The CEO of United said Sunday that a recovery for the aviation industry will have to wait until a Covid-19 vaccine is approved and widely available, a milestone he said the company projects the country will reach toward the end of 2021. “I hope that happens sooner, but our guess is that’s the end of next year,” Scott Kirby said. Kirby’s comments are in line with predictions made by Dr Anthony Fauci, one of the country’s leading experts on infectious diseases. But they contrast to recent statements made by President Donald Trump, who has suggested that the US will soon return to normal as he makes his case for a second term ahead of the November contest against Democrat Joe Biden. Kirby said that barring new federal legislation, United will be forced to lay off 16,000 workers as soon as next month, after the existing funds that were allocated in March dry up. He said that the company continues to burn through $25m per day amid a decline in revenue of 85%. “In a business like ours, demand is not going to come back until people feel safe being around other people, and that’s going to take a vaccine,” Kirby said. “And that’s just the reality. Some businesses can recover earlier, but in aviation and all the industries that we support, it is going to take longer... The reality is, without more government support for the whole economy, there are going to be more layoffs to come.” Experts, including Fauci, have said it would be possible for a vaccine to be approved by the end of the year, and possibly even November, but have cautioned that it will take longer for the country to return to normal. <br/>
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United packs its charter flights for sports teams with young, blond crews and bars older flight attendants from working the plum routes, according to a new lawsuit. In so doing, the airline bases the value of workers “entirely on their racial and physical attributes, and stereotypical notions of sexual allure,” according to two veteran flight attendants who sued Friday in California. The attendants -- a Black woman who has worked for the airline for 28 years and a Jewish woman with 34 years of tenure -- say that they both tried repeatedly and unsuccessfully to get assigned to work the charter flights. In a statement Saturday, United highlighted its track record on diversity and inclusion. “While we cannot comment on this ongoing litigation, the flight attendants included in our sports team charter program are largely representative of our overall flight attendant population in regards to age and race,” the company said. “Importantly, flight attendant eligibility to work a charter flight is based solely on performance and attendance and has nothing to do with age, race or gender.” United has contracts to provide air travel for some three dozen teams in the National Football League, Major League Baseball and National Collegiate Athletic Association, according to the lawsuit. Attendants who work those flights earn more and are provided with premium accommodations. They also sometimes get tickets to games, including playoff and Super Bowl tickets, and “extremely valuable” infield passes, according to the lawsuit. Story has details.<br/>
Shares in HDC Hyundai Development climbed after its planned acquisition of debt-ridden Asiana Airlines fell through last week amid the prolonged COVID-19 pandemic. As of 10 a.m., HDC shares rose 1.2% to 25,050 won, outperforming the broader KOSPI's 0.9% gain, as it was relieved of the financial burden of taking over the carrier. But Asiana shares fell 1.5% to 4,005 won, as it faces restructuring under its creditor banks. Asiana's parent Kumho Industrial Co. rose 2.2% to 6,890 won. "HDC shareholders appear to be relieved from concerns of the winner's curse," Roh Dong-kil, an analyst at NH Investment Securities Co., said. Kumho Industrial, which owns a controlling 30.77% stake in Asiana, on Friday notified HDC of the termination of the drawn-out deal after they failed to narrow differences over the terms of the 2.5t won (US$2.2b) deal. With the collapse of the deal, Asiana will be placed under the control of its creditor banks and undergo restructuring before it is put up for sale again, according to its main creditor Korea Development Bank (KDB). A state-run key industry fund will inject 2.4t won into the carrier to help it stay afloat this year amid virus woes, the KDB said. Asiana has suspended most of its flights on international routes since March, dealing a further blow to its bottom line.<br/>
Thai Airways International got court approval for its debt restructuring on Monday. The Central Bankruptcy Court decided that the airline can proceed with its plan to rehabilitate its debt. The company, which had total liabilities of 332.2b baht at the end of June, faces one of its biggest challenges in its 60-year history as the pandemic hits the country's tourism-dependent economy.<br/>
A Colombian court temporarily blocked a $370m government loan to Avianca Holdings SA after a citizen expressed concern about a lack of guarantees. The Cundinamarca Administrative Tribunal granted an injunction to suspend disbursement after a motion filed by a citizen against the Finance Ministry, the presidency and the airline said the loan, part of its debtor-in-possession financing, may become a “threat” to collective rights and public worth, according to a copy of the ruling sent by court. The action filed by Jonatan Ruiz demanded the bankrupt airline provide “real, material and above all valuable” guarantees to back the loan, which has been blasted by local competitors and lawmakers who called it out-of-line compared with spending on social services and amounts offered to other airlines. The Finance Ministry and the other defendants have 10 days to respond to the motion. Avianca said in a filing that in the coming days it will provide information to the court that “will demonstrate that participation by the Republic of Colombia in the company’s debtor-in-possession financing is a beneficial transaction for the country.” The credit was structured with “substantial collateral support” and “attractive economic returns” for the government and other senior investors, which are “ahead of certain other key stakeholders and third-party lenders in a $700 million subordinated loan,” Avianca said.<br/>
Singapore Airlines is looking to launch no-destination flights from Changi Airport next month, in a bid to give its ailing business a lift. Sources said the national carrier is working towards launching this option for domestic passengers, dubbed "flights to nowhere", by the end of next month. They said SIA also plans to explore a partnership with the Singapore Tourism Board to allow interested passengers to partially pay for such flights with tourism credits that will be given out by the Government. Each flight is expected to take about three hours. Aircraft charter firm Singapore Air Charter director Stefan Wood told The Sunday Times that he had approached SIA about the possibility of setting up a joint venture to provide such flights to nowhere using the Airbus A-350 planes from SIA. But he said the talks stalled recently, with SIA indicating interest in going ahead with such plans on its own. A spokesman said: "SIA is considering several initiatives that would allow us to continue engaging both our customers and members of the public.<br/>
Retrenched SIA staff will receive one month of pay for every year of service, capped at 25 months, The Straits Times has learnt. This is provided they have been in service for two years or more. Each affected employee will also be paid in lieu of the notice period in their employment contract. This can be up to three months' salary. The benefits are in accordance with the group's collective agreements with its unions. On Thursday, SIA announced that it would slash about 20 per cent or 4,300 positions, amid the Covid-19 pandemic that has paralysed the air travel sector. About 2,400 staff will be retrenched, while the remaining 1,900 roles will be accounted for through natural attrition, a recruitment freeze and voluntary-departure schemes.<br/>