Virgin Atlantic warned it was still fighting for survival on Friday as it announced plans to cut more than 1,000 jobs following the successful completion of its GBP1.2b private sector rescue deal. CE Shai Weiss said that the airline was “absolutely” still in a battle to secure its future as the entire aviation industry reels from the impact of Covid-19. “Anyone operating in aviation and tourism around the world is still fighting for survival,” Mr Weiss said as he urged the UK and US to work together to reopen the transatlantic market for passenger flights. The airline said it would shed 1,150 jobs across all parts of its business on top of the 3,150 job cuts announced in May, leaving it with a little over half of the 10,000 staff it had before it was plunged into the coronavirus crisis. “Further reducing the number of people we employ is heartbreaking but essential,” Weiss said, adding that he did not expect to make further significant cuts. Weiss called for “rapid and immediate action” from the UK government to introduce testing on arrival and departure to allow an expansion of safe international travel. The Unite union said the latest round of job losses was “another serious blow to the UK’s aviation industry”.<br/>
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Ryanair is poised for a clash with investors this month after the airline was criticised for paying out a E450,000 bonus to CE Michael O’Leary despite furloughing staff and taking government pandemic support. Institutional Shareholder Services, an influential adviser, recommended investors vote against the company’s non-binding pay report at Ryanair’s annual meeting on September 17. The world’s largest proxy adviser said it was “difficult to justify” the bonus payout, which was about 92% of the maximum O’Leary could have received, given the “upheaval” faced by the airline industry. “This payment raises concerns, given the current uncertainties facing the company and the airline industry, and in view of the broader stakeholder experience,” it said. Ryanair declined to comment. ISS’s stance is the latest sign that executive bonuses are becoming a flashpoint for investors concerned about how companies are reacting to the pandemic. Asset managers such as M&G have warned that some corporate bosses are not sharing the pain and are enjoying large payouts, despite businesses furloughing staff and cutting dividends.<br/>
Ryanair has threatened to leave Ireland if Covid-19 travel restrictions remain in place. The budget Irish carrier has warned it will move operations out of Ireland during the winter season unless the government does away with its “green list”. The list is comprised of countries that are deemed safe to travel to and which do not require travellers to quarantine upon arrival. Eddie Wilson, Ryanair’s CEO, appealed to the Irish government to act on the final report of the Taskforce for Aviation Recovery published in August by “the best brains in the aviation industry”. “We haven’t heard anything. And now we’re going into the winter and we’re going to have to move that capacity out of Ireland. You can’t do business with a 14-day quarantine,” he said. Ryanair claims Ireland and its public health team have become “the laughing stock of Europe” due to the cautious approach it has taken in relation to overseas visitors. The company has requested that the UK, the US and Germany also be added to the green list, as a bare minimum. In July, Taoiseach Micheál Martin said he would be taking a “cautious approach” when it came to foreign travel, but Ryanair has said that the green list has had a “severe, detrimental effect” on the Irish tourism industry. The carrier has called on the Irish government to offer incentives in the form of cuts to airport charges in all Irish airports over the next three years.<br/>
Wizz Air CE József Váradi has banked GBP2.8m after an associated legal entity, Vaxco Holdings, disposed of 75,000 shares last week. The Hungarian airline’s disclosure of the disposal preceded news that it had operated at 80% capacity in August. Wizz warned, however, that it expects this to drop to 60% for its second financial quarter, as travel restrictions return in Europe amid a spike in coronavirus cases in some countries. The IATA has lambasted government measures to restrict border access and impose quarantines. “Too many governments are fighting a global pandemic in isolation with a view that closing borders is the only solution,” said IATA DG and CE Alexandre de Juniac. Capacity may remain at about 60% for Wizz’s Q3 if current travel restrictions persist, the airline observed, which is lower than the 80% level it previously expected. Wizz’s August load factor, which shows the percentage of available seating that is occupied by passengers, sat at 71%, which was just shy of Ryanair’s August level of 73%. The airline cautioned that capacity may come down even further and that it may ground part of its fleet as winter sets in as it bids to protect its cash levels. <br/>
Israeli carrier Israir said on Sunday it had reserved slots for commercial flights from Tel Aviv to the United Arab Emirates, preparing for potential tourism as the two countries move to normalise relations. An Israir spokeswoman said that they applied for permission from civil aviation authorities for the flights, and booked departure and arrival slots at Tel Aviv's Ben Gurion Airport while they await approval. The carrier booked eight round-trip flights from Tel Aviv to Dubai International Airport throughout October, according to a flight timetable on the Israel Aviation Authority's webiste. While El Al Airlines has announced it will operate cargo flights to the UAE, it has not yet applied for permits for commercial flights, a spokesman said.<br/>
