Impact of the coronavirus crisis on aviation

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nordikcam
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Re: Impact of the coronavirus crisis on aviation

Post by nordikcam »

I just heard on France 5, broadcast "C dans l'air" that Alitalia and Brussels airlines had just been nationalized ... did I miss an episode about SN?

sean1982
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Re: Impact of the coronavirus crisis on aviation

Post by sean1982 »

Israel refuses to bail out El Al because they wont be able to pay back the loan

https://viewfromthewing.com/israels-fin ... for-el-al/


Acid-drop
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Re: Impact of the coronavirus crisis on aviation

Post by Acid-drop »

Yeyyy free money for all
As if.
My messages reflect my personal opinion which may be different than yours. I beleive a forum is made to create a debate so I encourage people to express themselves, the way they want, with the ideas they want. I expect the same understanding in return.

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sn26567
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Alaska Air Group updates its capacity reduction plans to reflect 80% cuts in both April and May 2020. Alaska Airlines and Horizon Air both applied for payroll support grants under the CARES Act.

Lessor Avation says some airline customers have entered into short-term financial relief agreements with Avation and discussions with other airlines are at an advanced stage. The lessor has placed a moratorium on Capital Expenditure and all aircraft purchases have been deferred.

GOL has suspended guidance for 2020 and 2021, until the activity of the sector returns to normal. The carrier will leave most of its fleet grounded until the end of May 2020.

IATA has released new analysis showing that some 25 million jobs are at risk of disappearing with plummeting demand for air travel amid the crisis, with almost half in Asia-Pacific.

Jambojet announces the cessation of all flights from 07-30 April 2020, in compliance with travel restrictions.

Lufthansa Technik to introduce short-time working. The agreement thus applies to around 12,000 employees and will initially run until 31 August 2020.

Lufthansa may drop Vienna as a hub airport as the carrier mitigates the impact of the pandemic.

Mesa Air Group has been asked by its airline partners to reduce overall block hours in April 2020 by approximately 55%. The Company also anticipates being asked to further reduce block hours for May. Mesa Air Group has submitted its application for worker-protection grant funds available under the CARES Act.

Norwegian to cut 800 employees based in Sweden as the pandemic continues to take its toll.

Republic Airways has submitted an application for emergency federal grant funding that would enable it to keep employees paid through 30 September 2020.

TAP Air Portugal is a priority for the government, with a package of measures to support the aviation industry set to be announced soon. TAP should see a deferred payment of contributions and taxes, and possibly direct funding.
André
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PttU
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Re: Impact of the coronavirus crisis on aviation

Post by PttU »

TLspotting wrote:
07 Apr 2020, 17:40
Lufthansa Group makes significant changes :

6 Airbus A380, 9 A340, 21 A320 and 5 Boeing 747 to be retired.
Germanwings to close.
Further restructuring at Austrian & Brussels.

https://www.aviation24.be/airlines/luft ... rmanwings/
At Lufthansa, six Airbus A380s and seven A340-600s, as well as five Boeing 747-400s, will be permanently decommissioned.
Some thoughts I had: the Airbus A380 (and to a lesser extent the 747) have become rather unpopular planes because:
* 4 engines, higher fuel usage, meaning higher costs as fuel is a more important factor compared to the moment those planes were designed.
* too big: designed for a hub and spoke model where travelling from A to B means flying A to hubA, a big plane to hubB and a smaller plane again to final destination B.

I understand there is just too little demand for the next few months to fill an A380 or 747, but what thereafter? The A380 failed because the hub and spoke model was less used, and more direct flights were offered and were cheap and popular. But what if demand remains low in the post-corona era? Too low to fill an A321 or A330 or B757 or similar on a lot of direct routes? Could that mean an increased interest in the hub and spoke model and increased demand on routes between hubs? And thus an increased need for bigger planes? Maybe more trains for the first or last part of the journey given their green image.
It's hard to guess what fuel prices will be doing, but assuming they remain low: that would mean a lesser handicap for the 4-engine planes.
Furthermore: focusing on less destinations could be another effect of airlines needing to shrink down, inherently focusing more on hub-connections.

So... What do you think? Might the impact of the coronavirus also mean an impact on the way aviation business works? On the type of aircraft used?

