Southwest is offering another round of voluntary leave as staffing levels remain too high for a flight schedule hammered by the coronavirus pandemic. Time off for employees accepting the offer begins on March 1, when thousands of workers are set to return from six-month leaves awarded last year, Southwest said Tuesday. Already, 791 pilots have agreed to take off one to three months, the Dallas-based airline said. About 17,000 workers left Southwest temporarily or permanently last year through voluntary programs as the airline industry rushed to cut operating costs amid an unprecedented drop in demand. Travel through US airport security checkpoints remains only about 40% of 2019 levels, and Southwest and other carriers continue to bleed cash. Besides Southwest’s pilots, other work groups have been offered new time-off programs that would begin in March with partial pay and full benefits, and additional options will be evaluated monthly. Flight attendants haven’t been offered additional leave options after more than 4,600 -- or 30% of the total -- took between six and 18 months away from the job during the first round.<br/>
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Alaska Air Group lost $316m in Q4 2020, and is preparing for a mixed bag in the current year as the coronavirus crisis drags on. The latest three-month figure is the fourth straight quarter of losses for the Seattle based carrier group, and brings the year’s losses to $1.3b, compared to a profit of $798 in 2019. Alaska’s revenue in the final quarter of the year was $808 million, down 64% from $2.2b in the same period in 2019. Revenue for the full year was 59% lower, at $3.6b. For 2021, executives say, the airline is expecting a mixed bag. “We are not out of the woods, but we are seeing signs of brighter days ahead,” says outgoing CE Brad Tilden on 26 January. “We’re positioned to come out of this crisis with our balance sheet unimpaired and our competitive advantages intact, and both of these set us up for a strong future and a long runway for growth.”<br/>
Incoming Alaska Airlines CEO Ben Minicucci will take the helm in March in perhaps one of the strangest years in the century-long history of commercial aviation. After a brutal 2020, the airline is looking at this year as one of transition with a recovery in the offing in 2023, provided enough people in the US get vaccinated, that is. “I think I’m optimistic with the Biden administration,” Minicucci told analysts during the company’s fourth-quarter and full-year 2020 earnings call on Tuesday. “[President Joseph Biden] just announced 1.5m vaccines per day … it could mean we have 100m people in the country vaccinated. I think we might start seeing people venturing out for spring break, so I think we’re going to be cautious … I think we’re going to be on our toes and react appropriately.” <br/>
Hawaiian Airlines reported a Q4 loss of $172.8m as the ongoing global coronavirus crisis and ensuing strict travel restrictions in its home state continue to create hardship for the business. The Honolulu-based carrier’s full-year loss came in at $551m, compared to a profit of $218.9m in 2019. Revenue in the quarter was just under $150m, down 79% from the same quarter in 2019. For the full year 2020, the airline reported $845m in revenue. That’s 70% lower than the year before. “While 2020 has been the most challenging year the airline industry has experienced, we are encouraged that the re-opening of Hawaii to tourism through the state’s pre-travel testing program and Hawaiian’s successful testing partnerships have allowed us to begin the journey to recovery,” says Hawaiian’s CE Peter Ingram. “The negative impacts of Covid-19 will create a challenging beginning of 2021, but we are confident that the structural pieces are in place for a sustained recovery,” he adds.<br/>
Korea's low-cost carrier industry is bracing for major changes this year as two newcomers are ready to join the market, while a giant budget airline is set to emerge through a merger between three low-cost carriers. The two new entrants are Air Premia and Aero K. Air Premia is expected to receive its air operator's certificate from the Ministry of Land, Infrastructure and Transport and acquire Boeing 787-9 planes next month. Air Premia received its license to operate air transport services back in March 2019. The deliveries of Boeing aircraft and other procedures to launch services have been delayed due to the prolonged COVID-19 pandemic, but Air Premia may be able to begin its inaugural service within March as the carrier is in the final stages of receiving its AOC, according to sources. "We are planning to launch our inaugural service to a Southeast Asian country, and then expand our routes to Los Angeles and Silicon Valley, among others," an Air Premia official said. Aero K received its AOC last month and is set to begin operations next month, flying a 180-seat Airbus A320 on the Cheongju-Jeju route. The carrier also plans to operate more international routes after acquiring two more Airbus planes.<br/>
El Al has prolonged the furlough of close to 5,000 personnel at least until the end of February, as the government imposes restrictions on air services. El Al says it has “decided to extend” the unpaid leave of employees until 28 February, putting the figure at 4,864 staff. Personnel will return to work at the carrier “in line with the planned volume of flights”, it says. The furlough situation at El Al has persisted for several months. The government has imposed temporary restrictions on flights to and from Israel on advice from the ministry of health. These measures, which took effect on 25 January, prohibit entry of foreign aircraft – except those operating cargo flights, or performing firefighting services or medical evacuation.<br/>
Eastern Airways has outlined plans to begin flights from Southampton to Nantes and Rennes in France from the end of April. The two routes were long-standing parts of Flybe’s network from Southampton, before the UK regional airline stopped serving both in September 2019. The cities were two of 13 French destinations Flybe served from the UK south coast airport in the summer of 2019, its last full season of operations before its collapse in early 2020. Now Humberside-based regional Eastern Airways, which was a previous Flybe franchise partner, has outlined plans to restore the Nantes and Rennes links from 29 and 30 April. It aims to serve both routes thrice-weekly. Eastern Airways most recently served Rodez in France from Southampton, and has previously also offered international connections to Brussels in Belgium and Lorient in northern France from the airport.<br/>
Pakistan International Airlines is in talks to settle out of court $2m in outstanding aircraft lease payments in relation to two Boeing 777s managed by AerCap. Cirium fleets data shows that AerCap manages two 777-200ERs operated by PIA, and the lease on MSNs 32716 and 32717 commenced in 2015. Ireland-based Peregrine Aviation Charlie is the registered owner of both aircraft. At a 22 January court hearing in the High Court of London, the airline said it has paid around $7m, but $2m in relation to maintenance reserves remains in dispute. The parties have an agreement for $580,000 in monthly lease rentals and $315,000 per month for maintenance reserves, English-language local newspaper Dawn reported on 24 January. PIA is arguing that maintenance costs should not be invoiced, as the two aircraft were not in use for six months due to the Covid-19 pandemic. It reasons that maintenance reserves should be calculated according to flight cycles. The lessor takes the view that the contract’s force majeure clause does not cover the pandemic, and that the airline must pay regardless of how much the aircraft are flown. The hearing was adjourned on the same day, as both parties are seeking to settle the issue out of court.<br/>
Nok Air has issued a request for proposals for the operating lease of up to 26 aircraft to be delivered between this year and 2026, according to a document dated 21 January. The Thai carrier invites “reputed” lessors to submit proposals for up to 19 Boeing 737-800s, four Bombardier Q400 or ATR 600 turboprops, two Boeing widebodies with approximately 300 seats, and one 737-800 freighter. As a “broad timeline”, Nok has set 12 February as the date for receipt of the proposals, after which it will conduct evaluation and have interactions with interested bidders for 17 days before selecting winning bids and signing letters of intent on 28 February. Nok Air is undergoing a business rehabilitation process and is due to submit its rehabilitation plan to the Central Bankruptcy Court on 15 March. It received approval from the same court in early November to enter business rehabilitation.<br/>