Lufthansa is close to a multibillion euro bailout deal that would see the state become its biggest shareholder after the coronavirus punctured a decades-long boom in air travel. The shares gained as much as 8.3% Thursday after Europe’s largest carrier confirmed it’s in advanced talks with Germany’s WSF Economic Stabilization Fund for as much as E9b in aid. The package would include a E3b loan, a so-called silent participation and a 20% direct stake through the sale of new shares, Lufthansa said. The government would also receive a convertible bond equivalent to 5% plus one share. Under German law, the 25% plus one share total stake would enable the state to block motions at annual general meetings, giving it a veto over hostile takeover attempts. “A decision can be expected shortly,” German Chancellor Angela Merkel said late Wednesday in Berlin, adding that “intensive talks” were ongoing with the company and the European Commission, which would need to approve a deal. Under the plan, Germany would also receive two seats on Lufthansa’s supervisory board. The company didn’t say whether these would be political or independent figures, a matter under discussion in negotiations.<br/>
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Polish national airline LOT has struck a deal with most of its pilots and flight attendants regarding idle time pay as the group struggles to cope with the impact of the coronavirus outbreak, the carrier said Thursday. LOT, which suspended fights two months ago, plans to resume domestic connections on June 1. The deal was signed for three years with 1,200 flight attendants and 600 pilots, out of 1,700 and 900 respectively working for LOT. It assumes that flight attendants will earn between 2,500 zlotys ($605) and 3,600 zlotys per month as idle time pay, while pilots will receive 5,500-7,200 zlotys if their flight time is lower than 13-15 hours. “The salaries will increase as the network of connections gradually resumes and more flights are carried out,” said LOT. LOT is working on a rescue plan and is likely to need state aid given that air traffic has been suspended, Minister of State Assets Jacek Sasin said. <br/>
Turkish Airlines will resume operations in June, according to the company. The THY will begin its domestic flights on June 4 and international flights on June 10, a press officer said Thursday. In the upcoming period, cabin baggage would no longer be carried in the cabin, said Ilker Ayci, chairman of the Board of Directors and Executive Committee of the company. Ayci noted that only handbags would be allowed inside the cabins. The carrier earlier extended the suspension of all its domestic and international flights until May 28 over COVID-19 concerns.<br/>
Air NZ CE Greg Foran has axed three top executives as the airline deals with fallout from Covid-19. Chief strategy networks and alliances officer Nick Judd will depart the airline on May 31 and chief air operations and people safety officer John Whittaker on July 31. Chief marketing and customer officer Mike Tod "will step away" from the airline full-time on May 31 and will provide advisory support to Foran and the board during the current business transformation phase, a release from the Air NZ says. Between them they nearly 70 years' experience at the airline. "As we have done in all parts of our business, we are creating the structure that is appropriate for an airline which we expect will take two years to get back to 70% of its former size. On that basis I have reduced the size of the executive team from nine to six," Foran said. He said the portfolios of the three departing executives will be absorbed by the remaining members of the executive team. The executives had played pivotal roles in growing Air New Zealand's international network, products and services,and deepening relationships with key stakeholders like unions and alliance partners.<br/>