Alaska Airlines announces further schedule reductions and other changes to conserve cash

Alaska Airlines has made this announcement:

Alaska Airlines has announced plans to reduce its flight schedule for April and May by approximately 70% following historic and unprecedented falloff in demand related to the COVID-19 outbreak across the U.S. and beyond.

Flight schedules for June and beyond will be based on demand, but it is our expectation that reductions will be substantial for at least the next several months. As a result of the outbreak, government leaders across the country have appropriately encouraged social distancing and discouraged or restricted travel. As a result, Alaska โ€“ like other airlines โ€“ is seeing demand reductions of more than 80%.

Some of the actions being taken to reduce spending and improve liquidity are as follows:

  • We are announcing today the suspension of our cash dividend and we have previously announced the suspension of our share repurchase program.
  • We have drawn down $400 million on our line of credit and closed an additional secured loan for $425 million today.
  • We are announcing officer pay reductions through Sept. 30 as follows:
    • 100% pay reduction for both the CEO and President of Alaska Airlines;
    • 50% for the President of Horizon Air;
    • 30% for EVPs and SVPs; and
    • 20% for VPs and MDs.
  • Our Board of Directors have voted to take their own cash retainers to zero through Sept. 30.
  • We are actively soliciting employees who are interested in voluntary leaves of absence, under which Alaska would continue to pay both health and travel benefits.
  • We have suspended annual pay increases, plan to reduce hours for management employees, and will release contractors and temporary workers.
  • We are aggressively managing all spending, including all spending for aircraft, buildings, equipment, leases, services and other areas. We will of course make all necessary investments in expense items to maintain the safety and integrity of our operation.
  • We are working with all vendor partners to reduce spending in line with our reduced flight schedule.

 

Additionally, we have worked actively with the White House, The Treasury Department, and Congress on an aid package that could total $50 billion for passenger airlines if it is passed. “We appreciate that the federal government recognizes the essential nature of airline service to our economy and society, and the importance of aviation jobs,” said Tilden. “As we more fully understand the impact of these provisions, we will add to our plans to manage through this change.”

“These actions are unprecedented, but these are truly unprecedented times,” said Tilden. “Alaskahas been here for 88 years to serve our customers and communities and to provide good jobs for our people. It is imperative that we act swiftly and courageously to ensure that we’re here to continue our mission in the future.”

“We are ultimately optimistic about the future of our great airline,” said Tilden.ย “But it is clear that we are and will be under severe financial pressure for the foreseeable future and that is why these actions are essential.”

Alaska Airlines aircraft photo gallery (Alaska):

Miami Air International files for Chapter 11 reorganization

Miami Air International filed for chapter 11 bankruptcy and reorganization on March 24. The chapter 11 filing was filed in Florida Southern Bankruptcy Court.

 

Miami Air International is wholly owned by TSI Holdings.

The charter airline, which commenced operations on October 15, 1991, currently was operating six Boeing 737-800s.

However it was hit hard by the coronavirus pandemic which stopped all sporting events and team charters.

Miami Air aircraft photo gallery:

Air Canada begins operating cargo-only flights

Air Canada made this announcement:

Air Canada said today that through its Air Canada Cargo division it has begun using its aircraft to operate cargo-only flights to Europe, with other flights planned for Latin America and South America. The aircraft on these flights carry no passengers but move time-sensitive shipments, including medical supplies to combat COVID-19, and goods to support the global economy.

“Air Canada Cargo has long served as a vital link in global supply chains and with the disruption arising from the COVID-19 pandemic our capabilities are more important than ever. Although we have announced very significant temporary capacity reductions and our passenger flights are largely dedicated to bringing Canadians home, Air Canada’s aircraft and our expertise in handling cargo are valuable assets that we can use to move medical supplies and other essential goods to keep the world economy going. We have already begun flights to Europe, and we are planning to expand this program to Latin America and South America, as well as within Canada, including remote communities using Air Canada Express aircraft. In addition to providing a much-needed service, these cargo-only flights are also supporting jobs at Air Canada,” said Tim Strauss, Vice President of Cargo, at Air Canada.

