JetBlue Airways plans to launch transatlantic services in the second half of 2021 amid what it expects to be a resurgence in demand for air travel, according to the airline’s CE Robin Hayes. “We actually think that launching flights to London next summer, probably in Q3, is the perfect time to introduce all of my friends in the UK and in Europe to what I consider the very positive effect of flying JetBlue,” Hayes says. Many travellers “just want to wait a little bit longer to feel comfortable about flying”, Hayes observes, adding that he expects the 2021 summer season to be characterised by “tremendous pent-up demand for travel”. JetBlue’s planning assumption is that “all of our leisure travel will be largely recovered by the end of 2021”, he says. The carrier announced in early 2019 that it planned to launch transatlantic flights some time in 2021, with services to London from New York John F Kennedy and Boston, but noted in May this year that there would be a “timing impact” from the coronavirus crisis. The arrival of an established low-cost operator on transatlantic routes is viewed as a potentially disruptive event in a market that has been largely dominated by legacy network carriers.<br/>
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JetBlue plans to offer short-term rentals with the help of a partner not named yet, possibly by the end of the year. The airline plans on offering the accommodations under its own brand, and would handle the customer service in-house instead of leaving that to the partner. Andres Barry, president of JetBlue Travel Products, a subsidiary of the airline, detailed the plans Tuesday at a Morgan Stanley conference for the carrier to expand beyond its current non-air portfolio of JetBlue Vacations, travel insurance, car rentals, ridesharing and cruises, and into short-term rentals. Barry said the pandemic slowed JetBlue’s plans after announcing at its 2018 investor day that the airline’s incremental operating income from products beyond flights could be $100m in 2022. Unlike most airlines that offer hotels and other non-air products, Barry said JetBlue would carefully curate the short-term rentals it offers, leveraging its own customer data and meeting JetBlue standards. JetBlue would put its own brand power behind the product, and handle the customer service itself rather than letting the partner do it. “The typical model in this world is you buy a product, and then if you have a question, call the partner,” Barry said. “And what we’re saying is, no, no, we’re slowly but surely taking over the servicing. So if there’s anything that you have a question on or make a change, it’s all handled through JetBlue.” Toward the end of 2020 and into next year JetBlue plans to “get more into short-term rentals and cruises and spaces like that where, well, we may not be providing the hard product, but we’re providing the service and we’re selecting the products for our customers that we think meet their standards and then ensure that they’re getting good value for money in service,” Barry said. He mentioned that Airbnb and Vrbo were among potential partners for the short-term rental service.<br/>
Emirates has started using Airbus SE A380 superjumbos as cargo planes to meet a surge in demand for transported goods while awaiting a recovery in passenger air travel. The world’s largest long-haul airline has adapted the A380 to carry about 50 tonnes of cargo in the belly of the aircraft, Emirates said in a statement on Wednesday. The move comes in response to the increased need for critical goods such as medical supplies in regions experiencing a resurgence of the Covid-19 pandemic, Emirates said. While the Dubai-based airline operates passenger flights on A380s to some destinations, most of the 115-strong fleet remains grounded. The ongoing pandemic has forced governments to impose quarantine requirements or close borders entirely to keep the coronavirus at bay, killing appetite for international leisure travel. Emirates temporarily converted 10 Boeing Co. 777 planes to carry more cargo in June, though that model is better suited to the task and can transport about 67 tonnes per flight. The A380, which can seat more than 500 people, is tougher to convert as its two-deck layout provides only limited belly space. Emirates is working on improving the jumbo’s capacity through measures such as utilizing seating space, the carrier said. The A380 will be one of the last models to return to the skies with demand not expected to return to pre-pandemic levels until 2023 or later. <br/>
