Impact of the coronavirus crisis on aviation

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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Michael O'Leary seems to have changed his mind about state aid. He now considers that the EU should allow state aid proportionally to the number of passengers transported. Since Ryanair is the airline with the most passengers in Europe...
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Re: Impact of the coronavirus crisis on aviation

Post by 737MAX »

sn26567 wrote:
07 May 2020, 19:04
Michael O'Leary seems to have changed his mind about state aid. He now considers that the EU should allow state aid proportionally to the number of passengers transported. Since Ryanair is the airline with the most passengers in Europe...
Where is the « vomit » smiley? :x

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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Aegean is asking the government’s help after the company suffered massive losses due to the outbreak. The carrier will take at least six months to recover and two to three years to reach pre-coronavirus levels.

Aerolineas Argentinas to launch of a new cargo division once the pandemic passes as part of its restructuring project.

Air France KLM partnership will not be forced to break up as part of an emergency aid package, says the Dutch government.

Air France-KLM French unions criticized calls by their Dutch counterparts for KLM to be given greater autonomy, amid signs that a multibillion-euro coronavirus bailout is increasing tensions within the airline group.

KLM is in talks with the government about extra conditions for support, including a pay cut from KLM staff. Pilots union VNV said it wants to discuss this matter with KLM, but also called on politicians not to interfere in this discussion.

Air France is asked by Airbus and Boeing to delay taking some widebody jets after a slowdown in manufacturing caused by the crisis. Some A350s will be pushed into 2021 and 2022, while B787s due in June 2020 will be pushed back.

Air Serbia may obtain government support for aircraft acquisitions to back the recovery and expansion of the carrier after the end of the coronavirus crisis.

American Airlines Group is parking its fleet of A330-200s in storage until at least 2022, with some B737-800s to potentially follow.

Austrian Airlines plans to cut 1,100 of its 7,000 staff by 2023, and cut salaries by 13% in that period.

Austria’s government wants assurances from Lufthansa Group that Austrian Airlines will maintain a hub in Vienna. Alternatives to state aid are being examined as well.

Cathay Pacific is looking at “structural change” as it investigates how to downscale its business in the wake of the pandemic. Scenarios include those that could reduce staff headcount, routes served and planes flown, as well as the possible consolidation of its airline brands.

El Al Airlines is extending the unpaid leave for 6,000 workers until 30 June 2020, a day after it said a suspension of scheduled passenger flights would remain in effect until at least 30 May.

Garuda Indonesia is reaching out to the holders of its sukuk to hold a discussion on repayments due in June 2020 as the airline struggles to maintain cashflow amid the turbulence caused by the outbreak.

IAG is planning a meaningful return to service in July 2020 with a planning scenario that could see an overall reduction in passenger capacity of circa 50% in 2020. IAG does not expect the level of passenger demand in 2019 to recover before 2023, making further Group-wide restructuring measures essential; as a result, IAG expects to defer deliveries of 68 aircraft.

JetSMART is in talks with the governments of Chile and Argentina about helping the sector amid the pandemic. Possible solutions include deferring tax payments and access to preferential loans.

Korean Air will reopen 19 international routes from the beginning of June 2020. The routes included Washington DC, Seattle, Vancouver, Toronto, Frankfurt, Singapore, Beijing and Kuala Lumpur.

Montenegro Airlines may get less than the announced state aid of €150 million as the carrier is expected to fly less in the coming months.

SATA will extend the suspension of flights until 31 May 2020, with certain long-haul flights suspended until 06 June 2020.

Shandong Airlines expects a net loss of US$500-700 million in 1Q 2020 due to the pandemic.

Smartwings is asking the state for a loan guarantee of US$100 million. CITIC (China), which holds a 49.5% stake in the carrier, is open to giving back the stake to the Czech government for virtually free in the event of the worst case. The B737 MAX situation resulted in the damage of $59.9 million at 2019 end. The carrier is in talks with Boeing on the matter.

TAP Air Portugal will not get any more state funds without giving up more control to the government as the carrier is “technically bankrupt”.

Latvia is working to allow international air transport without restrictions after 13 May 2020.
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Re: Impact of the coronavirus crisis on aviation

Post by Atlantis »

Certain countries around us are receiving already more flights or will receive soon more flights.

KLM is opening week by week more destinations.
Czech is also going to start up their flights and AMS is one of their first destinations.
LH, Swiss and Eurowings are going to double their flights in June.

In Belgium is still everything uncertain. Borders stay closed. Also on the weekly meeting today was not good and positive news. Probably also the whole month of June technical unemployment.

