Emirates is suspending most of its passenger operations from March 25, but intends to continue freight services. Emirates has the world’s largest Airbus A380 and Boeing 777 fleets, and has been trying to maintain passenger flights for as long as it could, in order to ease passengers’ efforts to return home. But increasing restrictions – including the March 19 suspension of all entry visas to the UAE – have forced the carrier to cut back its operation substantially. “We find ourselves in a situation where we cannot viably operate [certain] passenger services until countries re-open their borders, and travel confidence returns,” says Emirates Group CE Ahmed bin Saeed Al Maktoum. It will continue to operate passenger flights to a limited number of countries as long as borders remain open and demand continues. <br/>
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Virgin Australia said Monday it expected to make a material reduction in its domestic capacity after the Australian govt advised against non-essential domestic travel and some states tightened travel restrictions because of the coronavirus. The airline said more information would be provided in the coming days. Virgin said last week it would ground all international flights and cut its domestic capacity in half as travel demand plunges due to the coronavirus outbreak. Moody's Friday downgraded Virgin's credit rating to B3 from B2 and placed it on review for further downgrade. The ratings agency cited a sharp fall in passenger traffic that will result in significant negative free cash flow, a weakening liquidity profile and higher leverage in the financial year ending June 30. <br/>
Regional Express Airlines says it will ground all regular passenger services outside of Queensland in a fortnight unless state and federal govts cover the company's losses caused by the coronavirus pandemic. The move would sever air transport links to some regional communities, Rex the only airline operating on most of its routes. Rex's deputy chairman John Sharp said the airline supported govt measures restricting travel to contain the pandemic but those steps would cause passenger numbers to fall by about 80%. "There is a tipping point in the airline business beyond which it will no longer be sustainable to operate reduced services," Sharp said. If govt failed to render further assistance, Sharp said that "we will see regional communities lose their air services for many months ahead". <br/>
Volotea has announced the temporary grounding of its entire fleet until at least April 8, sending home 1,100 of its employees in Spain, France and Italy over this period. The airline says the grounding of its fleet of 19 Airbus A319s and 14 Boeing 717s jets is a consequence of both the collapse of demand for air transport amid the coronavirus outbreak and the national curfews and regulations limiting air traffic, such as the virtual prohibition of passenger flights to the Balearic Islands, except for tourist repatriation flights. Volotea, Spain’s fourth-largest airline, is offering customers booked on the cancelled flights the option to choose between a refund or a voucher worth 120% of the ticket price paid. This news comes a day after Iberia announced that it will temporarily lay off nearly 14.000 of its employees. <br/>