The first cargo-only flights departed from Toronto this past week for Frankfurt, London and Amsterdam, which are all both important business centers and connection points for onward cargo shipments. The flights were operated using Boeing 787 aircraft capable of carrying 35 tonnes of cargo, the equivalent of about 80 grand pianos. Shippers and freight forwarders using the service are charged a flat rate for both directions and Air Canada Cargo is also introducing a fractional program, so shippers who do not require a whole aircraft can book space. The arrangements with the shippers and freight forwarders contain clear provisions to ensure that these essential goods are being sold at fair market rates and to authorized suppliers.

Air Canada Cargo is now exploring opportunities to offer this service domestically. It is working with various governments to assess the demand and assist in moving relief goods from multiple markets within Canada. This includes using smaller Air Canada Express regional aircraft to operate to less-well served, smaller or remote regions in Canada with medical and other emergency supplies in support of local governments.

Air Canada does not operate cargo aircraft, instead its Air Canada Cargo division manages and markets excess belly space on the airline’s regular passenger flights for shippers operating worldwide. To facilitate the cargo-only flights, Air Canada Cargo has created five, segment-specific sales teams to focus on the unique needs of the customers at different levels in the supply chain.

Air Canada aircraft photo gallery:

Austrian Airlines extends temporary cessation of flight operations until April 19, 2020

Austrian Airlines has made this announcement:

All scheduled flights will be removed from the booking system

Short-time work: all of the approx. 7,000 employees have been put on short time working at least up until April 19th

The worldwide entry bans imposed as a consequence of the coronavirus have not been relaxed and there is still little demand for air travel. For this reason, Austrian Airlines will cease all regular flight operations until April 19, 2020. Two Boeing 777 long-haul aircraft flew to Punta Cana, Havana and Mexico City on behalf of the Austrian Federal Ministry of European and International Affairs to bring home Austrians stranded abroad.

Austrian Airlines originally announced a temporary cessation of its scheduled air traffic until March 28, 2020. Passengers booked on flights during this period will be rebooked on other airlines if possible. Passengers can also rebook their airline tickets or arrange for them to be held in abeyance for the time being.

Short time working for all Austrian Airlines employees extended at least until April 19, 2020
Austrian Airlines has reached an agreement with the Works Council, trade union and the Federal Economic Chamber on a short time working model. The countryโ€™s red-white-red flag carrier had previously submitted an application to the Austrian Public Employment Service (AMS) for short-time work on March 6, 2020.

The cornerstones of the agreement are as follows:

The โ€œcorona short time workingโ€ model stipulates a reduction of working time down to a minimum of 10 percent while ensuring payment of up to 90 percent of employee salaries. The difference will be covered by AMS funding or by Austrian Airlines. The airline originally concluded this agreement for a period of one month beginning on March 20, 2020, including a months-long extension option depending on the further development of the situation. The maximum possible duration of short-time working is six months.

In principle, all executives have also been put on short time working. However, the Management Board has the possibility to exempt employees from short time working for reason of operational requirements. In this case it is agreed that a salary waiver will take effect.

Austrian Airlines aircraft photo gallery:

Thai to gradually phase-down its passenger network

Thai Airways International has made this announcement:

Thai Airways International Public Company Limited (THAI) announced that due to the ongoing global outbreak of COVID-19, several countries in Europe and Asia has intensely increased preventive measures including screening by local Ministries of Public Health and Civil Aviation Organizations as well as national lockdown.ย  Therefore, THAI has prepared its plans and temporarily suspended its operations on the following flights.

1. Starting on March 25, 2020: Hong Kong, Taipei, Tokyo (Narita and Haneda), Osaka, Nagoya, Seoul, Phnom Penh, Vientiane, Ho Chi Minh, Hanoi, Yangon, Singapore, Jakarta, Denpasar, Kunming, Xiamen, Chengdu, Beijing, Shanghai, Guangzhou, Karachi, Kathmandu, Lahore, Dhaka, Islamabad, and Colombo. For domestic flights to Chiang Mai, Phuket, and Krabi will be transferred and operated by THAI Smile.

