general

US travel group sees lost sales of US$520b by year-end

A US travel industry group estimates that lost revenue as a result of the coronavirus pandemic could approach US$520b by the end of the year, with much of the tourism industry still depressed in December. The US Travel Association -- which represents airlines and other transportation companies, and other parts of the industry -- released an economic analysis Monday that said the sector is on track to lose 6.9m jobs and $83b in revenue in April alone as a result of the pandemic and could peak in coming weeks. The industry has been particularly hard-hit. Customers aren’t likely to rush to get on crowded planes or enter packed museums even after lockdowns are lifted. The group’s analysis also predicted nearly 43m fewer international travellers to the US in 2020, resulting in nearly $120b in lost revenue. <br/>

US: Business travel has stopped. No one knows when it will come back.

Business travel worldwide has basically come to a standstill in the coronavirus pandemic. When it will come back, and in what form, is anybody’s guess. “Everyone will have to learn how to be comfortable around people, especially in large airports, on crowded planes, and in very large convention hotels and resorts,” said Henry Harteveldt, founder of Atmosphere Research Group, a travel analysis firm in San Francisco. In a survey this month by the Global Business Travel Association, a trade group for corporate travel managers, nearly all its members said their employers had canceled or suspended all or most previously booked or planned international business travel, while 92% said all or most domestic business travel had been canceled or suspended. <br/>

Canada: Airline passengers now required to wear face masks

As of noon Monday, Canadian airline passengers must wear a non-medical face mask covering their mouth and nose while travelling. The directive, designed to limit the spread of COVID-19, was announced by Transport Canada April 17. “Canadians should continue to follow public health advice and stay at home if possible,” Transport minister Marc Garneau said. “Transport Canada will continue to ensure various transportation systems adapt to the most effective, preventive measures to protect Canadians.” Canadian fliers on all departing or arriving flights will have to demonstrate they have the necessary mask or they won’t be permitted to continue their journey. <br/>

Brazil considers further flight cuts as coronavirus crisis bites

Brazil's govt is discussing with the country's main airlines further reducing a minimal flight schedule implemented due to the coronavirus crisis as travel demand remains close to zero, 3 sources told Reuters. The existing pared back flight schedule was designed by Brazil's civil air travel regulator in late March and connects 46 of Brazil's cities with close to 180 flights per day on average. Brazil is larger than the continental US and has some 210m people. But a study by Brazil's govt, the sources said, found that there are too many empty or close-to-empty flights in the current schedule. The country's 3 main airlines are also bleeding cash, like their peers around the world, with most of their fleets grounded. <br/>

Indian carriers to fully refund ‘lockdown’ tickets

Indian airlines have been asked to issue a full refund for tickets booked for travel during the country’s recently extended lockdown period, and this could impact their cash position. In a memorandum, the DGCA said April 16 that tickets booked and paid for during the initial lockdown period of March 25 to April 14, and for travel during that same period, must be fully refunded without cancellation charges. The same applies to tickets booked during the first lockdown period for travel during the extended lockdown period of April 15 to May 3. The measures apply to both domestic and international flights and the airlines must complete refunds within 3 weeks of passengers requesting them. Before DGCA’s announcement, most airlines declined to provide refunds and instead offered credits. <br/>

Big Japanese 787 suppliers suspend operations

Boeing’s Tier 1 manufacturers in Japan have suspended 787-related operations, following the US airframer’s factory closures in the US due to the spread of the coronavirus. Kawasaki Heavy Industries and Subaru’s aerospace unit both announced the closure of their 787-related factory lines from April 20 until May. Kawasaki’s Nagoya facility produces a large number of 787 parts, including the forward fuselage section, main landing gear well, as well as the fixed trailing edge. The company states it will restart operations May 6, and that production at its other lines remain unaffected. Meanwhile, Subaru, which produces the centre wing box for the 787, will resume operations May 11. Like Kawasaki its other manufacturing facilities will carry on operations. <br/>

CDB cancels 29 737 Max orders, defers others

CDB Aviation is cancelling 29 of 99 Boeing 737 Max orders while making adjustments to the rest of its orderbook for the type. It plans to push back the delivery of 20 undelivered aircraft to “various dates in 2024, 2025 and 2026” and, without providing further details, downgauge all remaining Max 10s on order to the smaller Max 8 variant. The lessor is the world’s 12th largest by virtue of its US$7.4b portfolio value, according to Cirium. It has now become the third in the Top-20 list to slash its exposure to the troubled narrowbody. Ascend by Cirium’s global head of consultancy, Rob Morris had said earlier this month following the Avolon cancellations that Boeing must be “extremely concerned” that other lessors may follow suit. CDB Aviation says it is “beneficial to all parties involved”. <br/>