Impact of the coronavirus crisis on aviation

Join this forum to discuss the latest news that happened in the world of commercial aviation.

Moderator: Latest news team

Post Reply
User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

AirAsia Group has planned for a reduction in its fleet count to match the expected recovery post-pandemic. A total of 23 aircraft will exit by the end of 2021, leaving 221 aircraft.

TUI Group is close to obtaining approval to receive more than €1 billion in state aid, as part of the Germany government stabilisation measures.

US may pass a bipartisan COVID-19 relief bill, which would provide US$17 billion in support for the aviation sector.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Norwegian proposed to convert debt to equity, offload planes and sell new shares in an attempt to survive the pandemic. The carrier aims to raise up to US$455.4 million from the sale of new shares or hybrid instruments. It will also seek to only pay lessors for the use of the aircraft when they are actually in use, by the hour, until 2022.

Qantas said the reopening of Australian state borders would boost its financial position and allow it to return to 68% of pre-pandemic domestic capacity in December 2020, rising to nearly 80% in 1Q 2021.

SAS has initiated the process to phase out 21 of its older and less fuel-efficient aircraft at an earlier stage than originally planned, including 15 B737NG, five A340 and one A330. Together with the agreement with Airbus on deferred deliveries of new aircraft, it will also better align our fleet with current and expected demand.

TUI Group has reached an agreement with the German Economic Support Fund, KfW, the banks and the largest single shareholder on an additional financial package of €1.8 billion.

Tunisair risks bankruptcy in 2021 due to the impact from the pandemic, says Faycal Derbel from the country’s Finance, Planning and Development Committee.

US Treasury Secretary Steven Mnuchin said he backs another US$20 billion in additional government payroll support for US airlines.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Southwest Airlines warns of 6,800 layoffs in early 2021, pending talks with the unions on pay cuts and other cost savings.
André
ex Sabena #26567

Passenger
Posts: 6942
Joined: 06 Dec 2010, 20:54

Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Dutch consumers report that Ryanair refund their Covid-19-cancelled-flights by sending a bank check. When the passengers go to their bank to collect it, the bank charges € 35 costs.
https://radar.avrotros.nl/forum/overig- ... 95480.html

nordikcam
Posts: 1092
Joined: 24 Aug 2008, 10:22
Location: Uccle

Re: Impact of the coronavirus crisis on aviation

Post by nordikcam »

Passenger wrote: 04 Dec 2020, 20:28 Dutch consumers report that Ryanair refund their Covid-19-cancelled-flights by sending a bank check. When the passengers go to their bank to collect it, the bank charges € 35 costs.
https://radar.avrotros.nl/forum/overig- ... 95480.html
I see the glass half full ... Ryanair reimburses. It is to his credit! The honor of other so-called national carriers on the other hand ... I will still have to fly Ryanair on Europe and AF / KL on the intercontinental since I can still fly, eat, drink and pay my bills...

rwandan-flyer
Posts: 506
Joined: 19 Dec 2010, 12:30

Re: Impact of the coronavirus crisis on aviation

Post by rwandan-flyer »

rwandan-flyer wrote: 08 Oct 2020, 08:35
brabel wrote: 06 Oct 2020, 09:56 Flew SN to Rome this weekend.
Both flights LF over 90%.
On return flight to BRU yesterday, quite a lot of African destinations passengers

Really wonder how much money they are losing with this pandemic.
Air France said few days ago, that the 10bn euro bailout will keep Air France-KLM afloat less than year, if the passenger traffic remained at its current level. They needs to do "much more" to reduce costs in the face of the economic crisis. So probably more lays off, more route cuts,...

https://www.rfi.fr/en/france/20200921-% ... mic-crisis

AF is burning 10millions EUR each day, less than 25 Millions during the lockdown, but it's still huge. (French) https://www.bfmtv.com/economie/les-reve ... 00182.html

Boeing published few days ago, an updated outlook market, for 2020-2039 period, by adding covid19 crisis: https://www.boeing.com/commercial/marke ... #/overview

And IATA has said, that some airlines could close: Airlines warn of more bankruptcies as wage support ends https://www.reuters.com/article/health- ... SKBN26R36D

I don't have any infos about SN, but if the current trend doesn't improve, probably the airline will need to take new measures.
Not a big surprise in France

Air France: the State will inject 4 to 5 billion euros more and double its share in the capital

INFO RTL - The State, which already owns 14% of Air France's capital, will double its share in the company by injecting an additional 4 to 5 billion euros next spring.

https://translate.google.com/translate? ... 7800935650

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Air Algerie did resume domestic flights on 06 December 2020, after more than eight months of shutdown due to the pandemic. International flights resumed a few days earlier.

Boeing is studying an equity sale and other ways to ease a US$61 billion debt burden.

In other news, Boeing to trim output of its B787 to five planes per month by mid-2021, one less than previously planned. Boeing is already prepared to speed up deliveries of the grounded 450 B737 MAX planes.

