AirAsia X is looking to delay lease rental payments to tide itself over during the coronavirus crisis, sources say. An executive at one of the carrier’s lessors said that it is unlikely the company will allow AirAsia X to skip lease payments entirely but may be open to letting it postpone payments. Another executive at a different lessor with exposure to the airline says this is not the first time that AirAsia X has asked for lease rental payment deferrals. The source says that his lessor values long-term relationships with its airline customers and will therefore be open to discussing deferrals with customers experiencing cash flow issues. However, he says “we are not a soft touch”, adding that, for example, a 3-month rental holiday would not be acceptable. <br/>
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Ryanair and EasyJet shares tanked as the spread of the coronavirus strain into Italy raised the threat of vulnerable economies in Europe taking direct economic hits for the first time. European airlines were among the largest losers as investors feared the consequences of potentially fewer tourists and business people travelling in Europe. Ryanair in Dublin slid by over 13%, EasyJet in London tumbled 17%, shares in IAG shed 9%, and Air France-KLM and Lufthansa fell by up to 8.5%. Shares in travel giant TUI also tumbled by 10%. “Coronavirus concerns have hit markets hard today, with a more global reach raising fears that the virus cannot be contained as easily as many had presumed,” said a senior market analyst at online broker IG. <br/>
US regional carrier Trans States Airlines, which operates Embraer 145s for United Airlines, will shutter operations by the end of 2020. The news, detailed in a leaked Trans States memo and confirmed by United, comes as another United regional affiliate, ExpressJet Airlines, discloses plans to add 36 ERJ-145s to its fleet. ExpressJet will also divest its E175s, becoming an ERJ-145-only carrier. “Last year was an exceptionally challenging financial year and early indications point to 2020 continuing down the same path,” the Trans States memo to employees, leaked Feb 24, reads. “In short, our expenses continue to rise, resulting in a balance sheet that is neither profitable nor sustainable.” <br/>