Ukraine is ready to go to international courts if its negotiations with Iran over the downing of a Ukraine International Airlines Boeing 737 jet are unsuccessful, foreign minister Dmytro Kuleba said on Friday. The first round of talks between Ukraine and Iran over the compensation were held on Thursday in Kyiv and were constructive, Kuleba said, but he said it was too early to say how much compensation Tehran would agree to pay. Iranian forces say they downed the jet after mistaking it for a missile at a time when tensions with the United States had risen.<br/>
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Ryanair has initiated legal proceedings against Ireland, questioning the legality of travel restrictions that have kept a quarantine policy in place for all but 15 countries, the airline said on Friday. The carrier said it had begun the action to challenge what it described as the Irish government’s “ineffective” green list of countries, for which a 14-day quarantine requirement does not apply. Ireland has taken a more cautious approach to reopening its economy and skies than many European countries. The green list, announced on July 22, contained some popular destinations Ryanair flies to, such as Italy and Greece, but not others including Britain, France and Spain. This list is due to be reviewed next week and is unlikely to be enlarged. Asked about reports of a potential challenge by Ryanair on Sunday, Deputy PM Leo Varadkar said the government would wait to see what case the airline made but that the advice from the authorities on travel was clear.<br/>
Thousands of people are backing a petition launched by Aer Lingus workers who fear for their jobs, calling on the Government to aid the airline. People’s unwillingness to travel in the face of State Covid-19 restrictions has left Aer Lingus workers fearing the airline could effectively halt operations for the winter and lay many of them off. Pilots and other workers launched an online petition over the weekend, calling on the Government to support Aer Lingus financially if it is not willing to drop its advice against “non-essential” travel. “If it doesn’t this Government will go down in history as the one that presided over the wind-up of Aer Lingus,” the petition warns. “Since the emergence of Covid-19 we have been operating under the most stringent travel restrictions in Europe. At the same time we are the only major European carrier not to have received any State assistance. “The demise of Aer Lingus, and the consequent loss of thousands of jobs, would be nothing short of a national tragedy,” it says. More than 8,000 people have already signed the petition. Aer Lingus CE Sean Doyle, speaking to staff on Friday, said he could not rule out compulsory job losses. The airline is in talks with unions, including Siptu, the Irish Airline Pilots’ Association and Fórsa, about cutting 500 of its 4,500 jobs.<br/>
Skymark Airlines has secured up to Y50b in financing to prepare for a second coronavirus crisis, it was learned Saturday. Skymark has agreed with creditor banks to extend the repayment deadline for an outstanding ¥30 billion loan and establish a Y20b credit line, informed sources said. The funds are intended for use in employee wage and aircraft lease payments, according to the sources. In May, Skymark used up its Y30b credit line with Sumitomo Mitsui Banking Corp., Mizuho Bank and Resona Bank. The company has recently agreed to repay the loan and borrow the same amount from the three banks and the Development Bank of Japan. After the refinancing, the loan repayment deadline will be pushed back from November this year to July 2021. In addition, Skymark agreed to set up a Y20b credit line, boosting the total financial resources readily available to Y50b.<br/>
Gol reported a Q2 loss of R2b ($384m) as the coronavirus crisis ravaged the air transport industry in the Latin American country. Revenue during the quarter was down 89%, at R358m, and the carrier transported just 627,000 passengers, a 92% decline from the same period in 2019, as cases of the highly-contagious virus spiked. But initial signals in the early part of the third quarter have allowed executives at Brazil’s largest carrier to look optimistically toward year-end and beyond. “Our second-quarter results are a reflection of the severe impact that Covid-19 is having on Brazil’s economy, the air transportation industry and our company,” says CE Paulo Kakinoff. But, the airline has seen a small rise in customer demand toward the third quarter, and is increasing capacity in response, Kakinoff adds. CFO Richard Lark says the airline is looking at the third quarter as a “bridge to a new normal”, and it expects in the fourth quarter to operate about 70% of its typical schedule. “Seasonality-wise, the worst part of our year is behind us, now we would be ramping up to the push to the end of the year,” says Richard Lark. That will dovetail well with the easing of restrictions on mobility, he adds.<br/>
Malaysian brokerage firm CGS CIMB Securities has questioned the ability of AirAsia X to survive the collapse in international air travel. In a research note entitled “Low probability of survival,” CGS CIMB says that the long-haul, low-cost carrier’s first quarter results were just the “opening scene for the horror movie of the year.” The carrier released its Q1 results last week, recording an operating loss of MYR158m ($37.3m), widening from MYR29.5m a year earlier. “[Air Asia X] is currently negotiating with suppliers to reduce aircraft lease rates and to pay on a per-use basis, to early-return leased aircraft that is in excess of future requirements, to reduce airport charges, to revisit terms with business partners, and to restructure its fuel hedges with the remaining 30% of counterparties that have yet to agree to defer payments,” says CGS CIMB. It adds that the airline, which operates only international services, has been particularly hard hit by Malaysia’s Movement Control Order, which has all but cut Malaysia off from the world since March. “Domestic air travel is recovering within Malaysia, but as [AirAsia X] is a long-haul airline, it will have to wait a lot longer for international borders to reopen.”<br/>