Impact of the coronavirus crisis on aviation

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TLspotting
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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Virgin Australia is most probably the next airline to fall.

Corsair International :
- Needs to get through the crisis and a state support, but banks give no positive answer (as the airline has to follow criteria's)
- The 747s are out.

SWISS expects to fly 20% (!) of its schedule this summer.
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Re: Impact of the coronavirus crisis on aviation

Post by Homo Aeroportus »

Got some storage room?

Time to buy : US oil sells at NEGATIVE prices.

Quoting FT :

Benchmark US oil prices crashed into negative territory for the first time in history as the evaporation of demand caused by the coronavirus pandemic leaves the world awash with oil and not enough storage capacity — meaning producers are paying buyers to take it off their hands.

West Texas Intermediate, the US marker, lost more than 250 per cent on Monday to trade as low as -$40.32 a barrel in a day of chaos in oil markets. Traders capitulated in the face of limited access to storage capacity across the US, including the country’s main delivery point of Cushing, Oklahoma.

https://www.ft.com/content/a5292644-958 ... e55d766654

This for Spot quotes, short term due to very low demand.

Brent is around 25 so also at a record level for +20 years.

The future is not what it used to be.

H.A.

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sn26567
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

The oil prices so deep in the negative figures is indeed incredible. Never seen that in my long life! Minus 37,63 $ per barrel at the closing in New York. Airlines should start to hedge at that price.

Back to our daily review:

Airbus will furlough some 3,000 French aerospace workers by tapping a government-backed scheme for four weeks starting from 20 April 2020, in its latest effort to cope with the coronavirus crisis.

EasyJet says it cannot terminate its Airbus order by falling back on the argument that the outbreak is a situation beyond its control.

Indigo Partners founder Bill Franke says US airlines will need more government aid and health checks for travellers to get through the crisis., while a quick turnaround is unlikely.

LATAM Airlines Group and its affiliates announced that they will maintain a 95% reduction in passenger operations during May 2020 in the context of travel restrictions and the historical drop in demand due to the pandemic.

Porter Airlines intends to access the federal government’s Canada Emergency Wage Subsidy to return hundreds of its team members to payroll.

Sydney Airport Holdings has secured additional bank debt facilities worth US$539.9 million to weather the massive slump in passenger traffic due to the coronavirus outbreak.

Transat AT plans to use the Canadian federal emergency wage subsidy to rehire 4,000 employees it had temporarily laid off after halting all flights due to the pandemic.

Virgin Atlantic founder Richard Branson has said that a loan from the UK government is necessary to help his airline business survive the coronavirus crisis.

Pakistan’s government extended the suspension of domestic and international flight operations in the country until 21 April 2020 in a bid to contain the coronavirus.
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Re: Impact of the coronavirus crisis on aviation

Post by Poiu »

sn26567 wrote:
20 Apr 2020, 22:18
The oil prices so deep in the negative figures is indeed incredible. Never seen that in my long life! Minus 37,63 $ per barrel at the closing in New York. Airlines should start to hedge at that price.
It’s futures for May delivery at -37, you will have to pay a lot for storage which is the big problem as all reservoirs are full... Closing down wells and starting them up again later is very costly, so it’s cheaper to temporary pay someone to get rid of the oil.
Airlines not flying don’t need fuel, some of them are even loosing a lot of precious cash due to bad hedging at the moment.

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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Negative record at - $38.96!
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Re: Impact of the coronavirus crisis on aviation

Post by luchtzak »

Emirates Airline and Philippine Airlines have introduced special measures to continue operating. Is this the future for air travel ?

https://www.aviation24.be/airlines/emir ... -on-board/



https://www.aviation24.be/airlines/phil ... abin-crew/
.
Image

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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Air Caraïbes : 16 May, inter-Carribbean flights, 12 June, flights from Paris-Orly to Cayenne, Pointe à Pitre and Fort-de-France, 3 July (only if borders out of Schengen reopen), flights to Haïti, Cuba, Dominican Republic and dear spotters loved SXM !
United Airlines decided to suspend flights until the end of the year to Nice Côte d'Azur, Glasgow Prestwick, Manchester, Shannon, Palermo, Prague Ruzyne, Reykjavik Keflavik and Stockholm Arlanda.
Frenchbee to restart from 12 June.
Air Senegal extends its flights suspension until 30 June 2020.

