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Executive board members at German airline Lufthansa will each receive several million euros in bonuses for 2021 and 2022 despite pandemic-related state aid payments to the carrier during that time, daily Handelsblatt reported on Tuesday. The supervisory board approved the payments at a meeting in early December, Handelsblatt said, citing company sources. However, some employee representatives voted against the payment, as they saw it in violation of the rescue package conditions, according to the daily. A Lufthansa spokesperson told Reuters he could not comment on discussions within the supervisory board. Government sources played down the bonus report, saying Lufthansa's board had worked well and the state had come out of the investment with a profit. The German government's economic stabilisation fund saved Lufthansa from bankruptcy during the pandemic with a bailout package totalling E9b. The government sold all its shares in the airline in September.<br/>

Scandinavian carrier SAS’s chief operating officer, Simon Pauck Hansen, is stepping down from his position. Hansen first joined the company as a trainee in 1996. He has served in several senior roles including vice-president of network and planning. Hansen says the decision to leave has been “very difficult”, but adds that “the time has…come for me to hand over the reins”. SAS is undergoing an extensive restructuring process under US Chapter 11 bankruptcy protection. Vice-president for SAS Link and external production Mikael Wangdahl will take on the responsibility of acting chief operating officer – a process which will be completed in January. SAS credits Hansen will having “played a key role” in helping the company cope with the crisis caused by the pandemic, and being “instrumental” in implementing the ‘SAS Forward’ restructuring effort.<br/>

Ahead of the year-end travel season, Asian airlines are ramping up flight options in a battle to board flyers, with air travel continuing to recover as Covid concerns remain largely downgraded. From Singapore to Japan, carriers have raced to restore routes less well served during the height of pandemic-related border restrictions, with new partnerships now being formed to capture travel demand. The unwinding of zero-Covid policies in China may gradually spur air travel as well. But analysts and industry groups note that regional airlines are closely monitoring rising fuel prices and interest rates, as economic uncertainties could dampen earnings while airlines are grappling with a gradual recovery. Shukor Yusof of Endau Analytics said that “both [factors] will determine if an airline can raise capacity without hurting its balance sheet”. He added that “financially strong airlines” like Singapore Airlines (SIA) would have the capacity to increase flight frequencies and new destinations if demand stays firm. For example, SIA and India’s Tata Sons announced in November the merging of Air India and Vistara, with SIA investing $250mn in Air India as part of the deal. This would give Singapore’s flagship carrier a 25.1% stake in a bigger Air India group. The merger is slated for completion by March 2024, clearing the skies for the airline to bolster its presence in the fiercely competitive south Asian travel market. SIA noted that Tata’s Air India has “valuable slots and air traffic rights” at domestic and international airports that are not available to Vistara, a joint venture between SIA and Tata launched in 2015. “We have an opportunity to deepen our relationship with Tata and participate directly in an exciting new growth phase in India’s aviation market,” SIA’s CE Goh Choon Phong said in November. “We will work together to support Air India’s transformation programme and unlock its significant potential,” Goh said.<br/>

Korean Air Lines' acquisition of smaller rival Asiana Airlines is progressing slower than planned in the two years since the deal was announced due to regulatory red lights in Europe, the US, Japan and China. At the time of the announcement, Korean Air said the acquisition would be completed by the end of 2021, but it is now all but certain that the process of clearing antitrust screenings will go into and possibly beyond 2023. In November, Britain's Competition and Markets Authority (CMA) urged the airlines to revise their plan, saying "the merger would risk higher prices and a reduced quality of service for passengers." The CMA noted that Korean Air and Asiana are the only airlines that operate along the London-Seoul (Incheon) route and concluded that their merger would eliminate competition. Korean Air has proposed operating fewer flights and encouraging British carriers to launch operations on the route to maintain post-merger competition. The CMA is expected to discuss the proposal with British companies before making a final decision. Preparing for antitrust screenings, negotiating with relevant authorities and making adjustments requires a massive amount of work. Korean Air's dealings with the European Union, the United States, Japan and China -- all markets both carriers cover with regular routes -- are likely to be tough as well.<br/>

Thai Airways has finally flown into 2022 and made it a smooth with the revamp and launch of three new digital channels. At the recent “Gateway To The Magical Journey”, held at The Peninsula<br/>Bangkok, three digital customer service channels namely, Sawasdee, Royal Orchid Holidays and Thai e-Library, were introduced with the aim of inspiring travellers, boosting the service competitive edge and increasing customer satisfaction. Dr Piyasvasti Amranand, chairman of the plan administrator of Thai Airways, said that the digital services would offer new technology that cater to the digital lifestyle and travel content, which is easy to access, comprehensive and inspirational to all travellers. Since the onset of the Covid-19 pandemic in 2020, various technologies have been developed and widely implemented to maximise comfort and convenience for users. This digital disruption prompted more and more people<br/>to use digital platforms, which allow for easier access to services and less physical contact. Seeing this potential and demand for digital growth, TG has developed the new platforms to offer convenience and cater to the increasing, sophisticated needs of modern travellers. The new digital features, which were first launched in October, are expected to boost competitive edge in service, generate more customer satisfaction and strengthen TG’s position as one of the region’s leading airlines.<br/>