Airlines are struggling through their worst crisis since the first commercial service began flying passengers just over 100 years ago. In the past week alone, American Airlines said it would cut 19,000 jobs, Qantas announced it would shed thousands more jobs and Norwegian Air Shuttle warned it needed another rescue package — only months after securing a bailout. Analysts warn worse is yet to come as the prospect of second waves of infection and tough government rules on quarantine cripple airlines’ ability to forecast demand. The uncertainty is jarring to an industry that thrives on being able to predict long-term passenger demand with mathematical precision and adjust its schedules accordingly. “You are getting airlines going from zero to 70% capacity in the blink of an eye then having to ramp back down,” said Mark Manduca, an aviation analyst at Citi. Domestic passenger numbers in some markets have slowly started to recover from lockdown lows, especially in Asia. Air travel in China has fully returned from its pre-Covid-19 levels, with about 15m seats scheduled in the week to August 30, illustrating the pace of the country’s economic rebound. Japan too has resumed normal service. Domestic travel is not subject to the same level of restrictions as cross-border flights, leaving it well positioned to lead any recovery, analysts at Moody’s said this week. Yet international travel remains adrift, with many markets operating well below the levels they enjoyed before the pandemic. The US has scheduled only a fifth of the seats used at the start of the year, while Vietnam has reduced capacity by 90%.<br/>
general
Boeing grounded eight of its 787 Dreamliner jets for inspection and repair after finding two manufacturing flaws that together could compromise the structural integrity of the aircraft. The distinct issues involve the composite barrel sections at the rear of the wide-body plane, which are melded together at a Boeing plant in South Carolina. Together, the flaws cause the fuselage sections to fall short of the planemaker’s standards for withstanding stress, creating a risk of in-flight failure. Boeing has found that the rest of the global Dreamliner fleet meets those standards, known as limited load capability, a person familiar with the matter said. However, Boeing is analyzing data to determine whether it needs to take further action such as recommending inspections of other Dreamliners in use, said the person, who asked not to be identified as the matter is confidential. “We are taking the appropriate steps to resolve these issues and prevent them from happening again,” Boeing said. The company said it has “fully briefed” the US FAA and is “conducting a thorough review into the root cause.” Air Canada, United and Singapore Airlines said they each had one of the affected planes. United said its Dreamliner had been in service before the airline was notified by Boeing.<br/>
Frustrated airlines continuing to fly into Australia are warning it will take six months to repatriate more than 100,000 Australians stuck overseas if the country’s strict arrival caps are not eased. Pressure is also mounting within government ranks to address the growing number of Australians stranded by the caps, with Coalition MPs complaining the limits are “probably the biggest area of concern” raised with them by constituents currently, who claim airlines are repeatedly bumping them off flights to prioritise more expensive tickets and remain profitable under the caps. Opposition foreign affairs spokeswoman, Penny Wong, Friday criticised the government’s position of recommending those affected by the caps rely on early super withdrawals to fund what could be an indefinite period away from their jobs, families and secure accommodation. “The government should be offering financial support to stranded Australians who need it. People shouldn’t be forced to raid their super or launch a GoFundMe fundraiser in order to return home,” she said, noting earlier reports that consular staff had told Australians to start crowdfunding sites to sustain living costs and business class flights. Qatar Airways on Friday announced it had suspended sales of tickets into Australia until the caps are lifted, and said it will have to cancel the tickets of “thousands” more Australian citizens who are currently scheduled to fly home with the carrier in the coming months. On Friday, the Board of Airline Representatives of Australia (Bara) questioned the figure of 18,800 Australians who had registered their intent to return home with the Department of Foreign Affairs and Trade. Barry Abrams, executive director of Bara, said “the current backlog of passengers for international airlines” suggests “more than 100,000 Australians could be seeking to return home” and that “it would take some six months” to fly them all.<br/>
Gatwick airport has reported a GBP343m pre-tax loss after passenger numbers plummeted by two-thirds in the first half of the year, as the coronavirus takes a heavy toll on the aviation industry. Britain’s second-busiest air hub, which earlier this week announced plans to cut 600 jobs, said revenues had plunged by 61% in H1 from GBP372m to GBP144m. Gatwick is operating flights from only one of its two terminals and said passenger numbers had fallen by two-thirds year on year in the first six months, from 22m to only 7.5m. The airport is forecasting it will take four to five years for air traffic levels to return to pre-pandemic levels. “The negative impact of Covid-19 on our passenger numbers and air traffic at the start of the year was dramatic and, although there are small signs of recovery, it is a trend we expect to continue to see,” said Stewart Wingate, the CE of Gatwick airport. “As with any responsible company we have protected our financial resilience by significantly reducing our operational costs and capital expenditure.” The company, which said passenger numbers were down 80% year on year this month, is slashing capital expenditure by more than £300m over the next two years and has cut costs by in excess of GBP100m. More than 70% of staff remain on furlough.<br/>
