Lufthansa is burning cash at a rate of E500m per month and is far from breaking even, the German airline's CE said Monday. Carsten Spohr said the airlines group, hit by Europe's worsening coronavirus situation, was hoping to stop the outflow of cash once it reached a utilisation rate of about 50% for seat capacity. "That is absolutely not foreseeable. We are happy if we can reach 20% during winter," he added. Lufthansa last month announced further cuts to its fleet and workforce along with a E1.1b euro impairment on idled aircraft. Spohr added on Monday he was certain the group would weather the crisis.<br/>
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South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for ruling-party lawmakers. The assessment was prepared by African Aviation Services and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official. SAA went into administration in December and now needs more than 10b rand ($603m) to restart, according to a plan produced by the carrier’s business rescuers. The airline hasn’t made a profit since 2011 and has been surviving on government bailouts. “There is inherent value in an existing airline which cannot be easily replicated in a new replacement carrier,” Nick Fadugba, the CEO of African Aviation and the author of the study, wrote in the document. “After a thorough analysis, our preferred strategic equity partner for SAA is Ethiopian Airlines.” Ethiopian Airlines shares a similar “pan-African vision” to SAA and is Africa’s strongest carrier, Fadugba wrote. “South Africa has the strongest aviation market on the African continent,” Fadugba wrote, citing research that shows that five of the 10 most lucrative routes in Africa are in or from South Africa, three of the continent’s 10 busiest airports are in South Africa and six of the 10 busiest routes are in or from the country. Ethiopian Airlines is willing to provide planes, pilots and maintenance services to SAA, but doesn’t want to assist with paying off its debts and meeting the costs of cutting its workforce, Tewolde GebreMariam, the airline’s CEO, said last week.<br/>
Avianca Holdings said Monday that a US bankruptcy court approved a proposed financing plan of over $2b to help the carrier exit Chapter 11 restructuring. The airline filed for bankruptcy protection in May, pushed over the edge by the coronavirus pandemic, but it had been struggling in recent years.<br/>
Passengers will no longer be required to wear face masks on Air NZ flights after Auckland moves to Covid-19 alert level 1 this week. PM Jacinda Ardern announced Monday that Auckland would join the rest of the country at level 1 at 11.59pm on Wednesday. Face coverings are currently mandatory on all Air NZ flights. The airline said in a statement when the entire country was at level 1, these would no longer be required. "Customers are welcome to wear their own face covering and we will still make masks available to customers who wish to use one.” Auckland’s move to level 1 also meant physical distancing would no longer be required at the airport. Lounge restrictions would also lift from Thursday, after being limited to 100 people under level 2. Inflight food and beverage services had already been reintroduced under level 2, with passengers able to temporarily remove their face coverings to eat and drink. The airline said it was working to bring back its Koru Hour service over the coming weeks. “As always, our top priority is ensuring we keep our customers and people safe and we will continue to be vigilant with hygiene practices at alert level 1. High touch surfaces will be cleaned regularly, and all our aircraft, lounges and airports will also be frequently cleaned. Hand sanitiser will be readily available.”<br/>
The Air NZ executive shakeup continues, with veteran Jeff McDowall to join four other top staff leaving the airline and the announcement of the internal appointment of a chief customer and sales officer. McDowall will leave the airline towards the middle of 2021 after the completion of the planned capital raise. Airline and tourism veteran Leanne Geraghty has been appointed to the new role. CFO McDowall has been at the airline for more than 20 years and last year was acting CE for several months. CE Greg Foran said McDowall was playing a critical role in supporting him and the board as the airline rebuilt from the ravages of Covid-19. "But after a career spanning more than two decades with the airline, he feels it will be time to open a new chapter of his career once the capital raise is complete," Foran said. The airline will shortly commence a global search for a successor. Foran paid tribute to McDowall. "Without Jeff's leadership over the past two decades, especially as part of the executive team in recent years, the airline would not have delivered its long run of commercial success or grown its international footprint around the world so successfully."<br/>
Asiana Airlines has commenced operations with an Airbus A350-900 partially retrofitted as a maindeck freighter, as it plans scenic flights with its grounded A380s. The A350 renovation work involved removing 283 economy class seats and installing a steel panel on the floor “to ensure safety”, says the carrier. The company attributed the decision to boosting profitability amid the coronavirus pandemic, which has badly hit passenger traffic. The modification allows for an additional 5t of cargo to be carried, bringing the A350’s total cargo load to 23t, says the carrier. It adds that this is the first time an A350 has been converted for freighter work. The modified jet had its first flight on 23 September, flying 20t of IT equipment and electrical parts on the Seoul Incheon-Los Angeles route. In addition, the airline says it has modified a pair of Boeing 777-200ERs to allow them to carry freight in the passenger cabin.<br/>