Lufthansa CE Carsten Spohr has admitted that the group’s E9b bailout package from the German government is larger than what it needs to survive, and is designed to ensure the airline maintains a “global leading position”. Spohr’s comments come after the EC warned against state aid being used to give the group an unfair advantage and strong criticism from low-cost rival Ryanair, which has pledged to launch a legal challenge once the bailout is approved by antitrust authorities. Margrethe Vestager, the EU’s competition chief, said on Friday there was a “high risk” of market distortion, as she defended Brussels’ demands for Lufthansa to relinquish lucrative slots at Frankfurt and Munich airports. On Wednesday, after Lufthansa’s supervisory board had accepted the EU’s conditions, Spohr conceded that with E4b in existing liquidity, the Frankfurt-based group did not need the full E9b from the administration of Chancellor Angela Merkel. Asked if Lufthansa could have got by with less, Spohr said: “Yes, but it was not just about survival.” He added: “The German government was focused on how Lufthansa can maintain its position as a German global champion, not just how it can avoid insolvency.”<br/>
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Swiss is planning to reduce its fleet, after incurring a Swfr84.1m ($86.1m) operating loss in Q1. That compares with an operating profit of Swfr48.3m in the same period of 2019. Revenue declined 20% in this year’s Q1, to Swfr923m, while passenger numbers fell 21%. Swiss says it will be “resizing its fleet by deferring deliveries of short- and medium-haul aircraft” and is “further considering withdrawing older aircraft earlier than planned”. Cirium fleets data shows the airline has 16 Airbus A320neos, eight A321neos and a single A220-300 on order. The A220-300 is the last from an order for 30 A220s, deliveries of which began in 2016. Swiss’s finance chief Markus Binkert states that the government loan guarantees, financial support from Lufthansa, and cost-saving measures “will enable us to bridge any liquidity gap”.<br/>
Air NZ has unveiled an increased domestic schedule for July and August. Operating at 55% of the usual capacity, the airline will resume the Invercargill-Auckland A320 jet service, as well as operating Invercargill-Wellington, Christchurch-Rotorua and Christchurch-New Plymouth routes. The Timaru-Wellington and Taupo-Auckland routes resume on Monday. Air NZ GM Networks Scott Carr said the airline has been encouraged by the demand from "leisure travellers". "We’re also expecting demand for business travel to continue to build. As a result, we have been working to add more flying to our domestic schedule from next month and this includes additional services for the July school holidays," said Carr. Jetstar also looks to be resuming its domestic operations, with pilots preparing to return to work and cut-price airfares on sale from July 1. Fares from Auckland, Wellington, Christchurch, Queenstown and Dunedin are available from July 1, including Auckland to Wellington for as little as $34.<br/>
Air NZ has poured cold water on a proposal to launch trans-Tasman passenger flights on July 1, saying it has no intention to operate the proposed service between Canberra and Wellington. However, Canberra Airport - which is one of the driving forces behind the proposal - insists it is "talking to all airlines" and isn't ruling out the possibility of running it as a charter service if commercial airlines weren't interested. The proposal, supported by the Australian and New Zealand chambers of commerce, sat outside the operations of the Trans-Tasman Safe Border Group, a governments' supported group which has been working on the bubble project for several weeks. Aviation insiders are sceptical about the potential demand for such a service, after Singapore Airlines ditched its 'capital connection' service after just 19 months, instead replacing it with a Wellington-Melbourne service. Auckland Business Chamber CE Michael Barnett said the new initiative would be put before both governments within a day "to help the survival, recovery and sustainability of our vital tourism, export, event and travel sector," Barnett said. Canberra Airport is inviting expressions of interest for the first flights on July 1 and 2, coinciding with the start of the Australian Capital Territory's school holidays. More than 300 people had registered within two hours of the page going live on the airport's website. Canberra Airport hoped Air NZ or Qantas might pick up the proposed service by then, the dates could be pushed back if it doesn't receive approval from both governments in time. An Air NZ spokeswoman said the airline "does not intend to operate" the Wellington-Canberra route, with the national carrier saying it was continuing to work with the Safe Border Group to re-start trans-Tasman passenger flights.<br/>