Lufthansa boosted concessions to soothe competition concerns over long-haul flights to help it win over EU regulators in its bid for a stake in Italy's ITA Airways, three people with direct knowledge of the matter said on Monday. The European Commission, which acts as the EU competition enforcer, has warned that the deal may reduce competition in Italian short-haul and long-haul flights, with the latter seen as the most difficult to resolve. Under Lufthansa's latest concessions, two rivals can take some of ITA's flights and turn them into indirect flights with a stopover in another EU city, and onwards to U.S. destinations including San Francisco and Washington, the people said. This would for example help rivals such as KLM get feeder traffic for its U.S. flights at its Amsterdam hub. State-owned ITA, the successor to Alitalia, will also hand over direct flights from Rome to North America to another airline, they said. The aim is to give passengers an additional choice of two indirect flights and one direct flight to some U.S. cities. "We are in good and constructive dialogue with the Commission," a Lufthansa spokesperson said, declining further comment. Lufthansa will likely secure the EU green light for the deal, sources told Reuters last week. The Commission is expected to decide on the deal by the end of the month, ahead of its July 4 deadline.<br/>
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Korean Air has selected Air Incheon as the preferred bidder for the sale of Asiana Airlines’ cargo freighter business, overcoming a major hurdle in the long-delayed acquisition of Asiana, the company said Monday. In a regulatory filing, the nation’s flag carrier tapped Air Incheon — the nation’s sole all-cargo airline — as the preferred bidder for the deal. The sale of cash-strapped Asiana Airlines’ cargo unit was part of a precondition before the European Union (EU) granted conditional approval for the operational merger of the two airlines. Korean Air took into consideration several key criteria before selecting Air Incheon. This included the certainty of completing the transaction, the ability to maintain and enhance the long-term competitiveness of the air cargo business and the capability to mobilize funds through a competent consortium, according to a statement from the Korean Air. The decision was made during the Korean Air’s board meeting on Monday morning. The specific bidding price remains unknown, but the industry estimates it was worth around 500b won ($362m). Air Incheon was founded in 2012 as the only cargo-focused airline here. The airline focuses on Asia, but will be able to strengthen its competitiveness in long-haul routes by utilizing Asiana’s network expertise in America and Europe, according to Korean Air. Korean Air plans to sign a framework agreement with Air Incheon in July after reaching specific terms of conditions. The agreement is also subject to review by the European Commission. “The preferred bidder was selected through a comprehensive evaluation of all factors crucial to the growth of the air cargo industry, a key national industry, while maintaining the existing competitive environment,” a spokesperson at Korean Air said. “We are committed to quickly finalizing the sales process through flexible negotiations, and completing the acquisition of Asiana Airlines.”<br/>
Air New Zealand has announced it will add capacity to the tune of 30,000 extra seats on its Auckland-Tokyo flights between November and March. It's part of a ramp up across key Asian routes over the southern summer period, the majority of which are in business or premium economy cabins. While the move is intended to cater more for inbound tourists than Kiwis heading away on holiday, the increased capacity could well mean more sales and cheaper options for New Zealanders looking to travel to Asia. The airline announced the news a day after its CEO Greg Foran and chairwoman Dame Therese Walsh served drinks on a flight to Tokyo that was diverted to pick up a trade delegation. The delegation, which included the airline's executives, encountered trouble after Prime Minister Christopher Luxon's Defence Force (NZDF) plane broke down. The NZDF aircraft was able to fly at low altitude to Brisbane on Monday morning, where the delegation group of around 30 boarded a commercial Air New Zealand flight to Tokyo in the afternoon. It meant a delay of around two hours for what would normally be a non-stop Auckland-Tokyo flight. Foran and Walsh sat in economy class rather than a premium cabin and served drinks to customers after an apology was issued for the disruption. Some passengers on the flight Newshub spoke to were unhappy with the delay, primarily due to the impact on their travel plans after arriving in Tokyo. "It only gives us an hour to get through customs, pick our bags up and pay for a train ticket before the last train goes," one man told Newshub. "I'm quite fearful we're not going to get through to the last train, which means we'd have to catch a bus instead, which I've never done before and don't know how to do. And the bus takes twice as long to get into Tokyo." <br/>