United Airlines warned that it’s considering furloughs for as many as one-third of its nearly 12,000 pilots, citing a resurgence in US coronavirus cases that’s weakened sales. “In recent weeks, bookings have stalled and we continue to see an impact of the recent increase in Covid-19 cases on our business,” Bryan Quigley, senior VP of flight operations, wrote Thursday in a memo to United pilots. United’s planning for a further “significant reduction in business” would drive 3,900 pilot furloughs, “and that may not prove to be enough,” Quigley wrote. United had planned to furlough 2,250 pilots this year -- a number that was expected to be reduced by voluntary leave programs and an early-separation package offered to the carrier’s most senior pilots. Instead, the number could almost double as the virus rages in many parts of the US. “Because Covid-19 cases continue, and demand improvement remains very slow, we may need to furlough more pilots in 2020, and in 2021, than originally planned,” Quigley wrote. The airline has 11,675 active pilots.<br/>
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United Airlines said Thursday it has decided to drop its contract with ExpressJet, and consolidate all of its outsourced flying on 50-seat planes with regional rival CommutAir. The decision could be a fatal blow to ExpressJet, which will begin to wind down its operations, according to a memo from CE Subodh Karnik to employees. Reuters reported United’s choice between the two carriers on Monday, after it saw a union letter to ExpressJet pilots warning that the choice could have a “dramatic impact” on the future of ExpressJet. On Thursday, United said CommutAir will become its sole operator of Embraer SA E145 50-seat planes, under a transition that will take a number of months. United has minority stakes in both ExpressJet and CommutAir, which bring passengers from smaller markets to destinations that United itself serves on larger jets. United was ExpressJet’s sole client, which like other global airlines is suffering from the coronavirus pandemic that has decimated air travel demand.<br/>
SIA is taking more steps to manage costs, announcing further pay cuts for management staff and a salary reduction of 10% for other employees. The airline will cut of the full quantum of the monthly variable component of salaries from Aug 1. "This amounts to 10% of the basic salary for all staff below the level of manager, said SIA Thursday. Managers and senior managers will have their basic salaries reduced by 12%, up from 10%, while vice-presidents and divisional vice-presidents will see a 15% cut, up from 12%. Senior VPs will get a 25% cut, up from 20%, and executive VPs will get 30% cut, up from 25%. CEO Goh Choon Phong's salary will be cut by 35%, up from 30%. This comes as SIA posted a S$1.12b net loss in Q1, after drastically cutting capacity due to travel restrictions amid the COVID-19 pandemic. Apart from cutting salaries, the airline will also offer a COVID-19 Special Early Retirement Scheme to eligible employees. According to an email to SIA staff, the scheme will be available to those aged 50 and above and with at least 15 years of service, up to the level of divisional VP. “Given the slower growth trajectory and depressed market conditions, we must brace for additional staff measures," said Goh in the email. “We will be engaging our staff unions on this and will announce the measures when they have been firmed up," he added. “Our immediate priority is to do everything we can to survive this crisis and be ready for the long trudge ahead of us."<br/>
Canadian airlines saw their hopes for an industry rescue plan dashed by PM Justin Trudeau. Now they’re trying to get his government to relax travel restrictions it imposed in the early days of the pandemic. So far, they are losing the fight. Canada has exited many of the lockdown measures it adopted in March as the outbreak eases, killing fewer than a dozen people a day in the country of 38m. Airports, though, remain deserted. Data from security checkpoints show passenger traffic in the first 26 days of July was 10% of last year’s levels, compared with 26% in the US. The slow recovery is because Trudeau’s government has kept up the barricades, Air Canada says. Unlike in Europe, Canada’s travel restrictions have changed little since March. Foreign tourists are not allowed, even from places with few virus cases. Most business travel is banned and everyone coming in must stay isolated for 14 days, including returning Canadian residents with no symptoms, under threat of potential jail time if they break quarantine. “We need to start being able to earn some revenue,” Air Canada CEO Calin Rovinescu said in a video call this month with the Canadian Chamber of Commerce. “Right now it is the government that’s preventing us from doing that.” Analysts expect a 91% revenue drop when the carrier reports Q2 earnings Friday, according to data compiled by Bloomberg. The carrier has been spearheading a campaign urging the government to follow Europe’s gradual reopening. <br/>