Emirates airline has begun retrenching employees to preserve cash during the COVID-19 pandemic, the carrier confirmed. Dubai’s flagship airline said: “We have been doing everything possible to retain the talented people that make up our workforce for as long as we can. However, given the significant impact that the pandemic has had on our business, we simply cannot sustain excess resources and have to right size our workforce in line with our reduced operations.” The Emirates spokesperson added: “After reviewing all scenarios and options, we deeply regret that we have to let some of our people go. This was a very difficult decision and not one that we took lightly. The company is doing everything possible to protect the workforce wherever we can. Where we are forced to take tough decisions, we will treat people with fairness and respect. We will work with impacted employees to provide them with all possible support.”<br/>
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South African state airline SA Express escaped liquidation Tuesday after a judge granted a three-month delay in liquidation proceedings, giving the government more time to clarify its plans for the domestic and regional carrier. SA Express was placed under provisional liquidation in April after its administrators said they could not secure funding for turnaround efforts. But in papers filed in the High Court, lawyers for the administrators asked to delay a final ruling on whether it should be liquidated, saying there was a possibility the government could fund a restart of the airline’s operations. They cited a letter from the state enterprises ministry that referred to an allocation of 164m rand ($10m) in the financial year that began in April, subject to certain conditions. The lawyers said that delaying the hearing would allow “national executives to roll out proper plans”. It would also prevent the airline from losing its operator’s certificate and air licence, which could help creditors to recover some money, they added. The request for a delay was supported by the provisional liquidators, who said they needed more time to study the airline’s affairs, as well as some trade unions and creditors.<br/>
Norwegian Air is seeking approval from shareholders to potentially issue more shares at short notice as part of its recovery plan, the budget airline said on Tuesday. “There is no doubt that leisure traffic will rebound before business travel and we will be perfectly placed to strategically and geographically take advantage of this,” CE Jacob Schram said. Creditors and owners recently completed a 12.7b Norwegian crowns ($1.36b) debt conversion and share sale that boosted the airline’s equity, and secured loans of 3b crowns from Norway’s government. Due to the prevailing uncertainty, however, it may again become necessary for the board of directors to issue new shares or convertible loans over the course of the next year, Norwegian said, ahead of its June 26 annual general meeting. “In this context, the board of directors proposes that it be granted wide authorizations to issue new shares and convertible loans,” the company said, while adding a share issue could expand the current capital by up to 50%.<br/>
Aer Lingus has proposed a wide-ranging set of pay cuts and working practice adjustments for its staff, according to a confidential document shared with unions. The discussion document outlines a deal which would run until the end of February 2022, which the airline says is designed to help it navigate the effect of the Covid pandemic on the aviation sector, which it describes as as “unprecedented”. No agreement has been struck on the document, which was characterised by a source as a discussion paper. According to the document, the changes proposed are “the minimum required now in terms of operational change and may need to be revisited should the situation worsen”. “The challenge now faced is many many times worse than anything we have experienced previously and will take a number of years to recover from.” it says the crisis has had a “devastating impact” on the business which “requires immediate action to ensure our survival”. It says “immediate and sustainable work practice changes and efficiencies are now required across Aer Lingus in the face of the greatest crisis that the airline industry has ever experienced.” Story has more.<br/>
Lion Air Group will resume domestic flights on Wednesday with health protocols in place after a temporary flight suspension this month, a company representative has said. The company decided to restart its operations after the COVID-19 task force issued circular letter No. 7/2020 on the requirements for travel during the so-called “new normal” period, as the government looks to gradually relax restrictions and reopen businesses under health protocols. “Member companies of the Lion Air Group are planning to resume domestic flights on June 10, following the issuance of the circular letter. The new regulation has simplified the requirements for passengers to travel,” a company spokesperson said on Monday. According to the new regulation, passengers only need to provide a letter proving the negative result of a polymerase chain reaction (PCR) test or COVID-19 rapid test to travel. Rapid test result documents are valid for three days after the test is taken, while PCR tests are valid for seven days. In areas with no testing facilities available, passengers can present health certificates showing they are free from influenza-like symptoms issued by a hospital or community health centre, the letter states. Lion Air Group suspended all of its flights on June 5, as many passengers failed to provide the mandatory documents required for boarding<br/>