general

It could be at least 2024 before US airline industry recovers from pandemic

Air travel in the US is unlikely to return to pre-pandemic levels before 2024, the head of a leading airline lobbying group said Thursday. Nicholas Calio, CE of Airlines for America, said that despite aggressive cost-cutting measures and billions in government support, the industry is still struggling to survive amid the worst economic downturn in aviation history. “We’re going to do everything we can to get people back on airplanes,” Calio said. “But right now, we’re fighting for survival.” Calio said the billions of dollars in support the government has offered airlines has been a lifeline and criticized those who’ve characterized the program as a “bailout.” “People who call that a bailout don’t know what they’re talking about,” he said. “It was a simple pass-through to keep [employees] on board.” Under the payroll support program created as part of the Cares Act, passenger airlines and cargo carriers were eligible for more than $25b in grants and more than $25b in loans. Carriers that accepted the grant money had to agree to a number of conditions, including keeping front-line workers on the job through the end of September, when many expected the industry to recover. But that hasn’t happened and now tens of thousands of workers face the prospect of being furloughed at the end of this month. Unions have lobbied for a second round of federal support and in recent weeks have been joined by their employers.<br/>

Covid eliminated airline change fees — but they could return incognito, experts say

Before the novel coronavirus dealt a blow to airlines in 2020, the only type of standoff the carriers usually had was the fare war: flash sales to edge out their competition’s cheaper offers and fill flights. But with most travelers now grounded and airlines struggling for bookings, regardless of the price, a new kind of stalemate ensued this week: a race to drop change fees. Hours after United announced on Sunday that it is “permanently” dropping change fees for economy and premium tickets within the US, airlines including Delta, American and Alaska followed, and in some cases even one-upped the airline by including some international routes. Southwest, which has long had a no-change-fee policy, is suddenly not the only player offering flexible booking. Overnight, Americans gained many more options amid the current uncertainty of travel planning. But experts say the change fee could eventually return in the future — just under another name. “Historically, airlines make a lot of money on fees,” said Brian Kelly, founder of travel rewards site The Points Guy. In 2019, carriers in the US charged $2.8b in change fees alone, according to the Bureau of Transportation Statistics. “Down the line I am confident they will figure out ways to make up for the change fee, whether that is raising fares or coming up with a ‘health fee’ or ‘fuel surcharges.' " Scott’s Cheap Flights founder Scott Keyes concurs. He believes the abrupt change was a matter of survival, given the current market, rather than benevolence. “Airlines will find other ways or gimmicks to make up for the change in their pricing structure,” he says. “Huge swaths of Americans are not comfortable booking travel right now without flexibility built in. The old airfare model that locked you into a single flight is obsolete right now.”<br/>

Greece imposes negative COVID-19 test rule for visiting Russians

Greece will require visitors from Russia to show a negative COVID-19 test before entering the country between Sept. 7 and Sept. 21, its civil aviation authority said Wednesday. Under a new advisory, Russian citizens will need to have the test up to 72 hours before their arrival. Greece also said that only up to 500 people from Russia would be allowed to land at the airports of Athens, Thessaloniki and Heraklion per week during the period in question.<br/>

Airports join airline call for European winter slot waiver

Airports grouping ACI Europe has joined forces with airline bodies and slot coordinators to agree a theoretical framework for a waiver of the 80:20 “use it of lose it” rule during the upcoming northern hemisphere winter season. While the decision to implement a waiver for the region’s roughly 100 slot-constrained airports belongs to the EC, the agreement marks an uptick in the pressure being applied to the regulator. The concerted effort to lobby the Commission also comes as hopes for a smooth recovery in European air travel demand are being dashed, with governments imposing short-notice restrictions on travel as coronavirus cases spike. “Continued uncertainty about a second wave of the pandemic and haphazard travel restrictions have caused passenger demand to plummet, leading to a slower recovery in European air transport and making the need for an extended slots waiver more urgent than ever,” says a statement signed by ACI Europe, Airlines for Europe (A4E), Airlines International Representation in Europe (AIRE), IATA, and the European Association of Slot Coordinators (EUACA). “Industry and slot coordinators require a clear signal from the Commission as to the rules of the game for the coming winter season,” it adds. <br/>

Russia resumes international flights with UAE, Egypt and Maldives

Russia has resumed international flights with Egypt, the United Arab Emirates and the Maldives, a government order published on Thursday showed. The government said it had authorized three flights a week to Cairo, as well as two flights a week to Dubai and to the Maldives's Velana International Airport. The authorisation came amidst reports that Russian service sector activity grew in August - albeit at a slightly slower rate than in July - thanks to a rebound in demand following coronavirus lockdowns, a business survey showed on Thursday. <br/>

New Bahrain policy to allow flights between Israel and UAE to cross its airspace

Flights between Israel and the United Arab Emirates will be able to fly over Bahrain after the kingdom on Thursday said all services to and from the UAE can cross its airspace. The decision, which the kingdom’s aviation authority said came at the request of the UAE, follows a historic agreement last month between Abu Dhabi and Israel to normalize ties. In August, Israel’s intelligence minister said Bahrain and Oman could be the next Gulf countries to follow the United Arab Emirates in formalising ties with Israel. “All flights to and from the UAE can use Bahrain airspace”, state news agency reported on Thursday, citing the aviation authority, without mentioning Israel. The decision cuts flying time between the Middle East states by several hours.<br/>

Airlines invent wild new ways to make money with borders closed

When it comes to raising money, nothing is off limits for airlines mired in their worst-ever crisis. From fresh vegetables to peanuts and pajamas, they’re selling almost anything to make it through the pandemic. Even airlines that received government bailouts and slashed costs are looking for new revenue streams as they burn through cash while fleets are largely grounded and people stay at home. A recovery is expected to take years and cost carriers billions of dollars more. Story describes what airlines are peddling as they try to make up for the hit from Covid-19.<br/>

Embraer cuts Brazil workforce by 4.5%

Embraer is reducing its workforce in the Latin American country by 4.5%, or about 900 employees. The San Jose dos Campos-based airframer says the move was prompted in part by the coronavirus crisis, with its commercial aircraft unit bearing most of the brunt of the global pandemic. In H1 2020, commercial deliveries fell by 75% compared to 2019. In addition, the planned merger with Boeing, called off at the last moment in April, played a role in the decision, the company says on 3 September. “The measure stems from the impacts caused by the Covid-19 pandemic on the global economy and the cancellation of the company’s partnership with Boeing,” Embraer says Thursday. “The objective is to ensure Embraer’s sustainability and engineering capacity.”<br/>