Americas’ summer season bookings are 26.8% behind

Analysis by ForwardKeys, the travel analytics company, reveals that, as at March 24th, international summer season bookings for air travel to all American destinations (North, Central and South America plus the Caribbean) are currently 26.8% behind where they were at the equivalent moment last year. The setback in bookings started with the COVID-19 outbreak in the second half of January and has continued to March when cancellations are now exceeding new bookings. Bookings for June are 31.4% behind and for July and August are 24.6% and 23.3% behind respectively.

However, ForwardKeys’ study also reveals that 17% of summer season bookings are typically made in the period September-January, 29% in the period February-April, which looks likely to be the peak of the COVID-19 crisis and the associated travel restrictions, and 53% between May and August. Therefore, if the world starts to recover from the worst of the outbreak around the end of April, there is still time for a rapid booking recovery to rescue the summer season.

Olivier Ponti, VP Insights, ForwardKeys, said: “What this analysis reveals is how late people actually book. With the temporary freeze on bookings induced by the COVID-19 crisis and associated travel restrictions, it is likely that summer booking will be even more last-minute in nature, owing to pent up demand. However, when the recovery comes, it will not affect source markets and destinations equally; so to understand how strong it is, it will be crucial to keep careful tabs on what flights are and are not in service and how well bookings for each market are progressing.”

AvTourNet Group

Boeing to use 3D printing capabilities to manufacture face shields

Boeing is taking additional steps to support COVID-19 recovery and relief efforts. The company released that it will begin using its 3D printing capabilities at several facilities across the United States to manufacture face shields to help protect those who are on the front lines of fighting the virus. Boeing's initial production goal is to produce thousands of face shields per week followed by subsequent production increases. Boeing has additive manufacturing machines in St. Louis, Missouri; El Segundo, California; Mesa, Arizona; Huntsville, Alabama and Philadelphia, Pennsylvania that will be used for this initial response, as long as those facilities remain in operation, consistent with federal, state and local health orders and the health and safety of Boeing employees.

The company said it has also offered the use of its Dreamlifter, one of the largest cargo carriers in the world, to help transport critical and urgently needed supplies to healthcare professionals.

To date, Boeing has donated tens of thousands of masks, gloves and other equipment to hospitals in need. The company is also analyzing several other ways to use its engineering, manufacturing and logistics expertise to help the cause.

AvTourNet Group

IATA Estimates This Gravest Crisis Could Cost Aviation $252 Billion  2020-03-26

On 5 March, 2020, the International Air Transport Association (IATA) projected that the crisis caused by the coronavirus will cost the industry a $113 billion revenue loss. On 24 March, 2020, the updated analysis revealed new numbers: $252 billion hit or 44% below 2019’s figure.

The initial forecast was made in light of some travel restriction that did not largely affect the international travel market.

The revised estimations, therefore, have been made considering only three-month travel bans, followed by a gradual economic recovery later this year.

If the spread of the coronavirus is not contained in three months, the figures will be even more grave and a large number of airlines will simply not recover.

“Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need $200 billion in liquidity support simply to make it through”, said Alexandre de Juniac, IATA’s Director General and CEO.

Source: Aviation Voice

IATA Estimates This Gravest Crisis Could Cost Aviation $252 Billion  2020-03-26

On 5 March, 2020, the International Air Transport Association (IATA) projected that the crisis caused by the coronavirus will cost the industry a $113 billion revenue loss. On 24 March, 2020, the updated analysis revealed new numbers: $252 billion hit or 44% below 2019’s figure.

The initial forecast was made in light of some travel restriction that did not largely affect the international travel market.
The revised estimations, therefore, have been made considering only three-month travel bans , followed by a gradual economic recovery later this year.

If the spread of the coronavirus is not contained in three months, the figures will be even more grave and a large number of airlines will simply not recover.

“Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need $200 billion in liquidity support simply to make it through”, said Alexandre de Juniac, IATA’s Director General and CEO.

Embraer to collaborate on technologies and solutions to combat COVID-19

Embraer has released that it is working in partnership with companies and research centers on technologies that can increase the availability of equipment and solutions to combat COVID-19 in Brazil.

The actions, developed jointly with Embraer's supply chain, include the manufacturing of parts for the ventilator and respirator industry, the replacement of imported components for ventilators, the development of high-efficiency filtration systems for transforming regular hospital beds into intensive care beds and studies for the development of simple, robust and portable respirators aimed at rapid implementation and availability.

A group of professionals has already been leading initiatives in support of a respirator factory in Brazil, with a plan to start the production of parts next week, in response to the emergency demand for this equipment. Embraer, in cooperation with partner organizations, has already completed the
technical and production capacity analysis required to meet the identified needs.

