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United eyes return to JFK next year after a more than 5-year absence

United is planning to resume service at New York’s John F. Kennedy International Airport in 2021, possibly early in the year, according to people familiar with the matter. The early plans are a bet that the coronavirus pandemic’s lull in air travel could help United end its five-year absence from what is normally one of the country’s most congested airports. Airlines have pulled back service more in the Northeast compared with other regions as business travel remains largely halted. Airline capacity in New York state will be down nearly 70% in October compared with the same month a year ago, more than the national average of close to a 50% decline, according to Airlines for America, a trade group that represents most US carriers. Service could start early next year but a firm timeline or decision hasn’t been finalized. It isn’t yet clear whether officials will grant United space at the tightly controlled airport, or which airline’s slots the carrier will try to use. United serves the New York-area from its hub at Newark Liberty International Airport, where it dominates flights, and out of New York’s LaGuardia Airport. United declined to comment. <br/>

Ethiopian Airlines rides out pandemic on strength of cargo boom

Six months since the coronavirus pandemic upended the global airline industry, Ethiopian Airlines is facing a heavy toll: more than $1b in lost revenue, to say nothing of 850 infected employees. Yet Tewolde Gebremariam, CEO of the state-owned airline and jewel of Ethiopia's economy, maintains the situation would have been far worse if it had not rapidly adapted to a 90% drop in international passenger traffic. Africa's largest carrier pivoted in March to meet surging demand for air freight, repurposing 45 passenger jets in order to build out its cargo fleet. "We were very quick, very fast, flexible and agile to move our forces, resources and everything to cargo," Tewolde said. "I would say that those actions have saved the airline." So far Ethiopian has avoided seeking a bailout, laying off any full-time employees or requesting deferrals on debt payments, Tewolde said. It even reported a profit of $44m for the first half of the year, he said, although the company declined to give details because the figures are unaudited. The slow rebound in passenger traffic means Ethiopian remains in "survival mode", Tewolde said. But as the industry attempts to recover, he is looking to deepen ties with other African carriers, notably beleaguered South African Airways (SAA). "It is... an opportune time now to support other airlines because we are in a better position," he said.<br/>

Lufthansa cancels Indian flights amid route rights row

Lufthansa is calling for a temporary agreement between Germany and India after it was forced to cancel flights to the country until 20 October amid a row over access under the current travel bubble arrangements. Germany was one of several countries India negotiated a “travel bubble” agreement with in the summer to enable the restoration of limited services between the two countries as coronavirus-related travel restrictions began to be eased. But Lufthansa says it has been forced to cancel all its planned flights between Germany and India from 30 September until 20 October after its application was “unexpectedly blocked” by the Indian authorities. The carrier says it had applied for the continuation of special flights it was granted to operate until the end of September, noting that India has so far ”not accepted the invitation by the German government to discuss details regarding a temporary travel agreement between both countries”. Lufthansa had been planning to restore Chennai flights in October in addition to the Bangalore, Delhi and Mumbai flights it has operated since June. India’s transport ministry says there are restrictions in place on Indian nationals wishing to travel to Germany “which was putting Indian carriers at a significant disadvantage resulting in inequitable distribution of traffic in favour of Lufthansa”. It adds: “As against Indian carriers operating three to four flights a week, Lufthansa operated 20 flights a week. In spite of this disparity, we offered to clear seven flights a week to Lufthansa, which was not accepted by them. Negotiations continue.”<br/>

Singapore Airlines turns A380 into fine-dining restaurant

Singapore Airlines announced Tuesday a range of new offerings for aviation fans as it seeks alternative sources of income while the COVID-19 pandemic continues to keep a lid on international travel. The company that had received the award for "World's Best International Airline" over a number of years said it would introduce a restaurant service in October for those who want to dine onboard a grounded Airbus A380 jet, the largest passenger plane, among other initiatives. The carrier had also considered the idea of operating "flights to nowhere," but ditched the concept after a review. Thai Airways has also launched a pop-up airline-themed restaurant at its headquarters in Bangkok. Singapore Airlines and its subsidiary SilkAir have reinstated flights to Johannesburg, Phnom Penh, Surabaya and Taipei this month and both will continue to fly those routes over October and November. By the end of November, the companies hope passenger capacity will reach about 11% of its pre-COVID levels. SIA had used the A380 aircraft for long-haul services to destinations like London. With vacations to far-flung locations out of the question for many, the carrier is putting the supersized aircraft to use by offering customers some aspects of air travel while grounded. Diners will be attended to by sommeliers who will recommend pairing wines for the meals. They will also receive complimentary alcoholic drinks and can sign up for limited pre-lunch tours of the A380. SIA's double-decker superjumbo will be hosting diners at Singapore's Changi Airport, and they can pay to eat in a cabin class of their choice and enjoy the commensurate level of service. SIA did not reveal its pricing structure.<br/>