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Conti764
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Re: Impact of the coronavirus crisis on aviation

Post by Conti764 »

PttU wrote:
08 Apr 2020, 00:22
TLspotting wrote:
07 Apr 2020, 17:40
Lufthansa Group makes significant changes :

6 Airbus A380, 9 A340, 21 A320 and 5 Boeing 747 to be retired.
Germanwings to close.
Further restructuring at Austrian & Brussels.

https://www.aviation24.be/airlines/luft ... rmanwings/
At Lufthansa, six Airbus A380s and seven A340-600s, as well as five Boeing 747-400s, will be permanently decommissioned.
Some thoughts I had: the Airbus A380 (and to a lesser extent the 747) have become rather unpopular planes because:
* 4 engines, higher fuel usage, meaning higher costs as fuel is a more important factor compared to the moment those planes were designed.
* too big: designed for a hub and spoke model where travelling from A to B means flying A to hubA, a big plane to hubB and a smaller plane again to final destination B.

I understand there is just too little demand for the next few months to fill an A380 or 747, but what thereafter? The A380 failed because the hub and spoke model was less used, and more direct flights were offered and were cheap and popular. But what if demand remains low in the post-corona era? Too low to fill an A321 or A330 or B757 or similar on a lot of direct routes? Could that mean an increased interest in the hub and spoke model and increased demand on routes between hubs? And thus an increased need for bigger planes? Maybe more trains for the first or last part of the journey given their green image.
It's hard to guess what fuel prices will be doing, but assuming they remain low: that would mean a lesser handicap for the 4-engine planes.
Furthermore: focusing on less destinations could be another effect of airlines needing to shrink down, inherently focusing more on hub-connections.

So... What do you think? Might the impact of the coronavirus also mean an impact on the way aviation business works? On the type of aircraft used?
Staffing issues as well I suppose... A 747, let alone a 380 needs more crew then a 777 or a 787, 330 or 350...

And I think companies would rather have twins flying direct half empty then having a bunch of single aisles flying around half empty filling a (super)jumbo for 3/4.

Passenger
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

The green boys have spoken: "no state aid to Belgian aviation, unless they reduce their pollution and unless aviation will pay taxes on fuel and VAT on tickets".

NL:
https://www.bondbeterleefmilieu.be/arti ... n-eerlijke

FR:
https://www.iew.be/pas-de-soutien-au-se ... limatique/

TLspotting
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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

OO-JDL on the way to PTP and OO-ABA to MPM, as related by sdbelgium.
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

Kapitein
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Re: Impact of the coronavirus crisis on aviation

Post by Kapitein »

TLspotting wrote:
08 Apr 2020, 12:28
OO-JDL on the way to PTP and OO-ABA to MPM, as related by sdbelgium.
OOABA is still in BRU, foreseen for dep to BOG on 10/4.

TLspotting
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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

Kapitein wrote:
08 Apr 2020, 16:10
TLspotting wrote:
08 Apr 2020, 12:28
OO-JDL on the way to PTP and OO-ABA to MPM, as related by sdbelgium.
OOABA is still in BRU, foreseen for dep to BOG on 10/4.
BRU - BOG - SDQ - BRU !
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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cathay belgium
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Re: Impact of the coronavirus crisis on aviation

Post by cathay belgium »

Hi,

Ursel Avia postponed 2021 due COVID-19...
So is Sanicole...

No airshows this year... Around here...

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

TLspotting
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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

cathay belgium wrote:
08 Apr 2020, 23:49
Hi,

Ursel Avia postponed 2021 due COVID-19...
So is Sanicole...

No airshows this year... Around here...

CXB
Farnborough, RIAT are cancelled as well...
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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sn26567
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Yesterday's daily review:

Air Canada recently announced that its workforce in Canada will be temporarily reduced by approximately 50%, or 16,500 jobs, as a result of the crisis and the imposition of global travel restrictions.

AirAsia Philippines is cancelling all domestic and international flights until 30 April 2020, following the government’s directive of extending the enhanced community quarantine period in Luzon.

AirBaltic intends to start operations with only five A220-300s once the restrictions are lifted, and then add one aircraft per week as demand returns. Boeing and Q400 aircraft fleet will be discontinued. The carrier will try to negotiate an optimum delivery schedule for remaining A220s on order.

Airbus is now revising its production rates downwards to adapt to the coronavirus market environment. The new average production rates going forward have been set as follows: A320 to rate 40 per month; A330 to rate 2 per month; and A350 to rate 6 per month. Airbus is also addressing a short-term cash containment plan as well as its longer-term cost structure.

Airbus, in 1Q 2020, booked 290 net commercial aircraft orders and delivered 122 aircraft. A further 60 aircraft were produced during the quarter, however, they remain undelivered due to the evolving pandemic. A total of 36 aircraft were delivered in March.