In partnership with the Albert Einstein Hospital, located in São Paulo, Brazil, Embraer is also working to provide technical support for the development of biological air filter systems for air-quality control, which can convert regular hospital beds into intensive care beds. Using highly
efficient filters for absorbing air particles, already utilized in air conditioning systems on aircraft, the objective is to provide this solution to hospitals with immediate needs.

Another work front is dedicated to analyzing the manufacturing of control valves and flow sensors for another respirator industry in the country, in addition to adapting an existing respirator model for use in combating COVID-19.

AvTourNet Group

Source: AviTrader

Etihad Cargo deploys cargo-only Boeing 787s to complement freighter fleet

Following the directive issued by the National Emergency Crisis and Disaster Management Authority, and the General Civil Aviation Authority (GCAA) of the United Arab Emirates to temporarily suspend all passenger services to and from the UAE, Etihad Cargo continues to play a vital role in connecting key cargo markets and ensuring the UAE’s import and export needs are adequately covered in line with current demand.

To complement its fleet of Boeing 777 Freighters, Etihad Cargo is introducing a fleet of Boeing 787-10 aircraft as passenger freighters to operate 34-weekly flights, serving 10 markets initially. Each aircraft will provide capacity for 12 lower-deck pallets and four containers, carrying up to 45 tons of payload.

The passenger freighter network will introduce capacity, subject to permits, into India, Thailand, Singapore, Philippines, Indonesia, South Korea and other places where borders remain open for cargo. On top of that, the current freighter schedule will be enhanced by additional flights into Riyadh, London, Hong Kong and Shanghai.

By utilizing the Boeing 787 in addition to its freighter fleet, Etihad Cargo will ensure the continuity of vital imports into the UAE including fruits, vegetables, meat, medical supplies, mail and ecommerce.

Source: AviTrader

IATA estimates industry passenger revenues could plummet US$252 billion below 2019’s figure

The International Air Transport Association (IATA) updated its analysis of the revenue impact of the COVID-19 pandemic on the global air transport industry. Owing to the severity of travel restrictions and the expected global recession, IATA now estimates that industry passenger revenues could plummet US$252 billion or 44% below 2019’s figure. This is in a scenario in which severe travel restrictions last for up to three months, followed by a gradual economic recovery later this year.

IATA’s previous analysis of up to a US$113 billion revenue loss was made on March 5, 2020, before the countries around the world introduced sweeping travel restrictions that largely eliminated the international air travel market.

“The airline industry faces its gravest crisis. Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need US$200 billion in liquidity support simply to make it through. Some governments have already stepped forward, but many more need to follow suit,” said IATA’s Director General and CEO, Alexandre de Juniac.

The latest analysis envisions that under this scenario, severe restrictions on travel are lifted after 3 months. The recovery in travel demand later this year is weakened by the impact of global recession on jobs and confidence. Full year passenger demand (revenue passenger kilometers or RPKs) declines 38% compared to 2019. Industry capacity (available seat kilometer or ASKs) in domestic and international markets declines 65% during the second quarter ended June 30, compared to a year-ago period, but in this scenario recovers to a 10% decline in the fourth quarter.

Source: AviTrader

Bombardier suspends work at Canadian operations

Bombardier has released that in support of the recent mandates from the Governments of Quebec and Ontario to help slow the spread of the COVID-19 pandemic, it will suspend all non-essential work at most of its Canadian based operations starting March 24 at 11:59 pm, until April 26, 2020, inclusively. This suspension includes Bombardier’s aircraft and rail production activities in the provinces of Quebec and Ontario.

Employees impacted by these temporary shutdowns will be placed on furlough, as will corporate office employees whose support functions are less critical in the short-term. During this furlough period, Bombardier’s CEO and senior leadership team will forgo their pay, and the Chairman and members of Bombardier’s Board of Directors have agreed to forgo board compensation for the remainder of 2020.

Bombardier is also suspending its 2020 financial outlook as it evaluates the impact of temporarily closing its Canadian operations, as well as other actions being taken in response to the COVID-19 pandemic.

AvTourNet Group

Boeing backs US Government’s offer of US$60 billion in aid for aerospace sector

With the devastating impact the coronavirus outbreak is having on the aerospace industry, Boeing, the world’s second-largest planemaker, has thrown its weight behind the governments financial support for the aerospace sector to the tune of US$60 billion. 

The financial lifeline may prove especially beneficial to Boeing which has been struggling, financially, since the grounding of the 737 MAX jet after two fatal crashes. “We appreciate the support of the president and the administration for the 2.5 million jobs and 17,000 suppliers that Boeing relies on to remain the number one U.S. exporter, and we look forward to working with the administration and Congress as they consider legislation and the appropriate policies,” the company said in a statement. 

Boeing confirmed that it expects funding to be in the form of loan guarantees and will be used to prop up other hard-hit companies such as General Electric and Spirit Aerosystems who build engines and sections of jets, respectively, for Boeing. The company also acknowledged that the funding “will be used for payments to suppliers to maintain the health of the supply chain.” 

On the other side of the coin, U.S. Airlines are seeking US$50 billion in aid to help see them through the crisis. The plight of airlines has severely impacted the likes of Boeing as, with the dramatic drop in demand and numerous ongoing international travel restrictions, many carriers are looking to postpone/defer the acquisition of previously ordered planes. The likes of Delta, United and American Airlines are parking up hundreds of planes as they look to dramatically reduce operating costs and limit capital expenditure. 

While Boeing has made it clear it has no intention of changing its dividend or adjusting executives’ salaries, the CEOs of Southwest, JetBlue, Delta and United Airlines are all either taking pay cuts or forgoing their full salaries.

Source: AviTrader

EASA issues safety directive to combat spread of COVID-19 via airline travel

The European Union Aviation Safety Agency (EASA) has issued a safety directive to reduce the risk of spread of the novel coronavirus through flights to and from high risk areas. This is the first EU-wide operational measure to control the spread of COVID-19 in Europe.

The safety directive specifies measures to be taken for flights serving high-risk destinations. It mandates thorough disinfecting and cleaning of aircraft which operate from high-risk destinations after each flight. Exceptions can be made only when disinfectants with a longer-lasting effect are used – but even in those cases a thorough disinfection is mandated no later than 24 hours after departure from a high-risk airport.

“We need to reassure the passengers, the airline crews and the airport staff that their health and safety is our top priority,” European Commissioner for Transport Adina Valean said. “EU is taking
concrete measures to limit and to slow the spread of the novel coronavirus. That’s why EASA issued a new safety directive concerning the full disinfection for all the aircrafts after each flight from the
high risk areas both in Europe and beyond.”

The definition of high risk geographical areas will be based on all available information, taking into account World Health Organisation (WHO) situation report assessments, guidance issued by the European Centre for Disease Prevention and Control (ECDC) and regional public health assessments.

EASA further recommended that airlines operating on all routes step up the frequency of cleaning, disinfect as a preventative measure and ensure full disinfection of any aircraft which has carried a passenger who was suspected or confirmed as being infected with COVID-19. Airport operators should similarly disinfect terminals regularly.

Source: AviTrader

Air France to ground A380 fleet, KLM Boeing 747 fleet

Faced with growing restrictions on the possibility of travelling and a strong downward trend in demand which has resulted in a drop in traffic and sales over the last few weeks, the Air France-KLM Group released that it is obliged to gradually reduce its flight activity very significantly over the next few days, with the number of available seat kilometers potentially decreasing between -70% and -90%. 

This reduction in capacity is currently scheduled to last two months, and the Group will continue to monitor the evolution of the situation on a daily basis andadjust it if necessary. As a result of this reduction in capacity, Air France will ground its entire Airbus 380 fleet and KLM its entire Boeing 747 fleet. 

The Group has already taken a number of strong measures to secure its cash flow. Last week, the Air France-KLM Group drew a revolving credit facility for a total amount of €1.1 billion and KLM drew a revolving credit facility for a total amount of €665 million. As of March 12, the Group and its subsidiaries had more than €6 billion in cash and cash equivalents. 

Source: AviTrader

ET 302 Flight Remembered

Today marks a year ET 302 flight crashed.

Ethiopian Airlines Flight 302 was a scheduled international passenger flight from Addis Ababa Bole International Airport in Ethiopia to Jomo Kenyatta International Airport in Nairobi, Kenya . On 10 March 2019, the Boeing 737 MAX 8 aircraft which operated the flight crashed near the town of Bishoftu six minutes after takeoff, killing all 157 people aboard.

Flight 302 is the deadliest accident involving an Ethiopian Airlines aircraft to date, surpassing  the fatal hijacking of Flight 961 resulting in a crash near  the Comoros in 1996. It is also the deadliest aircraft accident to occur in Ethiopia, surpassing the crash of an Ethiopian Air Force Antonov An-26 in 1982, which killed 73.

The airline stated that the flight's 149 passengers had 35 different nationalities. Crash victim positive identification was announced on September 13, 2019. Nearly a hundred disaster victim identification (DVI) experts from 14 countries supported the Interpol Incident Response Team (IRT) mission.

Passengers by nationality
Nationality
Deaths
Kenya 32
Canada 18
Ethiopia 9
China 8
Italy 8
United States 8
France 7
United Kingdom 7
Egypt 6
Germany 5
India 4
Slovakia 4
Austria 3
Russia 3
Sweden 3
Israel 2
Morocco 2
Poland 2
Spain 2
Belgium 1
Djibouti 1
Indonesia 1
Ireland 1
Mozambique 1
Nepal 1
Nigeria 1
Norway 1
Rwanda 1
Saudi Arabia 1
Serbia 1
Somalia 1
Sudan 1
Togo 1
Uganda 1
Yemen 1
Total 149

All passengers and crew on board, 157 in total, were killed in the accident. Many of the passengers were travelling to Nairobi to attend the fourth session  of the United Nations Environment Assembly. A total of 22 people affiliated with the United Nations (UN) were killed, including seven World Food Programme staff, along with staff of the United Nations office in Nairobi, the International Telecommunications Union, and the office of the United Nations High Commissioner for Refugees.

The Boeing 737 MAX 8 model first flew on 29 January 2016 and entered service in 2017, making it one of the newest aircraft in Boeing 's commercial airliner offerings, and the newest generation of Boeing 737.

As of February 2019, 376 aircraft of this model have been produced and one other had crashed, Lion Air Flight 610 in Indonesia in October 2018.

Following the accident, the 737 MAX series of aircraft was grounded worldwide by various airlines and government regulators around the world.

U.S. House investigation find fault with both FAA and Boeing for 737 MAX crashes

An investigative report produced by the U.S. House Transportation Committee into the fatal Lion Air and Ethiopian Airlines crashes involving the Boeing 737 MAX has found fault both with the way the Federal Aviation Administration (FAA) approved the plane’s design, and design failures on the Boeing side. 

The preliminary investigation classed the FAA’s certification of the aircraft “grossly insufficient” and that the agency had failed in its duty to identify critical safety problems. The 13-page report made it clear that: “The combination of these problems doomed the Lion Air and Ethiopian Airlines flights,” while also stating that: Boeing’s 737 MAX design “was marred by technical design failures, lack of transparency with both regulators and customers, and efforts to obfuscate information about the operation of the aircraft.” 

The FAA said in a statement it welcomed the report’s observations and that lessons learned from the two fatal crashes “will be a springboard to an even greater level of safety. While the FAA’s certification processes are well-established and have consistently produced safe aircraft designs, we are a learning agency and welcome the scrutiny.” 

The report also showed that both the FAA and Boeing missed “multiple red flags and clear data points” in recommending that the 737 MAX should continue to fly after the Lion Air crash. The U.S. House panel also faulted Boeing for what it described as a “culture of concealment” in its failure to disclose information to airline pilots about the 737 MAX’s MCAS stall-prevention system which has been linked to both crashes, and that a key angle-of-attack cockpit alert was “inoperable on the majority of the 737 MAX fleet.” 

Separately, according to Reuters news agency, last Friday the FAA proposed fining Boeing US$19.7 million for allegedly installing equipment on hundreds of 737 aircraft containing sensors in heads-up displays that regulators had not approved for use.

Source: AviTrader

Emirates Disinfect all Aircraft Cabins

Emirates has introduced complete disinfection of all aircraft cabins for flights departing Dubai in response to the Coronavirus.

The extra steps go above and beyond industry and regulatory requirements to ensure its passengers’ health and comfort, and provide them with confidence and peace of mind when planning their travel.

On all aircraft departing from its hub in Dubai, Emirates says it has implemented enhanced cleaning and complete disinfection of all cabins as a precaution.

In line with the latest expert medical finding that the COVID-19 virus is primarily transmitted by touch, Emirates has placed its greatest focus on surface cleaning.

The airline says it is using an approved chemical that is proven to kill viruses and germs, leaves a long-lasting protective coating against new contamination of viruses, bacteria and fungi on surfaces, and is eco-friendly.

The cleaning process includes a comprehensive wipe down of all surfaces – from windows, tray tables, seatback screens, armrests, seats, in-seat controls, panels, air vents and overhead lockers in the cabin, to lavatories, galleys and crew rest areas. All of this is done in addition to other normal procedures such as changing headrest covers on all seats, replacement of reading materials, vacuuming, and more.

To complete this thorough cleaning process within an hour while the aircraft is preparing for its next mission, requires a team of 18 trained cleaners on a Boeing 777, and a team of 36 for an A380. In a 24-hour period on an average day, some 248 aircraft go through this process.

On any aircraft that were found to have transported a suspected or confirmed COVID-19 case, Emirates would go even further and implement deep cleaning and disinfection in a process that takes between six to eight hours to complete.

This includes the defogging of cabin interiors and misting with disinfectant across all soft furnishings, and replacement of seat covers and cushions in the affected area. The aircraft’s HEPA cabin air filters will also be replaced.

All of Emirates’ aircraft are fitted with HEPA cabin air filters which are proven to filter out 99.97% of viruses. They also remove dust, allergens and microbes from the air recirculated into the cabin and cockpit, which helps to provide a safer, healthier and more comfortable environment for the passengers and crew.

The airline has also added flexibility, choice, and value for passengers with the ability to change their travel dates without change and re-issuance fees. This waiver policy applies to all booked tickets issued on or from 7 March until 31 March 2020.

WILL THE AIRBUS A380 BE THE NEXT CORONAVIRUS VICTIM?

The world’s biggest aircraft, the Airbus A380 superjumbo, may be the latest victim of the COVID-19 coronavirus.

Lufthansa Group is looking at temporarily grounding its entire Airbus A380 fleet of 14 aircraft as it reduces capacity by up to 50 percent in the coming weeks and there is speculation Qantas is looking at taking out up to half of its fleet of 12 superjumbos.

The problem for the big four-engine planes is that they are not as efficient as the smaller twins and their size makes filling them in the current circumstances much harder.

Qantas has already accelerated heavy maintenance schedules for its aircraft and this should account for some of the superjumbos but it warned more changes were on the way even as it announced additional cuts on Friday.

Lufthansa’s surprise announcement that capacity would be cut by as much as half comes as airlines worldwide are continuing to see significant falls in passenger demand.

The German airline group said the exceptional circumstances had resulted in “a drastic decline in bookings as well as numerous flight cancelations”.

“Depending on the further development of demand, capacity is to be reduced by up to 50 percent in the coming weeks,’’ the airline said in a statement.

“These capacity adjustments apply to all passenger airlines in the Lufthansa Group.
“In addition, the extent to which the entire Airbus A380 fleet (14 aircraft) can be temporarily taken out of service in Frankfurt and Munich is currently being examined.

“This measure is designed to reduce the financial consequences of the slump in demand.”

The company said the latest reduction complemented planned savings in areas such as personnel, material costs and project budgets.

It has introduced a hiring freeze and offered employees what it termed “individual personnel measures”.
These included unpaid leave and bringing forward annual leave.

“The company is in talks with its operating partners and trade unions in order to avoid dismissals – among other measures – by means various part-time models, including probationary periods,’’ it said.

The group’s airlines — Lufthansa, SWISS, Australian Airlines, Brussels Airlines and Air Dolomiti — are also joining other carriers by introducing more flexible rebooking options.

Several US carriers, British Airways and Air New Zealand have adopted a similar strategy to allow customers some peace of mind in a situation where most travel insurance does not cover the coronavirus.

Until March 31, the airlines will waive the rebooking fees for all newly booked flights worldwide and offer a one-time rebooking – regardless of the original fare purchased.

This will allow passengers to rebook to a new travel date until 31 December 2020 without rebooking fees.

The waiver also applies for tickets bought before March 5 with a travel date up to April 30.

The departure and destination airports in both cases must be identical and if the original fare is no longer available, the corresponding difference must be paid.
The rebooking must also be made before the original travel date.

“With this new waiver policy, the Lufthansa Group Airlines are responding to the wish of many customers to help make their travel plans more flexible under the exceptional circumstances caused by the spread of the coronavirus,’’ the company said.

Source: AirlineRatings

Boeing released new series of Boeing 777X pictures

Boeing has released a new series of pictures of the Boeing 777X from one of its test flights last month.

Boeing says the aircraft is performing well, with more than 25 takeoffs and landings in just over five weeks since first flight.

“We’re now in a planned maintenance period, where we’re also installing and calibrating test instrumentation to support upcoming testing,” a spokesman said.

The longest flight was on February 9th that lasted just over six hours. Total flight time thus far is 61 hours 19 minutes.

All flights, except for the first flight, have been conducted from either Boeing Field just south of Seattle or Spokane, WA.

Highlights to come will be the first flight of the second 777X, N779XX and the roll out from the paint hangar of the first Emirates and Lufthansa 777X aircraft.

The 777-9X seats more than 400 passengers, depending on an airline’s configuration choices. With a range of more than 8,200 nautical miles (15,185 km), the aircraft will have the lowest operating cost per seat of any commercial aircraft says, Boeing.

The second member of the family, the 777-8X, will be the most flexible jet in the world claims Boeing. The aircraft will seat 350 passengers and offer a range capability of more than 9,300 nautical miles (17,220 km).

The driving force behind the aircraft is
Former Emirates President Sir Tim Clark and calls the 777X an “absolute peach.”

“There will not be a city on the planet — aside from the mid-Pacific — we can’t reach,” Sir Tim said. “This (777X) will be poetry in motion . . . it will have enormous versatility.”

Key to the enthusiasm is the aircraft’s incredible economics, being 20 per cent more efficient per seat than the 777-300ER.

The 777X combines the best features of the current 777, with a longer fuselage, new engine and the composite wing design from the Boeing 787.

It also features 20 per cent larger windows, lower pressurization altitude to reduce jet lag and a wider cabin.

Since the launch with Emirates, Lufthansa, Qatar and Etihad Boeing has sold the 777X to Singapore Airlines, British Airways , Cathay Pacific Airways and All Nippon Airways.

U.K.’s Flybe goes into liquidation six months after Thomas Cook collapses

Only six months after the collapse of Thomas Cook which left over 150,000 passengers stranded across the globe, the U.K.s Flybe has now gone into liquidation, despite promises six weeks ago from the government to bail out the ailing domestic carrier. 

Flybe, which employed over 2,000 staff, announced that all further flights had been grounded as of today (Wednesday March 5). Flybe had been operating at an annual loss of £20 million (US$26 million) per annum when the domestic carrier, which was responsible for approximately 40% of all domestic U.K. flights, was taken over by Connect Airways, a consortium comprising Virgin Atlantic, Stobart Aviation and Cyrus Capital Partners some nine months ago. 

At the beginning of January, the government was approached to aid the loss-making carrier in the form of deferring an overdue tax payment, providing a potential loan and a review of air connectivity along with air passenger duty (APD) charges. The principal bone of contention was that APD charges were levied on all passengers departing a U.K. airport but, as Flybe’s flights were domestic, the APD charge was doubled for them on either leg of a return flight. 

The carrier was also struggling with increased fuel costs and disruption to flight demand caused by uncertainty through Brexit. However, the ‘final straw’ came with the outbreak of COVID-19 and the consequent reduction in passenger numbers. Unite’s national officer for aviation, Oliver Richardson, said: “The UK economy is highly dependent on a viable and supported regional airline and airport network. For central government not to support and nurture this, especially as we deal with the twin uncertainties of the Covid-19 virus and the changes that will come with Brexit, is unhelpful and irresponsible.” 

Shadow Transport Secretary Andy McDonald said the loss of Flybe would create “real anxiety” across the U.K. The British Airline Pilots’ Association, BALPA, hit out at the government and Connect for the collapse. The trade union’s general secretary, Brian Strutton, commented: “Six weeks ago, when the ownership consortium lost confidence, the government promised a rescue package, apparently at that time recognizing the value of Flybe to the regional economy of the U.K. Throughout, pilots, cabin crew and ground staff have done their jobs brilliantly, while behind the scenes the owners and, sadly, government connived to walk away. Flybe staff will feel disgusted at this betrayal and these broken promises.” 

Source: AviTrader

Flydubai back in profit with help from Boeing compensation

Having operated at a loss of US$43.5 million in 2018, the United Arab Emirates’ carrier flydubai has posted a profit of 198.2 million dirhams (US$54 million) for 2019, the reversal in fortune partially helped by a compensation agreement with Boeing over the grounding of the 737 MAX jet in which an interim settlement has been agreed and talks are ongoing over the continued grounding. 

Chief Executive Ghaith al-Ghaith said in a statement on Wednesday that: “This agreement has contributed towards this year’s results, but in no way can it compensate for the loss of business opportunity or market share experienced by the airline.” 

The Gulf carrier currently has 14 MAX jets which have been grounded since last March and has seen its operational fleet size shrink by 25% with the addition of a number of older aircraft that have been retired. To overcome many of the problems caused by the MAX grounding flydubai has been leasing other 737 variants on an interim basis. Revenue in 2019 fell by 2.6% - 6 billion dirhams (US$1.63 billion) compared to 2018, operating costs fell 17.8% and the carrier flew 9.6 million passengers compared to 11 million in 2018. 

“The preparation for this year’s outlook statement is challenging given the uncertainty around the timetable for the return to service of the Boeing 737 MAX aircraft and the subsequent aircraft delivery schedule,” Ghaith al-Ghaith added.

Source: AviTrader

Ryanair February traffic grows 9%

Ryanair Group (Ryanair and Lauda) has reported its traffic statistics for February 2020, reporting traffic increase of 9% compared to the previous year and a load factor of 96%, the same as in February 2019.

Since Ryanair has cancelled up to 25% of its Italian short haul program (mainly to/from and within Italy) for the 3-week period from 17th March to April 8, traffic and load factor in the months of March and April is likely to be lower than normal due to the fall in bookings during that period in response to the Covid-19 virus outbreak in a number of European countries. 

Source: AviTrader

Air Cargo demand down 3.3% in January 2020

The International Air Transport Association (IATA) has released data for global air freight markets showing that demand, measured in cargo tonne kilometers (CTKs), decreased by 3.3% in January 2020, compared to the same period in 2019.

”January marked the tenth consecutive month of year-on-year declines in cargo volumes. The air cargo industry started the year on a weak footing. There was optimism that an easing of US-China trade tensions would give the sector a boost in 2020. But that has been overtaken by the COVID-19 outbreak, which has severely disrupted global supply chains, although it did not have a major impact on January’s cargo performance. Tough times are ahead. The course of future events is unclear, but this is a sector that has proven its resilience time and again,” said Alexandre de Juniac, IATA’s Director General and CEO.

Cargo capacity, measured in available cargo tonne kilometers (ACTKs), rose by 0.9% year-on-year in January 2020. Capacity growth has now outstripped demand growth for 21 consecutive months.

It is unlikely that the COVID-19 outbreak had very much to do with January’s weak performance. Lunar New Year in 2020 was earlier than in 2019. This skewed 2020 numbers towards weakness as many Chinese manufacturers would be closed for the holiday period. February performance will give a better picture of how COVID-19 is impacting global air cargo.

Airlines in Asia-Pacific and Europe suffered sharp declines in year-on-year growth in total air cargo volumes in January 2020, while North American and Middle East carriers experienced a more moderate decline. Latin America and Africa were the only regions to record growth in air freight demand compared to January 2019. 

Source: AviTrader

Vistara and India Welcome the First Boeing 787-9 Dreamliner

Vistara, Indian full-service airline, has received the brand new Boeing 787-9, the first one for both the carrier and India. The GEnx-1B powered widebody is the first one out of six on order.

The aircraft featuring a three-class cabin layout initially will be deployed on domestic routes. Later the plane will be put into medium- and long-haul operations.

Impact of Coronavirus to worsen according to European aviation bosses

While predicting greater stability in the number of bookings over the next few weeks, those at the helm of major European Airlines, including Ryanair boss Michael O’Leary, head of IAG – Willie Walsh and easyJet’s CEO Johan Lundgren, have seen a considerable tail-off in demand for flights to certain locations owing to the worldwide spread of coronavirus (COVID-19). 

Flights to Italy, home to Europe’s largest outbreak of the disease, have been hardest hit, though if demand follows a similar pattern to that of Asia, that too should stabilize. O’Leary was confident that if the current crisis stabilizes, bookings will soon recover, hinting at the fact that Ryanair would not be afraid to discount summer prices to kick-start the season. While chiefs from Airbus and Boeing, the world’s two largest plane manufacturers, have said that it was too early to say how or if the outbreak of COVID-19 was affecting aircraft sales, both Walsh and O’Leary agreed that if the price was cheap enough, there would always be demand for aircraft. 

Lufthansa has been particularly hard hit by the disease outbreak with over a quarter of its short-haul fleet being grounded. Additionally, carriers have turned to the International Air Transport Association (IATA) to relax rules if carriers cancel aircraft routes for a prolonged period of time, rules which can see the loss of the landing and take-off slot. Meantime, IAG’s Willie Walsh has been quick to suggest that any airlines left struggling, financially, as a result of the COVID-19 outbreak should not be allowed to receive any governmental aid, though easyJet’s Johan Lundgren was of the opposite opinion.  

Credit: AviTrader

First Airbus A350-900 for Aeroflot.

Russian flag carrier Aeroflot, a member of the SkyTeam alliance, has taken delivery of its first A350-900, becoming the launch operator of the latest-generation widebody aircraft in Eastern Europe and CIS. Aeroflot’s A350-900 features a distinctive new livery embracing its almost 100-year heritage. Aeroflot has a total of 22 A350-900 aircraft on order and operates an Airbus fleet of 126 aircraft (107 A320 Family and 19 A330 Family aircraft).

Aeroflot’s A350-900 features a brand new elegant cabin design, offering unrivalled passenger comfort. The aircraft has a spacious three-class cabin layout with 316 seats: 28 private Business Class suites with full-flat seats, 24 Comfort Class with extra legroom and 264 Economy Class. In addition, the latest-generation Panasonic eX3 in-flight entertainment system, HD screens and Wi-Fi connectivity will ensure enhanced experience for all passengers on long-haul flights.

Aeroflot will operate its A350-900 from Moscow to a number of destinations including London, Dubai, New York, Miami, Osaka and Beijing.

Source: AviTrader

Wizz Air to establish new low-cost airline in Abu Dhabi

European airline Wizz Air, has concluded the definitive agreement with its partner Abu Dhabi Developmental Holding Company (ADDH), to jointly establish Wizz Air Abu Dhabi. The low-cost airline is set to launch its operations at Abu Dhabi International Airport in Fall 2020.

The agreement is a major milestone in the launch of Wizz Air Abu Dhabi, a new Emirati low-cost airline based in the UAE's capital. Wizz Air Abu Dhabi plans to start operations in the second half of the year, bringing low fares paired with a high-quality on-board experience to a range of destinations across Europe, the Middle East, Asia and Africa. 

With Wizz Air Abu Dhabi's recruitment activities set to commence in the coming months, the agreement will create new job opportunities, boost the economy and attract more visitors to Abu Dhabi. The announcement is also in line with Abu Dhabi's AED 50bn accelerator programme Ghadan 21, which is driving the emirate's development through investing in business, innovation and people.

Following the agreement, the airline development team has already initiated the process with the UAE General Civil Aviation Authority to obtain the carrier's Air Operator Certificate and Operating License.

Airbus’ increased maximum take-off weight A330neo variant to be certified by mid-2020

More range and even better economics: these are the key attributes of Airbus’ increased maximum take-off weight A330neo variant, which flew for the first time on February 28.

Benefitting from a maximum take-off weight increase to 251 tonnes, the A330neo offers a significant 650-nautical mile boost in range – or six tonnes more payload – when compared to the A330neo’s current 242-tonne version. This increase in range responds to evolving market needs, enabling airlines to benefit from the unique economics of the A330neo on even longer routes.

Taking to the skies for the first time from Toulouse, France, was the 251-tonne A330-900 – which provides the perfect fit for longer trans-Pacific or Asia-Europe routes. The A330-900 is the longer-fuselage A330neo version, seating 260-300 passengers in a typical three-class cabin configuration.

The shorter-fuselage A330-800 – which accommodates 220-260 passengers in a three-class configuration, will open up very-long-range Pacific routes for the 251-tonne version, while delivering the lowest seat-mile cost in its category.

The increased take-off weight A330-900 is expected to be certified by airworthiness authorities mid-2020, followed in 2021 by the A330-800 variant.

IATA suspends slot rules due to Coronavirus

The International Air Transport Association (IATA) is contacting aviation regulators worldwide to request that the rules governing use of airport slots be suspended immediately and for the 2020 season, due to the impact of COVID-19 (the Coronavirus).

Around 43% of all passengers depart from over 200 slot coordinated airports worldwide. At present, the rules for slot allocation mean that airlines must operate at least 80% of their allocated slots under normal circumstances. Failure to comply with this means the airline loses its right to the slot the next equivalent season. In exceptional circumstances, regulators can relax this requirement.

The COVID-19 crisis has had a severe impact on air traffic. Airlines are experiencing serious declines in demand, including experiencing a 26% reduction across their entire operation in comparison to last year. Carriers are reporting bookings to Italy are down 108% as bookings collapse to zero and refunds grow. Many carriers are reporting 50% no-shows across several markets and future bookings are softening. The airlines are reacting with measures such as crew being given unpaid leave, freezing of pay increases, and plans for aircraft to be grounded.

Given these extraordinary circumstances as a result of the public health emergency, the collective view of the airline industry is that the application of the 80% rule during the upcoming season is inappropriate. Flexibility is needed for airlines to adjust their schedules according to extraordinary demand developments. 

Regulators have already been waiving the slot rules on a rolling basis during the COVID-19 crisis primarily for operations to China and Hong Kong SAR. However, given the recent further outbreaks this is no longer contained to the Asia markets. Without certainty that these waivers will continue for the summer season (or winter season in the Southern hemisphere), airlines are unable to plan ahead sufficiently to ensure efficient rostering of crew or deployment of aircraft.

Suspending the requirement for the entire season (to October 2020) will mean that airlines can respond to market conditions with appropriate capacity levels, avoiding any need to run empty services in order to maintain slots. Aircraft can be reallocated to other routes or parked, crew can have certainty on their schedules.

Source: AviTrader