It should be directed by Europe regarding opening the borders bcs this will create again huge competition who can fly and who not

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Re: Impact of the coronavirus crisis on aviation

Post by Sonho1985 »

sn26567 wrote:
07 May 2020, 23:32
TAP Air Portugal will not get any more state funds without giving up more control to the government as the carrier is “technically bankrupt”.
How bad is 'technically bankrupt'?
I bought tickets, and I know that the chance that we'll go to Brazil at the end of July is... ahm... pretty small, but on the other hand they still have my money.

I mean... shit :shock:

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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Air Astana will resume scheduled flights from Almaty and Nur-Sultan to regional centres across Kazakhstan following the end of the national state of emergency on 11 May 2020.

Air Lease CEO John Plueger expects to see more airline insolvencies and further consolidation after the pandemic halted most air travel, but that long-term fundamentals of air travel remained strong.

Air Lease is adjusting its forward delivery schedules with Airbus and Boeing to reflect significant delays in deliveries as a result of temporary production halts and lower production rates.

Air New Zealand to boost domestic capacity to 20% of usual levels once the country further loosens pandemic restrictions.

Air Serbia will resume a limited scheduled passenger air transport services on 18 May 2020, increasing to a comprehensive schedule on 01 June 2020.

AirAsia Philippines is cancelling all domestic and international Z2 flights until 15 May 2020, following the Philippine government’s directive of extending the community quarantine period in Luzon and parts of the country,

Boeing CEO David Calhoun said it could take years for the aviation industry to return to normal traffic levels and resume growth, both of which have been decimated by the pandemic.

Fiji Airways has extended all international flight suspensions to the end of June 2020, due to the prolonged impact of the pandemic.

Ryanair added three London Stansted routes, to Bucharest, Sofia and Porto, to its current limited flight schedule. These routes will recommence from 15 May 2020.

Sunwing has updated its suspension of operations, extending the suspension until at least 25 June 2020.

Wizz Air announced that its routes to and from Serbia remain suspended until 17 May 2020 inclusive due to the prolonging of existing travel restrictions announced by the Serbian authorities.
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Re: Impact of the coronavirus crisis on aviation

Post by Ansett »

@Atlantis : I may be wrong, but my feeling is that most flights which will operate in the very near future will be loss-making, unless tickets prices are very high.
I can see a future in the near-future for private jets for those who can afford them, and for cargo.
But since LH is managing cargo flights within the LH Group and we know how much LH/CS love SN, there will probably be very little cargo which will go to SN (even if some aircraft could operate as cargo aircraft).
Let's keep our borders closed as long as the sanitary situation has not really stabilized. I'd love to travel abroad again, too, but I am aware we all will have to be patient.

@Sonho1985 : sarcastically, I would say : hope that you will not be able to go to Brazil ! Do you know what the situation is like over threre at the moment (and it won't change for the better in the coming months ; I would not even exclude a military coup). Bolsonaro's Brazil is not pre Bolsonaro Brazil.

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Re: Impact of the coronavirus crisis on aviation

Post by Ansett »

sn26567 wrote:
07 May 2020, 19:04
Michael O'Leary seems to have changed his mind about state aid. He now considers that the EU should allow state aid proportionally to the number of passengers transported. Since Ryanair is the airline with the most passengers in Europe...
Should he not ask Ireland only for "aid" ?
Or will he blackmail regions again ?

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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

173 Belgians, many of them stranded for weeks at Tenerife, flew home this afternoon with a flight that Foreign Affairs Brussels was unable to organize for them:
https://www.hln.be/in-de-buurt/zaventem ... ~afd1b234/

Their flight was operated by Enter Air (Poland) SP-ENU (737-800):
https://www.flightradar24.com/data/airc ... u#2477d0e5

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Re: Impact of the coronavirus crisis on aviation

Post by Sonho1985 »

Ansett wrote:
08 May 2020, 23:42
@Sonho1985 : sarcastically, I would say : hope that you will not be able to go to Brazil ! Do you know what the situation is like over threre at the moment (and it won't change for the better in the coming months ; I would not even exclude a military coup). Bolsonaro's Brazil is not pre Bolsonaro Brazil.
I know the situation in Brazil very well since my family lives there. Its current situation is comparable to the one in Northern Italy or Madrid about 4 weeks ago = out of control. Mayor cities are just now going in to serious lockdown (a bit too late), and lots of people on the streets still don't take it serious. My worries are not about be unable to travel this summer (because health is always more important), but about the possibility of losing the money that I did pay for the tickets if TAP goes bankrupt.

Am I hoping to be able to travel? Yes.

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Re: Impact of the coronavirus crisis on aviation

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Brussels, 8th May 2020. The European Commission has asked its Member States to extend restriction on non-essential travel to the EU until 15 June 2020.

