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Shares in AirAsia’s long-haul unit skidded after the Malaysian carrier launched a last-ditch plan to save the business, blaming “severe liquidity constraints” caused by the coronavirus pandemic. AirAsia X’s Kuala Lumpur-traded stock fell 10% Wednesday a day after the company warned of “an imminent default of contractual commitments [that] will precipitate a potential liquidation of the airline”. The proposed restructuring comes as the future of AirAsia, owned by Malaysian tycoon Tony Fernandes, hangs in the balance. “A major debt restructuring and a renegotiation of its financial obligations are prerequisites for any raising of fresh equity which will be required to restart the airline,” AirAsia X said late on Tuesday. The plan, which requires the approval of shareholders, creditors and Malaysia's high court, involves reorganising AirAsia X’s RM63.5b ($15.3b) in debt to a principal amount of RM200m and waiving the rest, according to an exchange filing. It also proposes reducing the unit's issued share capital by 90% and consolidating every 10 existing ordinary AirAsia X shares into one. The carrier also will overhaul its workforce, aircraft fleet and route network to slash costs. AirAsia X said there were “varying degrees of support” for the scheme among its large creditors, all of which have “expressed strong support for a continuation of the airline business”. <br/>

EasyJet will stop basing planes in Venice and Naples over coming months, pulling back from the Italian cities in a nod to flagging demand for air travel. The low-cost airline will offer fewer flights to the popular leisure destinations during the winter season and serve them from other hubs, it said in an emailed statement on Wednesday. No flights will operate from the Venice base through March 27, EasyJet said, while it plans a restart in Naples on Dec. 17. EasyJet cited the effects of the resurgent Covid-19 pandemic, which has led authorities to reimpose restrictions on travel throughout the region. Staff who are already on furlough will remain on an Italian program. EasyJet continues to consult with unions on broader staff cuts including in Germany, Portugal and Switzerland. The decision is a sign of persistent weak demand at EasyJet, which already lowered a target for reaching 40% of capacity in the September quarter. Europe’s second-largest discount carrier -- one of the biggest operators at both Italian locations -- is scheduled to give a trading update on Thursday. It hasn’t offered a capacity outlook for the winter season that is under way now and carries through Easter.<br/>

Philippine budget carrier Cebu Air plans to raise $500m by selling preferred stock and bonds, joining airlines worldwide in trying to increase capital to help cope with the pandemic. The proceeds from the $250m convertible preference share issue and $250m private placement of convertible bonds will be used to strengthen the carrier’s balance sheet, it said in a statement. First-half revenue at the airline controlled by the family of John Gokongwei plunged 61% from a year earlier to 17.3b pesos ($358m) and the company said it is operating only about 15% of flights compared with pre-Covid. Cebu Air is undertaking a business transformation that involves trimming down its fleet and network while improving operations as an abrupt drop in passenger traffic “casts uncertainty over the near term prospects of the company,” it said, without providing more details of its downsizing plan. Airlines in the Philippines have suffered a shaky restart amid one of the world’s longest and strictest lockdowns, with lingering concerns over the virus and stringent movement restrictions damping demand for travel. Cebu Air in August dismissed more than 800 of its about 4,000 employees.<br/>

Wizz Air plans to establish a base at Oslo Gardermoen airport and operate domestic Norwegian services to Bergen, Tromso and Trondheim from early November. The move will add 1.5m seats to the market annually, with the carrier basing two aircraft in Oslo and positioning crew in the city. Wizz says the move will enable it to “tap into over-charged oligopoly markets”. All three routes are currently served by both Norwegian and SAS, while Bergen and Trondheim are also served by Wideroe. Wizz will operate four flights a day on the Bergen and Trondheim routes and twice-daily between Oslo and Tromso. “Our low-fare and high-frequency services between Norway’s capital and prominent regions will give our passengers a true alternative,” states CE Jozsef Varadi.<br/>

Alaska Airlines will retire 10 of the Airbus A320 aircraft it owns earlier than intended, accelerating its cost-saving transition back to the all-Boeing fleet structure it operated before acquiring Virgin America. The Seattle-based carrier expects an impairment charge for accelerating the retirement of these aircraft after determining “the carrying value was no longer recoverable”, it disclosed on 1 October in a filing to the US Securities and Exchange Commission. Alaska has not disclosed a timetable for its plan to remove the A320s from its fleet, which will cost them an impairment charge because they are being financed. “The charges are expected to range from $115 million to $125 million, but are still subject to finalization,” Alaska states, adding that it will evaluate future options for these aircraft. These 10 owned A320s are each around five years old, Cirium fleets data shows. This means Alaska will likely sell the aircraft rather than scrap them for parts, says Cirium aviation analyst Syed Zaidi. “The reasons aren’t to do with the A320s, it’s just to do with costs,” Zaidi says. “The A320 family is still in demand but there is a natural drop in values during the current climate. These aircraft are so young that they are not going to a second-tier operator.”<br/>

T'way Air, a South Korean low-cost carrier, said Wednesday it will begin flights to Japan next month mainly to meet business travel demand. T'way Air will resume services on the routes from Incheon to Osaka and Tokyo on Nov. 5 and Nov. 6, respectively, with a plan to eventually provide flights on routes to Nagoya and Fukuoka, the company said. The budget carrier said it will initially offer one flight a week on the routes to Osaka and Tokyo as the new coronavirus outbreak continues to weigh on travel demand. The move comes as Japan agreed to allow businesspeople from South Korea to enter the country without a 14-day coronavirus quarantine starting Thursday. T'way Air suspended most of its international routes in March.<br/>