Monthly Archives: July 2020

airBaltic to receive EUR 250 million in new equity

airBaltic is acquiring new capitalization:

The shareholders of the Latvian airline airBaltic haveย approved the final decision of the Republic of Latvia to invest EUR 250 million into the equity of airBaltic in order to overcome the economic crisis caused by COVID-19.

Following the approval from the European Commission on July 3, the Latvian government will invest EUR 250 million into the equity of airBaltic.

On April 23, the Supervisory Board of the Latvian airline airBaltic approved the new business plan of the company presented by the management of airBaltic. The new plan foresees a reduced fleet, initially resuming operations with 22 Airbus A220-300 aircraft. The new plan takes into account the reduced capacity for the years 2020 and 2021, while at the same time foresees return to growth with up to 50 Airbus A220-300 aircraft by the end of 2023. The additional 30 options of Airbus A220-300 remain for future growth.

airBaltic aircraft photo gallery:

airBaltic aircraft slide show:

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Video:

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Delta may avoid furloughs after demand for buyouts, other U.S. airlines sound alarm

From Reuters:

Delta may avoid furloughs after demand for buyouts, other U.S. airlines sound alarm

Air China completes COMAC ARJ21 inaugural flight

COMAC made this announcement:

ARJ21-700 aircraft (B-605U) newly introduced by Air China Limited flew flight CA1109 from Beijing Capital International Airport to Xilinhot Airport at 7:47 on July 10, 2020, completing its inaugural flight successfully and entered into route operation officially.

Before the departure of the inaugural flight, a short and enthusiastic inaugural flight ceremony was held at the Capital Airport. Mr. Cai Jianjiang, Secretary of the Party Leadership Group and Chairman of China National Aviation Holding Corporation Limited (CNAH), Mr. He Dongfeng, Secretary of the Party Committee and Chairman of Commercial Aircraft Corporation of China, Ltd. (COMAC), and Mr. Chai Weixi, Vice President of Air China, attended the ceremony, and congratulated Air China on the successful inaugural flight of the first ARJ21 aircraft. For most of the passengers taking this inaugural flight, it is the first time to take a China-made aircraft. From the moment they got the news, they became more excited and curious than ever before; and from the moment of they entered the cabin, they began to feel every detail of ARJ21 aircraft. The China-made aircraft gave a new meaning to this flight.

As the main body of CNAH, Air China has its ARJ21 aircraft complete the inaugural flight in the route of Beijing-Xilinhot, which has greater significance. Since the 18th CPC National Congress, CNAH has resolutely implemented the requirements of the CPC Central Committee, resolutely taken fixed-point poverty alleviation as an important political responsibility, officially identified a fixed-point assistance relationship with Sonid Right Banner of Xilingol League in 2013, established an “8+2” assistance system, and made positive efforts. Sonid Right Banner lifted all 34 poverty-stricken villages out of poverty, and officially dropped from the list of poverty-stricken counties and banners in April 2019. CNAH has forged a profound friendship with Xilingol League in the course of poverty alleviation, and the route of Beijing-Xilinhot has witnessed CNAH and Xilingol League working together to depict the beautiful picture of poverty alleviation and prosperity.

In order to realize the early operation of ARJ21 aircraft by Air China, and make passengers experience the safe, comfortable and smooth service of China-made aircraft during journey, since the aircraft was delivered on June 28th, Air China has quickly coordinated the preparatory work before inaugural flight with its rigorous, professional and efficient operation support capability, and immediately put backbones in flight and ground posts as well as full-time and part-time instructors into practical training. Work related to ground support testing, from cabin/cargo compartment layout and ground support process watching and practice to special support vehicle testing, parking position testing and onboard service facility & equipment check, and even to the assembly/disassembly and operation demonstration of cabin/cargo compartment equipment, onboard emergency equipment and catering equipment, was successfully completed within three days after arriving in Beijing, and the aircraft was in good condition. In the subsequent flight training and verification flights, the flight, maintenance, and route support capabilities of the flight crew, flight attendants and maintenance team were further tempered and tuned in, operational approval was successfully obtained from authorities, and Air China has been fully prepared for the inaugural flight of ARJ21 aircraft.

