Impact of the coronavirus crisis on aviation

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Re: Impact of the coronavirus crisis on aviation

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Eurocontrol update on airlines and 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

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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

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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

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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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Re: Impact of the coronavirus crisis on aviation

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Daily review (as usual, without stories mentioned on the homepage or elsewhere in te forums)

Air Transat
is extending its service suspension to the end of June 2020 due to the continuing pandemic.

Allegiant Travel will most likely shrink its fleet by as many as 25 aircraft in the near term to deal with the crisis. Allegiant plans to purchase aircraft and associated parts at what we believe will be substantial discounts to recent prices.

Atlantic Airways (from the Faroe Islands) announced that 90 employees will be laid off by the end of May 2020.

El Al Israel Airlines
called on Israeli PM Benjamin Netanyahu to rescue it, rejecting what it said were impossible conditions for state-backed US$$400 million in loans.

Miami Air International employees protested asking to keep their jobs after the local airline stopped operating and planned to file for bankruptcy. The carrier didn’t receive any money from the government amid the ongoing outbreak.

Pobeda plans to gradually resume domestic flights from 01 June 2020.

Qatar Airways plans to suspend the delivery of new jets from Airbus and Boeing until post-coronavirus travel demand returns to normal – a state which its CEO doesn’t expect to see until at least 2023. The A380s may never return to flying.

Ryanair Holdings CEO Michael O’Leary said Britain’s plan to have arriving passengers self-isolate in their accommodation for 14 days upon arrival was “idiotic” and effectively unenforceable.

Viva Air Colombia needs a loan of less than US$60 million to face the current crisis, says CEO Felix Antelo, who confirmed that talks with the government are in advanced stages.

WestJet extends flight cancellations into July 2020 as the pandemic keeps passenger loads at record lows.
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Re: Impact of the coronavirus crisis on aviation

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Passenger wrote:
13 May 2020, 16:21
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/
As a result of the above EU EC Recommendations, the Dutch government has reviewed its previous agreement for ticket vouchers. Dutch inspection for 261/2004 now states that airlines must refund, unless the passenger voluntary accepts a voucher. KLM accepts this new policy, and will soon start to refund passengers.

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Re: Impact of the coronavirus crisis on aviation

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Daily review (in addition to the many articles on the homepage):

Air Astana resumes some domestic operations and expects to be operating approximately 30% of its pre-crisis network by the end of May 2020.

Air Serbia will resume commercial flights to four destinations in Europe next week, while pushing back remaining services to 15 June 2020.

Airbus is exploring restructuring plans involving the possibility of “deep” job cuts as it braces for a prolonged crisis after furloughing thousands of workers, industry sources said, though no decision is imminent.

Airbus says it must be “resized” in plans to be set out by around end-June 2020 and is ready to cut jet production again to tackle any second wave of the coronavirus crisis.

Asiana Airlines plans to restart 13 international routes in June 2020 to prepare for eased travel restrictions.

Envoy plans to return all of the E175s and ERJ145s currently grounded back into service by 03 June 2020.

IAG has confirmed 12,000 job cuts at the airline will still go ahead despite the Government extending its furlough scheme until the end of October 2020.

IATA warned that Saudia would lose billions of dollars as a result of the slump in air travel, with 250,000 jobs at risk due to measures being taken by the royal family.

Qatar Airways will lay off close to 20% of its workforce after the pandemic decimated travel demand, its chief executive said.
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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Aeroflot Group can receive up to €100 million in state aid as part of a package to support the country’s aviation industry during the pandemic.

Air Austral secures funding of €85 million to face the crisis and provide the means for a resumption of operations. The funds were derived from a major shareholder and banks.

Aircalin plans to cut its staffing costs by 20% because of the crisis resulted in the airline losing 93% of its passengers and caused a loss of €6.5 million per month. The fleet renewal was on hold and the delivery of a second A330neo due in October 2020 had been put off to 2023. As a result, Osaka and Melbourne will be dropped from the network. Aircalin also asked France for a €50 million loan.

Amaszonas hopes the sector will get an injection of capital to be able to reactivate itself. It requested the funds from the Bolivian government. Ecojet is seeking a bridge loan from the Bolivian government to help the carrier resume operations.

Libyan Airlines called on the state to support the company to cover some of its losses from the recent airport bombing and the pandemic.

