across Auckland, Wellington and Christchurch. Regional airlines are also affected, with a combined loss of 97 jobs between Air Nelson and Mt Cook Airline, says E tū, the union covering cabin crew. One cabin crew member says they are "absolutely devastated". "Having seen first-hand the work done by our union members, and still having this result, is crushing. Air New Zealand values its staff less than its profit and shareholders, which so sad to see unfold," the crew member said. Air New Zealand says the process has not been rushed and full consultation was held. Up to 3500 jobs among 12,500 could be lost as Covid-19 grounds planes and has forced the airline to cut its international schedule by 95%. "We starting talking to staff and unions about these issues nine weeks ago and have done everything possible since then to collaborate and reduce the number of compulsory redundancies, including calling for voluntary exits, leave without pay, applying for the Government wage subsidy, and exploring redeployment and part-time options." A spokesman said the airline had worked with staff to establish a furlough scheme; however this was not supported by E tū.<br/>
United's new CEO says he hopes to avoid staff cuts, despite the need to significantly reduce labor costs in the face of sharply lower demand for air travel. Airlines are not allowed to lay off or furlough employees before the end of September, as one of the conditions of the bailout package for the industry recently passed by Congress. At the company's annual meeting Wednesday, Scott Kirby told shareholders he hopes to reach an agreement with the airlines' unions by then to keep United's 100,000 employees on the payroll, even it means reduced hours and other labor cost savings. "We'll be taking time in the months ahead to work with our union partners on creative ideas that would involve reduced hours and leaves of absences instead of furloughs," said Kirby, who had been United's president and who became CEO at the conclusion of the annual meeting. "I recognize that even though those options are difficult and will need to be widely shared by everyone here at United, it would save jobs, and most importantly, it would allow us to bounce back quickly, which is the best way to ensure everyone's jobs and stability for our company for years into the future."<br/>
A National Football League player contends in a lawsuit filed Wednesday against United Airlines that he was sexually assaulted by a female passenger on a redeye flight in February from Los Angeles International Airport to Newark Liberty International Airport. The football player and a second plaintiff did not give their names in the lawsuit, which was filed in Los Angeles County Superior Court. The plaintiffs, both African-American men, were sitting in the middle and aisle seats in the same row during United Flight 415 on Feb. 10 when a middle-aged white female passenger in the window seat made unwanted sexual advances toward them, the lawsuit said. The football player and the other man complained several times to the flight attendants, according to the suit, which contends that United employees initially failed to intervene and that the woman became belligerent. She had turned particularly confrontational over a face mask worn by the player, who was identified as John Doe 1 and a New Jersey resident, the lawsuit said. “While touching John Doe 1’s face, assailant grabbed John Doe 1’s penis and ripped off his face mask,” the lawsuit said. The men are suing United for sexual assault and battery, as well as for intentional and negligent infliction of emotional distress. The suit contends that the airline refused to provide the names of the female passenger, the flight attendants and potential witnesses to lawyers for the two men. A spokeswoman for the airline said in an email on Wednesday that the passenger involved was moved to a different seat, which the lawsuit also noted. “The safety and well-being of our customers is always our top priority,” said the spokeswoman, Rachael L. Rivas, who declined to comment further because of the lawsuit.<br/>
Lufthansa'sAustrian unit AUA has agreed a short-time work model and salary cuts of up to 15% with its on-board staff and 20% cost reductions with its suppliers and no longer sees itself immediately threatened by insolvency, it said. Negotiations between the government in Vienna and Austrian Airlines (AUA) and Lufthansa management regarding a E767m request for state aid were ongoing and are expected to continue over the weekend, a spokesman said on Wednesday. AUA said it would cancel all regular flights until June 14. The carrier hopes to resume flights within the German speaking region later that month before gradually expanding services to cities including Paris and London, and holiday destinations such as Greece in the summer holiday season, the spokesman said. AUA's on-board staff, around 3,800 of a total 7,000, have agreed to extend short-time work agreements until 2022 and afterwards accept socially staggered salary reductions of 5-15% until 2024, the spokesman said. Negotiations with ground staff were ongoing.<br/>
Canada’s largest airlines will burn through cash as they endure a long recovery for the industry, S&P Global Ratings said as it downgraded Air Canada and WestJet. Air Canada won’t see revenue and capacity return to last year’s levels until 2023, S&P said in an analysis that led to a one-notch downgrade to BB-. It kept its outlook negative. Revenue at the carrier is expected to fall 50% to 60% and it could lose as much as C$800m in earnings before interest, taxes depreciation and amortization this year. Air Canada said last week it will cut 20,000 jobs. About 70% of the airline’s passenger revenue comes from routes to the US and overseas. WestJet is more focused on domestic travel, which will likely recover before international routes, the agency said. But the airline has a different problem: its exposure to the depressed economy of Western Canada. “Beyond the pandemic, sharply weaker oil prices could have a disproportionate effect on the company’s air traffic,” S&P said. “This stems from approximately 40% of WestJet’s available seat miles touching down in the province of Alberta, where economic conditions are underpinned by the petroleum industry.”<br/>
South Africa’s government has provisionally set aside R3.8b ($212m) for South African Airways and another R164m for SA Express in the current fiscal year. Department of public enterprises deputy director general Kgathatso Tlhakudi gave the figure during a 20 May presentation before the parliamentary portfolio committee on public enterprises. Tlhakudi pointed out that the budget allocated by the treasury is “under strain” owing to “unplanned spending” to cope with the coronavirus crisis, and that it “will look different in a couple of weeks”. But he highlighted a transfer of R37b to state-owned enterprises this year, with the vast majority to electricity utility firm Eskom. The figures also included R3.8b to South African Airways in 2020-21, part of a R9.9b sum set aside for the medium term.<br/>