Strategy – Page 165
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NewsNorwegian secures bondholder and lessor support ahead of crunch vote
Norwegian expects to convert more than Nkr10 billion in debt to equity after reaching agreement with more lessors and bondholders, clearing the path to unlocking crucial further state aid.
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NewsAmerican lightens fleet load in pursuit of liquidity
American Airlines is counting on cost-saving fleet retirements and a $4.75 billion US CARES Act loan to boost its liquidity sufficiently to help see it through the next two quarters while waiting for travel demand to revive somewhat during the summer months.
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NewsTalks continue as Norwegian fails to get bondholder majority for debt conversion plan
Norwegian is holding “constructive dialogue” with bondholders over whether a majority in favour of its debt-to-equity conversion plan can be reached, after it was rejected in an initial vote on the proposal.
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NewsLufthansa aims for autumn restart ‘at the earliest’
Lufthansa Group will remain grounded throughout the summer and does not expect a new market “balance” to be found until 2023, chief executive Carsten Spohr will tell the company’s annual general meeting on 5 May, in a speech pre-released on its website.
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NewsIAG’s Spanish carriers secure €1bn in financing under state-backed loans
IAG’s Spanish units Iberia and Vueling have secured financing for €750 million and €260 million respectively under a syndicated agreement which will be guaranteed by the state-owned bank Instituto de Credito Oficial (ICO).
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NewsLufthansa pilots offer to waive 45% of salaries
Lufthansa pilots represented by trade union Vereinigung Cockpit have offered to waive up to 45% of their salaries for two years, in return for job security, to help the airline navigate the coronavirus crisis.
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NewsFrench government sets green conditions for Air France bailout
Air France must slash domestic flights and agree to work towards becoming the world’s “most environmentally friendly” airline, if it is to satisfy the conditions of its government bailout.
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NewsICAO recovery task force aims for first outcomes by end of May
Representatives from 36 countries on the governing council of ICAO have established an aviation recovery task force and aims to have its first outcomes by the end of May.
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NewsMarch figures reveal scale of initial coronavirus hit on airline traffic
Figures from IATA for March show global airline passenger traffic already down by more than 50% and collective load factors down more than 20 percentage points in a further illustration of how sharply the coronavirus crisis has hit the sector.
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NewsBritish Airways mass redundancies reflect pared-back ‘new normal’
British Airways‘ drastic announcement that it could cut up to 12,000 jobs is the latest suggestion that normality in the airline industry is a thing of the past and efforts should turn instead to preparing for a slimmed-down ’new normal’ once travel restrictions begin to lift.
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NewsEight Thai carriers seek $771m loan from Thai govt: reports
Eight Thai carriers have sought a soft loan of around Bt25 billion ($771 million) from the Thai government, according to a 24 April Reuters report that cites a Thai AirAsia executive. Tassapon Bijleveld, the executive chairman of Thai AirAsia and its parent company Asia Aviation, added that the carriers ...
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NewsFinnair to launch €500m rights offering as coronavirus losses mount
Finnair is to launch a €500 million ($542 million) rights offering to rebuild its equity after disclosing it expects to lose around €2 million a day during the second quarter.
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NewsSouthwest plans for recession after $900 million cash burn
Southwest Airlines paired its 28 April disclosure of a first-quarter net loss of $94 million and a cash burn of $900 million in April with the announcement of additional liquidity enhancements, as it looks ahead to a near-term environment virtually devoid of travel demand.
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NewsSouthwest delays deliveries of 59 737 Max to post-2021
Southwest Airlines, among the world’s top Boeing 737 Max customers, has pushed back deliveries of 59 Max aircraft in response to the travel downturn caused by the coronavirus pandemic.
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NewsIcelandair cuts staff and salaries to survive
Icelandair is axing 2,000 staff and imposing reduced working hours and wage cuts on its remaining employees as it looks to shore up its finances.
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NewsSouthwest to boost liquidity with concurrent deals
Southwest Airlines will enhance its liquidity position through a common stock offering and a $1 billion convertible bond, both announced 28 April.
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NewsSAS initiates work on cutting up to 5,000 jobs
Scandinavian carrier SAS has begun work on cutting up to 5,000 full-time positions from its future workforce as it warns it is likely to take “some years” before air travel demand returns to pre-crisis levels. SAS will hold talks with unions over the proposed cuts, which will apply to staff ...
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NewsChinese carriers shift more operations to Beijing Daxing
The third wave of operational transfers to Beijing’s Daxing international airport has taken place, with China Eastern Airlines and Xiamen Airlines shifting to the Chinese capital’s newest airport. China Eastern states that from 26 April to 2 May, it will gradually move 57 daily flights from Beijing Capital to ...
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NewsNorwegian sets out survival plan and sounds warning on cash
Norwegian will run out of cash by mid-May if it does not secure the remainder of its state aid package, the Scandinavian budget carrier has warned in a report to bondholders which lays out plans for a “new Norwegian” that will not start to take off until 2021.
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NewsStobart agrees to buy back regional unit and aircraft lessor
Stobart Group has agreed with the administrators of Connect Airways to buy back Irish regional carrier Stobart Air and aircraft lessor Propius in a deal aimed at handling outstanding financial commitments.