Israel is considering options for El Al Airlines that include a bankruptcy filing as the coronavirus outbreak wipes out demand for travel, according to people with knowledge of the situation. Officials are also examining the scope for mergers involving El Al and Israel’s 2 other main airlines, Israir Airlines and Arkia Israeli Airlines, according to 1 person. While radical steps are under consideration, discussions centre on govt-backed loans that would come in return for an efficiency plan including job losses and salary reductions, another person said, adding that the aid could total US$500m. El Al, which was struggling for profitability even before the pandemic, has already announced job workforce cuts and furloughs. <br/>
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Cebu Pacific says the month-long “community quarantine” imposed on metropolitan Manila and the main Luzon island group recently will free up 90% of its total seat capacity, even as it maintains services from its hubs outside of Manila and the region. The 90% capacity figure is based on the suspension of domestic flights departing Manila, and previously suspended services to China, Hong Kong, Macau and South Korea, says Cebu Pacific in a Philippines Stock Exchange disclosure. During this period, the airline continues to operate flights from its other hubs that have not been affected by the quarantine order such as Cebu, and is maintaining connectivity “where operationally feasible”. In February, domestic routes accounted for 83% of Cebu Pacific and subsidiary Cebgo’s seat capacity. <br/>
As a result of the current air travel shutdown, Tata Sons may be strategically compelled to operate just 1 rather than 2 airlines — AirAsia India and Vistara, and Air India’s privatisation is unlikely to proceed in FY21. IndiGo and SpiceJet, the two listed carriers alone could report combined losses of US$1.25b-$1.5b across FY20 and Q1 of FY21, according to the indicative numbers released by CAPA Wednesday. “Given the expected decline in traffic, both Delhi and Mumbai airports are expected to consolidate their operations in a single terminal in the near-term, as and when service resumes,” the CAPA report said, adding that post-Covid-19, a substantially different aviation sector would emerge. The impact of the shutdown due to the coronavirus pandemic will be so severe that even the stronger carriers may not be immune. <br/>
Fastjet, already under substantial financial pressure, is having to cope with the additional burden of the coronavirus outbreak after the South African and Zimbabwean govts imposed travel restrictions. Fastjet Group, which has been working to sell its Zimbabwean arm, says the South African govt is locking down the country from March 26 to April 16, while Zimbabwe is banning all non-essential travel as part of its measures to contain the outbreak. The company is suspending all Zimbabwe flight operations for 3 weeks from March 27. It adds that its FedAir operation is experiencing “significant deferrals” of current bookings to late 2020, away from the typical peak seasons around the Easter and summer holiday periods. <br/>