Ryanair filed an appeal in the EU Court of Justice in regards to state aid granted to rival airlines.
André
ex Sabena #26567

User avatar
lumumba
Posts: 1813
Joined: 04 Sep 2003, 00:00
Location: brussels Europe

Re: Impact of the coronavirus crisis on aviation

Post by lumumba »

I hope that after this crisis there will be more taxes on air transportation ( like in the Netherlands or even more to be at the same level has the other transport possibilities, but all over the EU) and poeple will start flying smarter.
There will be more trains etc....so we can close Antwerp airport and make a nice recreation place for the city for example.

I think we have to understand that flying is very pollutant and we have to use it differently.
Today we can no longer agree to subsidize air transport,air transport should be taxed like other transports and even more because it pollutes more.
Hasta la victoria siempre.

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

lumumba wrote: 08 Dec 2020, 08:18 I hope that after this crisis there will be more taxes on air transportation ( like in the Netherlands or even more to be at the same level has the other transport possibilities, but all over the EU) and people will start flying smarter.
There will be more trains etc....so we can close Antwerp airport and make a nice recreation place for the city for example.

I think we have to understand that flying is very pollutant and we have to use it differently.
Today we can no longer agree to subsidize air transport, air transport should be taxed like other transports and even more because it pollutes more.
Before the corona crisis, air transport accounted for approximately 3% of all greenhouse gases in the world, not exactly the most polluting industry.

I agree that, per kilometre, an air passenger pollutes more than a bicycle or even a car. But the aviation industry has committed to be carbon-neutral by 2050.

I also agree that air transport gets little taxation, and indeed, to have a level playing field, kerosene and air tickets might be taxed, but then it should occur on a worldwide basis, or at least in the whole EU with a uniform rate. But closing Antwerp Airport seems to me like a step too far: it is easy to access, cheap and fast airport.

There will be a different world after coronavirus, and aviation will not escape that trend. But let's remain reasonable and think at all the jobs this industry entails.
André
ex Sabena #26567

Acid-drop
Posts: 2802
Joined: 29 Jun 2005, 00:00
Location: Liège, BE
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by Acid-drop »

The datacenters hosting our useless msg pollute as much as aviation. Totally under the radar.
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.

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Plus Ultra is negotiating a rescue from the Spanish Government to inject public funds in order to overcome the months of restrictions.

SAS should have ample liquidity to withstand depressed air traffic demand and offset negative operating cash flow until trading conditions improve, says S&P Global.
André
ex Sabena #26567

Passenger
Posts: 6942
Joined: 06 Dec 2010, 20:54

Re: Impact of the coronavirus crisis on aviation

Post by Passenger »

Last week, KLM announced a second daily flight from Amsterdam (AMS) to Curaçao (CUR), also with a 777. That country is regarded in the Netherlands as Dutch Overseas Territory, and as such leisure travel for Dutch citizens is allowed (with code yellow). Touroperators registered a lot of bookings for the Xmas holiday season, as it's about the only holiday destination without severe restrictions.

Yesterday however, the Netherlands amended Code Yellow for Curaçao to Code Orange, thus no holiday travel allowed (only essential travel allowed).

The Curaçao Tourism Board hopes that it's just a matter of days before orange switches to yellow again.

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Air Serbia will restructure its business again in order to cut costs and as a prerequisite to receiving state aid to cover recent losses. The restructuring program will be adopted by end of 2020.

AirAsia Indonesia, together with its parent, it is continuing negotiations with the lessor for a lease holiday as an effort to cut costs. The carrier has lease debt of US$4.1 billion, most of which is debt owed to third parties.

American Airlines is reportedly considering converting all of its A321Ts into its standard, high-density configuration in an effort to reduce unit costs amid weak business travel.

KLM wins lawsuit filed by Greenpeace, who sought to block the €3.5 billion of state aid granted to the airline.

Montenegro Airlines expects to contact the new government soon regarding state aid to the carrier in the amount of €160 million and to find a sustainable business model.

Ryanair Group CEO Michael O’Leary believes the pandemic impact will result in the merger of Wizz Air and easyJet as consolidation in the EU market heats up.

Ukraine International Airlines announced another staff reduction, which will affect at least 140 pilots, and asks the authorities to provide assistance to help pay salaries.

Portugal’s government will vote on the restructuring plan of TAP Air Portugal, which requires reduction of 88 planes, 2,000 job redundancies and salary cuts of 25%. Liquidation of the company is the likely alternative if it doesn’t pass.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Air Algerie is suspending its plans to renew its fleet with six aircraft until further notice as the impact from the crisis affected the carrier’s finances.

Delta Air Lines asked employees to sign up for more unpaid leave with a slump in travel to continue into 2021.

Royal Air Maroc to issue a tender soon to sell its six B737-600s, as the carrier accelerated the retirement due to the pandemic. The carrier’s restructuring plan provides for a 30% reduction in the RAM fleet or around 20 out of 59 aircraft.

SATA to return €60 million to the Azorean government as the EC ruled that aid granted to the carrier was illegal. SATA will not be able to proceed with its restructuring without the aid.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Eurowings plans to use 30 of its 100 aircraft from the second half of December 2020, increasing to around 50 aircraft by the next Easter, and 80 to 90 aircraft later in 2021.

