unaligned

Virgin Atlantic’s quest for a state bailout has been backed by some of aviation’s biggest companies, with the aerospace giants Airbus and Rolls-Royce as well as Heathrow all lobbying the government on the airline’s behalf. The trio have sent letters to the transport secretary, Grant Shapps, this week urging state assistance for Sir Richard Branson’s airline, which is seeking hundreds of millions of pounds in loans and credit guarantees. Virgin has ordered a fleet of Airbus 330 aircraft, with Rolls-Royce engines, whose wings are made at the Airbus Broughton plant in north Wales. The airline also had plans before the coronavirus to expand at London Heathrow. In one of the letters, John Harrison, the general counsel and UK chairman of Airbus, said that Virgin’s “collapse could have an extremely negative impact on the A330 programme”. He added: “As you will be aware, all wings for these aircraft are designed and manufactured in the UK, and orders from airlines like Virgin are vital for the continuation of our business.” Rolls-Royce has also stressed the “significant importance” of Virgin’s custom to the company and its UK supply chain. A Heathrow spokesperson confirmed that the airport had written on Virgin’s behalf, and said: “The government must take urgent steps now to safeguard the future of the sector or it will risk undermining the recovery of Britain’s economy once we beat the virus.”<br/>

EasyJet founder has called for a shareholder meeting to oust one of the discount airline’s directors, following through on a threat to remove the board one-by-one in a dispute over a GBP4.5b aircraft order. Stelios Haji-Ioannou, EasyJet’s biggest owner with a 34% stake, proposed a general meeting to remove director Andreas Bierwirth, according to a letter sent late Wednesday to the airline’s chairman, John Barton. Bierwirth, a former airline and telecommunications executive, has been a member of the board since 2014. Haji-Ioannou, who has long opposed buying new aircraft, this week turned up the heat on a low-simmering campaign to halt the purchase of more than 100 Airbus SE narrow-body jets. The 53-year-old entrepreneur, emboldened by the coronavirus crisis that’s suddenly turned large spending commitments into a millstone, on Sunday demanded the deal for A320-family planes be terminated. He threatened to challenge one non-executive director every seven weeks, tying up the board with a series of cumbersome and divisive general meetings until it succumbs. “The board is focused on managing the unprecedented challenges facing the airline and the aviation sector as a whole,” it said in response to Haji-Ioannau’s letter. “We believe that holding a general meeting would be an unhelpful distraction from tackling the many immediate issues our business faces.”<br/>

Wizz Air CEO Jozsef Varadi said Europe’s third-biggest discount carrier will take delivery of hundreds of new jetliners as planned despite idling 90% of capacity in response to the coronavirus outbreak. Wizz will accept all 15 Airbus planes due this year, followed by the rest of its commitment, to position itself for a post-virus rebound in travel demand and seize on expansion opportunities as the pandemic pushes rivals toward collapse, Varadi said Wednesday. While European airlines have enough cash to survive two months on average, according to the IATA, Varadi said Wizz has sufficient liquidity to span 1 1/2 years, and called on states to resist handing out aid that could distort the market by propping up inefficient carriers. “Most European airlines have been badly mismanaged when it comes to liquidity,” he said from Wizz’s headquarters in Budapest. “Now they’re all begging for state support. Governments should only be stepping in in areas of employment and reducing charges such as air-navigation costs.” Varadi said he’s concerned that Germany in particular might dole out billions of euros in backing for Lufthansa that would “completely destroy the market” and set a precedent for bailouts with a social agenda. Only the UK appears to be taking a measured approach, he said, with a pledge to provide aid only as a last resort and then on purely commercial terms.<br/>

Cityjet is seeking advice from its auditors Deloitte and other parties as it navigates through the Covid-19 crisis, the airline confirmed. The Dublin-based carrier flies mainly short-haul routes under contract to European airlines such as Scandinavia’s SAS and Air France KLM. Cityjet said that along with all other airlines it was reviewing its activities as a result and was speaking with “external agencies and stakeholders in relation to guidance and support during this period, including our auditors Deloitte”. The company added that it recognised the importance of getting guidance from its stakeholders and auditors on “navigating its way through this difficult period of inactivity” and on preparing to restart operations when conditions allowed. Cityjet shifted over the last few years from flying its own scheduled services to focus on “wet leasing”, that is providing craft and crew to operate routes for other airlines . The airline operates a Dublin-to-City of London Airport service for Irish carrier, Aer Lingus, among others.<br/>

Australia's Regional Express (Rex) airlines will keep flying after a last-minute intervention from the Queensland Department of Transport and Main Roads. The struggling airline back-flipped on a decision to suspend services indefinitely Tuesday, after the coronavirus pandemic crippled business demand. The company said it would introduce a reduced schedule from tomorrow on all five TMR regulated routes. "A final agreement has not yet been reached with TMR on the reduced schedule, however Rex will run the reduced schedule in good faith until April 8, 2020," a statement read. The Gulf Route has been temporarily reduced from five to three return services per week. The Northern 1 and 2, Western 1 and 2 routes have all been cut to one service per week. The Torres Cape Indigenous Council Alliance said it's pleased the Queensland Government has stepped in to help. <br/>

NokScoot is trying to get a grip on its battle with the coronavirus pandemic, while acknowledging that its healing period may take longer in comparison with other airlines because of its dependence on international routes. The low-cost carrier, a joint venture of Nok Airlines and Singapore's Scoot, saw revenue jump 23.7%, from 5.8b baht in 2018 to 7.2b baht last year, as it carried 1.59m passengers, up from 1.16m. But a reversal is on the cards this year as aviation players are hit hard by the coronavirus. "Our recovery may come with a slower pace compared with other local airlines, which also have domestic routes to cushion the impact," said Yodchai Sudhidhanakul, CE of NokScoot. Restarting international flights will require more time to ensure that both Thailand and foreign destinations have the outbreak under control. Yodchai said China exemplifies how travel activity is improving and tourist flow is restarting within the country. Thailand will follow suit with domestic routes restarting at first. Due to travel restrictions in many countries, Thailand included, NokScoot temporarily suspended all international flights from March 25 to April 30. Yodchai said all airlines are facing a liquidity crisis as they contend with fixed costs while grounding entire fleets. "Even though every airline must be prepared for a three-month liquidity crunch, in case of unexpected circumstances, the ongoing pandemic is likely to last longer than we've planned," he said.<br/>

Indonesia AirAsia has been forced to halt its growth plan for this year, as a result of the coronavirus pandemic and economic challenges faced by Indonesia. The plan for 2020 was for the low-cost carrier to increase its market share by adding three new aircraft and launching new services, having recorded a 28% growth in revenue for 2019 as compared to 2018, says parent company AirAsia Indonesia. The viral outbreak has led to travel restrictions imposed by neighbouring countries, and is affecting demand for domestic and international air travel. AirAsia Indonesia says that Indonesia’s “economic situation has become more challenging”, noting that the exchange rate for rupiah against the dollar is now at more than Rp16,000, and it continues to fluctuate. “By considering these factors carefully and deeply, the company is forced to suspend international and domestic flights until the situation improves, and demand for air travel picks up. The measure will certainly have a significant influence on the company’s operating and financial performance in the first half of 2020,” says AirAsia Indonesia. Indonesia AirAsia suspended operations on 1 April. Domestic flights are suspended until 21 April and international flights until 17 May.<br/>