2.ย  Starting on March 27, 2020: Brisbane, Sydney, Melbourne, and Perth

3. Starting on April 1, 2020: THAI will cancel most of its flights to Europe which are London, Frankfurt, Paris, Brussels, Copenhagen, Oslo, Moscow and Stockholm

THAI previously suspended flights to Sendai, Sapporo, Fukuoka, Busan, Manila, Kuala Lumpur, Rome, Milan, Vienna, New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Muscat, Dubai, and Auckland.

To facilitate customers, THAI allows passengers holding THAI and THAI Smile code-share flights air tickets, issued before March 25, 2020 with the following date of travel, to convert unused tickets to one-year valid travel voucher without fee and surcharges:
–ย ย ย Asian Routes during March 25 โ€“ May 31, 2020
–ย ย ย European, Australian and New Zealand Routes during April 1 โ€“ May 31, 2020

Royal Orchid Plus (ROP) members holding award tickets issued to travel during March 25 โ€“ ย May 31, 2020 may fully re-credit mileages or change the travel date without any fee or charge with expired miles extended until September 30, 2020.

Passengers may check flight schedules and make changes to itineraries themselves on thaiairways.com website. For ticket adjustments or more information, ROP members can contact THAI Sales Offices or visit thaiairways.com/rop.

THAI still operate cargo service in some routes and will operate charter flight if there are stranded passengers or requested by government agencies concerned. The Company will inform passengers accordingly if there is some flight adjustment.

Thai aircraft photo gallery:

AeroMexico to use passenger aircraft for cargo

AeroMexico has made this announcement:

Due to the health contingency and, supporting the continuity of economies and businesses, Aeromexico will use part of its grounded fleet for cargo-only through its airfreight division, Aeromexico Cargo.

At this time, air freight is essential for shipping supplies, medicines, medical equipment, food, and other products. Today’s flight will take off from Mexico City to Frankfurt shipping 15 tons.

The service is operated as a charter, meaning on demand and for shipping perishable products, live animals, high-value goods, technology and medicines, among others.

Domestically, Aeromexico can transport cargo to 41 airports, and abroad, to the United States, Canada, Central and South America, Asia and, Europe.

The Boeing 787-9 on with which this first service will operate is one of the most modern aircraft in the world and friendly to the environment. This equipment emits compared to other aircraft, 57% less noise pollution during take-off and landing and 20% less carbon dioxide (CO2) emissions. The airline also has its fleet of Boeing 737 aircraft to perform similar services.

AeroMexico aircraft photo gallery:

Bamboo Airways to cooperate with Czech Embassy in Vietnam to operate humanitarian charter flight from Hanoi to Prague for EU citizens

Bamboo Airways has made this announcement:

In cooperation with the Czech Embassy in Vietnam, on March 25, Bamboo Airways operates a humanitarian charter flight from Hanoi to Prague – the capital city of the Czech Republic to repatriate European citizens.

Bamboo Airway Flight attendants' Crew

Bamboo Airway Flight attendants’ Crew
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Humanitarian purposes

Simultaneously, the flight also transports medical aid goods provided by the Vietnamese Government to the Czech Republic to support the Czech Republic in addressing the shortage of medical equipment when Covid-19 situation is getting more complicated.

The flight departs at 8:20 am on 25 March from Noi Bai International Airport – Hanoi to Prague, Czech Republic, carrying 280 Czech and European passengers.

Bamboo Airways uses its wide-body Boeing 787-9 Dreamliner to operate this special flight. As one of the most modern wide-body aircraft in the 787 family, the Boeing 787-9 Dreamliner possesses many state-of-the-art amenities to minimize passenger’s fatigue during the long-haul flight.

Passengers who want to book this flight can contact the Czech Embassy in Vietnamdirectly for more details.

The flight is the first non-stop flight of a Vietnamese domestic airline to the Czech Republic thanks to the cooperation between the Czech Embassy in Vietnam and Bamboo Airways. The flight is even more meaningful when serving social and humanitarian purposes when the whole world is joining hands in the fight against Covid-19.