Israel’s government does not intend to exercise the voting rights of shares in El Al which it plans to acquire as part of a refinancing of the troubled flag-carrier. The ministry of finance, in a 4 September communication to the carrier, has detailed its role in a share issue to be undertaken by the airline. El Al will publish a tender on 10 September comprising a public offering of 753.3m shares, with a minimum price of 0.671 shekels – worth 505.5m shekels ($150m). The ministry says the state intends to offer to buy nearly 393.4m shares as part of the issue, valued at 264m shekels. “As long as the shares allotted [to the state] are held by it, it shall not exercise the voting rights granted,” the ministry says. But it points out that any shares subsequently transferred from the state’s allocation to a third party would also give the party full voting rights. The state will undertake to sell or transfer its shareholding – either in whole or in part – within 24 months of the acquisition, it adds. If the offering falls short of the target, the state will commit to purchasing a further allotment or agree with El Al on an alternative.<br/>
Norwegian Air, which is attempting to secure a second round of financial restructuring, saw a 91% decline in August passenger volume from a year earlier as most of its fleet remained grounded by the coronavirus pandemic, it said on Friday. The budget carrier has said it will fly 25-30 of its aircraft in the months ahead, while more than 100 remain parked. Creditors and lessors took control of Norwegian in May with a financial rescue that allowed it to access state-guaranteed loans of 3b Norwegian crowns ($336m) and thus prevent a collapse. The company said last week it hopes to complete a second refinancing by year-end to avoid running out of funds by April of 2021, and is also in talks with Norway's government over additional support. "The prolonged crisis that has impacted every part of the aviation industry continues to create uncertainty in all markets, making the need for a long-term liquidity support package even more critical to protect tourism, jobs and international trade," CEO Jacob Schram said.<br/>
Two Canadians have been fined C$1,000 each for refusing to wear masks on passenger flights, marking the first such sanctions against travelers in the country amid the ongoing coronavirus crisis, the transportation ministry announced Friday. Under a federal order, all travellers must wear a face mask during boarding, the flight itself and when disembarking. The two infractions occurred on WestJet domestic flights in June and July. "In both incidents, the individuals were directed repeatedly by the air crew to wear their face coverings during the flights and in both cases, the individuals refused," Transport Canada said. <br/>
PIA will not appeal against a six-month ban imposed on its lucrative flights to European locations, three officials said, in a blow to the ailing airline’s pre-pandemic turnaround plans. The EASA banned PIA from flying to the bloc in June over safety concerns, days after the country grounded dozens of its pilots over allegedly dubious qualifications. “We’ve decided that filing an appeal at this stage will be counter-productive,” PIA spokesman Abdullah Khan said. The deadline to appeal expired on Aug 31. Two civil aviation officials told Reuters that all the stakeholders agreed that an appeal would be a futile exercise until reforms in the regulatory framework and a full probe into the pilots’ scandal were completed. Opting not to appeal means the ban will remain in force until the end of 2020 - a year in which PIA was to implement a new business plan aimed at making the company profitable by 2023 - via a route rationalization, increasing flights and adding new sectors like Amsterdam.<br/>
A former airline worker has admitted to helping create fake IDs in order to secure free flights. Hubbard Bell, 32, an ex-employee of Texas-based Mesa Airlines, told a court he had worked with others to access the carrier’s employee database, taking information including staff names, dates of hire and employee identification numbers. Bell used the information in order to book 34 free domestic flights for himself, reports kold.com. He also helped create and sell fake Mesa employee ID cards, enabling other travellers to fly for free. The forgeries took place between February 2016 and November 2017 and Bell has pleaded guilty to one count of conspiracy to commit wire fraud. He will appear in court in December 2020, and could be sentenced to up to 20 years in prison.<br/>
The UK's Stobart Group has confirmed it's in talks to sell Dublin-based Stobart Air, which operates the Aer Lingus Regional service, to leasing firm Falko. The stock market-listed Stobart Group confirmed it's in negotiations with UK-based Falko, which also controls Dublin airline CityJet, and other potential suitors. Stobart Group, whose CE is Warwick Brady, has previously said it eventually planned to exit its involvement in Stobart Air. "We can confirm that we are in early stage discussions with a number of parties, including Falko Regional Aircraft, regarding the potential sale of Stobart Group's stake in Stobart Air and Propius," it said in a statement to the stock market Friday. "There can be no certainty that any transaction will be forthcoming or whether acceptable terms will be agreed," Stobart Group added. A deal to sell Stobart Air to Falko could ultimately be worth more than E20m. It would also almost certainly lead to a tie-up between Stobart Air and Dublin-based CityJet, which recently exited examinership and is controlled by Falko.<br/>
Malaysian long haul carrier AirAsia X Friday said lessor BOC Aviation has filed a claim against the company for $23m in outstanding dues. The budget airline said BOC Aviation has alleged a breach of AirAsia X’s lease agreement and its obligations under four guarantees dated December 2018. The AirAsia X board is reviewing the documents and will seek legal advice, the airline said.<br/>