unaligned

EasyJet has bolstered its finances by securing GBP608m from selling off and leasing back part of its fleet, as airlines scramble for cash to see them through increasing uncertainty. The low-cost airline has now raised more than £2.4bn since the start of the coronavirus pandemic, including GBP600m from the UK government’s Covid Corporate Financing Facility and just over GBP400m from a share placement. It said it would look at future funding opportunities “on a regular basis”. On Friday, easyJet said a GBP203m deal for five Airbus A321neo aircraft had completed its sale and leaseback process, and that it had raised the upper end of its previously announced target of GBP550m and GBP650m. Airlines across the world are shoring up their finances to help deal with the crisis caused by Covid-19 and restrictions on travel. Global air travel is forecast to fall by as much as 70% this year, according to a report this week from S&P Global, worse than had previously been predicted. The crisis facing the industry was deepened late on Thursday when the British government added more destinations to its quarantine list, including France. Airlines UK said the decision was “another devastating blow to the travel industry”.<br/>

Bain Capital’s resurrection of collapsed airline Virgin Australia Holdings faces mounting legal opposition as bondholders rally to derail the takeover and salvage some of their debt. What started weeks ago as a long-shot challenge to Bain’s deal from two little-known investors in Asia has attracted the biggest names in finance. Now UBS Group, Deutsche Bank and other creditors holding A$800m ($570m) of Virgin Australia bonds support a plan to muscle out Bain and rescue the airline themselves, according to court filings. Virgin Australia crumbled in April owing A$6.8b, and administrators at Deloitte fast-tracked a sale to Bain before the airline’s cash ran out. The private equity firm plans to cut a third of the workforce and scale back the fleet, but it hasn’t said how much creditors will receive. With indebted airlines on the brink of collapse worldwide, the standoff in Australia shows that recoveries in one of the pandemic’s hardest-hit industries risk delay or even failure once creditors start picking through the remains. On Monday, Australia’s federal court will hear the bondholder group’s request to have Virgin Australia’s creditors vote on any offer, not just Bain’s. They also want more information on the airline from Deloitte to help finalize a rescue plan. The bondholders are proposing swapping their debt for equity and injecting fresh funds into a reborn airline. In the best scenario, they’d claw back two-thirds of their original investment. <br/>

Jet2, the UK’s third largest airline, announced that more than 100 pilot jobs are on the line as talks with the British Airline Pilots Association (BALPA) crumbled. The airline owned by, the Dart Group said it was pressing ahead with with cutting 102 pilot jobs after the coronavirus pandemic and lockdown measures saw flights grounded. The announcement is line with similar cuts made in leading airlines as the global aviation industry was battered by the coronavirus crisis. Previously, British Airways, EasyJet and Ryanair also announced redundancies after the pandemic weighed on ticket sales, causing a collapse in demand. BALPA general secretary Brian Strutton said: “This announcement is yet another which shows the desperate state of the British aviation sector. Despite enormous efforts to work with Jet2 to find ways of saving these jobs, the airline is insisting on 102 redundancies. This will be a particular kick in the teeth as many of those who may lose their jobs have recently joined the airline after having been dismissed from Thomas Cook which went into administration last year.”<br/>

Emirates passenger flights now account for approximately half the airline’s daily frequencies but a bailout from owner the Dubai government will be needed “sooner rather than later”, says airline president Tim Clark. As the Dubai carrier expands operations, daily frequencies are now running at around 230 flights, which equates to around 40% the tally on a normal day before the coronavirus pandemic. However, half of the current frequencies are operating some form of cargo-only service. “We operated 123 777s last week, and we had six of the 115 A380s flying – they’re doing Paris and London. And we’re trying to get the A380 into Toronto,” Clark said. “Slowly but surely we trying to get ourselves back in. The golden rule is that no operation is allowed to go below the cash operating costs because we’re trying to contain the outflow of cash.” Clark is cautiously optimistic about the return of A380 services – which began on 15 July, saying that the loads are “quite solid, notwithstanding quarantine”. He indicates that the decision has proved economically viable because “we can easily cover our operating costs and make a bit of money on that. It’s also part of brand, it’s part of the feel good factor we’re trying to create.”<br/>

Israir Airlines has started the process of applying for a landing permit in the UAE, CEO Uri Sirkis said Sunday. The two countries announced last week that they plan to normalize relations. Dubai is a “very, very attractive” destination, since it is only 3 1/4 hours away, and it is likely to be very popular with Israelis, just as Turkey and Greece are, the CEO said in an interview with Kan, the Israeli public broadcaster. While Israel has peace agreements with both Egypt and Jordan, Israeli airlines haven’t been permitted to fly to vacation spots such as Aqaba in Jordan or Sharm El-Sheikh in Egypt, he said, adding that he hopes that in the case of the UAE, the situation will be different. In addition, in order to get to the UAE, Israeli planes would have to fly over Saudi Arabia, which until now hasn’t granted Israeli airlines overflight permission for destinations such as India, he said.<br/>

The chairman of El Al Israel Airlines, Eli Defes, is stepping down immediately because of an undisclosed medical condition, he said on Sunday. Defes joined El Al's board in 2015 and became chairman in 2017. It was not immediately clear who would replace Defes, but it would probably be one of two vice chairpeople: Yehuda Levy or Tamar Mozes-Borovitz. Israel's flag carrier is fighting for survival after the COVID-19 pandemic added to its difficulties, forcing it to suspend flights and furlough most of its employees. It has reported losses for the last two years and racked up debt to renew its fleet. Last month Eli Rozenberg, a US citizen resident in Israel, offered to funnel $75m into the airline in return for a 45% stake. At the same time, El Al is in advanced negotiations for a government bailout to avoid bankruptcy following the pandemic.<br/>

Former Jet Airways CE Vinay Dube is to leave Indian low-cost carrier GoAir after just six months, to be replaced by the carrier’s former boss Kaushik Khona. Dube was appointed CE at the Indian budget carrier in February. Since then, the airline has been battling the global impact of the coronavirus pandemic. ”Vinay Dube has ceased to be in the employment of GoAir with immediate effect and hence ceases to be the CEO of the company,” the airline says. The airline has appointed Khona as his successor with immediate effect.<br/>