Daily review :

ANA Holdings revised full year forecast ended 31 March 2020, with operating revenue down 5.7% to US$18.1 billion and net profit down 71.3% to $248.4 million.

Austrian Airlines predicts a 25-50% drop in demand for 2020. A maximum of 75% of the pre-coronavirus level is expected by the end of 2021, and 100% by 2023.

BNDES will help local airlines with up to US$1.9 billion in credit. The companies will issue five- to 10-year non-convertible bonds to be acquired by BNDES. The companies will also issue subscription rights to BNDES to acquire stakes in the companies.

BOC Aviation mandates banks for a proposed 144A/Reg S US dollar senior unsecured bond offering off its US$15 billion global MTN program. BOCA is looking to issue benchmark five-year and/or 10-year bonds.

Delta Air Lines CFO Paul Jacobson has rescinded his retirement and plans to stay with the carrier as it struggles through the devastating impact of coronavirus on air travel. (better than leave the boat while it sinks..., Costa Concordia, anyone?)

El Al Israel Airlines said it is in advanced talks with an Israeli bank to receive a loan that will be partly backed by government guarantees.

Etihad was unable to provide a financial lifeline to Virgin Australia because of the pressures created by the pandemic on its own business, but it remains open for constructive discussions on a potential re-launch of the airline. (And Etihad let sink Air Berlin, Alitalia & Jet Airways...)

Flybondi has extended its flight suspension until 28 May 2020.

Hawaiian Airlines says it’s getting more than US$650 million in federal aid to keep operating, including $290 million in grants and loans to cover its payroll, and a low interest loan of $364 million for operations.

IndiGo closed all its bookings till 31 May 2020, shortly after the DGCA prevented all airlines from taking bookings till a final decision on lifting or easing restrictions on resuming air travel is announced.

Lufthansa Cargo is looking to extend the use of its MD11F fleet into 2021, as cargo demand remains high.

Luxair will suspend its operations for another four weeks until 30 May 2020.

Malaysia Airlines financials have deteriorated up to 94% since flight restrictions were imposed across most countries to curb the pandemic. The carrier plans to undertake a minimal flight network in the near-term.

Qatar Airways said mid-level employees and above will have their salaries halved for at least three months but that staff would be back paid when the airline could afford it.

Singapore Airlines has extended its flight cancellations until the end of May 2020 in response to the ongoing coronavirus crisis.

Spirit Airlines is close to receiving US$330 million as part of a massive federal aid program.

United Airlines expects to have the ability through 30 September 2020, under the CARES act, to borrow up to approximately US$4.5 billion from the US Treasury for a term of up to five years.

Wizz Air Holdings has received confirmation that it is an eligible issuer under the UK Government’s Covid Corporate Financing Facility.

ZIPAIR Tokyo applies for a foreign air carrier permit from the US, for flights from Japan and beyond. ZIPAIR has not yet rescheduled its initial launch date.

South Korea mulls purchasing corporate bonds via state-owned banks, in addition to providing guarantees to raise funds to support airlines amid the crisis. The government may set employment levels and ask for an option to acquire a stake in the airlines as a result.
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SabenaForever
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Re: Impact of the coronavirus crisis on aviation

Post by SabenaForever »

It seems Avianca Cargo switcht its Europe flights to AMS... on Flightradar24 I can not find Brussels flights. Anybody has more information?

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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Air Burkina says it’s in a liquidity crisis due to “very high fixed costs”, and is asking staff to make sacrifices as operations will not return until July 2020. Survival is not guaranteed, says the CEO Blaise Sanou.

Air Canada announced that it will suspend scheduled service to the US after 26 April 2020 as a result of the agreement between the governments of Canada and the US to extend border restrictions by an additional 30 days.

Air Caraibes announced the resumption of inter-island flights on 16 May 2020.

Air France-KLM is moving towards a €10 billion government-backed rescue deal, after France agreed to 90% guarantees on loans designed to tide the airline group through the crisis.

