United has drawn up plans to slash its workforce if there is not a swift rebound in air travel, as its incoming CE wrestles with how to cut the carrier’s cash burn. Scott Kirby, United’s current president, who will take the top job on May 20, said the airline could lower its cash burn to $20m a day in Q4 under a plan that assumes demand for air travel remains at zero into next year. “What I’m about to describe I hope and pray we won’t have to do, but we already have a plan on the shelf . . . to get our cash burn, at a worst case, down to $20m per day,” Kirby told investors on Friday. The airline is currently burning about $50m in cash per day as the aviation industry struggles to manage an unprecedented drop in demand caused by coronavirus. United said that figure would fall to beneath $45m in Q2, then south of $40m in Q3. “The difference between that third-quarter number and that fourth-quarter number is really about employees,” Kirby said. Like all the major US carriers, United received a portion of a $50bn bailout from US taxpayers. The terms of the deal prevent the airline from laying off or furloughing workers until after September 30. <br/>
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Lufthansa said Sunday it was close to a deal with the German government on state aid to ease the impact of the coronavirus crisis. The group, which warns it is bleeding cash and might have to declare insolvency, had appeared to be stalled in its bid for up to E10b in aid, according to a report in the weekly Der Spiegel. But in a note from Lufthansa directors to staff, the company said it has held "intense and constructive exchanges" with the German government on the financial help. "In our view these discussions could be concluded in the near future," it said. "Support from the German state constitutes an essential step towards ensuring our future," it said, as Europe begins to ease measures taken to stem the spread of COVID-19. According to Der Spiegel, the German government is holding out for a stake of just over 25 per cent in the group in exchange for financial aid, which would put Berlin in a position to block strategic decisions by Lufthansa management. The Social Democratic Party (SPD), which includes Finance Minister Olaf Scholz among its ranks, has warned Lufthansa it cannot expect a blank cheque from Berlin. The group's supervisory board is to meet on Monday, and hold an online general assembly a day later.<br/>
SAA’s administrators extended a deadline for workers to agree to severance packages after Minister for Public Enterprises Pravin Gordhan said he needs time to explore funding options for the bankrupt state-owned carrier. The business-rescue team led by Les Matuson and Siviwe Dongwana are trying to persuade labor groups to sign off on retrenchment deals as a possible alternative to liquidation proceedings, which could see the near 5,000-strong workforce made unemployed without compensation. The plan is opposed by Gordhan, who wants to instead build a new airline. Unions now have until May 8 to agree to the offer to workers, according to a letter signed by the administrators. If they refuse, all employees -- whether represented or not -- may be given a further three days to make up their own minds. The Department of Public Enterprises said Friday it wants to create a national carrier that’s both publicly and privately owned, profitable and able to serve South Africa’s trade connections. SAA’s entire fleet is currently grounded as governments around the world close borders to contain the Covid-19 pandemic.<br/>
The government should offer a loan to THAI rather than guaranteeing one if it wants to ensure a more sustained rescue of the national carrier, according to a former THAI board member. In a Facebook post to mark the airline's 60th anniversary, Banyong Pongpanich said that while he did not object to the Finance Ministry pledging to guarantee a loan of 50 billion baht for the airline, it could do better by lending to THAI itself and demanding change as one of its creditors. It is not known at this stage whether any entity has offered a loan to rescue the troubled carrier. Banyong said it was "high time THAI undergoes some much-needed major surgery" and this was one way to achieve it. In the end the government will have to pay to bail out the airline anyway, he said, noting the 50b baht would only be enough to extend the airline a lifeline for five months. However, he suggested the government could, as a creditor, accomplish more to straighten out the airline's finances than being a loan guarantor. But before a loan could be extended, the government should make sure the airline goes into a rehabilitation process under the bankruptcy law.<br/>
The Anchorage airport, Alaska’s largest, temporarily shut Saturday to inbound traffic because of a bomb threat against a China Airlines cargo flight bound for Taiwan. The cargo plane diverted to Ted Stevens Anchorage International Airport early in the morning after leaving Seattle, airport officials said. No bomb was found and the airport was reopened shortly before noon, officials said. The plane was searched in a secure, remote section of the airport, the airport said, with the FBI and Anchorage Police Department. “After extensive investigation, no explosive device was located,” the airport’s police and fire department said. “Investigation at the airport has been completed, however, the investigation into the source of the threat continues. The FBI does not believe there is any continuing threat to our community as a result of this incident.” China Airlines, Taiwan’s largest carrier, said in a statement the flight had already taken off for Taipei when it was informed of the threat by Seattle airport. The plane was then diverted to Anchorage. The crew were taken to a hotel to rest while police searched the aircraft and determined nothing unusual, it added.<br/>
Some 800 SIA cabin crew are currently utilising the skills they have learnt on the job for alternative roles, helping Singapore's fight against the coronavirus outbreak. Besides serving in hospitals, they have also been deployed as transport ambassadors at public transport hubs. SIA announced on April 25 an extension of flight cancellations to the end of June amid travel restrictions around the globe. Currently, SIA has passenger flights to just 15 destinations, compared with more than 130 normally. The SIA Group has committed to providing at least 300 care ambassadors, 500 transport ambassadors and 150 contact tracing ambassadors, and continues to explore other avenues where its employees can help, said a spokesman for SIA. Senior vice-president of human resources Vanessa Ng said: "We are very proud of our cabin crew, who have stepped forward to support Singapore's front-liners on several fronts. The spirit of giving back to the community runs high in the SIA culture, as shown in the many ways in which our people have risen to the occasion during this challenging time. We are in this together with the rest of Singapore as we battle to overcome Covid-19."<br/>