Richard Branson’s Virgin Atlantic Airways faces a crunch vote in less than three weeks to determine whether a hard-won GBP1.2b-rescue goes ahead or if the airline is headed for collapse. Meetings of four creditor groups will be held on Aug. 25 after the company began a legal process in the UK to stop any holdouts from blocking the package. Virgin told a London court Tuesday that it will fold next month if the financing plan fails. It filed an ancillary petition for Chapter 15 bankruptcy protection in the US to freeze creditors there and ensure the UK process is recognised. The airline’s proposals, which bring in new money from Branson and US hedge fund Davidson Kempner Capital Management, will require a restructuring of existing debt. Virgin Atlantic says it has already secured backing from three of the four creditor groups: aircraft leasing firms, the providers of $280 million in revolving credit, and so-called related-party creditors including shareholder Delta. That leaves a fourth group to persuade, the airline’s trade suppliers. Virgin Atlantic is one of the first companies to use the new UK court process, which allows a judge to force holdouts to go along with a financial restructuring if enough creditors approve.<br/>
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Alaska Airlines said 331 employees among the company's workforce in Anchorage may lose their jobs on Oct. 1. The company said the Anchorage layoffs are part of company-wide job cuts because of the economic fallout from the coronavirus pandemic, Alaska Public Media reported Tuesday. Alaska Airlines said 4,200 workers may be furloughed or laid off across the company beginning in October. The 331 workers account for about 26% of the airline’s workforce in Anchorage, company spokesman Tim Thompson said. Thompson said the number of layoffs may be lowered by Oct. 1, a day after the federal government’s multi-billion dollar payroll support program is set to expire. The airline announced in an alert to state and local governments that the jobs being considered for elimination include 135 Anchorage flight attendants, 76 customer service agents and maintenance technicians and ramp service workers. Pilots will not be furloughed because of a combination of voluntary leave and early retirement, the airline said.<br/>
Tigerair Australia will cease operations owing to a lack of demand in the Australian market. Parent company Virgin Australia states that it was shutting its low-cost arm down as “there is not sufficient customer demand to support two carriers at this time”, in an oblique reference to rival low-cost carrier Jetstar. Tigerair Australia has been grounded since March. The move comes as Virgin Australia, itself exiting voluntary administration under new owners, outlines a leaner operation model that will also see it operate only Boeing 737 aircraft. However, Virgin Australia will retain Tigerair Australia’s air operator certificate, “to support optionality to operate an ultra-low-cost carrier in the future when the domestic market can support it”. Cirium fleets data shows the low-cost carrier used to operate a fleet of 15 narrowbodies, comprising nine Airbus A320s, and six 737-800s. Virgin Australia says as part of streamlining measures, it will be disposing of the Airbus aircraft. It is unclear if the 737s will be moved to mainline operations. <br/>
Mexican airline Interjet said Wednesday it had signed an agreement with smaller local competitor Aeromar to jointly market routes, as the companies seek to weather the blow to business dealt by the coronavirus pandemic. Interjet would participate in the sale of Aeromar’s flights from Mexico City to Acapulco, Puerto Escondido, San Luis Potosi, Veracruz and Zihuatanejo, as well as Guadalajara to Puerto Vallarta, the company said . Meanwhile, Aeromar will participate in the sale of Interjet routes from Mexico City to Chetumal, Guadalajara, Merida, Monterrey, Puerto Vallarta, Tijuana and Villahermosa. <br/>
Ryanair and the State have agreed to an accelerated hearing of the airline’s High Court challenge against the Government’s international travel restrictions. In an action launched last week, Ryanair claims that the ‘restrictions’, arising out of the Covid-19 pandemic, are unlawful, amount to a disproportionate interference of individual’s rights and are detrimental to its business. In its action against An Taoiseach, Ireland and the Attorney General the airlines seeks and order setting aside the measures. Aer Lingus is a notice party to the action. The State, which opposes the action, says the measures are advisory, and not mandatory in nature, as alleged by Ryanair. The State also claims that there is no basis for a legal challenge against the measures. The High Court had directed last week that Ryanair make its application for permission to bring its challenge on notice to, or in the presence, of lawyers for the State. That application was due to be heard next week. However, on Wednesday evening lawyers for the parties told Mr Justice Mark Sanfey that they had reached an agreement that will accelerate the process. Eoin O’Shea BL for Ryanair said it had been agreed that there would be what is known as a ‘telescoped’ hearing, where the application for leave and the full challenge itself would be heard at the same time.<br/>
Philippine Airlines has cancelled all scheduled domestic flights to and from Manila until August 18. The move comes after the Philippines re-entered lockdown after doctors warned a surge in coronavirus cases could could push the country’s healthcare system to collapse, according to the BBC. Stay-at-home orders are now in place in Manila. Domestic flights between Clark, Cebu, Davao and cities other than Manila are not affected and will remain operational, says the airline. The airline says it will also continue to operate international flights to and from Manila “subject to further guidelines from the authorities in line with quarantine capacity and related arrangements”. Passengers who were booked on the cancelled domestic flights will be given the option to rebook, refund or convert their ticket into a travel voucher, according to Philippine Airlines.<br/>
Budget carrier Cebu Pacific will be requiring its passengers to wear mandatory face shields starting Aug. 15. The airline said Wednesday that passengers will be asked to wear them for the entire duration of the flight. “This is on top of the mandatory use of face masks upon entering the airport terminal until arrival at the destination,” Cebu Pacific said. The additional safety measures are in line with a recent directive from the Philippine government requiring all public transport commuters to cover up their entire face with plastic shields to limit the spread of the coronavirus. The Gokongwei-owned airline said that it also continues to implement COVID-19 preventive measures to keep both its passengers and staff safe. “These safety measures include daily extensive cleaning and disinfection protocols for all aircraft and facilities, rapid antibody testing for all frontliners and crew, and contactless flight procedures. These are based on global best practices, and adhere to the highest safety standards,” the company said.<br/>