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Turkish Airlines suspends flights, offers refund after Istanbul attack

Turkish Airlines suspended its flights until 8 am (0500 GMT) on Wednesday, the company said, after suspected Islamic State bombers killed 36 people at Istanbul airport late Tuesday. The flag carrier said in another statement any bookings on flights to or from Istanbul Ataturk airport between 28 June and 5 July 2016 would be changed or refunded without any cost, provided the passenger requests this by July 31.<br/>

United flight-attendant top pay to rise as much as 31%

Top pay rates for United Airlines flight attendants would rise as much as 31%, a union spokeswoman said, under a proposal to bring the 25,000 members under a single labour contract for the first time. The maximum pay for veterans with at least 13 years of experience would be set at $62 an hour, the Association of Flight Attendants said Tuesday. That figure would rise to $67.11 by the end of the contract’s five-year term. The agreement with United Continental would raise pay by double-digit percentages at all seniority levels and by 18 to 31% at the top, depending on extra compensation such as for working on international flights, union spokeswoman Taylor Garland said in an interview Wednesday. The deal also would provide flight attendants with profit sharing. A unified labour contract with flight attendants would address one of the most glaring failures since the 2010 merger of United’s parent company with Continental Airlines. Attendants from the two airlines had separate contracts and couldn’t work on the same aircraft, which created problems in scheduling flight crews. Flight attendants from a United camp, a Continental contingent and a unit for Continental Micronesia workers also have clashed with management and other employee groups. The union’s leadership Tuesday approved the proposal, which was reached last week between its negotiating committee and the airline, and said it would send the contract to members for ratification. Details on the deadline for balloting weren’t available.<br/>

Lufthansa cabin crew talks near deadline in decisive labour month

Lufthansa faces the spectre of a new round of strikes as labour talks critical to restructuring the airline come to a head. Lufthansa is scheduled Thursday to complete mediation with its flight-attendants union after a failed effort a year ago led to the airline’s longest walkout ever. The company said in May that talks with pilots, who have also held walkouts over the past two years, must produce major progress by the end of July. In response to a series of strikes, CEO Carsten Spohr has stated repeatedly that he can’t compromise on spending-reduction efforts without jeopardizing the carrier’s future. The unsettled labour relations put Lufthansa in a bind as airlines throughout Europe grapple with a potential drop in demand from the fallout of the UK’s vote to exit the EU. Concerns about a possible recession and lower fares have caused airline stocks to tumble since last week’s UK referendum, including a 14% slump at Lufthansa. The conflict at the German company mirrors those at competitors including Air France-KLM Group, which has also been hobbled by pilot strikes over cost-cutting moves. The disputes at Lufthansa center on benefits and pay, and terms for employees shifting between the Eurowings budget unit and other group airlines. Strikes by cabin crews and pilots reduced group operating profit in 2014 and 2015 by a combined E463m. “June 30 will definitely remain the final date” to conclude the talks with flight attendants, said Nicoley Baublies, chief negotiator of the UFO cabin-crew union, declining to provide details. Lufthansa said the negotiations are in their final phase. <br/>

ANA orders three Bombardier Q400s

Japan’s All Nippon Airways (ANA) has placed a firm order for three Bombardier Q400s. The aircraft are valued at US$93.9m at list prices. ANA said in a statement that the turboprops will be delivered in its 2017 fiscal year, which will run from April 1, 2017 to March 31, 2018. ANA regional subsidiary ANA Wings will likely operate the aircraft. ANA Wings currently has more than 20 Q400s in its fleet. ANA said the three Bombardier aircraft are “needed for growth and expansion … [from] a long-term viewpoint.”<br/>

Ethiopian Airlines looking at A350-1000 and Boeing 777X

Ethiopian Airlines is weighing whether to expand its fleet with the 366-seat Airbus A350-1000 or the latest version of the 777 long-haul jet built by its traditional supplier Boeing, widely known as the 777X, its CE said. Tewolde GebreMariam was speaking after taking delivery of the first of 14 A350-900 jets to be placed in the airline's fleet, leased from Dutch-based AerCap. The aircraft delivered to Ethiopian has 343 seats. "We have 14 of these A350 and we have more (Boeing) 787s. We are comparing the A350-1000 and also the 777X. Depending on which performs well out of Addis Ababa at altitude and high temperature, we are going to make that decision," GebreMariam said. Asked how many extra aircraft the airline could order, he said, "between 15 and 20". He did not say when the airline planned to make a decision. "We want to know more about the A350-1000," he said.<br/>

THAI Smile set to play greater role

THAI has begun the process of transferring its regional services to its budget subsidiary THAI Smile Airways as part of its rationalisation. The move will see THAI Smile taking over two routes -- Bangkok-Chongqing and Bangkok-Penang -- from the flag carrier from July 1 and July 16, respectively. THAI president Charamporn Jotikasthira said THAI Smile would play a greater role in operating flights in this region as THAI concentrates mainly on mid- and long-haul services. THAI Smile, which until now has operated largely on domestic routes with only four international routes, was mandated to operate to secondary cities in Asean and the region. The budget carrier plans to launch three new routes in Q4 as it spreads its wings into neighbouring countries. <br/>

First CSeries aircraft is delivered to SWISS

Bombardier delivered the first CSeries aircraft to Lufthansa subsidiary Swiss International Air Lines (SWISS), at ceremonies in Montreal Wednesday. The June 29 delivery marks an important milestone in an aircraft programme beset with technical problems, delays and difficulty securing customers. SWISS originally ordered 20 CS100s and 10 CS300s, plus 30 options, but then converted five 100s to the 300 variant. Wednesday’s handover should begin a process in which SWISS will receive nine aircraft by year end, taking one aircraft per month in July, August and September. After that, deliveries will increase to two aircraft per month. The first aircraft will enter service July 15, Bombardier said. Bombardier essentially relaunched the CSeries program after program delays and a slow start in sales, put the program in question.<br/>