Southwest Airlines CEO Gary Kelly says the airline industry is not likely to recover to pre-coronavirus levels for at least the next six to 12 months.
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Re: Impact of the coronavirus crisis on aviation

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The European ministers of Home Affairs will soon issue a statement on the re-opening of intra-EU-borders. Date for their statement: "end of next week":

Minister De Crem, Belgian Minister van Binnenlandse Zaken, Veiligheid en Buitenlandse Handel / Ministre de l’Intérieur, de la Sécurité et du Commerce Extérieur:

15-05-2020
“A decision with regard to the borders should ideally be reached by the end of next week”

The Minister of Home Affairs and Security Pieter De Crem said in an interview on Radio 1 this morning that he hopes to reach a decision about a possible reopening of the borders by the end of next week. “The abolition of existing border controls is a far-reaching step towards semi-normalization. It’s a complex issue. I’m constantly consulting with my fellow ministers from our neighbouring countries. The best possible scenario is to reach a decision by the end of next week on when and under what conditions we can end these border controls”.

We will enter a new phase of the so-called exit-strategy next Monday, May 18, in order to get our country out of this lockdown. A question that has been put on the agenda since last week and that has become increasingly significant, is what to do with the country’s borders in that regard. “Our country is not an island and it has to take its decision in proper consultation with our neighbouring countries in order to come to a simultaneous and coordinated reopening. The epidemiological situation in our country but also that in our neighboring countries is obviously a critical factor”, said Minister de Crem.

Source:
https://www.pieterdecrem.be

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Re: Impact of the coronavirus crisis on aviation

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UPDATE 1-Thai govt to go to bankruptcy court with Thai Airways rehab plan

Thailand’s government said on Monday it plans to submit a rehabilitation plan for troubled national carrier Thai Airways International Pcl to a bankruptcy court rather than go ahead with a planned rescue. https://in.reuters.com/article/thai-air ... NL4N2D01DV

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Re: Impact of the coronavirus crisis on aviation

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Some ANSPs are facing the terrifying prospect of bankruptcy !
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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Air Burkina personnel is placed on partial technical unemployment from 15 May 2020 for a period of three months, as the carrier does not plan to resume operations before August 2020 due to its current financial situation as a result of the pandemic.

Air Canada plans to cut its workforce by at least half as the pandemic continues to wreak havoc on the airline industry. About 20,000 people will be affected.

Canada’s PM Justin Trudeau to look at possible ways to help airlines further, but laid out no new measures after Air Canada announced mass layoffs due to the pandemic.

Air Mauritius to save US$14.9 million in costs due to its pilots sacrificing some of their wages and benefits to help the carrier cope amid the pandemic.

Air Nostrum will resume inter-island operations in the Balearic Islands starting next 24 May 2020, following the close of a financing round of €125 million.

Air Panama seeks permission to resume its operations once the quarantine restrictions for the coronavirus are lifted The airline also seeks to be allowed to defer payment of some of its outstanding bills.

Air Serbia will start re-introducing flights to certain destinations in the region in the last week of May 2020, with flights to New York launching on 06 June.

Airbus will furlough 3,163 workers in Spain as the European planemaker extends moves to save cash and scale down output following a collapse in demand.

EgyptAir will get a state loan of US$127.39 million due to the impact of the coronavirus on its operations.

Izhavia expects more than US$3.1 million in subsidies from the Russian government in connection with losses due to the pandemic.

LATAM Airlines Group
plans to let go of 1,400 people across its units in Chile, Peru, Colombia, and Ecuador due to the pandemic.

LIAT
has extended the suspension of its passenger services through the end of May 2020 due to current border closures and travel restrictions.

PGA Portugalia begins letting go of pilots and cabin crew as the impact of the pandemic begins taking its toll.

Royal Air Maroc is working closely with the government to prepare a draft recovery plan capable of guaranteeing the sustainability of its business in the long term. The carrier plans to resume operations soon.

Smartwings, the owner of Czech Airlines, confirms it is seeking state loans or guarantees, but has no interest in opening the way for the Czech government to take up to 100% control.

Czech government could buy up to 100% of Smartwings or offer the carrier state-guaranteed loans. A decision is due in June 2020.