Air Arabia on Wednesday said it had requested the government for financial support to deal with the impact of the COVID-19 pandemic. “We have put a request in and if it comes, we will be very happy,” said Adel Ali, the company’s CEO during a virtual event. “It will help us to pay a sum of our outstanding quicker - If it doesn’t, I think we can survive hopefully for some time to come.” Ali said the airline was “in discussions” with the government and that they were holding regular meetings with the civil aviation authorities at the federal and local levels. Ali said about 40% of the carrier’s operations in the UAE were back after the pandemic led to a complete grounding of its fleets in March. In Egypt and Morocco – the airline’s other two hubs – Air Arabia is operating at 60% and 80%, respectively, of pre-COVID levels, the executive said. “As Europe is getting into more rock downs … that number is shrinking but interestingly, this time round, …. the airports are open and …. and people are traveling, so that’s not too bad,” he said.<br/>
Three Israeli airlines will begin direct flights from Tel Aviv to Dubai in December, with El Al operating twice daily services, Israir offering six weekly flights and Arkia operating a daily service, Dubai Airports said Wednesday. El Al will run its service with Boeing 787 Dreamliner aircraft, Israir’s flights will be use Airbus A320s and Arkia’s daily flight will be on Embraer E-195 E-Jet aircraft, said Dubai Airports, which manages the operations of both of Dubai’s airports. The United Arab Emirates and Israel signed an agreement in September to establish full diplomatic relations. This made the UAE along with Gulf neighbour Bahrain the first Arab states in a quarter of a century to seek formal ties with Israel, largely due to shared fears of Iran. “There is a lot of anticipation following the signing of the historic accords and both sides recognise the importance of enabling air connectivity as one of the first important steps to realising those expectations,” said Jamal al-Hai, deputy CEO of Dubai Airports.<br/>
A steady increase in cargo revenue helped Indian low-cost carrier SpiceJet narrow its quarterly operating loss, even as passenger travel demand remains in the doldrums amid the coronavirus pandemic. For the quarter ended 30 September, the carrier reported an operating loss of Rs1.06b ($14.2m), significantly lower than the Rs6b loss it reported the previous quarter. Year on year, the loss was also lower: during the same period last year, SpiceJet racked up an operating loss of Rs4.6b. Revenue for the period fell 62% year on year to Rs10.7b, led mainly by a decline in passenger traffic revenue. However, a surge in freight and logistics revenue helped offset the revenue decrease. Year on year, SpiceJet saw its cargo revenue increase more than five-fold to Rs2.3b. Compared to the previous quarter, it represented a 37% jump. Expenses for the period fell about 60% year on year to Rs14.2b. SpiceJet adds that the ongoing Boeing 737 Max grounding has led to costs of around Rs1.4b for the quarter. The carrier reported a net loss of Rs1.06b, which was an improvement from the Rs4.6b net loss it reported last year. SpiceJet chairman and managing director Ajay Singh says the carrier will continue to expand its cargo business, tapping into burgeoning demand in the sector.<br/>
Cebu Pacific continued its loss-making streak for Q3 this year, as it widened its operating losses on the back of a steep revenue decline. For the quarter ended 30 September, the Philippine low-cost carrier and its subsidiaries reported an operating loss of Ps6.7b ($139m), reversing the Ps873m quarterly operating profit it made last year. It was also a marginally higher loss compared to the Ps6.29b operating loss it reported in the previous quarter. Revenue for the period plummeted 89% to Ps2b, outpacing a 52% year-on-year decline in expenses. The revenue decline was led by a dramatic 97% drop in passenger revenue year on year. Cebu Pacific reported a net loss of Ps5.5b, widening the previous year’s Ps376m net loss. On a nine-month basis, the carrier reported an operating loss of Ps13.7b, reversing the Ps9.7b operating profit it reported the same period last year. As with previous financial results, Cebu Pacific warned that the pandemic would adversely affect its liquidity. It adds: “However, the group is confident on its ability to raise cash for liquidity needs even if there were unprecedented losses incurred as a result of an expected slow recovery from this crisis. The group remains in a strong balance sheet and equity position at the end of the period.” <br/>