The fallout from the coronavirus pandemic has gutted airlines and is now spreading to companies that make the parts and systems powering their planes, threatening to devastate a highly skilled workforce and hamstring the industry's eventual recovery. About 1.2m people around the world work in civil aerospace, including engineers, aircraft designers and factory workers, according to the Geneva-based Air Transport Action Group. Another 9m work for airlines, airports and air navigation service providers. These jobs depend on people flying and many are at risk as the global aviation industry suffers the worst downturn in its history. Consumer demand for flights was suppressed during the pandemic by travel bans and shutdowns, and it is not expected to fully recover for several years after lockdowns are lifted. "Everything is dependent on people flying. That's the driver for the entire ecosystem," said CEO of the US Aerospace Industries Association, Eric Fanning.<br/>
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China will allow more foreign airlines to resume flights to its cities, in a move that comes a day after the US government threatened to bar Chinese carriers if the country did not reopen to American passenger aircraft. Foreign airlines that were at present unable to send international flights into China would now be able to fly to one city each week from Monday next week, the country’s transport regulator said on Thursday. The Civil Aviation Administration of China did not refer to specific countries. But it said the measures would apply to any foreign airlines not included in a plan unveiled in March that rationed international flights. That plan barred US carriers from mainland China. Tensions between Beijing and Washington over passenger air traffic have escalated over recent months, at a time when international flights have fallen sharply because of the coronavirus pandemic. China’s announcement follows a US decision on Wednesday to ban the country’s passenger airlines from June 16 if Beijing did not lift restrictions on American carriers. The US said it would be “fully prepared to revisit the action” if China allowed access. Zhao Lijian, a spokesman for China’s ministry of foreign affairs, said Beijing regretted Washington’s decision but was in conversations to reach a resolution.<br/>
The US DOT plans to issue a revised order in the coming days that is likely to allow some Chinese passenger airline flights to continue, government and airline officials said. On Thursday, China said it would ease coronavirus restrictions to allow more foreign carriers to fly to the mainland, shortly after Washington said it planned to bar Chinese passenger airlines from flying to the United States by June 16 due to Beijing’s curbs on US airlines. The announcement should allow US carriers to resume once-a-week flights into a city of their choosing starting on June 8. The DOT did not immediately comment.<br/>
Sheremetyevo Airport, Russia’s busiest, is bracing for a 66% fall in traffic this year as it plans to resume flights next month, its board chairman said, and expects it to take about a year before a return to pre-crisis levels. “We expect that the restoration of passenger traffic to levels seen in 2019 will gradually occur over the course of a year,” said Alexander Ponomarenko, who is also a co-owner of the airport. “We would like to believe that this will happen sooner.” Ponomarenko said he expected passenger traffic to be around 17m people if international flights resume in July. Moscow’s Sheremetyevo, base of state airline Aeroflot, handled 49.9m passengers last year. Ponomarenko said revenue, which stood at 82.1b roubles ($1.19b) in 2019, could fall to 32b this year. Sheremetyevo’s passenger traffic fell 96% in April and by 18% in Q1.<br/>
Eighteen Russian operators have been approved to receive subsidies under a Rb23.4b (US$339m) government programme to ease financial pressures during the coronavirus crisis. Another 13 have applied, says federal air transport regulator Rosaviatsia, but the documentation for these applications is still undergoing review. The government set out the conditions for the subsidies in a 13 May decree, which details a formula to calculate the size of the support. At least 60% of the funding should be put towards compensating labour costs, up to 30% to cover leasing payments and no more than 10% for airport expenses relating to aircraft parking. The 18 approved operators will collectively receive Rb9.45b to cover expenditures to April 2020.<br/>
The Spanish government has found that airlines aren’t complying with EU rules for reimbursements over cancelled trips, according country’s Consumer Minister Alberto Garzon. “Airlines aren’t giving travellers the chance to request reimbursements,” Garzon said Wednesday. Government has made a legal request for a “court to investigate the situation,” he said, adding that he sent a letter to airlines outlining the issues and hasn’t received a response. Although airlines do have financial problems in facing potential requests for reimbursements, the government is providing financial backing to the industry.<br/>
Pressure is mounting on governments to reopen trans-Tasman travel as industry groups ask for travellers’ expressions of interest in New Zealand flights leaving as early as 1 July. The Australian Chamber of Commerce has proposed the Canberra to Wellington route as a “a proof of concept” for the resumption of international flights for “post Covid-19” travel. Canberra airport has opened a register of interest for flights on 1 and 2 July, however it notes that the dates may be pushed back subject to government approval. Notionally these would be followed by several weeks of twice-daily flights before opening up to other Australian capital cities. “The symbolic route will show we have developed a safe and effective method of air travel and encourage the extension of the aviation networks to other destinations across Australia and New Zealand over time,” the Australian Chamber of Commerce and Industry’s tourism chair, John Hart, said. “The tourism opportunity for Australia is to tempt more of the 3.1m New Zealanders that travel overseas to come to Australia this year. Pre-Covid we received around 1.3m visitors from New Zealand, leaving about 1.8m holidays up for grabs.” The managing director of the Canberra airport, Stephen Byron, said there had already been significant interest.<br/>
If you use price-comparison websites to book flights, you are part of an irritating minority for airlines. They are hoping the pandemic will make you kick the habit. Travel stocks have been on a tear over the past couple of weeks, boosted by official checkpoint figures showing a pickup in traffic. One notable winner has been eDreams, the largest online distributor of flights in Europe and a growing one in the US. Its stock is up almost 80% during this period. Unlike competitors Booking Holdings, Expedia and Trip.com — owner of Skyscanner — which have a focus on lodging, Barcelona-based eDreams gets 80% of its sales from flights. Its stock is a bet on online comparison engines, which are used to buy 1 in 5 flights, getting back to business as usual. Travellers could take more convincing than investors. While most governments around the world have forced airlines to offer full refunds to buyers of cancelled flights, many buyers have struggled to get their money back, particularly those who booked via a third party. Story has details.<br/>
Airbus’s India division head, Anand Stanley, is to take over as president of its Asia-Pacific operation, succeeding Patrick de Castelbajac. Stanley will take up the post from 1 July, the airframer says, reporting to CCO Christian Scherer. He will be based in Singapore and will head the Airbus strategy in the crucial Asia-Pacific region, holding responsibility for commercial aircraft sales and the local operational sites, as well as government affairs and industrial partnerships. Stanley joined the manufacturer in 2018 and holds the position of Airbus India president and managing director.<br/>