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Airlines, facing a painfully slow recovery, begin furloughing thousands

When Congress gave passenger airlines a $50b bailout in March, industry executives hoped the aid would tide them over until the fall, when more people might be traveling and a vaccine might be closer at hand. Several months later, that hopeful future remains extremely murky. With no recovery in sight and negotiations over another stimulus package at an impasse, United and American Airlines on Thursday began furloughing more than 32,000 workers. The companies said they would reverse the cuts if Congress and the Trump administration reached an agreement to extend more aid to the industry, but there has been little or no progress in those talks. “I am extremely sorry we have reached this outcome,” Doug Parker, American’s CE, told employees in a letter late Wednesday. “It is not what you all deserve.” Airlines were prohibited by the March stimulus law from undertaking major cuts to where they fly and who they employ until Oct. 1. For months, unions have lobbied lawmakers for more money to postpone the day of reckoning, arguing that airlines are crucial to the economy. The campaign worked, but only to an extent. A bipartisan majority of lawmakers in the House of Representatives, at least 16 Republican senators and President Trump said they would be willing to offer another lifeline to the industry. But the effort stalled as Congress and the administration remained deadlocked on a broader aid package. The Trump administration has for weeks been exploring ways to help the industry unilaterally, through executive actions or by repurposing unused money from the previous relief legislation. But officials have concluded that those options were not feasible. In theory, airlines could apply for some of the unused funds set aside for companies that are critical to national security, but the Department of Defense would have to certify that use and the money could come with onerous repayment terms. Even if the definition of national security were interpreted to include passenger airlines, it is not clear how quickly such funds could be disbursed and if the companies would be comfortable with the terms.<br/>

Canada: Unions push Trudeau for $5.3b Canada airlines bailout

Three unions representing thousands of airline workers are calling for C$7b ($5.3b) in government aid to prevent “long-lasting damage” to the aviation sector from the pandemic. Government measures to curb Covid-19 have choked off most air travel, including a requirement that anyone entering the country isolate for 14 days. Through July, the recovery in Canadian air travel was much slower than in the U.S. Unifor, the Air Canada Pilots Association and the Canadian chapter of the Air Line Pilots Association are asking Justin Trudeau’s government to provide loan guarantees, money to resume and maintain air services and fund development of an “evolving” quarantine and testing plan, according to a statement released Thursday. Funding should be under the form of a 10-year, 1% loan, instead of a grant, Unifor National President Jerry Dias said. The National Airlines Council of Canada, an association representing the country’s largest carriers including Air Canada, WestJet Airlines and Transat, support the plan. “Countries around the world have brought forth sectoral support for their aviation sectors, precisely because of the critical role aviation must play in the economic recovery,” said Mike McNaney, the council’s chief executive officer. “We support today’s call by Canada’s major aviation unions.” Air Canada said it’s in the process of finalizing an initial order of 25,000 Covid-19 rapid testing kits, which it hopes will allow the government to relax current restrictions. <br/>

Celebrations in S. African airports as borders reopen

International flights landed in South Africa on Thursday for the first time in over six months, touching down amid a flurry of celebrations in some airports as coronavirus-linked travel restrictions lifted. Jets of water were sprayed in an arc to welcome an Emirates flight from Dubai as it touched down in the coastal city of Cape Town. In the arrivals areas, performers danced and played jolly music as the Emirates crew walked out in a welter of South African flags. An Ethiopian Airlines flight landed shortly after jetting in from Addis Ababa. Africa's most industrialised economy sealed its borders at the start of a strict lockdown in late March to limit the spread of coronavirus. Restrictions on movement and business have been gradually eased since May, but international borders stayed shut until October 1 to avoid admitting infections from abroad. German carrier Lufthansa was the first European airline to resume operations into South Africa, with a flight from Frankfurt landing at Johannesburg's O.R. Tambo international airport at 8.30 a.m. (0630 GMT). Planes also flew in from Kenya, Zambia and neighbouring Zimbabwe. "Lufthansa is delighted to be at the forefront of the resumption of commercial travel into South Africa," the airline's southern and East Africa manager, Andre Schulz, said in a statement. "We look forward to bringing visitors back to South Africa and helping to boost the very important tourism sector."<br/>

Business class lunch in SIA’s A380 to cost S$300 as airline unveils pricing of new initiatives

A three-course meal onboard Singapore Airlines' (SIA) superjumbo A380 will cost S$50 in economy class and S$90 for premium economy. If you prefer something more luxurious, expect to pay S$300 for a four-course lunch in business class and S$600 for suites. SIA announced on Thursday the pricing for its three new initiatives such as the dining experience on the A380. It is also offering the public a tour of its training centre and a home delivery service featuring its first class and business class meals. The suite of new services, dubbed Discover Your Singapore Airlines, will soon be available for booking. Those missing the experience of being on a plane can consider making a reservation for Restaurant A380@Changi, taking place only on two afternoons on Oct 24 and 25. Meals will feature international cuisines and items from a Peranakan menu specially designed by Singaporean chef Shermay Lee. Story has prices.<br/>