The coronavirus pandemic has turned airlines’ most price-sensitive customers into a prize. Airlines are dropping fees and reshaping their once-sprawling global networks to focus more on domestic vacation destinations as leisure travelers become more important. That’s on top of new rules, such as mandatory masks, put in place to entice travelers worried about flying during the pandemic. Airlines’ shift comes after the virus grounded most business travel, along with many other areas of life, depriving the industry of what was its most lucrative group. Business travelers before the virus accounted for half of US airlines’ revenue but just 30% of the trips, according to Airlines for America. Eighty-five percent of respondents in a Global Business Travel Association study conducted Sept. 15-19 said they have canceled most or all business trips this year. Close to a third of the 1,364 people polled said they expect their employees to resume in-person events and conferences in Q2 2021. “The leisure traveler is the traveler today,” said Henry Harteveldt, president of Atmosphere Research Group and a former airline executive. Large carriers such as United, Delta and American, have been redrawing their maps away from once-lucrative international trips, as a web of travel restrictions has made much of the world off-limits for Americans. For example, United’s October capacity is 65% domestic, up from a 56% share a year ago. For US travelers, Milan is out. The Rocky Mountains are in.<br/>
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A $2.2t draft bill for coronavirus aid unveiled by Democrats in the US House of Representatives late on Monday gave airlines some hope for a second bailout before tens of thousands of layoffs occur on Thursday, although tough hurdles remained.<br/>“I’m hopeful. I’m not necessarily optimistic,” CE Nicholas Calio of trade group Airlines for America said. Washington insiders said passage by Thursday, when an initial $25b that protected airline jobs through September expires, was unlikely, and the airline group did not detail the congressional action it hoped to see. An option would be a quick standalone bill for the airlines, although senior Democratic congressional aides said that was also difficult given that many industries are seeking help. International President of Flight Attendants-CWA Sara Nelson called the proposal, which includes $25b for airlines to keep workers on the payroll for another six months, “a significant and serious move in negotiations.” “It makes agreement on a full relief bill very possible in time to save our jobs,” she said. Between United and American Airlines alone, more than 30,000 employees will be furloughed on Thursday, and tens of thousands more at those airlines and others have agreed to voluntary leave as the sector battles a deep downturn in demand because of the pandemic. Julie Hedrick, president of the union representing American Airlines’ flight attendants, called on Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi to schedule a vote. “If we are going to save the airline industry, we have to do it now,” she said.<br/>
The leaders of the US House Committee on Transportation and Infrastructure on Monday introduced bipartisan legislation to reform the FAA aircraft certification process in the wake of two fatal Boeing 737 Max crashes. The Boeing 737 Max has been grounded since March 2019 after two crashes in five months killed 346 people. Boeing did not immediately comment. The committee is set to vote on Wednesday on the proposed legislation that would require US aircraft manufacturers to adopt safety management systems and requires an expert review panel to evaluate Boeing’s safety culture and make recommendations for improvements. The proposal, which has the backing of committee chair Peter DeFazio, a Democrat, and the top Republican Sam Graves would also require manufacturers to complete system safety assessments for significant design changes, ensure risk calculations are based on realistic assumptions of pilot response time, and share risk assessments with the FAA. DeFazio said Congress can “meaningfully address the gaps in the regulatory system for certifying aircraft and adopt critical reforms that will improve public safety and ensure accountability at all levels going forward.” The prospects for winning approval for the legislation this year remain unclear. <br/>
Airbus announced its first wide-body order in almost six months -- for a single aerial refueling and transport aircraft based on an old model of its A330 jet. The A330 Multi-Role Tanker Transport or MRTT was ordered by Europe’s multinational procurement body on behalf of NATO and will be available to the air forces of six nations, Airbus said Monday. The military purchase highlights the collapse in sales to airlines and leasing firms that traditionally dominate orders as the coronavirus crisis shatters travel demand. In normal times, Airbus and Boeing would expect to have racked up dozens of orders for hundreds of planes over the summer. Airbus’s last twin-aisle deal, for 10 A350-900 jets, was secured on March 31. Since then, the pandemic has compelled the Toulouse, France-based company to focus more on protecting existing orders by allowing its struggling customers to defer deliveries rather than targeting up new business. Airbus will announce full order and delivery figures for September next week.<br/>