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The two hedge funds that launched a boardroom fight with United Continental Holdings last week oppose the airline’s plans to give CE Oscar Munoz the additional role of chairman and have concerns about his compensation, according to a person familiar with the matter. The funds, PAR Capital Management Inc and Altimeter Capital Management LP, Tuesday described United’s performance as “inexcusable” and asked shareholders to consider 6 new directors for the company’s board, including former Continental Airlines chief Gordon Bethune. They are expected to lay out more specific claims about the company in coming weeks that address what they believe are the causes of the airline’s low customer satisfaction scores and its sagging stock, down almost 14% in the past 12 months. <br/>

Union leaders at United Continental waited in Chicago Oct 15 for a labour summit with Oscar Munoz, the airline’s new CE. He never showed. A heart attack that day had landed Munoz in the hospital and a heart transplant in early January has mostly kept him on the side-lines. But Monday, Munoz is returning to full-time work with the long-delayed labour meeting on his agenda—and even bigger challenges ahead. Munoz faces a lengthy to-do list as he attempts to speed up United’s rehabilitation. He has to improve customer service, spend time with corporate clients, select a permanent CFO, rebuild morale among 85,000 workers, keep improving operational reliability, and fend off two hedge funds looking to shake up the airline—all while managing his own health. <br/>

United Airlines is starting to use a fuel that is 30% comprised of biofuel on flights from Los Angeles International to San Francisco International. United reached an agreement with AltAir Fuels in 2013 to buy biofuel produced using Honeywell UOP’s renewable jet fuel processing technology, which converts non-edible animal fats and oils into fuel. United lists 9 daily mainline flights from LAX to SFO, and Honeywell UOP said that 12,500 flights are planned to be powered by a fuel blend of 30% biofuel and 70% petroleum jet fuel. The first flights powered by the fuel blend are scheduled to be operated by United March 11. US airlines have operated alternative fuel flights before, but this will mark the first time a US carrier uses an alternative fuel to power scheduled flights on a regular basis. <br/>

THAI has not yet agreed with Airbus and Boeing on delivery deferrals for aircraft it no longer needs as it tries to fill seats on its existing planes. Late last month the company said it had returned to profit in the final quarter of 2015. The carrier grounded 38 aircraft as part of the turnaround, which aims to improve its cabin factor to 80% this year. It also said in January it wanted to delay the delivery of 12 Airbus A350s, and 2 Boeing 787s. "Today we still have 73% cabin factor so we don't need to expand anywhere," THAI president Charamporn Jotikasthira said. "Financially we don't need the planes and commercially we have not sold enough tickets. The more capacity we have the more trouble we will run into, so the more we can delay the better," he said. <br/>

SIA will launch new routes to several destinations in Europe, Australia and New Zealand this year to expand its long-haul international flight network. SIA regional VP for Southeast Asia, Philip Goh, said the airline would launch its first long-haul flight to Amsterdam May 9, using its new Airbus A350-900 fleet. The planes will also be deployed to destinations in Asia, including Jakarta. In July, the aircraft will be used to add services to Dusseldorf, Germany. The A350 for long-haul flights will have 253 passenger seats in three classes - 42 business class, 24 premium economy class and 187 economy class seats. SIA has 67 Airbus planes on order, including 7 ultra-long range variants that will be delivered in 2018 for non-stop services between Singapore and several destinations in the US. <br/>

For the past 2 weeks, cash-strapped Air India has been training its pilots on a faulty Boeing 787 Dreamliner simulator with defective warning lights. Inside a flight simulator, pilots are put in charge of emergencies like engine failure, fire and malfunctions they might encounter in real life. If a warning light comes on, they are taught not to ignore it. But AI pilots undergoing training are being instructed to go against the rule book and ignore the light. AI's executive director (training) has warned its engineers and instructors against reporting the flaw in the defect logbook. Sunday, 4 days after TOI sent a query to AI on the issue, the flaw was finally allowed to be reported, though it hasn't been rectified. "Given that the said light concerns the aircraft's navigation system, instructing trainee pilots to ignore it is not a safe practice," an official said. <br/>

Air India may post an operating profit this financial year aided by low fuel prices, the first for the carrier since the merger of the country’s domestic and international flag carriers in 2011. The airline’s commercial director Pankaj Srivastava said AI would certainly meet the target of operating back in the black next year. The recent slump in oil prices has been a US$150mn benefit to the airline, Srivastava said. The airline has now begun to lock in costs for about 25% of planned consumption to help assure it continues to benefit from low spot rates, he said. The positive financial result also reflects operational improvements, Srivastava said, adding that load factor rose and on-time performance also increased. The airline expects to carry about 18m passengers this financial year. <br/>

The Quebec Federation of Labour is seeking a permanent injunction to force Air Canada to conduct all of its heavy maintenance of its fleet in the country. The union filed a request Friday with the Quebec Superior Court calling on the airline to respect its obligations under the 1988 Air Canada Public Participation Act to maintain heavy maintenance aircraft operations in Quebec. The act also applies to Ontario and Manitoba. The provincial govt had launched a lawsuit against Air Canada after Aveos Fleet Performance, which carried out much of Air Canada’s aircraft maintenance, closed in 2012 in a move that laid off 2,600 employees. But the govt agreed to drop its lawsuit last month after the company signed a letter of intent to purchase up to 75 Bombardier CSeries planes. <br/>