SAA administrators suspend all operations until funding found

Administrators in charge of SAA said Tuesday that they were suspending all operations and putting the struggling state-owned airline under “care and maintenance” until funding for a restructuring plan was found. SAA entered a local form of bankruptcy protection in December, after almost a decade of financial losses, and its longstanding woes have been exacerbated by the COVID-19 pandemic. The administrators published a restructuring plan in June, but the government is yet to come up with the more than 10b rand ($590.7m) needed for it work, despite committing to do so. Public finances are massively stretched by its COVID-19 emergency response. “The BRPs (administrators) have made a decision to suspend all the airline operations with immediate effect and are pursuing a process to put the airline under care and maintenance until funding discussions are completed,” the administrators said in a notice to affected parties. They added that certain funders were willing to provide a portion of the funds for the airline’s restructuring plan, and that they were engaging with the government on the remaining funding needed. “All existing cargo and repatriation flights will be undertaken. No new ones will be accepted,” a spokeswoman for the administrators told Reuters.<br/>

TAP defers lease payments and looks to sell up to eight aircraft

TAP Air Portugal has negotiated payment deferrals covering about 60% of its leased fleet, and is looking at selling up to eight Airbus narrowbodies as well as returning some aircraft early to lessors. The Portuguese flag carrier has made the disclosures in a first-half financial results document in which it reveals that it incurred a net loss of E582m in the six-month period to 30 June. This compares with a E112m net loss in the same period of 2019. TAP says it has agreed with Airbus to defer deliveries of most of the A320neo-family aircraft it has on order, and to either postpone the arrival of two A330neos or exchange them for “other models, in light of the market rebound and TAP’s needs at such time”. The airline has postponed “some” of the A320neo-family aircraft that were scheduled to be delivered this year to 2021, and “most deliveries” planned for 2021-22 to 2025-27. The two A330neos it had planned to take delivery of in 2022 have been pushed back to 2024, and the airline highlights the “possibility” of switching to another aircraft type instead. TAP says its agreement with Airbus reduces its 2020-22 capital expenditure by about $1b.<br/>

Hurghada Airport receives first Turkish Airlines flight after COVID-19 lockdown

Navigation sources at Hurghada International Airport confirmed that Turkish Airline flights from Istanbul to the coastal city are set to return, with the first flight touching down Tuesday. The sources added that the flights will restart at the rate of one trip per day. The resumption comes after Egypt’s air traffic was halted on March 19 due to the coronavirus pandemic, with air cargo flights, repatriation charters, international medical flights, and domestic flights excluded from the suspension. Regular traffic in all Egyptian airports resumed July 1, in accordance with Egypt’s preventive and precautionary measures to coexist with the coronavirus. Beginning September 1, all local and foreign passengers were required to provide a PCR lab test result certificate upon entry, proving they have tested negative for coronavirus within 72 hours of reaching Egyptian territory. Both Egypt and Turkey have joined a growing list of countries that have received the ‘Safe Travels’ stamp from the World Travel and Tourism Council. <br/>

CEO of Lufthansa airline Swiss to step down

The head of Lufthansa-owned airline Swiss International will step down at the end of 2020, Swiss said Tuesday, with a successor yet to be determined. “Thomas Klühr, who has been CEO of Swiss International Air Lines (SWISS) since 2016, has asked the SWISS Board of Directors to release him from his duties at the end of 2020,” Swiss said in a statement, adding Klühr would also step down from his role as chairman of Edelweiss Air, another Lufthansa flight operator. “The Board of Directors will decide on his successor as SWISS CEO in the fourth-quarter period.”<br/>