ARJ21 aircraft is the first turbofan regional jet independently developed by China in accordance with international standards and owning independent intellectual property right. ARJ21 aircraft has the characteristics of adaptability, comfort, economic efficiency, commonality and serialization. The comfort of ARJ21 aircraft can compare favorably with trunk liners, and the cabin space of ARJ21 aircraft is wider and higher than that of aircraft of the same kind. ARJ21 aircraft of Air China is in all economy-class cabin configuration with seats for 90 passengers. The seats are arranged in 18 rows with two seats on the left and three seats on the right of the aisle in each row, and are of the latest ultra-thin type made in China with a simple appearance and comfortable sitting. The spacing, seat back angle and width are comparable to the configuration level of the existing single-aisle passenger aircraft of Air China. At the same time, a USB power socket is provided for each passenger. The cabin interior uses the unified interior products for the whole Air China fleet, embodying “the unity of nature and mankind”, the whole cabin is decorated with elements of the 2022 Olympic Winter Games, and catering is consistent with the current route configuration standards in order to strive to provide passengers with a better travel experience.

As planned, Air China will receive three ARJ21-700 aircraft in 2020, which will fly the routes from Beijing Capital International Airport to Xilinhot, Baotou, Ulanhot and Hohhot of Inner Mongolia. The introduction of ARJ21 aircraft will help to supplement the regional aircraft transport capacity of Air China, promote the effective connection of Air China’s main and regional flights, further expand the carrying capacity of the Air China fleet, further improve the overall route network layout of Air China, and enhance market competitiveness, so as to meet the popularized air travel demand of passengers.

 

ARJ21 aircraft of Air China completed its inaugural flight on July 10th, 2020.

ARJ21 aircraft of Air China completed its inaugural flight on July 10th, 2020. Photographer: Wei Meng

ARJ21 aircraft of Air China completed its inaugural flight on July 10th, 2020. Courtesy Air China

ARJ21 aircraft of Air China completed its inaugural flight on July 10th, 2020. Photographer: Wei Meng

ARJ21 aircraft of Air China completed its inaugural flight on July 10th, 2020. Photographer: Zhou Zhongxu

American Airlines to warn 25,000 workers of potential furloughs

From CNN:

American Airlines to warn 25,000 workers of potential furloughs

American Airlines sending 25,000 furlough notices as U.S. demand sags

Air Canada proposes science-based approach to easing Quarantine Act restrictions

Air Canada has made this announcement:

Air Canada’s Chief Medical Officer has issued a letter urging the Canadian government to consider a science-based approach to easing the Quarantine Act restrictions, which have been essentially unchanged since March, to strike a better balance for travelers and for the Canadian economy without adversely impacting public health.

Air Canada is not proposing relaxing the U.S. border restrictions at this time – only to replace the quarantine requirements for those countries with a low COVID-19 risk from a public health perspective with more proportionate, evidence-based measures and experiences from other countries.

Air Canada notes that other G20 countries have implemented practical, evidence-based approaches to travel by minimizing the risk of COVID-19 exposure through a range of measures endorsed by medical professionals worldwide including:

  • Determination of safe corridors or travel between approved jurisdictions with fewer cases on the basis of low risk from a public health perspective (an approach adopted in the UK, France, Germany, Switzerland, Spain, Portugal among others)
  • Requirement for a pre-departure, medically certified negative COVID-19 test in order to enter the country (Caribbeanislands)
  • Waiver of quarantine requirements following a negative test on arrival (Iceland, Austria, Luxembourg)
  • Mandatory testing on arrival (South Korea, Hong Kong, Macao, United Arab Emirates)

A full copy of Air Canada’s letter signed by its Chief Medical Officer and providing a robust science-based approach for easing the 14-day quarantine is here.

