unaligned

JetBlue will require passengers to wear face masks or other face coverings beginning May 4, becoming the first US airline to do so as the coronavirus pandemic continues. The move by the airline comes amid increasing calls from airline union leaders, consumer groups and elected officials about the need for face coverings to help slow the spread of the virus and, eventually, reassure travelers it is safe to fly. On Monday, Rep. Steve Cohen, D-Tenn., a member on the aviation subcommittee of the House Committee on Transportation and Infrastructure, sent a letter to FAA administrator Stephen Dickson, CDC Director Robert Redfield, and the secretaries of Transportation, Elaine Chao and Health and Human Services, Alex Azar, urging them to require face masks. "We know that masks are one of the most effective tools to mitigate people’s risk of exposure when those around them are also wearing masks," Cohen said in the letter. "As air travel continues to increase while the country slowly starts to reopen, it’s imperative that the flying public feel safe and comfortable in doing so. This should include the requirement of masks, which will accomplish this goal and protect both crew members and passengers."<br/>

Southwest is in talks with lenders about raising billions of dollars in new equity and debt to bolster its balance sheet to weather the impact of the coronavirus pandemic, according to people with knowledge of the matter. The company is in discussions with banks about financing options that would result in billions of dollars of proceeds through the issuance of a mix of common equity, convertible notes and debt, said the people, who asked not to be identified because the matter is private. Southwest, which is slated to announced Q1 results Tuesday, could launch capital-markets transactions as soon as this week, the people said. The composition and terms of the financing package are in flux and a final decision has yet to be reached, they said. A Southwest spokesman declined to comment.<br/>

EasyJet’s CE has hit out at a “highly undesirable” intervention by its founder and largest shareholder, Stelios Haji-Ioannou, as the airline called a general meeting in the latest escalation of a dispute over its Airbus contract. The budget carrier announced Monday that investors would vote on a resolution to remove four of its directors, put forward by Haji-Ioannou as part of a long-running campaign to make the company reduce its fleet and cancel its Airbus contract. Johan Lundgren, CE, who is among the directors that shareholders will vote on removing, said the intervention was “unhelpful” and “a distraction” as the industry battled with the effects of the coronavirus pandemic. “It’s highly undesirable,” he said. “Quite frankly we should be spending our time on the big issues that are at hand.” Haji-Ioannou, who with his family holds a 33.7% share in easyJet, has for years been at loggerheads with the company’s management over his demand that it reduce its fleet to 250 from 344. He has said the current size damages the airline’s profitability and has insisted it cancel its contract with Airbus for an order of 107 aircraft. “The scoundrels have not said how they can save easyJet from bankruptcy and keep paying Airbus. Cancelling the Airbus contract is the only chance we have to save easyJet,” he said Monday.<br/>

Norwegian Air Shuttle has warned that the bulk of its fleet is likely to remain grounded for the next 12 months and that a full recovery would not take place until 2022, laying bare the scale of the crisis engulfing the airline industry. As part of a planned $1.2b debt-for-equity swap to try to ensure the low-cost airline’s survival, Norwegian said Monday that its base case was that its fleet would remain fully grounded until April 2021, apart from the seven aircraft currently flying in Norway. It would then begin a gradual ramp-up of both its European short-haul and long-haul operations to the US and Asia over the rest of 2021 before normal activity returns in January 2022. As well as its base case of a full recovery in 2022, the airline added two other scenarios: an early recovery starting in Q3 this year, with short-haul back to normal in Q3 2021 and long haul in 2022; and a sustained grounding of its fleet under which its cash would run out in six to nine months. Norwegian warned its existing shareholders on Monday that they would be all but wiped out by its debt-for-equity swap and a fourth rights issue.<br/>

American airline investor Indigo Partners approached three of Virgin Australia's major shareholders about buying a controlling stake in the airline 18 months ago, in a sign it is a serious bidder for the now-collapsed company. The Arizona-based fund, which owns stakes in the US carrier Frontier and Wizz Air, is one of at least 11 parties looking to take control of Virgin after it went into voluntary administration last Monday owing almost $7b. Indigo Partners has previously looked at investing in Virgin, according to well-placed sources with knowledge of the events, and came close to buying a controlling equity stake near the end of 2018. The firm agreed to buy a 20% stake in Virgin from Chinese conglomerate HNA, which was undergoing a fire-sale of its global assets to pay down crushing debts, and approached fellow Chinese investor Nanshan and Abu Dhabi's Etihad Airways about acquiring some or all of their 20% shareholdings in Virgin too, according to a source who spoke on the condition of anonymity because the discussions were confidential. However, the deal fell apart because one or both of the other shareholders rejected the offer. Indigo did not want to be left with the same level of control over Virgin as three other major shareholders, a situation it believed was responsible for the company's strategic paralysis.<br/>

The High Court has confirmed the appointment of an examiner to the regional airline CityJet. Justice Michael Quinn said Monday he was satisfied to appoint insolvency practitioner Kieran Wallace of KPMG as examiner to CityJet. The decision gives Wallace, who earlier this month was appointed on an interim basis, up to 100 days to formulate a scheme of arrangement with the airline’s creditors which must then be approved by the court. The airline and its subsidiaries, which flies routes on behalf of other airlines including SAS and Aer Lingus, and employs 1,175 people, 417 of whom are based in Dublin, believes it can continue. There were no objections to the airline being granted the protection of the court from its creditors. Rossa Fanning, for CityJet, said some creditors were supporting the application. The airline said it became insolvent arising out of financial difficulties which were exacerbated after its fleet of over 30 aircraft was grounded due to the Covid-19 outbreak.<br/>

AirAsia has introduced new personal protective equipment (PPE) for its cabin crews to be used as flights resume in the coming days in the region. Designed in collaboration with Filipino fashion designer Puey Quiñones, the PPE suits, which were launched last Friday during a recovery flight from Bangkok to Manila, embrace the airline's signature red-hot colour and have reportedly been approved by the Philippines' Department of Health. Flight attendants will be required to wear the PPE on all of the carrier's domestic and international flights.<br/>