The Thai government has promised to inject 24b baht in soft loans to help bail out seven domestic low-cost airlines, while demanding in return that the airlines retain their 20,000 staff throughout the Covid-19 crisis. Executives from the seven airlines yesterday submitted a petition to PM Prayut Chan-o-cha seeking the bailout from the government. They also requested an extension in excise tax reductions for jet fuel -- from 4.762 baht to 0.2 baht -- for one more year. The Finance Ministry had previously waived excise taxes on jet fuel and reduced the excise tax reduction to 0.2 baht, but the cut expires at the end of next month. Other costs waived or reduced include surcharges for aviation, passenger fees, parking fees and international departure fees. Government spokesman Anucha Burapachaisri said Gen Prayut told the airline executives that the government will soon look for solutions to assist their companies, recognising that aviation, which plays a significant role in the Thai economy, has been drastically affected by the coronavirus pandemic. "The Centre for Covid-19 Situation Administration plans to relax various measures for aviation and domestic tourism," Gen Prayut said at the meeting. Gen Prayut asked for cooperation from airlines to curb price competition and encouraged them to focus on competing to offer better services and improving financial management to settle debts. He asked operators to keep their staff employed while the government seeks solutions. The seven airlines whose representatives were present at the meeting were Thai AirAsia and Thai AirAsia X, Bangkok Airways, Nok Airlines, Thai Smile Airways, Thai Lion Air and Thai Vietjet Air.<br/>
Chinese police have launched a fraud investigation over claims that scalpers charged Chinese students who were desperate to return home at the height of the Covid-19 outbreak up to 20 times the usual rate for plane tickets. The market price for flights shot up as countries around the world began introducing flight restrictions. Chinese media reported that the cost of return flights between China and the US or Europe rose from around 8,000-9,000 yuan (US$1,100-1,300) to around 20,000 to 40,000 yuan (US$2,900-5,800). But many of these tickets are suspected to have made their way into the hands of third parties, pushing the final cost up to around 100,000 yuan. An insider at one travel company told Guangming Daily that at one point an economy class ticket had been inflated to 180,000 yuan (US$26,200). In late March, China’s aviation regulator rolled out a controversial policy that restricted airlines to one flight per week. As prices began to surge, the aviation authority in mid-April published a notice ordering airlines to sell tickets directly to prevent speculation, but agents still appear to have found ways round those restrictions. A source told the newspaper that Beijing and Shanghai police have set up a specialised team to investigate the fraud claims, with several travel agencies and airline employees being investigated.<br/>
Flughafen Berlin Brandenburg (FBB), the operator of the long-delayed Berlin Brandenburg International airport, is getting set for a 31 October opening, revealed details about festivities and the first arriving jets. FBB Friday said that events celebrating the new airport’s initiation will last two weeks as traffic shifts from Berlin Tegel International airport, which has been the city’s primary airport since it opened in 1948. “The highlight will be on 31 October... On this day, Terminal 1 will begin operations. One aircraft each from EasyJet and Lufthansa will land simultaneously [on parallel runways]. On 8 November the airport in Tegel will receive an appropriate send off.” Tegel, located northwest of Berlin, has been the primary airfield for commercial passenger service to the German city for more than 70 years. During the country’s division between 1961 and the fall of the Berlin Wall in 1989, Tegel along with Berlin-Tempelhof, in the city’s centre, serviced the western part of the divided city. Berlin-Schoenefeld airport, southeast of Berlin and the location of the new airport facility, had been the main field for former East Germany during the 29 years that the two Germanies were separate countries.<br/>
President Joko “Jokowi” Widodo officially inaugurated Yogyakarta International Airport (YIA) in Kulon Progo regency on Friday, several months after its full operation began in March. Situated around 45km from the city of Yogyakarta, the new airport has replaced the older Adisutjipto International Airport as the main flight hub in the province of Yogyakarta. The president touted YIA’s development and construction processes, which took less than two years, while also highlighting the airport’s features, which he described as “the best in Indonesia so far.” “The airport construction was really fast, just 20 months. That was really quick, ” Jokowi said during the broadcasted inauguration ceremony. “I’m sure this airport will be the busiest airport when a (Covid-19) vaccine is available.” The new airport boasts a 3,250-meter runway, which compares to just 2,200 m at Adisutjipto International Airport, and can accommodate wide-body aircraft like the Boeing B777 and Airbus A380. YIA has a passenger capacity of 20m per year, a massive upgrade from Adisutjipto’s 1.6m, due to its larger terminal of more than 219,000 square meters. A total of US$775m was invested in the airport.<br/>
France's Chateauroux airport, about 250 kilometres south of Paris, has built up a steady business over the years as a hub for freight aircraft and centre to train pilots, helped by its clear weather and few foggy days. Yet in recent months, the former NATO military base has been generating revenue from a different source: The parking of jets grounded by the covid-19 pandemic. The single-runway airport located in France's flat, central basin has even turned away airlines seeking to store more planes - a sign the global aviation slump is deeply set despite some easing of travel restrictions. With the arrival of eight additional aircraft during the past week alone, Chateauroux is at close to full capacity, according to the hub's director, Didier Lefresne. As many as 50 jets are now stored on its parking spaces and two newly-dedicated taxiways, with manufacturer Airbus and BA among the biggest customers. Chateauroux's windfall mirrors the decline of the wider industry, which has been plunged into crisis by the impact of the coronavirus. Airlines have been forced to ground aircraft worldwide after demand from passengers slumped, with border closures and quarantine measures hampering traffic between key markets such as Europe and the US One third of the global plane fleet remains in storage, according to aviation database Cirium. "From a financial standpoint, it's a good thing for Chateauroux," Lefresne said. "At the same time, it's very sad and reflects the dramatic situation unfolding in the industry." <br/>