Air Canada has been at the forefront of the airline industry in responding to COVID-19, including being among the first carriers globally to require customer face coverings onboard and the first airline in the Americas to take customers’ temperatures prior to boarding. In May it introduced a comprehensive program, Air Canada CleanCare+, to apply industry leading biosafety measures at each stage of the journey.

Air Canada has recently undertaken several medical collaborations to further advance biosafety across its business, including with Cleveland Clinic Canada for medical advisory services, Ottawa-based Spartan Bioscience to explore portable COVID-19 testing technology and, since 2019, with Toronto-based BlueDot for real-time infectious disease global monitoring.

US border closures with Canada and Mexico to be extended another month, officials say

COVID-19 cases North American map (John Hopkins University).

Air Canada aircraft photo gallery:

Air Canada aircraft slide show (new livery):

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Helvetic Airways to convert four of their remaining firm orders to the larger E195-E2

Helvetic Airways has signed a commitment with Embraer to convert four of their remaining firm orders to the larger E195-E2 aircraft. The original order, for 12 E190-E2s with purchase rights for a further 12, and conversion rights to E195-E2, was announced in September 2018.

Embraer has so far delivered five E190-E2s to Helvetic Airways, and all deliveries of the remaining seven aircraft, including the four E195-E2s, will be completed before the end of 2021, with the majority in the first half of 2021.

The remaining firm order for the seven aircraft to be delivered has a value of USD $480 million, based on current list prices. With all the purchase rights being exercised, the deal has a list price of USD 1.25 billion. In a move to diversify fleet capacity, Helvetic Airways will configure the E195-E2 with 134 seats in a single class layout, while their E190-E2s have 110 seats.

The new E195-E2 provides greater capacity, whilst being more sustainable and quiet; the E195-E2 burns 10% less fuel per flight, emits 30% less CO2 per passenger, and is 48% quieter than the E190 aircraft it replaces in Helveticโ€™s fleet.

Helvetic Airways aircraft photo gallery:

Helvetic Airways aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=4Hv4mS&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

 

Virgin Atlantic announces a successful recapitalization

Virgin Atlantic Airways has made this announcement:

Virgin Atlantic has reached a major milestone towards securing its future on July 14, by announcing plans for a private-only solvent recapitalization of the airline, following the severe impact of the COVID-19 pandemic on the global economy, the nation and the travel and aviation industry.

A Solvent Recapitalization of Virgin Atlantic

Virgin Atlantic has taken a big step forward in securing its future, by launching a court backed process as part of a solvent recapitalisation of the airline and holiday business, with a Restructuring Plan that once approved and implemented, will keep Virgin Atlantic flying.

The Restructuring Plan is based on a five year business plan, and with the support of shareholders Virgin Group and Delta, new private investors and existing creditors, it paves the way for the airline to rebuild its balance sheet and return to profitability from 2022.

The recapitalisation will deliver a refinancing package worth c.ยฃ1.2bn over the next 18 months in addition to the self-help measures already taken, including cost savings of c.ยฃ280m per year and c.ยฃ880m rephasing and financing of aircraft deliveries over the next five years. ย 

  • Shareholders are providing c.ยฃ600m in support over the life of The Plan including a ยฃ200m investment from Virgin Group, and the deferral of c.ยฃ400m of shareholder deferrals and waivers
  • Virgin Atlantic welcomes new partner Davidson Kempner Capital Management LP, a global institutional investment management firm which is providing ยฃ170m of secured financing
  • Creditors will support the airline with over ยฃ450m of deferrals
  • The airline continues to have the support of credit card acquirers (Merchant Service Providers) Lloydโ€™s Cardnet and First Data.

To secure approval from all relevant creditors before implementation, the Restructuring Plan will go through a court-sanctioned process under Part 26A of the Companies Act 2006 (the โ€œRestructuring Planโ€). With support already secured from the majority of stakeholders, itโ€™s expected that the Restructuring Plan and recapitalisation will come into effect late Summer 2020.

