White House economic adviser Larry Kudlow said Wednesday the Trump administration will consider executive action to help airlines hurt by the economic impact of the coronavirus pandemic. “We would like very much to help the airlines,” Kudlow told reporters at the White House. “We’ll see what has to be done there with respect to possible legislation or even possibly with respect to executive administrative action. We’ll take a look on that.”<br/>
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US airline CEs and labor leaders redoubled calls on Wednesday for lawmakers to urgently pass another $25b in payroll aid, though hopes for a deal this month were dwindling as lawmakers shifted focus to a political battle over a Supreme Court vacancy. The industry has been hoping that the US Congress will approve a $1.5t coronavirus relief package with another round of airline payroll support before mass furloughs in the aviation sector on Oct. 1, when a current package expires. Airlines, weathering their toughest crisis ever, want to keep workers off the unemployment lines until the pandemic subsides, arguing that airline service is essential for an economic recovery. "Everyone agrees that makes sense," American Airlines CE Doug Parker said. International President of Flight Attendants-CWA President Sara Nelson said: "Everyone is for this program, including the White House. No one wants to see these mass layoffs on Oct. 1, so we just need to get this done now." But a fight over the Supreme Court seat left open by the death of Ruth Bader Ginsburg on Friday has derailed prospects for relief this month, said Loren Thompson, COO of the Lexington Institute, a Virginia-based think tank. "The airline bailout matters relatively little to the Congress compared with the current debate over a Ginsburg successor. Before the SCOTUS (U.S. Supreme Court) fight, there might have been some common ground. But when the system is super-polarized, compromise is impossible." Thompson said prospects for both a broader bill with an airline component and a standalone bill introduced by two key Republican senators on Monday were dim.<br/>
Airlines have felt the pain of the coronavirus pandemic more than other companies. Almost overnight the bulk of their business ceased. But in mid-2020 there was at least hope that Covid-19 might not be as virulent as first thought; that warmer months would bring some respite; that travel corridors—agreements allowing passengers to fly between two countries without quarantine—might get people back in the air. Now, almost eight months into the pandemic, with cities reentering lockdown and a vaccine likely months away, it’s apparent there will be no quick comeback. International air traffic in July was 92% below 2019 levels, and there was little sign of improvement in August, according to the IATA. More than 400,000 airline jobs have been cut since February, according to data compiled by Bloomberg. “This is lasting longer and is deeper than most people thought,” says Scott Kirby, CEO of United. “And our view is demand is not coming back. People are not going to get back and travel like they did before until there’s a vaccine that’s been widely distributed.” BA CEO Alex Cruz says the airline is “fighting for survival.” Cathay Pacific has said it’s restructure or die. And Singapore Airlines boss Goh Choon Phong called the decision to slash 4,300 jobs—about 20% of his workforce—the “hardest and most agonizing” he’s had to make in 30 years with the company. Airlines in the U.S. are expected to lay off thousands of additional workers when the Coronavirus Aid, Relief, and Economic Security Act, or Cares Act, expires on Oct. 1. According to IATA, 25 million jobs are at risk in airlines and associated businesses such as travel and tourism. That’s more than the 22 million the ILO estimates were lost globally as a result of the 2008 financial crisis.<br/>
Earlier this year, social distancing and the cataclysmic drop in demand for air travel was expected to bring a sharp rise in airfare prices. Flying was going to get expensive — a lot more expensive, according to some. Commercial aviation, the conventional wisdom said, would return to its 1950s roots as a luxury available only to the rich. All that may happen — but not anytime soon, experts say. Will commercial airfares rise this year?<br/>“I don’t think so,” said Kent Gourdin, professor and director of the Global Logistics and Transportation Program at the College of Charleston. “Airlines are simply trying to put people into seats.” Gourdin said that until the public can travel — not just fly — with confidence again, he believes fare increases are off the table. “Business travel is still down as many firms realize virtual meetings can often yield the same benefits as those held face-to-face, at significantly lower cost,” said Gourdin. “Leisure passengers are simply not yet comfortable booking costly trips to popular destinations not knowing what they will find when they arrive.” Dean Headley, co-author of the Airline Quality Rating and an emeritus professor at the W. Frank Barton School of Business at Wichita State University, said that while third- and fourth-quarter airfares are “typically” higher than the first half of the year, “these are not typical times.” “Airlines sometimes do crazy things that do not seem to make sense,” he said, “but this does not seem like the time to raise fares.” Story has more.<br/>
Airline passengers want visible plastic barriers in the cabin to reinstill confidence in flying during the pandemic, saying they do not all trust industry assurances about high air quality onboard, aviation industry executives said on Thursday. Other pandemic-related trends could include more private business class seating on narrowbody planes, adding touchless lavatory features and permanent conversions of passenger planes to freighters, according to a panel at the MRO Asia-Pacific conference held online. Embraer is studying reusable and disposable plastic barriers for its regional jets, but challenges include making sure they are lightweight, not flammable and do not affect aircraft cleaning and evacuation, said Lais Port Antunes, a business development manager in the planemaker's Asia-Pacific division. “Modern aircraft are already equipped with excellent technology to filter the air,” she said. “The passengers should feel safe in an aircraft cabin, but they need to see actions.” Tan Hean Seng, a senior executive at Singapore Technologies Engineering Ltd STEG.SI, said airline customers, fearing cost increases, did not seem interested putting fewer seats in economy class. But, he added, the airline still needed to reassure them about risk. “Having a shield between the seats, the passengers may feel safer, especially during mealtimes when passengers take off masks and there is potential contamination,” Tan said, adding his company had developed a prototype.<br/>
US airports are refinancing billions of dollars of old debt to take advantage of historically low interest rates and attract yield-hungry investors to gain financial breathing room in their coronavirus-hit budgets. Savings achieved from the refinancings could also help cash-strapped airlines that largely fund airport operations. On Thursday, Chicago’s O’Hare International Airport is scheduled to refinance more than $1b of bonds to achieve a projected $175m present value savings to offset anticipated revenue losses in 2021. Airports in cities including Dallas, Houston, and Los Angeles have accessed the US municipal bond market in recent months, while deals are coming from Philadelphia, Atlanta and Denver, which plans to refinance up to $1.9b of bonds in October. Airports are seeking an additional $13b federal bailout after receiving $10b in aid so far.<br/>
Finnish sustainable aviation fuel supplier Neste is teaming up with petroleum heavyweight Royal Dutch Shell to “significantly increase” the supply and availability of the lower-emissions fuel for the commercial aviation industry starting in October. The agreement comes just over a month after the Helsinki-based company began supplying three of the USA’s biggest airlines with renewable jet fuel at San Francisco International airport. Alaska Airlines, American Airlines and JetBlue Airways began using the low-carbon gas, made from 100% renewable waste and residue sources earlier this year. “To tackle climate change and reach net zero emissions, the aviation industry must act fast,” says Anna Mascolo, president of Shell Aviation. “Shell Aviation aims to reduce the carbon intensity of the fuels we sell which includes selling more lower-carbon fuels like sustainable aviation fuel, over time.” Neste says that its sustainable fuel reduces greenhouse gas emissions by up to 80% compared to fossil jet fuels, and thus helps airlines achieve their sustainability targets.<br/>