Delta Air Lines has agreed to pay $8.1 million in a settlement with the US Department of Justice in connection with the DOJ's allegations that the US major had exceeded employee compensation limits set under the Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law in March 2020 by US president Donald Trump during his first term. The CARES Act's payroll support programme (PSP) – administered by the US Treasury department – provided US passenger carriers with grants for the exclusive use of employee wages, salaries and benefits. Among the initial conditions of receiving payroll support: airlines could not conduct involuntary furloughs, reduce pay rates, buy back stock or pay dividends through 30 September 2020; annual salaries above $425,000 were to be frozen for two years. Additionally, "taxpayer protections" would enable the US Treasury secretary to receive "warrants, options, stock and other financial instruments to provide appropriate compensation for the government for the assistance". The US Treasury also administered a loan programme for US carriers under the CARES Act. The DOJ noted on 15 July that Delta had entered into PSP agreements with the Treasury department in 2020 and 2021, under which the Atlanta-based carrier agreed to the PSP compensation limits. "[Delta's] settlement resolves allegations that, between March 2020 and April 2023, Delta awarded compensation to some corporate officers and employees that exceeded the limits set by the PSP agreements," the DOJ asserts. It adds: "Delta allegedly violated the False Claims Act by inaccurately certifying compliance with PSP requirements in quarterly reports submitted to Treasury, as well as by not notifying Treasury of the breach once it was discovered by Delta, which would have given the government the right to demand the return of funds." The DOJ confirms to Cirium that under terms of the settlement with Delta, the carrier is required to pay $8.1 million directly to the federal government. "Paragraph 1 of the terms and conditions of the settlement agreement provides that 'Delta shall pay to the United States $8,100,000 plus interest'," the DOJ tells Cirium. The Justice department clarifies in its 15 July statement that "claims resolved by the settlement are allegations only and there has been no determination of liability". Delta tells Cirium that it "strongly believes it fully complied with all requirements of the CARES Act". The carrier adds: "At issue is a disagreement about a technical matter involving the time periods used to measure executive compensation during the pandemic. Delta has consistently maintained the claim is without merit and settled to avoid the expense and distraction of litigation. "Delta remains grateful for the Treasury department's efforts that kept essential airline employees operating our nation's air travel system."

Finnair has reached a last-minute labour agreement with two of its unions, avoiding five days of industrial action which had been planned throughout July. Late on 13 July, the Association of Support Service Industries (Palta) and the Finnish Aviation Union (IAU) approved a proposal put forward by the national conciliator that will form the basis of a new collective bargaining agreement with the Oneworld carrier. The proposed agreement covers a period of 18 months and is scheduled to end on 15 January 2027. It includes a wage proposal which Finnair says, "aligns with the general labour market framework". The IAU has now called off strikes which had been due to take place on 16, 18, 21, 23 and 25 July. "Sincere thanks to our customers for their patience during this prolonged labour dispute," states Finnair chief operating officer Jaakko Schildt. "With the negotiation result covering Finnair's technical services, kitchen, airport customer service and many other companies operating in the airport area, we can now focus on operating our flights during this important summer travel season with the reliability customers expect from us." Finnair was forced to cancel hundreds of flights earlier this year when IAU members carried out a series of four-hour strikes targeting different work shifts and affecting functions such as ground handling and aircraft maintenance. The airline has said that industrial action cost it €22 million ($26 million) and shaved €31 million off its revenue in the first quarter of this year.

German pilot union Vereinigung Cockpit has warned against "premature speculation" about the cause of the AI171 crash, after India's Aircraft Accident Investigation Bureau published a preliminary report. The union observes that the AAIB report "does not permit a clear conclusion of an intentional act" by one of the Air India Boeing 787's pilots. "Important technical and systemic aspects remain unresolved," adds Vereinigung Cockpit. "Reliable conclusions about the cause of the accident are not possible at this time." It cites the fuel-control switches' locking feature as "one example of an issue that still needs clarification". In the preliminary report, the AAIB highlights a special airworthiness information bulletin (SAIB) that the US Federal Aviation Administration issued in 2018 after reports from 737 operators that fuel-control switches had been installed with the locking feature disengaged. The bulletin (NM-18-33) advises operators of various types of Boeing aircraft, including 787s, of the potential for disengagement of the fuel-control-switch locking feature, while noting: "Based on an assessment utilising the limited data currently available at this time, the airworthiness concern is not an unsafe condition that would warrant airworthiness directive (AD) action." The fuel-control switch, the bulletin states, "has a locking feature to prevent inadvertent operation that could result in unintended switch movement between the fuel supply and fuel cut-off positions". It adds: "In order to move the switch from one position to the other under the condition where the locking feature is engaged, it is necessary for the pilot to lift the switch up while transitioning the switch position. If the locking feature is disengaged, the switch can be moved between the two positions without lifting the switch during transition, and the switch would be exposed to the potential of inadvertent operation. Inadvertent operation of the switch could result in an unintended consequence, such as an in-flight engine shutdown." The bulletin goes on to recommend inspection of the locking feature to ensure its engagement. In its report, the AAIB writes that "as per the information from Air India, the suggested inspections were not carried out as the SAIB was advisory and not mandatory". The throttle control module, which includes the fuel-control switches, was replaced on the crashed 787 (registered VT-ANB) in 2019 and 2023, the AAIB notes. But it stresses: "The reason for the replacement was not linked to the fuel control switch [and] there has been no defect reported pertaining to the fuel control switch since 2023 on VT-ANB." Three seconds after the 787's lift-off from Ahmedabad airport's runway 23 on 12 June, "the Engine 1 and Engine 2 fuel cutoff switches transitioned from 'Run' to 'Cutoff' position one after another with a time gap of 01 sec", the report states. The aircraft at that point had reached 180kt. It had lifted off after reaching the calculated rotation speed of 155kt on the runway. "In the cockpit voice recording, one of the pilots is heard asking the other why did he cut off," adds the report. "The other pilot responded that he did not do so." The report does not cite other passages of the cockpit voice recording, which captured 2h of audio prior to the crash. The pilots subsequently returned the fuel control switches to the 'Run' position in effort to regain power, but the aircraft had begun to descend by the time it crossed the airport boundary. It crashed 32s after lift-off, and 29s after fuel to the engines was cut off.