Two of the world’s largest aircraft leasing companies — including one controlled indirectly by the Chinese state — have become the biggest shareholders in Norwegian Air Shuttle as the embattled low-cost airline sealed its government-backed rescue. Norwegian said on Wednesday that Ireland’s AerCap will own 15.9% while BOC Aviation, majority owned by Chinese state-controlled Bank of China, will have a 12.7% stake after they convert parts of their lease obligations into shares in Europe’s third-largest, low-cost airline. The carrier, which has struggled with high debt levels after a rapid expansion into low-cost, long-haul travel, has unlocked a $300m loan guarantee from the Norwegian government after Oslo set tough conditions for a rescue including boosting its equity ratio. Norwegian said its equity ratio was now 17%, up from about 5% at the start of this year. Norwegian itself has said more support may be needed after the summer, especially as it forecasts no real return in flying until next Easter and that operations will only be back to normal by 2022. “The months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company has limited revenues,” said CE Jacob Schram.<br/>
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Virgin Australia’s fast-dwindling cash reserves have rekindled union calls for a government bailout of the stricken airline ahead of a meeting of key creditors on Thursday. The administrators, partners at big accounting firm Deloitte, say they are likely to require “interim funding” from the end of next month and have been discussing options with the federal government. They have also spent the past week obtaining court approval to avoid personal liability for the debts the airline continues to run up under their stewardship, in a bid to keep it alive long enough to sell it. In late March, as passenger bookings plunged due to the coronavirus crisis, Virgin Australia sought $1.4b in government funding to stay alive until the end of the pandemic. But on Friday, the lead administrator, Vaughan Strawbridge, told Guardian Australia he had more than $100m on hand, which would be enough to see the airline through to a sale by mid- to late-June. “Cash has been unlocked within the business and cost reductions have been achieved,” a Deloitte spokesman said on Wednesday.<br/>
El Al Israel Airlines on Wednesday extended a suspension of scheduled commercial flights until June 20 but said it would continue to use its aircraft for cargo and occasional passenger flights. While Israel has started to ease tight coronavirus lockdown restrictions, policy requiring incoming passengers to enter quarantine and a ban on foreigners entering the country was extended on Tuesday, the airline said. "In light of the low demand for passenger flights, the company has decided to extend the temporary cessation of flights,” it in a regulatory filing in Tel Aviv. Israel’s flag carrier halted flights in late March but the suspension has been extended repeatedly since. About 6,000 of the carrier’s 6,500 workers are on unpaid leave until June 30.<br/>
Southwest will start serving in-flight snacks and drinks on Friday after a two month absence due to the coronavirus outbreak. But passengers won't be able to cash in one of the airline's coveted drink coupons: Booze is not back on the menu, at least yet. The airline is phasing service back in, starting with cans of water and a package of snack mix that includes pretzels, cheddar cheese squares and ranch bagel chips on flights of more than 250 miles, Southwest spokesman Brian Parrish said. Service won't yet resume on the airline's short hops. Southwest told flight attendants in a memo that the decision stems from a pick-up in travel ahead of the usually busy summer travel season. The airline expects its flights to be 35% to 45% full in June, compared with 8% in April, according to an investor update on Tuesday.<br/>
Several Ryanair trade unions say they will resist an attempt to cut pay and conditions for a five-year period, citing management promises of a swift recovery from the coronavirus crisis and the fact its CEO has committed to a pay cut for just one year. Europe's largest low-cost airline plans to cut 3,000 pilots and cabin crew and reduce pay by up to 20% to deal with the crisis which has grounded almost all of its flights until July. In a letter sent by the airline to several unions, Ryanair said it was in a "battle for long-term survival." But unions in key markets, including Ireland, Britain, Spain, Italy and Belgium, told members the measures contradicted guidance to investors. Ryanair said on Monday it saw "significant opportunities" from the crisis and forecast it would "emerge stronger". CEO Michael O'Leary said he hoped 2019 passenger levels would return in 2021, with ticket prices recovering in 2022. "These statements do not come from an airline that is fighting for its survival," the Belgian Cockpit Association said. Ryanair will "likely be one of the big winners of the after-crisis," a memo to members said. British union BALPA accused Ryanair in a memo of taking advantage of the crisis "to lower long-term costs irrespective of when the pandemic is over."<br/>
All passengers flying with Aer Lingus from Thursday May 21st must wear masks, the Irish airline has confirmed. Aer Lingus is operating less than 10% of normal services as Covid-19 travel bans remain in Europe and North America, but is flying some services for essential travel. The airline has emailed passengers booked on flights to say that face masks would be mandatory from Thursday May 21st. Since last Monday it has requested travellers on its flights to wear them. Pilots and crew have been wearing them for some time. “From Thursday 21st May, Aer Lingus is making the wearing of face coverings mandatory upon arrival at the boarding gate, on board the aircraft and until customers arrive at their destination arrivals hall,” the airline confirmed.<br/>