AirAsia Indonesia to extend the suspension of flights to 18 May 2020.

Copa Airlines to now extend the suspension of all international operations until 22 May 2020.

Easyfly projects losses of more than US$7.5 million by end of April 2020, due to the pandemic. The carrier has already cut routes and frequencies as well as cut employees and suspended aircraft purchases.

Emirates doesn’t plan on resuming its regularly scheduled flights until at least July 2020.

Ethiopian Airlines is ramping up cargo operations while seeking to defer lease payments on aircraft in effort to cope with the impact of the pandemic.

Helvetic Airways will not apply for state aid, says CEO Tobias Pogorevc, who admitted that fleet renewal and growth are postponed.

IndiGo is working with aircraft lessors for deferring lease rental payments by at least six months, as suspension of flight services is adversely impacting its financial position.

TAAG begins dismissing employees as it copes with the fallout from the crisis, while beginning the process to resume operations.

Tunisair must implement urgent measures in order to survive the pandemic, says Minister of Transport and Logistics, as the carrier lost around US$52 million in March-April 2020. Pre-crisis operations are expected to return by summer 2021.

US Treasury Department had disbursed US$2.9 billion in initial payroll assistance to 54 smaller passenger carrier and two major passenger airlines, while it finalized grant agreements with six major airlines.
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Aerolineas Argentinas extended the suspension of flights until 15 May for domestic, and 30 May 2020 for international flights.

Air Namibia
announced that staff salaries for April 2020 will be delayed by at least a week as the country’s ban on air travel hits its cashflow.

Air Nostrum has postponed the merger with CityJet, due to uncertainty in the market.

Aruba Airlines expects to restart its operations in June 2020.

Boeing plans to reduce the workforce in its civil aviation unit by 10% to cut costs as the coronavirus causes a crisis for airlines. The layoffs would impact the unit manufacturing the B737 MAX, as well as the B787 and B777.

Evelop plans to start flying again in June 2020.

IATA says Middle Eastern and African governments are failing to take the action required to protect their airlines from the economic crisis caused by the new pandemic.

TAP Air Portugal asked the state for guarantees for two possible loans, totaling of @350 million.

Thai Airways International
is down to its last US$307 million, according to local reports, which is enough to pay its employees for one month. The airline is in talks with the Thai government regarding a bailout.

Ukraine International Airlines say the prospect of breaking even will begin from April 2021, as a result of the pandemic.

Virgin Australia
has told staff its subsidiary Tigerair will remain an essential part of its low-fares offering after the troubled company emerges from voluntary administration.

WestJet announced that in light of its further reduced operations, the airline will increase its current inactive workforce by a further 3,000 people come early May 2020.

European Commission will next month present a set of rules for the safe reopening of air travel when coronavirus lockdowns end, including social distancing in airports and planes, while some US airlines are taking their own protective measures.
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Tinus
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Re: Impact of the coronavirus crisis on aviation

Post by Tinus »

European Commission will next month present a set of rules for the safe reopening of air travel when coronavirus lockdowns end, including social distancing in airports and planes, while some US airlines are taking their own protective measures.


Could someone direct me of the source of this information?

Passenger
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Tinus wrote:
24 Apr 2020, 08:59
European Commission will next month present a set of rules for the safe reopening of air travel when coronavirus lockdowns end, including social distancing in airports and planes, while some US airlines are taking their own protective measures.

Could someone direct me of the source of this information?
This is the Press Corner from the European Commission:
https://ec.europa.eu/commission/presscorner/home/en

The lockdown we have now, will probably be replaced by a series of severe restrictions. Examples: a medical certification that one has no corona, social distancing on flights, ...

I don't expect anything positive from the European Commission towards aviation. For those ghost flights (empty flights to avoid loosing slots), it took the EC weeks before they adapted their legislation. And the European Commission only waived the obligation after the green boys protested against those zero occupancy flights.

Another possible support for airlines that the European Commission and the European Parliament have refused: an amendment to EU-Rule 261/2004, which would allow that passengers get a travel voucher instead of a cash refund. That relief measure is blocked by the EC Commissioner for Justice (Didier Reynders).