Southwest Airlines CEO Gary Kelly said he will have to “radically restructure” the airline if travel demand does not improve dramatically by the fall. The company cannot lay off workers through 30 September 2020.

Tunisair seeks the postponed of debts so it can save cash as June 2020 is expected to be a difficult month for the carrier. The airline is awaiting US$35 million in state aid.

Turkmenistan Airlines extended the cancellation of all international flights until 20 June 2020 due to a pandemic.

United Airlines Holdings has told staff that it only has work for about 3,000 of its about 25,000 flight attendants in June 2020, and warned of job losses if demand does not recover by the time government payroll aid expires in the fall.

United Airlines Holdings non-union employee filed a class action lawsuit alleging that a requirement that management and administration employees take 20 unpaid days off breaches the terms of federal payroll aid.

United Airlines wants to resume passengers flights to China as soon as June 2020 but is waiting on governments in Beijing and Washington, DC to allow it.

Italy will reopen its borders from 03 June 2020 without restrictions as it seeks to further ease its lockdown and restart the eurozone’s third-largest economy.

Panama prohibits international flights until June 22 after extending the ban on international flights for another 30 days.
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Re: Impact of the coronavirus crisis on aviation

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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Aegean Airlines expects 2020 to be the worst year in its 21-year history as restrictions imposed to contain the new pandemic have hit revenues and grounded planes.

AirAsia Japan suspends all flights until the end of June 2020, thus extending its previous term.

Delta will keep planes no more than 60% full through at least July 2020, adding more flights to its schedule than demand would usually justify.

LOT to resume some of its domestic flights on 01 June 2020, as the pandemic situation was easing in the country.
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Re: Impact of the coronavirus crisis on aviation

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Daily review:

Alitalia will resume from 02 June 2020 the non-stop Rome – New York service, direct flights to Madrid and Rome and non-stop flights between Milan and southern Italy. The Airline will operate 36% more flights compared to May 2020.

Azul will increase its June 2020 schedule to 168 flights per peak day compared to 115 daily departures in May, and 70 flights per day in April. In addition, the Company will be flying to 57 domestic destinations in June.

Berlin Brandenburg Airport could require government financial support out to 2023, until passenger numbers return. The airport will replace Tegel, which closes on 15 June 2020.

Copa Airlines will restart its operations from 03 July 2020, starting with 10% of flights.

Delta CEO Ed Bastian said he doesn’t believe any US airline will go out of business because of the pandemic, thanks to assistance from the government.

Finnair adjusts its volume-driven costs in line with demand. In addition, Finnair targets almost €80 million permanent cost base decline starting from year 2022 compared to year 2019. Finnair seeks savings in for example real estate costs, aircraft leasing costs, compensation structures, and sales and distribution costs.

Finnair begins discussions with its employees on possible additional layoffs. From July, Finnair flies only 5% of its normal traffic and has thus already temporarily laid off its personnel. The carrier estimates to fly approximately 70% of its normal capacity at the end of this year.

Globalia has suspended a process to start operating domestic flights within Brazil as it waits for the pandemic to end.

Lufthansa is bracing for 500 of aircraft to remain grounded due to the pandemic well into 2022 and that further job cuts at its maintenance and catering businesses were inevitable.

TAAG
estimates losses of US$270 million until the end of fiscal 2020 due to the pandemic, with privatization still set for 2022.

Wizz Air will extend the suspension of all its flights to and from Moldova until 31 May 2020 inclusive, to and from Northern Macedonia until 30 May 2020 inclusive.

US Treasury Department’s internal watchdog is auditing a US$32 billion package of aid earmarked to support employees at passenger airlines, cargo carriers and related contractors included in the $2.2 trillion coronavirus stimulus package.
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Re: Impact of the coronavirus crisis on aviation

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Press release EASA/ECDC, 20th May 2020:
EASA/ECDC issue joint guidelines to assure health safety in air travel despite COVID-19 pandemic

The European Union Aviation Safety Agency (EASA) and European Centre for Disease Prevention and Control (ECDC) issued a joint document defining measures to assure the health safety of air travellers and aviation personnel once airlines resume regular flight schedules following the severe disruption caused by COVID-19.