Decisive action underpins the Restructuring Plan

Global aviation was one of the first industries impacted by the Covid-19 pandemic and will be one of the last to fully recover. From the start, the airline took decisive action to ensure its survival. In March, the Leadership Team took voluntary pay cuts and since April, more than 80% of the workforce has benefitted from the Governmentโ€™s Coronavirus Job Retention Scheme, supporting efforts to preserve cash and minimise costs. In Q2, flying fell by 98% and in the second half of 2020, capacity is expected to reduce by at least 60% compared to 2019, with pre-crisis levels of flying unlikely to return until 2023. With the suspension of passenger flying in April, the airline delivered an unparalleled network of cargo-only flying, operating more than 1400 cargo flights in April, May and June.

In May, the difficult decision was taken to reshape and resize in order to emerge from the crisis sustainably profitable, and regrettably the airline had to reduce the number of people it employs by 3,550 across all functions.

Having closed its London Gatwick base, while retaining a slot portfolio at the airport to protect opportunities for future growth, leisure flying is now consolidated at London Heathrow and Manchester. By 2022 Virgin Atlantic will fly the same number of sectors as 2019 despite its smaller scale, demonstrating productivity and efficiency improvements. The airline will operate a streamlined fleet of 37 twin engine aircraft following the retirement of 7 x 747s and 4 x A332s by Q1 2022, with rescheduled delivery of outstanding A350s and A339s.

 

Returning to the skies

From July 20, 2020 Virgin Atlantic will restart passenger flying and has a vital role to play in supporting the UK economy as it recovers from the impact of the pandemic. Virgin Atlantic and Virgin Atlantic Holidays will continue to support global supply chains and flying customers safely to the places they love to travel. While demand will be slow to recover, Virgin Atlantic will ensure its customers always feel confident to fly by continuing to prioritise the health, safety and security of its people and customers throughout their journey. Sustainability remains central to the airline, and its simplified fleet will be 10% more efficient than it was pre-crisis.

Virgin Atlantic aircraft photo gallery:

Virgin Atlantic aircraft slide show:

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Air Belgium resumes flights to the Caribbean

Air Belgium today (July 15) is relaunching its regular scheduled flights from South Charleroi Airport to Martinique and Guadeloupe.

Flight KF5961 departed to Fort-de-France and Pointe-ร -Pitre at 10:45 am and will operate two days a week this summer.

Air Belgium (2nd) aircraft photo gallery:

Air Belgium (2nd) aircraft slide show:

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Air Dolomiti adds two routes from Verona

Air Dolomiti, the Italian airline of the Lufthansa Group, announces two new destinations departing from Verona from Julyย 30 and 31, 2020 in collaboration with Valerio Catullo Airport.

In addition to the resumption of flights at the Frankfurt hub, Berlin and Dรผsseldorf will also join forces shortly. An opportunity not only for Verona residents who want to move to destinations further north, but also for German citizens who want to visit Verona.

Starting from July 30:
EN 1501 Verona – Berlin 11:15 – 12:55 operated on Thursday, Friday and Sunday
EN 1502 Berlin – Verona 13:40 – 15:25 operated on Thursday, Friday and Sunday

From July 31:
EN 1507 Verona – Dรผsseldorf 16:25 – 18:00 operated on Friday and Sunday
EN 1508 Dรผsseldorf – Verona 18:45 – 20:15 operated on Friday and Sunday

We are very pleased to collaborate once again with Verona airport. In all these years a strong synergistic bond has been established, which has allowed us to offer passengers new services all the time. The start of these two routes is meant to be an encouraging signal after the difficult phase of the departure due to the pandemic, also for all those activities that have suffered due to the lack of incoming tourism. It is a pleasure for us to be able to differentiate the offer by guaranteeing point-to-point flights as well as connections with the main Lufthansa hubs,” said Joerg Eberhart, President & CEO of Air Dolomiti.

