Turkish Airlines will sharply cut wages of its crews and groundstaff but will avoid layoffs under a union-agreed deal as it seeks to recover from the impact of the coronavirus pandemic, a union official said Monday. The flagship carrier will cut pilot wages by 50%, cabin crew wages by 35% and other personnel wages by 30%, the Hava-Is union official said. The pay cuts will remain in effect until the end of 2021 but will be reviewed every six months, the official said. No employees will be furloughed and the company will not use the short labour pay, a government system that provides wage support to employees, the union official said. Turkish Airlines later confirmed that it had signed a deal with the union but gave no details.<br/>
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EVA Air is amending its order for Boeing 787-10s, swapping some of the outstanding aircraft for 777 freighters and 787-9s. The airline says it has reached agreement with Boeing to exchange seven of the 787-10s yet to be delivered for four 787-9s and three 777Fs. EVA Air says the swap relates to an original order for 20 aircraft – comprising 18 787-10s and two 777-300ERs – placed in November 2015. The carrier adds that the decision reflects “changes of market demands” as well as a “continuous optimisation” of its network and fleet. It states that the price of each 777F will not be greater than $382m and that for each 787-9 will not be more than $318m. EVA Air adds that the total transaction will not exceed $7.324b.<br/>
China's biggest airlines, like their peers elsewhere, posted substantial losses for H1 2020 -- but their figures would have been even worse without a timely accounting change. The combined revenue of China Southern, China Eastern and Air China, the country's state-owned "big 3" groups, fell 52.4% to 93.76b yuan ($13.65b) in the six months ended June 30. Their combined net loss reached 26.16b yuan, compared with a profit of 6.76b yuan a year earlier. The results, disclosed on Friday, disappointed some analysts. Andrew Lee of investment bank Jefferies said on Monday that the aggregate net losses "were larger than expected." He said the half-year figures amounted to around 80% to 90% of the full-year loss estimates made by him and many other analysts. The accounting changes by China Southern and Air China, however, eased the flow of red ink. Both changed how they recorded depreciation costs from overhauling aircraft engine components to tie charges to actual flying hours rather than spreading the costs out evenly as an annual charge. A China Southern executive said the airline's accounting change "can more accurately reflect the actual consumption of overhaul components of engine[s] and more objectively reflect the financial position and operating results." "This is an aberration from the industry standard," said David Yu, a finance professor at New York University Shanghai who focuses on aviation. That said, he supported the airlines' move as "we are in a different time" and the change "aligns better with reality." Air China said that several unnamed domestic banks granted a loan quota of up to 158.64b yuan during the period and that 30.16b yuan had been utilized so far. "The remaining amount is sufficient to meet our demands on working capital and future capital commitments," Zhou Feng and Huen Ho Yin, the company's joint secretaries, said in the group's results statement.<br/>
Ethiopian Airlines unveiled its new passenger terminal at Bole International Airport last week. The flag carrier ensured the terminal was designed with a focus on bio-security and bio-safety measures. Addis Ababa, Ethiopian’s capital city, houses Bole International Airport. The airport serves as Ethiopian Airlines’ central hub. The new terminal is also part of the carrier’s 15-year growth plan, referred to as Vision 2025. The new terminal is equipped with 60 check-in counters and 30 self-check-in kiosks. There are 10 spots for self bag-drop services, 16 immigration counters, and 16 screening areas for security purposes. There are three contact gates for the planes, and 10 remote contact gates, which includes travelators, panoramic lifts, and escalators. There are 32 counters and eight e-gate provisions at the arrival section. These are on the mezzanine floor level. CEO of Ethiopian Airlines, Tewolde GebreMariam expressed his gratitude for the opening of the new terminal. He acknowledged that from 2019, Bole International Airport had become the leading gateway to Africa, taking over Dubai’s spot. He added, “What makes the new terminal unique is that it’s the first terminal in the world to be completed after COVID-19. It was designed, not re-purposed, with Bio-safety and Bio-security in mind.”<br/>