The guidelines place paramount importance on health safety at every stage of the end-to-end passenger journey. Recognising that airports, airlines and aircraft are different, it takes a pragmatic approach in implementation – highlighting and giving guidance on the ways in which individual locations and situations can best be re-engineered to meet the new health safety standards.

Some overarching principles apply throughout: observe physical distancing wherever possible, wear a medical face mask to protect other passengers, and practice scrupulous and frequent hand hygiene. Air passengers and general population have to be assured that filtered air on airplanes is safer and cleaner than many of us breathe on the ground.

EASA and ECDC were charged by the European Commission with drawing up the guidelines, as part of a wider package of measures to prompt the safe restoration of transport services and connectivity following the outbreak of COVID-19.

“The safety of passengers and crews has always been paramount in aviation,” European Commissioner for Transport Adina Valean said. “Passengers have to have confidence that taking to the skies again in a confined space with other people poses the minimum possible risk to their health. We relied on our specialists from EASA and ECDC to define a set of concrete measures for the safe resumption of air travel within the EU. The protocol released today will reassure passengers that it is safe for them to fly and so help the industry recover from the effects of this pandemic.”

Link to the Guidance - pdf 1,5 MB:
https://www.easa.europa.eu/sites/defaul ... _final.pdf

Sources:
https://www.easa.europa.eu/newsroom-and ... el-despite
and
https://www.easa.europa.eu/document-lib ... y-protocol

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Re: Impact of the coronavirus crisis on aviation

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IATA already opposes to the EASA guidelines, which are economically unsustainable.
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Re: Impact of the coronavirus crisis on aviation

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Passenger wrote:
21 May 2020, 10:57
Press release EASA/ECDC, 20th May 2020:
EASA/ECDC issue joint guidelines to assure health safety in air travel despite COVID-19 pandemic

The European Union Aviation Safety Agency (EASA) and European Centre for Disease Prevention and Control (ECDC) issued a joint document defining measures to assure the health safety of air travellers and aviation personnel once airlines resume regular flight schedules following the severe disruption caused by COVID-19.

The guidelines place paramount importance on health safety at every stage of the end-to-end passenger journey. Recognising that airports, airlines and aircraft are different, it takes a pragmatic approach in implementation – highlighting and giving guidance on the ways in which individual locations and situations can best be re-engineered to meet the new health safety standards.

Some overarching principles apply throughout: observe physical distancing wherever possible, wear a medical face mask to protect other passengers, and practice scrupulous and frequent hand hygiene. Air passengers and general population have to be assured that filtered air on airplanes is safer and cleaner than many of us breathe on the ground.

EASA and ECDC were charged by the European Commission with drawing up the guidelines, as part of a wider package of measures to prompt the safe restoration of transport services and connectivity following the outbreak of COVID-19.

“The safety of passengers and crews has always been paramount in aviation,” European Commissioner for Transport Adina Valean said. “Passengers have to have confidence that taking to the skies again in a confined space with other people poses the minimum possible risk to their health. We relied on our specialists from EASA and ECDC to define a set of concrete measures for the safe resumption of air travel within the EU. The protocol released today will reassure passengers that it is safe for them to fly and so help the industry recover from the effects of this pandemic.”

Link to the Guidance - pdf 1,5 MB:
https://www.easa.europa.eu/sites/defaul ... _final.pdf

Sources:
https://www.easa.europa.eu/newsroom-and ... el-despite
and
https://www.easa.europa.eu/document-lib ... y-protocol
The above EASA Guidance / protocol seems to become the good news we were waiting for:
IATA:
https://www.aviation24.be/organisations ... mentation/
ERA:
https://www.aviation24.be/organisations ... -recovery/

IATA points to the upmost condition for success: "...it is absolutely essential that all European states apply these guidelines in a harmonised and mutually recognised way. Local deviations and exceptions will damage public confidence and make it harder to operate effectively. This would be harmful to public health and the economic recovery. IATA will support states to implement these guidelines in the fastest and most efficient way..." (cfr IATA statement, see just above).

Which authority will now implement this Guidance / protocol in full? Not all European airlines are IATA member, and not all European countries are European Union member state. So will ICAO do this - which then becomes rule of law for all United Nations member states? Or will the European Commission take up a leading role, and rule that the Guidance becomes compulsary for incoming and outgoing flights? The sooner there is an official rule, the faster aviation & travel can start their recovery.

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