Allegiant Travel
applied for the payroll support funds to the US Treasury Department and is pursuing government and other financing alternatives. The current cash burn is estimated to be US$2.0 to $2.5 million per day. Allegiant may realize as much as $320 million in cash outlay reductions to its initial 2020 plan.

Allegiant Travel says capacity for March 2020 was down 12.2% YoY, with revenue 40-45% lower. The company expects capacity in April – May 2020 to be down 80-90%.

ANA All Nippon Airways to drop suspend to Delhi, Mumbai and Chennai from 25 April to 31 May 2020 due to demand challenges.

Arkia board plans to vote on the liquidation of the company soon, if the state of Isreal does not grant state aid.

Boeing urged by US House Democrats representing Washington state to accept government aid to help weather the pandemic.

JetBlue announced it will temporarily consolidate operations in five major metropolitan areas in the US between 15 April and 10 June 2020.

Korean Air says 70% or more of its employees working in South Korea will take a six-month leave of absence as part of the carrier’s efforts to overcome operational difficulties resulting from the pandemic.

Lufthansa is working on a package to raise money from the debt and equity markets to help see it through the pandemic. The plan could include a combination of convertible bonds, the sale of new shares and a rights issue.

SAS says it is pleased that Denmark, Sweden and Norway are providing some financial support, but warns the earmarked amounts will not suffice to secure and safeguard critical infrastructure if the situation is prolonged.

United Airlines was temporarily, but significantly, reducing daily flying in and out of Los Angeles and San Francisco airports to better match demand.
André
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sn26567
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Jetstar Asia will extend the suspension of all scheduled services until 19 May 2020, as border restrictions across the region remain firmly in place.

Kenya Airways will be sustained by the government, says Transport CS James Macharia, giving hope to the struggling national carrier whose poor performance has been worsened by the global pandemic.

Lauda urged the Austrian government not to grant Austrian Airlines state aid to help weather the coronavirus outbreak, saying Austrian taxpayers should not subsidize a German company.

Lufthansa will seek state aid in Germany, Switzerland, Belgium and Austria as the crises that forced it to ground most of its planes will persist longer than feared.

Peach of Japan has suspended all international operations, while cutting domestic capacity by 50%.

US DOT announced a new set of standards for airlines in America to follow to be eligible for the financial assistance provided in the recently passed CARES Act. Carriers receiving financial assistance must maintain minimum air services on a nationwide basis, with some exceptions.

Virgin Australia
to ground all domestic flights, except a single daily Sydney – Melbourne service through 15 June 2020, as it continues to seek government aid to weather the crisis.

Thailand says the ban on all commercial flights into the country has been extended to 18 April 2020, as the government ramps up efforts to prevent clusters of infections among travellers from abroad.
André
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

ETA for Springbok 2258 (SAA SA-2258) CPT-BRU Cape Town-Brussels: 08h31
https://www.flightradar24.com/data/airc ... d#24573ed3

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Re: Impact of the coronavirus crisis on aviation

Post by TLspotting »

French governement organises a flight from Australia and New Zealand to Paris CDG with Virgin Australia.
Air France restarted cargo route to Shanghai, with a daily flight, including a stop at Seoul ICN for crew rest.
Trans States Airlines & Compass Airlines both stopped operations.

Hanoi - Prague route launch by Bamboo Airways postponed until 17 May 2020.
Vietnam Airlines operated 2 repatriations flights, and donated 550k masks to 5 European countries.

airbaltic : 2nd flight from Urumqi, with an A223. 5.4 tons of cargo, with a million of masks and respirators.

Qantas will operate a weekly flight from London to Melbourne via Perth each Wednesday, for 3-4 weeks.
Via AeroGazette : Air France says goodbye to his A340 from May, the A380 should not fly in 2020, to be retired in Summer 2021 or 2022.
LOT cancelled flights until 26 April, following Polish gov instruction.

Uncertainty with LOT / Condor deal. Some say that PGL doesn't want Condor anymore. If Condor is completely given up :

- Bankruptcy
- Ask another loan to survive, or be nationalised
- To be taken over by Lufthansa
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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sn26567
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Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Air Seychelles will be suspending its domestic services temporarily effective 10 April 2020.

AirAsia Japan will suspend operations on a temporary basis from 18-24 April 2020.

Airbus has shelved plans to create a new assembly line in Toulouse, France, for its A321 airliner as the company wrestles with the coronavirus crisis.

Boeing is considering a plan to reduce its workforce by about 10%, mainly from its commercial arm. Boeing is considering alternate cost-cutting scenarios as well.

