general

ICAO predicts 1.2b fewer air travellers by September

ICAO forecasts that the Covid-19 crisis could send the number of international air travellers falling by up to 1.2b by September 2020, compared to a typical year. It also estimates that airline revenues could fall by US$160b-$253b for the first 9 months of this year, with international capacity down by up to two-thirds. According to its baseline scenario, referencing originally planned capacity, passenger numbers could have risen by 64m in the first 9months of this year, while revenues could have increased by $15b. In a new report published Tuesday, ICAO says that Europe and Asia-Pacific will see the greatest hit to capacity and revenue. Over two-thirds of the predicted revenue loss will be accounted for in Asia-Pacific and Europe, it estimates. <br/>

Boeing set to cut Dreamliner output, jobs on plunging demand

Boeing is poised to cut 787 Dreamliner output by about half and announce workforce reductions when it reports Q1 earnings next week, said people familiar with the plans. Details of the production changes for Boeing’s commercial line-up are still being finalised and will determine the number of jobs to be eliminated through layoffs and buyouts, said the people. The planemaker plans to lower the Dreamliner’s monthly output, which began the year at 14 jets, to a single-digit rate. CE Dave Calhoun hinted that painful measures would be needed when he warned employees last month of a “new reality” with a far smaller jetliner market when the world emerges from the coronavirus pandemic. Global airline sales are projected to plunge by US$314b this year and travel may not recover fully until mid-decade. <br/>

Mideast, African govts failing to protect airlines: IATA

Middle Eastern and African govts are failing to take the action required to protect their airlines from the economic crisis caused by the new coronavirus pandemic, IATA said Thursday. Several states have stepped in to help their airlines that have seen travel demand decimated by the global outbreak, such as the US, Singapore and Australia, though few in the Middle East have made their intentions clear. IATA has been consulting with African and Middle Eastern govts, regulators and stakeholders on how to revive air travel as some countries start to slowly ease lockdowns. However, IATA VP for Africa and the Middle East, Muhammad Albakri, said the association was not satisfied with Middle Eastern state efforts to support their airlines. <br/>

Thailand: Domestic flights may resume May 1, but under strict conditions

If provinces where tourist destinations are located start lifting their restrictions next month, then airlines will be allowed to resume domestic flight services but only under strict conditions. Chula Sukmanop, director-general of CAAT, said Thursday that he has met with representatives of both local and international airlines to discuss the option of allowing domestic flights to start operating from May 1. “Though the Covid-19 outbreak appears to be subsiding and carriers are preparing to resume operations, every airline is required to strictly follow every disease prevention rule,” he said. Passengers need to have their own mask and are not allowed to bring food on the plane. For flights that are longer than 90 minutes, airlines must reserve seats at the back of the plane for passengers who show symptoms of Covid-19, he said. <br/>

Indonesia: Jakarta suspends passenger flights, rail service

Indonesia is suspending passenger flights and rail service as it restricts people in the world’s most populous Muslim nation from traveling to their hometowns during the Islamic holy month of Ramadan because of the coronavirus outbreak. The transportation ministry’s director general of aviation, Novie Riyanto, said late Thursday the flight ban applies to both domestic and international flights. He said there would be some exceptions, including for leaders of state institutions, representatives of international organisations and the repatriation of Indonesian citizens. President Joko Widodo previously banned people from traveling home to celebrate Eid al-Fitr to mark the end of the daily fasting, amid warnings from health experts that Indonesia could face a virus outbreak affecting 1m people unless it takes stricter measures. <br/>