Hong Kong Airlines will cut 250 flight attendants due to the impact from the pandemic.

Southwest Airlines plans to continue adding new markets to its network after announcing about 10 new destinations during the pandemic, a strategy that threatens to put rivals on defence.

TAP Air Portugal accumulated loss of revenue is expected by the government to reach €7 billion by 2025. TAP will need new financing in the next four years, up to a value of around €1.75 billion, which may result from injections of public funds or from state guarantees for new loans. This brings the total to around €3 billion. TAP also expects to return to positive results in 2025.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Aerolineas Argentinas and Austral received in 2020 US$511 million from the Argentina government. The carrier also had to restructure an amount of $300 million in current expenses.

Brussels Airlines has received, as planned, the first tranche of state aid promised by the authorities — €130 million, or almost half of the total loan.

Emirates president Tim Clark thinks business travel could bounce back in 2022 and that the sector will grow, from pre-pandemic levels.

Lufthansa bookings have tripled for summer 2021 boosted by the imminent approval of a vaccine, with business on average expected to reach half of 2019 levels in 2021.

Turkish Airlines has reportedly grounded 55 more aircraft, on top of the 35 already grounded, according to a local politician.

Wamos Air has focused on the transport of cargo due to low demand and uncertainty in passenger traffic. The carrier is now exploring routes between China and Europe, as well as between the US and Canada, with its A330 and B747 passenger freighters.

Estonia to lift flight restrictions in the new year, however, not all routes will be restored immediately.

Hong Kong has put a temporary ban on four international airlines (including British Airways and KLM) flying specific routes into the city under a new law aimed at stopping the spread of Covid-19.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Airbus CEO Guillaume Faury said he’s disappointed Canada is not doing enough to prop up its aerospace industry as the sector continues to struggle with the fallout from the pandemic.

SriLankan Airlines expects revenue should recover to 75-80% of pre-crisis levels by 2021-end as the Indian Ocean nation plans to reopen its international airports in January 2021. The carrier aims to return to profitability by 2022.

Russia’s Federal Air Transport Agency will develop proposals for additional measures to support airlines, effective early 2021.

United States government bipartisan Covid-19 relief proposal would provide airlines with an additional US$25 billion in payroll support.
André
ex Sabena #26567

nordikcam
Posts: 1092
Joined: 24 Aug 2008, 10:22
Location: Uccle

Re: Impact of the coronavirus crisis on aviation

Post by nordikcam »

sn26567 wrote: 14 Dec 2020, 17:20
Brussels Airlines has received, as planned, the first tranche of state aid promised by the authorities — €130 million, or almost half of the total loan.
Brief summary of aviation experience this year 2020 Covid 19.

March : SN flight RAK BRU : canceled and never refunded / NO NEWS.
March : Transavia flight ORY RAK flight : canceled and refund June 2020.
May : AF flight LAX via CDG : canceled and refund July 2020.
June : AF flight ZYR HAV via CDG : canceled and refund July 2020.
September : Easy Jet flight BRU BER ( booked in february ) : canceled and refund September 2020.

If SN's Technical Services are like its Administration, I don't give too much skin to future travelers!

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

IATA says Europe’s airlines and airports are highly concerned by the European Commission's proposal to amend the airport slot regulation. The proposal does not sufficiently address the extent of the continuing crisis in air transport.

Turkish Airlines is grounding another 21 B737-800s as the impact of the pandemic takes its toll on demand.
André
ex Sabena #26567

User avatar
sn26567
Posts: 37747
Joined: 13 Feb 2003, 00:00
Location: Rosières/Rozieren, Belgium
Contact:

Re: Impact of the coronavirus crisis on aviation

Post by sn26567 »

Daily review:

Cebu Pacific Air is considering putting more aircraft in long-term storage, adding to the 14 aircraft at Asia Pacific Aircraft Storage in Alice Springs, Australia. The carrier is also in talks with Airbus and engine suppliers regarding pending orders while targeting sale/leaseback transactions.

Corsair obtains court approval in regards to its agreement with the State and a consortium of overseas investors, which will lead to a collective financing solution.

Emirates has written off more than US$600 million worth of fuel which it had bought but could not use due to the travel lockdowns in 2020.

Fiji Link has resumed some domestic services between Nadi and Suva on 17-18 December 2020. All Fiji Airways jet aircraft will return to the country over the next three days, and the airline will resume scheduled freighter flights from 21 December 2020.

Interjet has cancelled all its flights until 31 December 2020 due to the lack of cash for fuel. There was no official date mentioned on when activities will resume.

Korean Air and its labour union have agreed to freeze wages and put 70% of employees on rotational leave in 1H 2021 to ride out the fallout of pandemic.

Norwegian has filed a pre-bankruptcy for three subsidiaries in Spain: Norwegian Air Resources Spain, Red Handling Spain and Red Maintenance Spain. The procedure will provide these companies up to six months to renegotiate their debts and resize their size.

Norwegian shareholders endorsed the airline’s financial rescue plan in a series of votes, one of several hurdles the heavily indebted company must clear to survive the pandemic.
André
ex Sabena #26567

Post Reply