Brussels Airlines will receive state aid, says its president Count Etienne Davignon. Finance Minister Alexander De Croo denies and says no decision has been taken yet.

Cathay Pacific Group is in line to receive US$30.4 million from a one-off government subsidy handing airlines $129,000 per plane. Hong Kong Airlines can expect $4.1 million under the unique payout.

Chorus Aviation is announcing the intention of its subsidiary, Jazz Aviation, to adopt the Canadian Emergency Wage Subsidy.

GOL has the flexibility to reduce its fleet from 130 B737s to 100 by letting leases expire. The carrier has also negotiated to defer lease payments with aircraft lessors with a grace period of six months.

UK bank HSBC expects European airline consolidation amid the crisis, as weaker players get acquired.

US President Donald Trump says talks are underway with US airlines, already promised a US$50-billion chunk of the federal stimulus package, to deliver more aid to them
André
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Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

rwandan-flyer wrote:
12 Apr 2020, 12:32
Sweden, Belgium Win EU Approval to Support Airlines, Airports
https://www.bloomberg.com/news/articles ... s-airports
Indeed. But limited to CRL and LGG only.
Press release European Commission, 11th April 2020:
The European Commission approved measures from Belgium and Sweden to help the airline industry as it struggles to weather the economic fallout from the coronavirus.

The European Commission has approved a Belgian scheme deferring the payment by Walloon airports of concession feesto mitigate the economic impact of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This is the first State aid scheme notified to us by a Member State aiming to mitigate damages to airport operators, who have been hard hit by the coronavirus outbreak. This Belgian scheme will temporarily reduce the pressure on the cash flows of the Charleroi and Liege airports that is caused by the epidemic. Together with Member States, we continue working to ensure that possible national support measures to tackle the outbreak of the virus can be put in place as quickly and effectively as possible, in line with EU rules.”

Belgium notified the Commission of its intention to set up a deferral payment measure of the concession fees owed by the Walloon airports to the Walloon authorities to support those airport operators during and after the coronavirus outbreak.

The scheme will be accessible to the operators of the Charleroi and Liege airports, and will offer them the possibility to defer the payment of the concession fees that would in principle be due for the year 2020.

The scheme aims at ensuring that the two Walloon airports have sufficient liquidity to counter the damage caused by the coronavirus outbreak and to preserve the continuity of economic activity during and after the current crisis.

The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Framework. In particular, the payment deferral may only be granted until the end of this year and its duration will not exceed six years. Furthermore, the payment deferral involves minimum remuneration in line with the Temporary Framework.

The Commission therefore concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

SR20
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Re: Impact of the coronavirus crisis on aviation

Post by SR20 »

Passenger wrote:
12 Apr 2020, 13:15
rwandan-flyer wrote:
12 Apr 2020, 12:32
Sweden, Belgium Win EU Approval to Support Airlines, Airports
https://www.bloomberg.com/news/articles ... s-airports
Indeed. But limited to CRL and LGG only.
Press release European Commission, 11th April 2020:
The European Commission approved measures from Belgium and Sweden to help the airline industry as it struggles to weather the economic fallout from the coronavirus.

The European Commission has approved a Belgian scheme deferring the payment by Walloon airports of concession feesto mitigate the economic impact of the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April 2020.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This is the first State aid scheme notified to us by a Member State aiming to mitigate damages to airport operators, who have been hard hit by the coronavirus outbreak. This Belgian scheme will temporarily reduce the pressure on the cash flows of the Charleroi and Liege airports that is caused by the epidemic. Together with Member States, we continue working to ensure that possible national support measures to tackle the outbreak of the virus can be put in place as quickly and effectively as possible, in line with EU rules.”

Belgium notified the Commission of its intention to set up a deferral payment measure of the concession fees owed by the Walloon airports to the Walloon authorities to support those airport operators during and after the coronavirus outbreak.

The scheme will be accessible to the operators of the Charleroi and Liege airports, and will offer them the possibility to defer the payment of the concession fees that would in principle be due for the year 2020.

The scheme aims at ensuring that the two Walloon airports have sufficient liquidity to counter the damage caused by the coronavirus outbreak and to preserve the continuity of economic activity during and after the current crisis.

The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Framework. In particular, the payment deferral may only be granted until the end of this year and its duration will not exceed six years. Furthermore, the payment deferral involves minimum remuneration in line with the Temporary Framework.

The Commission therefore concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.
Quite strange that LGG is concerned ! Activity has increased overthere since the crisis 🤔

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