Austrian Airlines will receive a E600m rescue package to mitigate the effects of the coronavirus pandemic, the government said Monday, but also announced new rules to make aviation more climate-friendly. In a press conferences announcing the rescue deal, ministers said a minimum price of E40 will be introduced to combat "social and environmental dumping" in the aviation industry. "It will no longer be possible to offer tickets which are cheaper than the actual costs," said Environment Minister Leonore Gewessler, referring to the social and environmental impact of the industry. Austria will provide E450m of the rescue package, with the rest coming from German giant Lufthansa, of which Austrian Airlines is a subsidiary, Chancellor Sebastian Kurz said. The Austrian government will guarantee E300m in loans on top of a E150m grant, he added. Finance Minister Gernot Bluemel said the airline would be taken into state ownership if it wasn't able to pay the loans back. Kurz said the airlines and the government had agreed to three goals: saving jobs, maintaining Vienna as a key hub and "necessary measures in terms of climate protection". <br/>
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Creditors of South African Airways Monday approved another delay in the publication of a rescue plan after the cash-strapped airline’s administrators requested an extension because of an objection by trade unions. The rescue plan for SAA, which has not made a profit since 2011, was due to be published on Monday. It has been repeatedly pushed back amid fierce wrangling over the airline’s future. The government and unions have been pressing for SAA to be salvaged in some form, despite its longstanding frailties being exacerbated by the COVID-19 pandemic, which has pushed even previously profitable airlines into financial distress. A spokeswoman for the administrators, who were appointed in December when SAA entered a local form of bankruptcy protection, said creditors had granted a one-week delay in the publication of the rescue plan to June 15. The administrators requested the extension after the NUMSA, SACCA and SAAPA unions objected to the plan being published on Monday pending further talks with the government on a draft version of the plan.<br/>
South Korea’s Hyundai Development said Tuesday it wants new terms for its acquisition of Asiana Airlines after debt at the troubled carrier increased by some $3.8b. A consortium led by the property developer agreed in late December to purchase the airline for about 2.5t won ($2.1b). Since then, however, Asiana Airlines recognised an additional 2.8t won of debt as of end-2019 and borrowed 1.7t won more, Hyundai Development said. The unexpected increase, the carrier’s failure to discuss the situation with Hyundai Development before incurring more debt and its support of unsound affiliates had prompted Hyundai Development to ask creditors to renegotiate the deal, the developer said. Hyundai Development added that it still wants a deal to proceed despite the COVID-19 pandemic that has hammered the aviation industry. “Whether the group survives or not hinges on this deal,” it said.<br/>
The rehabilitation of THAI may take up to seven years, the airline’s legal advisor said on Monday. After the bankruptcy court allows the rehabilitation, its planners may take five months to a year to draw up the plan, said Kitipong Urapeepatanapong. The rehabilitation timeframe would be five years, extendable for up to two years. After courts approve the plan, an administrator will be appointed. Thai Airway’s first hearing is scheduled for August 17. “The Thai Airways rehabilitation plan should conclude within 7 years, which can include debt to equity conversions, selling assets or an equity injection,” he said.<br/>
Turkish Airlines Monday announced that it would offer a 40% discount on tickets for healthcare workers across the globe. "The Turkish Airlines started a new campaign for the healthcare workers who are working selflessly to combat the COVID-19 pandemic," the airline said. "With this campaign, all healthcare workers working around the world will be able to fly at a 40-percent discount," it added. Healthcare workers along with three other people traveling with them will be able to purchase the discounted tickets. Those who wish to join the campaign, which would last until May 31, 2021, need to submit their applications at the THY's website, it said, noting that the campaign would cover all flights and ticket types.<br/>