The European Commission invited Schengen Member States and Schengen Associated States to extend the temporary restriction on non-essential travel to the EU for another 30 days, until 15 June. While some EU and Schengen Associated States are taking preliminary steps towards easing the measures for fighting the spread of the pandemic, the situation remains fragile both in Europe and worldwide. This calls for continued measures at the external borders to reduce the risk of the disease spreading through travel to the EU. The lifting of travel restrictions should be phased: as underlined in the Joint European Roadmap on lifting containment measures, internal border controls will need to start being lifted gradually and in a coordinated manner before restrictions at the external borders can be relaxed in a second stage.

Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “The overall objective of limiting the spread of coronavirus via reduced social interaction remains. Despite progress in many European countries, the situation worldwide is very fragile. It is imperative that any action taken is gradual, with different measures being lifted in different phases.” Commissioner for Home Affairs, Ylva Johansson underlined: “We need a phased and coordinated approach. Restoring the normal functioning of the Schengen area of free movement is our first objective as soon as the health situation allows it. Restrictions on free movement and internal border controls will need to be lifted gradually before we can remove restrictions at the external borders and guarantee access to the EU for non-EU residents for non-essential travel.”

The travel restriction, as well as the invitation to extend it, applies to the ‘EU+ area', which includes all Schengen Member States (including Bulgaria, Croatia, Cyprus, and Romania) and the 4 Schengen Associated States (Iceland, Liechtenstein, Norway, and Switzerland) – 30 countries in total. The Commission calls for a continued coordinated approach to the prolongation, as action at the external borders can only be effective if implemented by all EU and Schengen States at all borders, with the same end date and in a uniform manner.

The Commission will continue to assist Member States in implementing the restriction on non-essential travel to the EU, including through regular videoconference meetings with Home Affairs Ministers. Any further prolongation of the travel restriction beyond 15 June 2020 would need to be assessed again, based on the evolution of the epidemiological situation.

Source: press release 8th May 2020:
EN:
https://ec.europa.eu/commission/pressco ... /ip_20_823
NL:
https://ec.europa.eu/commission/pressco ... /ip_20_823
FR:
https://ec.europa.eu/commission/pressco ... /ip_20_823

Official request to the Member States - pdf 249kB:
https://ec.europa.eu/info/sites/info/fi ... vel_en.pdf

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Re: Impact of the coronavirus crisis on aviation

Post by Poiu »

According to Sky news, Virgin Atlantic could be very close to insolvency.
https://news.sky.com/story/coronavirus- ... s-11985678

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Re: Impact of the coronavirus crisis on aviation

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British newspaper The Times reports that the UK government will introduce a 14-day quarantine period for most people arriving from abroad. The government wants to avoid a second peak of the coronavirus pandemic. On Sunday, prime minister Johnson is due to announce the next steps in Britain’s battle to tackle the novel coronavirus following a review by ministers of measures that have all but shut the economy and kept millions at home for more than six weeks. Karen Dee, Chief Executive of the Airport Operators Association, replied: "Quarantine would not only have a devastating impact on the UK aviation industry, but also on the wider economy”.
https://www.thetimes.co.uk/edition/news ... -67rnf9zjl

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Re: Impact of the coronavirus crisis on aviation

Post by Ansett »

Thanks for the info;
In a nutshell : who would want to travel to a country where you would have a high risk of contamination (and I'm not thinking of the UK only). On the other side, countries that are fairly "safe" (low incidence of this corona virus in the country) don't want to open their borders to travellers from "unsafe" countries.
My conclusion fwiw : let's all stay home, be patient. I doubt travel restrictions will be totally lifted soon and that is a good thing (not for the airline and travel industry, of course. I'm aware of that, but one has to list the priorities).
And for those who travel out of their own will to a foreign, especially non EU, country, check before you travel, if your travel insurance will cover medical expenses (and possible repatriation costs) should you have to be treated/hospitalized because you got Covid-19.

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Re: Impact of the coronavirus crisis on aviation

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Eurocontrol update on airlines and countries:

Airlines

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Countries

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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Aer Lingus will give unions more details of planned cuts that some speculate could lead to 900 job losses.

Air Saint-Pierre seeks state aid due to the pandemic, or it risks shutting down as it is facing major financial difficulties. The carrier has enough cash to make it to the end of June 2020.

ATR has become the latest aircraft manufacturer to prepare for production cuts due to the crisis, with a decision on the extent to be taken in the coming weeks.

Czech Airlines plans to resume operations on its routes on 18 May 2020 between Prague and Amsterdam, Frankfurt, Paris and Stockholm. More routes to follow later in the month.

Emirates will raise debt to help it through the pandemic, warning that a recovery in travel demand was at least 18 months away.

IAG has exhausted every avenue to shore up its finances and is burning through cash, as the aviation industry warned of the fresh damage it would suffer if Britain quarantines international arrivals. IAG will review plans to resume flying in July 2020 if the government introduces the quarantine.

Pobeda will be able to claim state support, despite the complete suspension of flights, says the Russian government.

