Lufthansa has accused the European Commission of causing permanent damage to its business model by forcing it to surrender slots at its Frankfurt and Munich hubs in return for approval of a E9b bailout by the German government. Last month, Margrethe Vestager, the EU’s competition chief, warned there was a “high risk” of market distortion if Lufthansa’s rescue package did not include remedies such as the relinquishing of take-off and landing slots. After prolonged negotiations, the airline’s supervisory board agreed to give up 24 slots in Germany to competitors, and the bailout deal was subsequently voted through by shareholders. But in a briefing published Tuesday, Lufthansa said it was “incomprehensible that the EU Commission should intervene in this sensitive production structure during the worst crisis in civil aviation”. Using Frankfurt and Munich as international transfer hubs is crucial to the airline’s competitiveness, the briefing said, because no single German airport has the number of potential customers living nearby that Heathrow does in London and Charles de Gaulle in Paris. Without carrying passengers from connecting flights, long-haul flights from Germany “can no longer be operated economically”, said Lufthansa, adding: “In future, [the surrender of slots] will directly or indirectly strengthen long-haul providers outside Europe.”<br/>
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South African Airways creditors and unions approved a rescue plan that includes at least 26.7b rand ($1.6b) in state funding and thousands of job losses. Voters representing about 86% of those eligible supported the package, first proposed by administrators for the bankrupt carrier a month ago. The motion overcame the 75% threshold after most labour groups agreed to sweetened severance packages last week, clearing the way for the workforce to be cut by almost 80% to 1,000 people. All eyes now turn to the National Treasury, which will need to find about 10b rand more than previously allocated for SAA at a time when state finances are severely stretched by the coronavirus pandemic. Finance Minister Tito Mboweni has repeatedly voiced his reluctance to provide further bailouts to a carrier that hasn’t made a profit in almost a decade, putting him at odds with Public Enterprises Minister Pravin Gordhan. According to SAA’s business-rescue plan published June 16, the Treasury needs to provide a written commitment to provide the funding by Wednesday or the proposals will be deemed unimplementable. The administrators expect to receive a confirmatory letter, Siviwe Dongwana, one of the lead architects of the recovery plan, said at the creditors’ meeting on Tuesday. <br/>
All Nippon Airways said Tuesday that the Japanese carrier will operate 88% of its planned domestic flights in August. The proportion will be increased to 95% on Aug. 7-17, when demand is expected to grow. In July, only 50% of ANA’s domestic flights will operate as a result of the novel coronavirus. Passenger demand is expected to increase in August thanks in part to the Japanese government’s “Go To Travel” tourism promotion program, slated to start July 22. Meanwhile, ANA will cancel 90% of its planned international flights in August as travel restrictions remain in place around the world amid the pandemic. The proportion is unchanged from July.<br/>
Air New Zealand has opened its domestic lounge for jet passengers at Auckland Airport today following renovations. The lounge has 375 seats and its food and shower areas had been expanded. Customers had complained the lounge was overcrowded, especially at peak travel times, and the project is part of a multi-million dollar programme to upgrade lounges throughout the country. Air New Zealand GM customer Liz Fraser said the bar and barista station would provide more space for customers. "We've also refreshed the cafe zone and added more showers for those wanting to freshen up before they fly."' From just a skeleton service for essential workers at alert level 4 earlier this year, the airline has rebuilt its domestic network to more than 70% of what it was compared to this time last year. Corporate travellers are back flying but that market has been slower to recover than the leisure sector. The airline expanded its regional lounge last year and it has seating for up to 265 passengers - three times the previous capacity, said Fraser.<br/>