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Lufthansa will suspend almost its entire flight operations in Frankfurt and Munich on Friday because of a strike by pilots who are demanding higher pay, adding another day of major disruptions to what has already turned into a summer of travel chaos. In total, about 130,000 passengers will be affected as Lufthansa scraps 800 flights at its two biggest German hubs, according to a statement. Some disruptions will already occur on Thursday, according to the carrier. Lufthansa fell as much as 4% in Frankfurt. Pilots at Lufthansa called a one-day strike following the collapse of wage talks. Lufthansa said it has “absolutely no understanding” for the decision to strike, after making what it called “a very good and socially balanced offer.” According to the airline, giving in to pilot demands would increase payroll costs by more than 40%. It’s the second time in little over a month that Europe’s largest carrier has been forced to enact an almost complete shutdown of operations at its two most important airports because of strikes. Last time in late July, ground crew brought business to a standstill in Frankfurt and Munich as they also sought better pay conditions, resulting in the elimination of more than 1,000 flights in the two cities. A quicker-than-expected recovery in air travel has clashed with a shortage of staff at airlines and airports after deep cuts during the Covid-19 pandemic. “We want solutions at the negotiating table,” Lufthansa Personnel Chief Michael Niggemann said in a statement, adding that what the company has tabled is “a good basis for continuing talks.” Conversely, the VC Pilot Union demanded the airline present a “significantly improved offer.”<br/>

Germany's cartel office has prohibited Lufthansa from ending long-term cooperation agreements with charter airline Condor until further notice, saying the national carrier was hindering Condor competing on long-haul routes. Lufthansa has said it would cancel an agreement allowing Condor passengers to use Lufthansa feeder flights as part of their journey to holiday destinations which prompted Condor to complain that Lufthansa abused its market dominance. Lufthansa has since extended the agreement until Oct. 31. "We have reached the conclusion that Condor is entitled under competition law to be given access to the feeder flights operated by Lufthansa also after this point in time," said the office in a statement on Thursday.<br/>

Ethiopian Airlines Group achieved a profit of $937 million during its financial year to 30 June 2022, according to its home country’s sovereign wealth fund, with cargo accounting for more than half of the group’s revenue. Writing on social media on 31 August, Ethiopian Investment Holdings (EIH) CE Mamo Mihretu said the profit represented a 90% improvement year on year, “despite the headwinds of a worsening global economic outlook, rising fuel costs and the global pandemic”. Revenue of $5b at the state-owned operator was up 79% on the previous year, EIH says, with some 59% of income coming from cargo operations. Operating costs as a proportion of revenue were down 74% year on year, it adds. The airline carried 6.9m passengers on international services during the 12 months, EIH states, 36% more than in the previous 12 months. “Ethiopian Airlines thrived – despite the global pandemic – without job losses and significant cancellations, thanks to its management agility and its obsession in ensuring long-term cost leadership, proving the resilience of its strategy,” Mihretu says. Indeed, even during its previous financial year to June 2021, Ethiopian has said it was “cash positive” – despite significant Covid-19 travel restrictions being in place globally – largely thanks to its shift in focus to cargo operations. Ethiopian has not, however, released a comprehensive financial report since the one covering the year ending 30 June 2020. EIH was launched earlier this year by the Ethiopian government to attract investment into a hitherto state-managed economy.<br/>

Australia’s competition watchdog has greenlit Korean Air’s proposed acquisition of rival and compatriot Asiana Airlines, noting that the move does not lessen competition on flights between South Korea and Australia. In a statement released 1 September, the Australian Competition and Consumer Commission (ACCC) notes that while Korean Air and Asiana are currently the only airlines flying between the two countries, Qantas and Jetstar are intending to commence similar flights. On 8 April, the Qantas Group says they be launching flights from Sydney to Seoul at the end of the year, and have already begun selling ticket. The ACCC also notes that both carriers will be providing air cargo services by transporting freight on the route. ACCC chair Gina Cass-Gottlieb says: “We consider that the Qantas Group offering flights on the Sydney to Seoul route with both its full-service and low-cost carriers means that there is likely to be effective competition whether or not the acquisition proceeds.” Australia is the latest in a growing list of countries to approve the merger. Korean Air first announced plans to acquire Asiana in November 2020, as the coronavirus pandemic turned the country’s aviation sector on its head. Since then, it has gained approval from competition regulators in countries such as Singapore, Vietnam and Thailand. In February, South Korea’s competition watchdog conditionally approved acquisition plans, though it also announced several measures to ensure the merger does not reduce competition. The airline also hopes to get USA and European Union regulatory approvals by the end of the year.<br/>

Creditors of Thai Airways International (THAI) on Thursday approved a new rehabilitation plan in what the airline called a major step forward on its flight back to full recovery. In a statement to the Stock Exchange of Thailand, THAI said participating creditors holding 78.59% of the company’s total debt voted for the plan, which it had originally submitted on July 1. The creditors' meeting was conducted online by the Official Receiver. The result will now be reviewed by the Central Bankruptcy Court, which has scheduled a hearing on Sept 14, the airline said. “This is a significant step in laying the foundation for THAI’s growth and profit-making capability in the future for sustaining THAI as the national flag carrier to support and promote the recovery of the Thai economy and society,” it said. The submitted to the Central Bankruptcy Court in July included a plan to borrow 12.5b baht over six years and another 12.5b in the shorter term. It also calls for debt-for-equity swaps totalling 37b baht, or about 25% of its more than 100b baht in debts. Piyasvasti Amranand, chairman of the THAI panel overseeing the courtmonitored debt plan, said on July 1 that the amended version was needed after the airline reported a better-than-expected recovery from the financial crisis. In the previous plan, THAI expected to face a cash deficit of 50b baht and therefore planned to borrow 25b from state-owned lenders and the rest from private financial institutions. However, since the airline realised it would be difficult to successfully obtain the full amount of loans required, it first tried to find more cash by selling a number of assets and old aircraft, which has brought in more than 9b baht.<br/>