El Al called on Israeli PM Benjamin Netanyahu to save it Wednesday, rejecting what it said were impossible conditions for state-backed loans. Israel’s government is demanding an overhaul of El Al, including layoffs, before agreeing to a lifeline. The cash-strapped airline has been locked in negotiations with Finance Ministry officials over Israel backing a $400m loan to help it through the coronavirus crisis. Foreign visitors are barred from entering the country and incoming Israelis must be quarantined, which combined with a global fall in demand for travel has hit El Al hard. El Al CEO Gonen Usiskin said in a letter to Netanyahu that the demands would send the airline into liquidation. “We ask that you instruct the Finance Ministry to amend the plan,” Usishkin wrote, adding it “refuses to connect El Al to a ventilator, as most countries in the world have done”. El Al has committed to refunding the value of unused tickets to customers totalling US$285m, but if it goes bankrupt, customers would lose this money, he said.<br/>
unaligned
An Illinois federal court has ruled that proposed class claims brought against Southwest Airlines by employees under an Illinois biometric privacy law must go forward before a federal labor board instead of in federal court. US District Judge Steven C. Seeger in Chicago on Tuesday granted Southwest’s motion to dismiss, ruling that the claims of three of the named plaintiffs, who started as unionized ramp agents before being promoted to supervisory roles, must proceed before an “adjustment board” under the Railway Labor Act, while claims of a non-unionized fourth plaintiff must be sent to arbitration because he signed an agreement requiring arbitration of some claims as part of employment for non-union members.<br/>
Emirates plans to operate scheduled passenger flights to nine cities from May 21, the first such service since it grounded most operations to contain the spread of the coronavirus. The destinations include London Heathrow, Frankfurt, Paris, Milan, Madrid, Chicago, Toronto, Sydney and Melbourne, the Dubai-based airline said. It will also offer connections in Dubai for those flying between the UK and Australia. “We are working closely with the authorities to plan the resumption of operations to additional destinations,” said Adel Al Redha, Emirates’ COO. Travellers will only be accepted on these flights if they comply with the eligibility and entry criteria requirements of their destination countries. This includes an approval from the Federal Authority for Identify and Citizenship for UAE residents who wish to return to Dubai.<br/>
Brazil airline Gol Linhas Aereas Inteligentes said Wednesday it will receive up to 2.4b reais ($412m) from Boeing as compensation for the grounding of the 737 MAX plane, in a mix of cash and credits. The aircraft has not flown in more than a year because of two deadly crashes that forced regulators to scrutinize the safety of its design. The timing of the payments has become a lifeline for Gol, which, like its peers worldwide, is reeling from the coronavirus crisis. But the disclosure also provides a point of reference for what kind of compensation other airlines will be able to obtain. According to Gol, it has already received close to 500m reais in cash. In addition, it stands to receive up to 1.9b reais in credits that can be applied to new aircraft acquisitions, used to reduce interest and depreciation expenses.<br/>
Brazilian airline Azul said Wednesday it had agreed with planemaker Embraer to delay the delivery of 59 E2 jets, with a list price of 24.5b reais ($4.16b), to 2024 or later. The planes had been initially set for delivery from 2020 to 2023, according to an Azul securities filing. Azul said the agreement was a step to shore up its business amid the COVID-19 pandemic, which also led it to reduce its April capacity by 90% in comparison to the same month in 2019.<br/>
Thai AirAsia’s parent company has posted an operating loss of Bt1.37b ($42.7m) in Q1 2020, partly due to a fall in its total revenue. This contrasts to an operating profit of Bt1.12b for the same quarter last year. Asia Aviation’s revenue for the quarter ended 31 March fell 19.1% to Bt9.4b. Expenses were up 2.6% to nearly Bt10.8b, partly due to a Bt2.1b cost incurred on what it classifies as “other expenses”. Net loss for the three month period came in at just over Bt671m, reversing the Bt497m net profit made last year. A document that was filed to the Stock Exchange of Thailand together with the results says the coronavirus pandemic has affected the company’s aviation business, as Thai AirAsia has had to suspend or reduce flights until the pandemic eases. Thai AirAsia suspended international flights from 22 March until 31 May, and halted domestic flights between 1 April and 30 April.<br/>
Nineteen companies and investment funds in Australia and overseas are expected to meet a Friday deadline to submit non-binding indicative offers for Virgin Australia Holdings, which in April became the first Asia-Pacific airline to succumb to the coronavirus pandemic and enter bankruptcy proceedings. "We've seen a high level of interest from a number of high-quality parties and discussions with them are progressing very well," Deloitte, the airline's administrator, said Wednesday. "We will then work even more closely with the parties we choose to take to the next stage that will allow them to prepare binding offers by 12 June." The country's second-largest airline on April 21 announced it had entered voluntary administration, an equivalent to Chapter 11 bankruptcy in the US, owing creditors nearly A$7b. Deloitte aims to agree to a deal with a buyer by the end of June. The Australian government has earlier suggested it will not provide support to a specific company. Michael McCormack, deputy PM and minister for infrastructure, transport and regional development, hinted he would leave the reconstruction of Virgin Australia to the private sector. "We will engage constructively with Virgin Australia's administrator to ensure Australia maintains two commercially viable airlines," he said. The 19 potential buyers are expected to submit indicative offers, according to a person familiar with the matter.<br/>