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Emirates boss sees air travel recovery sooner rather than later

Emirates boss Tim Clark expects a dynamic recovery in air travel demand to begin “sooner rather than later”, said Wednesday, describing the industry’s coronavirus crisis as a glitch from which the Gulf carrier can fully recover. The veteran airline leader dismissed predictions of a prolonged slump that punishes network carriers and transit hubs such as Emirates’ Dubai base. “I’m not one of these people who believes in the ‘new normal’,” Clark said. “I believe demand will return in a very robust manner... The pandemic is a glitch... We’ve had many of those in the past - perhaps not as severe as this one for our industry - but nevertheless it’s a glitch and we’ll come through it.” Emirates is closely watched for its deep order book for larger aircraft - whose values were already depressed going into the COVID-19 crisis. Analysts also predict that demand for wide-body or twin-aisle jets will be worst affected by the slump. American Airlines expects smaller airliners to dominate an eventual recovery, CE Doug Parker said talking at the same conference. Clark nonetheless expects the crisis to “get worse before it gets better”, with demand remaining depressed for another six to nine months. Meanwhile, Emirates was benefiting from high global cargo rates, he said, as many passenger jets that normally carry some freight remain grounded.<br/>

Virgin boss Paul Scurrah will leave after Bain takeover, administrator confirms

Virgin Australia's CE Paul Scurrah will depart the company and be replaced by former Jetstar boss Jayne Hrdlicka after falling out with the airline's new private equity owner Bain Capital over its plan to take the carrier downmarket. The change in leadership has enraged unions representing Virgin's workforce, which backed Scurrah and his vision to maintain the airline as a full-service carrier competing head-to-head with Qantas. Bain said publicly in June it supported Scurrah's plan, but sources close to the company said a schism emerged in recent months when the private equity firm reverted to its earlier plan to make Virgin a "hybrid carrier", positioned somewhere between Qantas and Jetstar. Virgin's administrators Deloitte, appointed to run the Virgin sale after it collapsed under debts of $6.8b in April, confirmed on Thursday Scurrah will stand down when Virgin is formally handed over to Bain in early November. Bain confirmed it will replace him with Hrdlicka, who was a Bain executive prior to joining the Qantas group in 2010 and advised the private equity firm on its bid for Virgin. Scurrah's departure was imminent on Wednesday, with sources saying he was locked in a meeting with Bain negotiating his exit.<br/>

Eastar Jet seeks new buyer with job cuts, restructuring: reports

South Korea’s Eastar Jet is going ahead with plans to cut 605 jobs as part of its efforts to attract a new investor, according to local media reports. Further job cuts are expected following additional restructuring measures, broadcaster KBS World reported on 13 October. The move is part of the low-cost carrier’s efforts to find a new investor after compatriot Jeju Air in July scrapped plans to acquire a 51% stake in Eastar, news agency Yonhap reported on 21 September. Eastar’s senior VP Kim You-sang was quoted as saying: “Our lead managers and two private equity funds [that have an interest in investing in Eastar] want the company to reduce our fleet and workforce, among other things.” Then, the carrier said it plans to maintain 590 employees across divisions, just enough to operate six aircraft, and that none of the maintenance roles were affected.<br/>

'Appalling' - Australian airline serves two-minute noodles in business class

A business class passenger on Virgin Australia, where seats can cost more than $2500, has hit out at the airline after they were allegedly served two-minute noodles for their meal. The flyer posted a photo of the snack and soft drink online, causing some to label it “appalling” and a “joke”. Economy passengers get a granola bar according to reports, but only for those that ask for one. The airline went bankrupt earlier his year and has new owners, Bain Capital. It’s reported that the supply chain of complimentary snacks is severely limited. It is also claimed that some staff are taking sick leave to avoid abuse from flyers. Virgin Australia says it is seeking to minimise interactions between crew and passengers. According to Airline Ratings, a spokesperson said: “The safety and wellbeing of our guests is always our top priority and we have a variety of safety measures throughout our customer journey to minimise risks associated with Covid-19, including a limited-service onboard. As travel demand begins to increase we are exploring the possibilities for our onboard Business Class offering, whilst continuing to prioritise the safety and wellbeing of our guests and crew. We look forward to providing this limited Business Class offering to our guests soon.”<br/>

Air Arabia to resume Ukraine flights

Air Arabia said it would resume directs flights between Sharjah and Ukraine’s capital Kiev starting from October 25. The flights to Kiev will operate on Wednesdays, Fridays, Saturdays and Sundays. Customers can book their direct flights by visiting Air Arabia’s website, or through travel agencies, Air Arabia said. The announcement comes a day after the airline said it planned to resume a full schedule of passenger flights from Ras Al Khaimah International Airport, starting October 15. The airline has also introduced free COVID-19 insurance coverage, which is automatically included as part of the booking.<br/>