Portuguese prosecutors have launched an investigation into a complex leasing deal for 53 Airbus aircraft by flag carrier TAP in 2015, and two people familiar with the probe told Reuters it covers suspicions of illegal payments. It is the latest probe into Airbus' historic business dealings following a record $4b corruption settlement with French, British and US authorities in 2020, and a related $14m French settlement late last year. Airbus exited three years of outside monitoring at the end of January and says it has undergone sweeping changes including a new system of compliance, which Chief Executive Guillaume Faury said on Thursday was one of the company's main focuses. The leasing contract under investigation dates back to the time TAP, now again fully-state-owned, had just been privatised, passing control to the Atlantic Gateway venture between American-Brazilian aviation tycoon David Neeleman and Portuguese entrepreneur Humberto Pedrosa. As part of the contract, TAP was to give up a lease of 12 Airbus A350 aircraft and start a new one for 15 A320neos, 25 A321neos and 13 A330-900neos, to be delivered in the following years, the sources said. Last October, former Infrastructure Minister Pedro Nuno Santos told a parliamentary committee that TAP had ordered an audit of the leasing contract, alleging it was paying more for the airplanes than the market value. News outlet ECO reported last week the additional costs amounted to $254m. Without disclosing details, the minister said the government had decided to forward the audit to the public prosecutor's office, which confirmed this week it had taken up the case. "It is under investigation and subject to the secrecy of justice," it said.<br/>
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Air France-KLM CE Ben Smith Friday reiterated that the airline was interested in Portugal's soon to be privatised TAP, noting the carrier's strong position in Brazil. "We find (TAP's) network into Brazil extremely powerful for us," he told a media conference. The Portuguese government, which owns TAP, has said it is considering an outright or partial sale of the business. Lufthansa, Air France-KLM and British Airways owner IAG are among potential buyers, analysts say.<br/>
EU antitrust regulators warned on Friday a bid by South Korea's biggest carrier, Korean Air Lines, for second-place Asiana Airlines could hurt competition, as they opened a full-scale investigation of the deal. Korean Air would become the top shareholder of indebted Asiana under the proposed acquisition, announced in late 2020, marking one of the first major deals in the aviation industry since the COVID-19 pandemic. The EC said the deal could affect passenger and air cargo transport services between Europe and South Korea as the two airlines are strong and close competitors, confirming a Reuters story last week. "The transaction could reduce competition in the provision of passenger transport services on four routes between South Korea and the EEA (European Economic Area)," the European Union competition enforcer said. Sources have told Reuters the four routes are to Barcelona, Frankfurt, Paris and Rome. "Korean Air is confident that our merger will benefit our customers in the market, and will continue to communicate with the European Commission and submit our remedies to address their concerns," the airline said Saturday. The EU watchdog will decide by July 5 whether to clear or block the deal. The deadline can be extended depending on whether the companies offer remedies to address the EU concerns.<br/>
Air New Zealand is set to launch its new extra-legroom economy seats, the first in a swag of new features the airline is rolling out. The seats, dubbed Economy Stretch, are now available to book on the airline’s Auckland to Los Angeles route for travel from February 27. The new seats will see the first four rows of the economy cabin turned into a “dedicated stretch zone”, with an 89cm seat pitch – what the airline says is up to 39% more legroom than a standard economy seat. To compare, standard economy seats on Air New Zealand’s widebody fleet have a seat pitch starting at 79cm, while premium economy seats have a seat pitch of 104cm. The seats would also come with premium entertainment headsets and pillows. There would be 42 Economy Stretch seats available on the airline’s Boeing 777s, which would start from an additional $175 each way. Standard economy seats and the Skycouch – where a row of seats can be made into a bed – would still be on offer. Air New Zealand chief customer and sales officer Leanne Geraghty said customers had been wanting more room to relax, at a competitive price. “The introduction of Economy Stretch means we are providing more choice for customers at an Economy price point that will meet the needs of families, solo travellers, as well as those just looking for that little bit extra of extra comfort.”<br/>