Strict procedure to ensure safety

To minimize the risk of disease transmission, Bamboo Airways’ representatives said that the Airline strictly and comprehensively complies with the regulations, recommendations of the domestic and foreign authorities.

The flight crew, service and technical staff for this flight are experienced and highly specialized personnels who were carefully selected and trained to ensure maximum health safety for passengers and crew.

The Airline also coordinates with authorities to check the health of all passengers before boarding.

After returning from Prague, the aircraft will be disinfected in the entire cockpit, passenger and cargo compartments according to the highest standards to prevent the risk of virus infection.

Strengthening Vietnam – Czech relations

The operation of this flight shows the efforts in accompanying diplomatic agencies and passengers in the context of Covid-19. Bamboo Airways expects the flight Hanoi – Prague will also practically contribute to strengthening the Vietnam – Czech Republicrelationship and cooperation, especially in 2020 when the two countries are celebrating 70 years of establishing diplomatic relation.

In Bamboo Airways’ plan of developing international flight network, the Czech Republic is also the first destination as the continent’s “new gateway” position.

Since the end of last year, Bamboo Airways has completed the preparation to operate the direct route Hanoi – Prague with the frequency of 2 flights per week and may increase depending on the needs of passengers. This flight route is expected to be put into operation when market conditions is stable enough to ensure maximum health safety for passengers.

Chinese airline partners support KLM

KLM Royal Dutch Airlines works with three Chinese airline partners: China Eastern Airlines, China Southern Airlines and Xiamen Airlines. These partners have now stepped in to generously support KLM and the Netherlands by donating many tens of thousands of face masks and gloves to KLM in our struggle against the coronavirus outbreak. In light of scarce resources at Dutch hospitals, KLM will in turn be helping the Erasmus MC in Rotterdam and other Dutch healthcare institutes.

On March 25, in the early hours of the morning, the first shipment arrived at Schiphol carried by one of Xiamen Airlines’ aircraft. On behalf of the employees of the three Chinese airlines, KLM President & CEO Pieter Elbers accepted this first shipment of in total around 90,000 face masks and 50,000 pairs of gloves. KLM’s CEO was accompanied by Ernst Kuipers, Chairman of the Boards of Erasmus MC and the Dutch Network for Acute Medical Care (Landelijk Netwerk Acute Zorgย — LNAZ), and Brinio Veldhuijzen van Zanten of KLM Health Services.

Over the past 20 years, KLM has established a broad-based route network, coupled with especially close relations in China. Before the outbreak of the corona crisis, KLM and its partners operated 59 flights a week from Schiphol to mainland China. Shipments of this nature serve to underscore the enormous significance of connections by air in general, and those with China in particular. Medical supplies like this can only be transported swiftly and efficiently to the other side of the world by aircraft. This is especially important in times of scarcity and interdependence.

KLM aircraft photo gallery:

Air Canada to operate two more flights from Quito to bring more Canadians home

Air Canada has made this announcement:

  • Additional flights to depart on March 29 and 31 from Ecuador
  • Travellers must contact Global Affairs Canada to book seats
  • Air Canada continues its repatriation efforts

Air Canada has announced that, in collaboration with the Government of Canada, it will operate two more special flights from Quito, for a total of three flights.

These flights are currently scheduled to be operated by Air Canada Rouge on March 29 and 31 from Quito to Toronto with a 282-seat wide-body aircraft. The flights are in addition to a special flight operating from Quito to Toronto on March 25.

Global Affairs Canada is coordinating local arrangements for Canadians wishing to return home on these special flights. Canadians abroad are strongly encouraged to register with Global Affairs Canada. For any emergency help you are encouraged to contact sos@international.gc.ca.

Since March 21, Air Canada has been operating special flights to repatriate Canadians from Morocco, Spain, Peru and Ecuador.

