United is boosting its schedule in October, including expanding flights to Hawaii, as it seeks to make the most of higher demand for leisure destinations during the pandemic. The carrier will fly 40% of its schedule from a year earlier, according to a statement Friday. The plan represents a slight increase from September, when United flew 34% of its year-earlier roster. The increase includes the resumption of eight routes to Hawaii, pending the state’s approval of pre-arrival coronavirus tests it’s mandated for visitors. International service will remain constrained to one-third of 2019’s schedule because of travel restrictions and self-quarantine measures required by many countries. However, Chicago-based United will resume 14 international routes in October, as well as service to three Mexican destinations -- Cancun, Mexico City and Puerto Vallarta -- from five of its hubs. Airlines’ October schedules have become a proxy for how the industry sees pandemic-era demand shaping up during a typically slower travel period. United’s recovery to 40% of its year-earlier level is a big improvement from the 11% it operated in May as the world locked down to prevent the spread of Covid-19.<br/>
star
The head of Lufthansa said the German airline will not be able to resume pre-COVID flight frequency to Japan and China as quickly as hoped. "We've now realized that it will take a marathon to get through the crisis, not a sprint," CEO Carsten Spohr said. Demand for air travel remains weak. As of the end of August, the number of Lufthansa flights was around one-third of the pre-pandemic level. Passenger traffic was down by 75%, and the carrier operates roughly half the number of regular routes. Of the 760 planes in its fleet, only 300 are active. Lufthansa used to operate 45 weekly flights between Japan and Europe, but stood at only five by the end of August. The company plans to increase this to 16 in September with five flights a week between Frankfurt and Tokyo. But this is far fewer than planned in July, as few reservations are coming in. "We had to reduce because of a sudden slump in demand," said Spohr. "An increase in international air travel will always depend on entry regulations put in place by countries worldwide; be it Japan, China, Singapore or any other country," Japanese government announced to lift the reentry ban for foreign residents on Tuesday, allowing those who left the country after coronavirus travel bans were imposed to return. Spohr hopes demand will grow. As for the Frankfurt-Nagoya route frequently used by auto industry business people, he said: "The current demand, unfortunately, doesn't allow for flights between the two cities. Our current planning sees us operating to and from Nagoya by summer next year at the earliest." China is recovering from the pandemic faster than other nations. But Spohr noted that regulations are curbing demand for air travel. Spohr said, "It will take at least until 2024 before demand bounces back to where it was in 2019," stressing the need for restructuring to cut costs. Story has more.<br/>
Negotiations for the acquisition of South Korea's Asiana Airlines by construction company HDC Hyundai Development have broken down due to reduced travel amid the coronavirus pandemic, a source familiar with the deal said on Friday. HDL has been in talks with banks that own Asiana's debt, and following the COVID-19 outbreak early this year asked for revision of the terms of the purchase. According to the source, the state-backed Korea Development Bank, which led the banks, met with HDC's head in late August. The banks agreed to debt relief and asked for HDC to make some concessions as well. The negotiations fell through after HDC declined to compromise, insisting that the scale of the change that the airline industry is going through is too big to swallow. Kumho Asiana Group announced the sale of Asiana Airlines, its core subsidiary, in April 2019. In December, HDC agreed on a purchase of 2.5t won ($2.1 billion). However, the outbreak brought uncertainty to Asiana's earnings prospects and led to renegotiations between the banks and HDC. A source from the side of the banks suggested that sales proceedings could restart after 2021.<br/>
ANA Holdings and Japan Airlines have pivoted heavily to international freight transport in an attempt to offset the crippling loss of passenger traffic caused by the coronavirus pandemic. Japan's two largest airlines are in the throws of major slides, with the companies logging a combined $1.9b net loss for the April-June quarter as the pandemic keeps borders closed and travellers wary of enclosed spaces. Last month, Nikkei reported that ANA was in talks for $4.6b in loans from the Development Bank of Japan as well as private financial institutions. The shift to freight has been a silver lining to the dark economic clouds -- and has been a fairly easy transition. Even during normal times, passenger aircraft typically carry freight in cargo holds, along with luggage. But because of the sharp drop-off in air travel this year, operators have opted to hire charter flights to transport goods. Throughout all of last year, ANA had operated only about 10 chartered flights. Now the number has jumped to 400 scheduled for September alone. Subsidiary ANA Cargo stepped up chartered freight transport in February. The number of chartered cargo flights per month has hovered around 400 since spring. Eleven aircraft in its fleet are in full operation. The freight primarily consists of semiconductor materials or products related to computers. The planes also carry automotive components and personal protective equipment, including face masks, for health care workers. Because of the loss of passenger flights and their cargo space, shipping rates have jumped. Freight rates for routes connecting to Shanghai and North America are now about $4.80 per kilogram, according to TAC Index, or nearly 50% higher than a year earlier. Seeing a chance for potential revenue, ANA will put additional freight-dedicated aircraft into service in place of idled passenger planes.<br/>
More than 100 diners craving in-flight meals after months of travel restrictions flocked to Thai Airways' offices on Thursday to try a new pop-up restaurant and get a reminder of the forgotten flavours of on-board dining. The national carrier, which has for months grounded most of its planes, has transformed the cafeteria of its Bangkok headquarters into an airline-themed restaurant and opened it to the public. Diners can meet cabin crew, who greet them in full uniform as they enter the restaurant. It is decorated with plane parts and seats to lend it an authentic aircraft feel. "Spare parts from engines, windows and fan blades were used as furniture," Thai Airways Catering Managing Director Varangkana Luerojvong said. Each decoration has a QR code attached so visitors can look up information about the parts. Varangkana said the restaurant, which serves about 2,000 meals per day, was a way to recoup some lost revenue during the coronavirus pandemic, and there are plans to turn other Thai Airways offices into similar dining experiences.<br/>