“We are particularly pleased to announce the direct flights to Berlin and Dรผsseldorf, which further strengthen the commercial offer of Air Dolomiti, strategic partner for Catullo, at Verona airport. The two new routes respond in a concrete way to the strong demand for both inbound and outbound tourism connections between Italy and Germany, for which our territory is a reference market” declared Camillo Bozzolo, Aviation Sales Director of SAVE Group.

Air Dolomiti aircraft photo gallery:

Air Dolomiti aircraft slide show:

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Ryanair to cut 1,000 Ireland-UK flights in August and September

Ryanair made this announcement:

Ryanair has announced that it would cut its Ireland-UK schedules for the months of August and September by up to 1,000 flights, with the loss of over 200,000 passengers, as Ireland maintains a defective quarantine restriction on EU visitors even as the UK and Northern Ireland last week opened up air bridges to most EU countries.

Ireland (which accounts for less than 8% of Ryanairโ€™s traffic), its tourism industry and connectivity for Irish workers commuting particularly to/from the UK is now suffering unrecoverable losses, as arriving EU passengers are forced to quarantine even while the border to Northern Ireland remains wide open with no such quarantines.

A Spokesperson for Ryanair said:

โ€œLast week when the UK and Northern Ireland removed travel restrictions on short haul flights to/from the European Union, Ireland became the only country in the EU with a blanket 14 day quarantine restriction on all arrivals from EU countries, most of which have lower Covid case rates than Ireland.

It makes no sense, when Governments all over Europe have opened up EU flights since 1st June and removed travel restrictions on intra-EU travel, that the Irish Govt continues to treat countries like Germany, Denmark and Greece as if they were suffering similar levels of Covid as the USA, Brazil and India. Irish citizens are being advised by their Govt that they should not travel to and from EU countries (almost all of whom have lower Covid case rates than Ireland), yet citizens of Northern Ireland can travel freely to and from the EU โ€“ via Dublin Airport โ€“ without any quarantine restrictions whatsoever.

Air travel between Ireland and the UK is being badly damaged by this ineffective 14 day quarantine. Ryanair will significantly reduce its flights between Ireland and the UK in Aug & Sept, to reflect this suppressed demand. This means 100,000 fewer visitors from the UK travelling to regional airports in Cork, Shannon, Knock and Kerry during the peak months of the tourism season. This unique policy by Ireland, insisting on blanket quarantines with our European neighbours (most of whom have lower Covid case rates than Ireland) is damaging the recovery of Irelandโ€™s economy and our tourism industry, causing long-term damage to jobs in Irelandโ€™s largest employment sector, with business travellers in particular being told that Ireland is closed for business.

We call on the Irish Govt to remove all travel restrictions between Ireland and the EU (almost all of whom have lower Covid case rates than Ireland) as a matter of urgency, so that Irelandโ€™s hotels, guest houses, restaurants and other tourism providers can recover their business and minimise job losses before we reach the downturn winter period. If Micheรกl Martin does not quarantine for 14 days after visiting Brussels this week, then why should any other Irish or EU citizen be treated differently.โ€

COVID CASE RATES AMONG MAIN EU COUNTRIES
CASES/1M POP DEATHS/1M POP
1 SWEDEN 7,506 548
2 SPAIN 6,481 608
3 BELGIUM 5,416 844
4 IRELAND 5,190 353
5 PORTUGAL 4,592 163
6 UK 4,273 660
7 ITALY 4,023 578
8 NETHERLANDS 2,982 358
9 FRANCE 2,641 460
10 GERMANY 2,392 109
11 DENMARK 2,250 105
12 AUSTRIA 2,103 79
13 ROMANIA 1,746 100
14 NORWAY 1,657 47
15 POLAND 1,016 42
16 GREECE ย 367 19
Source: Worldometer Covid19 Stats 13 July 2020