Royal Jordanian had requested the rescheduling of debt payments owed to leasing companies and banks after an “unprecedented” fall in revenues due to the pandemic.

Safran had laid off 3,000 employees in Queretaro, Mexico as the aerospace industry faces an unprecedented crisis stemming from the pandemic.

Thai Airways International plans to resume international flights on 01 July 2020, including those to Europe.

Canada said it would create a bridge financing facility for large employers, including in the airline sector, that need help to get through the economic downturn caused by the coronavirus.

Cyprus decided to extend the suspension of passenger flights until 28 May 2020 to help curb the spread of the coronavirus.

Israel’s government will demand that El Al Israel Airlines carries out an overhaul, including layoffs, before agreeing to throw a US$400 million lifeline to the airline.

Spanish government
is pushing for a European-wide response to shore up the airline industry so that carriers face a “level playing field,” according to the country’s economy minister.
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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Air France has deferred delivery of three A350-900s one year to 2021, while retiring its last two A340-300s. The fate of its six A380-800s is still being decided as part of restructuring plans which could include the reassessment of new fleet orders.

AirBaltic is suspending bookings for flights until 09 June 2020 after the Latvian government has extended the lockdown until that date.

Boeing CEO Dave Calhoun sees a rocky road ahead for US airlines, saying it’s probable that a major carrier will go out of business as the pandemic keeps passengers off planes.

Dave Calhoun does not expect passenger traffic to reach even 25% of its levels in September 2020, creating the need for airlines to make “adjustments” as they weather the impact of the pandemic.

Cabo Verde Airlines says its 1Q 2020 results to be below expectations due to the pandemic. The carrier will continue to seek long-term financing, and plans to resume operations on 01 July 2020.

Croatia Airlines resumed part of its domestic network, with the carrier operating daily services from Zagreb to Dubrovnik and Split.

Emirates will push back the launch of its all-new premium economy class due to the ongoing impact of crisis, and says it has no plans to upgrade older jets with the product.

Flydubai passenger operations to remain suspended until 04 June 2020 as part of the precautionary measures.

FlyOne flights to remain suspended until early June 2020 as it awaits travel restrictions to eased.

Garuda Indonesia to benefit from a US$1 billion financial bailout plan from the government. The proposal aims to restructure the $500 million sukuk due in June 2020 and arrange $500 million in new bridge loans to cover the next three to six months.

Kenya Airways has asked the Treasury for a US$66.5 million emergency bailout after its aircraft were grounded due to the restrictions on international passenger flights sparked by the pandemic.

Pegasus Airlines has resumed its cargo operations, following the temporary suspension of all of its flights due to the outbreak. The carrier will use the belly hold of its A321neo.

Qatar Airways says global travel demand will take years to recover from the pandemic and many business travellers may never return to the skies. The carrier is forecasting the airline would be able to fill between 50-60% of seats initially.

Ryanair Holdings challenged the French government’s aid to Air France-KLM in court, in order to halt the bailout.
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Long awaited, and here it is:

European Commission, 13th May 2020: COVID-19: Recommendation on vouchers offered to passengers and travellers as an alternative to reimbursement for cancelled package travel and transport services".
https://ec.europa.eu/info/sites/info/fi ... ers_en.pdf

European Commission, 13th May 2020: "Guidelines on the progressive restoration of transport services and connectivity".
https://ec.europa.eu/info/sites/info/fi ... rvices.pdf

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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Passenger wrote:
13 May 2020, 13:12
Long awaited, and here it is:

European Commission, 13th May 2020: COVID-19: Recommendation on vouchers offered to passengers and travellers as an alternative to reimbursement for cancelled package travel and transport services".
https://ec.europa.eu/info/sites/info/fi ... ers_en.pdf

European Commission, 13th May 2020: "Guidelines on the progressive restoration of transport services and connectivity".
https://ec.europa.eu/info/sites/info/fi ... rvices.pdf
Press release with the content, in general:
https://ec.europa.eu/commission/pressco ... /ip_20_854

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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Passenger wrote:
13 May 2020, 13:17
Long awaited, and here it is:

European Commission, 13th May 2020: COVID-19: Recommendation on vouchers offered to passengers and travellers as an alternative to reimbursement for cancelled package travel and transport services".
https://ec.europa.eu/info/sites/info/fi ... ers_en.pdf

European Commission, 13th May 2020: "Guidelines on the progressive restoration of transport services and connectivity".
https://ec.europa.eu/info/sites/info/fi ... rvices.pdf

Press release with the content, in general:
https://ec.europa.eu/commission/pressco ... /ip_20_854
Reply from the aviation industry:
...Airlines decry lack of leadership and clarity from European Commission recommendations on use of travel vouchers during COVID-19...
https://www.aviation24.be/airlines/airl ... -covid-19/

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