Air Canada aircraft photo gallery:

American Airlines adjusts food and lounge service in response to coronavirus

American Airlines has made this announcement:

Temporary changes include scaled back food and beverage service, closing additional Admirals Club lounges, maximizing social distancing on aircraft, and short-term suspension of checked pets

American Airlines is making several changes in service and policies as it continues to respond to coronavirus (COVID-19) and its impact on customers. These changes include temporarily closing more Admirals Club lounges, reducing flight attendant-customer interaction and maximizing space between customers on aircraft.

Reduced food and beverage service

To further provide for social distancing and minimal contact between flight attendants and customers, American will offer limited food and beverage options from March 27 through April 30. The reduced service will be based on flight length and destination. Full service will resume once the COVID-19 situation has stabilized. American is exploring and expects to make bottled water and snacks available at the gate in the near future.

For all flights shorter than 2,200 miles (typically less than 4 1/2 hours):

  • Alcohol will not be available in Main Cabin. Alcohol will be available on request in first class.
  • Beverages available on request and limited to water, canned beverages or juice.
  • No snacks or food for purchase will be served.
  • Meals will not be offered in first class.

For all flights longer than 2,200 miles (typically more than 4 1/2 hours), including transcontinental and flights to Hawaii:

  • Alcohol will not be served in Main Cabin and Main Cabin Extra except on long-haul international flights. Alcohol will be available in first class.
  • Other Main Cabin beverages will be served as usual.
  • No snacks or food for purchase will be served. Main Cabin meals will be served on long-haul international flights.
  • First and business class meals will be served on one tray versus in courses.

American will also suspend predeparture beverage service on all flights.

“Our flight attendants spend the most time with our customers and play a critical role in ensuring the safety and well-being of our customers,” said Jill Surdek, Senior Vice President of Flight Service. “As a result of working with our flight attendant team and the Association of Professional Flight Attendants, we are taking these necessary steps today and will continue to update our policies in response to guidance from the CDC.”

Admirals Club lounges

American will temporarily close most Admirals Club lounges, but will maintain front desk customer service at large U.S. airports and at Londonโ€™s Heathrow Airport. These changes go into effect beginning Thursday, March 26.

Team members working at the locations below will be available to offer travel assistance. To reduce large gatherings, lounge services โ€” including all food and beverage offerings, restrooms and shower facilities โ€” will be temporarily suspended.

Charlotte, North Carolina (CLT), Concourse C

Chicago (ORD), Concourse H/K

Dallas-Fort Worth (DFW), Terminals A, C and D

London Heathrow (LHR), Terminal 3

Los Angeles (LAX), Terminal 4

Miami (MIA), Gate D30

New York (JFK), Gate 12 (Flagship Lounge with temporary Admirals Club service)

New York (LGA), Concourse D

Philadelphia (PHL), Terminal B/C

Phoenix (PHX), Gate A7 and Gate A19

Washington (DCA), Terminal C

“American is committed to caring for customers through these unprecedented times. Customer and team member wellbeing is foremost in our minds,” said Kurt Stache, Senior Vice President of Customer Experience. “As the travel mandates abate and the COVID-19 crisis subsides, we will explore how to manage annual membership benefits for impacted customers โ€” including for those with a membership through the Citi / AAdvantage Executive card. We look forward to welcoming back our loyal members soon.”

Relaxed seating policies

In response to Centers for Disease Control and Prevention (CDC) social distancing guidelines, American will temporarily relax seating policies for customers on most flights and reduce onboard food and beverage service levels.

To encourage social distancing, gate agents and flight attendants will be able to proactively reassign seats to create more space between customers beginning March 24. Once on board โ€” provided there arenโ€™t any aircraft weight or balance restrictions โ€” customers can move to another seat within their ticketed cabin subject to availability. American will also block 50% of all middle seats and all seats adjacent to Flight Attendant jump seats on every flight.

Temporary suspension of checked pet service

Because schedule changes increase the risk of stranded pets, all checked pet service will be suspended beginning March 25. Carry-on petsand service and support animals are still permitted, as long as they comply with existing requirements. American Airlines Cargo will also still accept pets for transport, but with additional restrictions.

American is closely monitoring government policy changes, CDC guidelines, government mandates and customer demand, and we will continue to make changes as necessary.

American Airlines aircraft photo gallery: