All Strategy articles – Page 191
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NewsEurope’s airports to lose more than a billion passengers in 2020
European airports lost more passengers in March than in the whole of 2009 when the world was in the midst of a global financial crisis, figures released today by ACI Europe reveal.
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NewsLessors’ Max orders at risk with Avolon cancellation
Avolon is removing 75 Boeing 737 Max jets from its orderbook, and while the world’s fourth largest lessor by fleet value says it “remains committed” to the type, these add to cancellations from before the coronavirus pandemic.
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NewsIATA reiterates need for ‘urgent’ liquidity assistance
Airlines around the world are in desperate need of government liquidity support which in many cases is taking too long to reach them, IATA has warned. Describing the coronavirus shutdown as “the biggest crisis we have ever had”, IATA director general Alexandre de Juniac stresses that although many governments have ...
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NewsAir New Zealand to lay off 387 pilots: union
Air New Zealand is planning to make 387 pilots redundant amid the coronavirus crisis, their union said today. The New Zealand Air Line Pilots’ Association (NZALPA) said it met with the carrier’s chief executive Greg Foran and his executive team several times on 6 April to discuss cost-cutting measures. “NZALPA ...
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NewsBOC Aviation’s first-quarter collection rate falls to 94%
BOC Aviation reported 100% aircraft utilisation for the three months ended 31 March 2020, though lease payment collection rate for the period was 94%. Data from the company’s historical stock-exchange filings show that since 2008 – the first full-year the company operated as BOC Aviation after Bank of China acquired ...
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NewsEasyJet borrows from UK coronavirus fund as part of liquidity plan
Budget carrier EasyJet has taken steps to borrow funds from the UK government’s corporate financing facility, established to assist companies during the coronavirus crisis. EasyJet chief executive Johan Lundgren says the airline’s “priority” is to “safeguard short-term liquidity”. He says the company has been successful in issuing £600 million of ...
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NewsVirgin Australia closes New Zealand crew base
Virgin Australia has closed its New Zealand flight crew base, a move their union says affects around 600 jobs. The E tū union said in a 4 April statement that the carrier emailed staff the previous night telling them that the closure was effective immediately. Virgin has already suspended operations ...
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NewsAvolon customers seek payment relief
Aircraft lessor Avolon has disclosed that the vast majority of its customers are seeking rent deferrals or reductions amid “the most challenging period in the history of commercial aviation”. In its first-quarter update, the lessor states that it “has received requests from more than 80% of its current owned and ...
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NewsJetBlue and Delta apply for federal payroll grants
JetBlue Airways and Delta Air Lines have applied for federal payroll grants in time for the US Treasury Department to ensure quick approval, yet the chief executives of both carriers say they will need to raise additional capital.
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NewsComair drops Star Air acquisition as challenges deepen
South African carrier Comair has agreed to call off its planned acquisition of aircraft leasing specialist Star Air Cargo and Star Air Maintenance as it battles mounting challenges.
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Airline BusinessWhat is it going to take for passengers to start flying again?
Challenges around the lifting of travel bans, the economic hit and restoring passenger faith in the safety of air travel are likely to be key hurdles to overcome before airlines might return to normal business after the coronavirus grounding.
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NewsCathay Pacific cuts long-haul schedule further for April
Cathay Pacific has announced further cuts to its long-haul schedule for April, with 97% of planned passenger capacity now scrapped. The carrier had already announced on 20 March that it was reducing capacity by 96% for April and May. As part of what it terms a “bare skeleton” schedule, the ...
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Airline BusinessSlowly but surely, China domestic capacity creeps back up
While airlines around the world hunker down amid the coronavirus crisis, the Chinese domestic market is telling a different story.
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NewsFebruary travel demand slump worst since 9/11: IATA
Collapsing domestic travel in Mainland China — the epicentre of the coronavirus outbreak — coupled with falling travel demand to and from the Asia-Pacific region, led to the sharpest drop in demand in almost two decades. Releasing its global passenger traffic data for February, IATA says RPKs for the ...
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NewsCanberra not keen to bail out Virgin Australia: report
Virgin Australia may not get the government support it is seeking, according to local media reports. Citing sources, the Australian Financial Review reported on 2 April that the federal government wants two strong airlines after the coronavirus crisis and would help a new carrier enter the market if Virgin Australia ...
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NewsIAG cancels planned dividend payment
IAG is withdrawing its proposal to pay a €0.17-per-share final dividend to investors, following the coronavirus shutdown. The group will instead propose, at its annual shareholders’ meeting, that all of its 2019 profit – save that already paid as an interim dividend – be added to voluntary reserves. IAG‘s board ...
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NewsFreight rates on the rise amid slump in passenger flights
Air freight rates are rising and cargo carriers ramping up their utilisation to fill the gap left by grounded bellyhold capacity on passenger jets. Normally, nearly half of global air cargo is carried in passenger jets’ bellies. Total cargo capacity, adjusted to include the Lunar New Year, fell 4.4% in ...
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NewsBA to furlough 30,000 staff: GMB union
British Airways will furlough more than 30,000 employees under the UK government’s job-retention scheme amid the coronavirus crisis, in a move the GMB union describes as “a relief”. “GMB and our sister union Unite have fought hard to secure members’ terms, conditions and job security. We believe the current deal, ...
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NewsBraathens Regional to halt all flights until 31 May
Swedish operator Braathens Regional Airlines is suspending all its services between 6 April and 31 May.
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Airline BusinessFormer airline chiefs on government role in airline survival and future shape of sector
Government interventions during the crisis are likely to play a role not just in airline abilities to withstand the coronavirus-prompted grounding but also in the shape of the consolidation to follow.