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Re: Impact of the coronavirus crisis on aviation

Post by Tinus »

Thank you for the clarification.

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Re: Impact of the coronavirus crisis on aviation

Post by sean1982 »

Ryanair will sue every country that gives billions to certain airlines claiming that it is unfair competition to pan-european airlines.

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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Delta suspending 6 UK routes for S20 :

Edinburgh - Boston, Gatwick - Boston, Manchester - Boston, Heathrow - Portland, Heathrow - Salt Lake City and Glasgow - New York JFK, via @SeanM1997
Air France CEO requests to wear masks on board planes, that would be mandatory.
Air Caraibes operated a cargo flight from Paris Orly to Pointe-à-Pitre with their Airbus A350-1000 carrying 27 tons of cargo.
Air Caraibes and Frenchbee made fly 2 A350, with a total of 57 tons to Guadeloupe and La Réunion, with medical stuff, postal cargo and some food. Aircraft came back to France with pineapples and melons.

CargoLogicAir AOC given again due to the current situation.

And AirBridgeCargo uses a 748F from China to France with an average of a daily flight.

F-GLZO, A343 at Air France, ferried to Tarbes.
Virgin Australia has 4 aircraft blockaded at PER due to unpaid invoices of AU$16 millions.

A 777-200ER of Nordwind is to depart today from Guangzhou to Barcelona.

If there's no "collective agreement" at Laudamotion, then the base of VIE will have to be closed by end May 2020, and let Ryanair grow instead...
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Ryanair CEO Michael O'Leary has just appeared on Sky News. He has likened Lufthansa to a "crack cocaine junkie" for asking for state aid of €10 billion on top of existing payroll support.

He doesn't see the need for additional support as airlines have few other costs when grounded.

The apparent unity shown on 3 March at the A4E Aviation Summit at the (now defunct) Hotel Metropole in Brussels has melted down in the corona crisis.
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Passenger
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

sean1982 wrote:
24 Apr 2020, 13:17
Ryanair will sue every country that gives billions to certain airlines claiming that it is unfair competition to pan-european airlines.
More details:
https://www.bloomberg.com/news/articles ... e-bailouts

Actually, it's just a PR promotion campaign from Ryanair - kind of "book with us, we are solid". All state aid (*) will be subjected to a pre-approval from the EU's Competition department. And they work fast now: they have already accepted a few corona aviation files with "Decision not to raise objections" (example: to SAS).

Meanwhile, Pagtour.info announces today that Ryanair itself demands state aid from the airports they operate from:
https://pagtour.info/lodieux-diktat-de- ... -francais/

Pagtour.info: "Jusqu’à fin octobre 2020, de ne payer aucune taxe d’atterrissage ni aucune redevance par passager transporté... De novembre à mars 2021, aucune taxe d’atterrissage et une redevance passager réduite de moitié sur le montant habituel... D’avril à octobre 2021, la taxe passager réduite de moitié et aucune charge supplémentaire pour les nouvelles destinations qui seraient ouvertes..." Google Translate: "...Until the end of October 2020, no landing tax or any fee per passenger transported. From November to March 2021, no landing tax, and a passenger fee reduced by half over the usual amount. From April to October 2021, the passenger tax halved and no additional charges for new destinations that would be opened..."

(*) exception: Italy. They give cash to Alitalia and/or the New Alitalia, as if Italy has no budgettary problems.

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Re: Impact of the coronavirus crisis on aviation

Post by cathay belgium »

Hi,

Dutch Dakota Association cancels ALL SEASON 2020 flights with their DC3 !

CXB
New types flown 2020 : A321neo,B781
New types planned : E140-E190E2

Passenger
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Breaking news from Air France / KLM:
https://www.airfranceklm.com/en/air-fra ... nd-prepare

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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Passenger wrote:
24 Apr 2020, 21:04
Breaking news from Air France / KLM:
https://www.airfranceklm.com/en/air-fra ... nd-prepare
At the current press conference of the Dutch State, they say between €2B and €4B state aid for KLM.
I'm Thibault Lapers, spotter in Belgium for now 3 years, but not yet across the world and a huuuuuge aviation geek ! Join me on Facebook & Twitter @TLspotting

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