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Austrian plans further restructuring amid stalled recovery

Austrian Airlines is planning to implement further restructuring measures in response to lower-than-predicted travel demand amid the current wave of Covid-19 infections. The Lufthansa Group carrier says it is currently operating around 15% of pre-crisis capacity. It had previously forecast that the level would reach 50% during the winter season ending in March. CE Alexis von Hoensbroech states that Austrian has “sufficiently full” coffers as a result of the E600m financial support package agreed by the Austrian government and Lufthansa Group in 2020, as well as its own cost-cutting efforts. But he adds: “The second coronavirus wave and new lockdowns have costed us important reserves. We have to take precautions if the summer turns out to be weaker than hoped and the longer-term recovery takes longer than previously planned.” Austrian therefore intends to implement measures to “further secure” liquidity in the short term and improve the company’s financial performance in the long term. An effort to halve the airline’s head-office space has been accelerated, moving the deadline forward to summer from autumn 2021. Further measures are being evaluated, Austrian says, noting that short-time working arrangements currently in place for the airline’s 6,400-strong staff are “essential” to reduce pressure on the business.<br/>

ANA to cut workforce 20% over five years through retirements and reducing hiring

ANA Holdings Inc. plans to reduce its workforce in the aviation business by roughly 20% over the next five years through natural attrition to cut costs and cope with the COVID-19 crisis that has depressed travel demand, sources familiar with the matter said Friday. The parent of ANA expects its number of employees in the aviation business to fall to 30,000 by March 2026 from 38,000 estimated at the end of March this year by reducing new hires and through retirements, the sources said. The plan is the latest effort by the major airline to meet a goal of slashing costs by Y100 over the five-year period. ANA Holdings estimates a record net loss of ¥510b in the current business year ending in March, as it is struggling to deal with a slump in passengers, with no immediate end in sight to the coronavirus pandemic. The company has already begun cutting costs to ride out the crisis, canceling both domestic and international flights and reducing its fleet, including Boeing 777s that are used for long-distance flights. ANA normally hires around 3,000 new graduates every year. But the company is planning to hire about 700 for fiscal 2021 starting from April and about 200 for fiscal 2022. It sees about 2,000 employees leave the company every year.<br/>

ANA consolidates freighter operations at Tokyo Narita

ANA is consolidating its freighter operations at Tokyo Narita to maximise profitability, alongside plans to channel capacity from passenger aircraft operating cargo-only flights to its logistics hub at Naha airport in Okinawa. The group will continue to deploy all 11 freighters in its fleet, which will service destinations in Asia, including China, as well as in North America and Europe, via Tokyo Narita, it said Friday about its cargo schedule for the fiscal year ending 31 March 2022. Pure-cargo flights using passenger aircraft will be deployed according to ANA’s assessment of demand, and it plans to supplement its cargo operations by adding charter flights and non-scheduled commercial flights. The group adds: “ANA will introduce new destinations and routes, depending on the market demand and assessment of its profitability.” Cirium fleets data shows that Air Japan, ANA’s charter arm, operates nine Boeing 767-300 freighters, between 14 and 29 years of age, and two 777-200 freighters, each around two years old.<br/>

Singapore Airlines merges SilkAir into its parent company brand

Singapore Airlines has started integrating SilkAir into its parent company brand, ending 30 years of its operations. The news of the merger was first announced in 2018. In a 15-second video posted on SilkAir’s Facebook, Instagram and YouTube channels, the ad shows one of SilkAir’s cabin crew members changing out of her official uniform into SIA’s batik-print kebaya uniform. The ad followed with a message: "SilkAir's journey continues as Singapore Airlines, so you can enjoy world-class service, no matter how short your journey." Throughout the integration process, SilkAir’s nine 737-800s will be repainted in Singapore Airlines’ livery, whereas SilkAir’s other A319 and A320 aircrafts will be retired. Singapore Airlines will operate Boeing 737-800 NG aircraft on flights to Phuket from 4 March 2021, as part of SilkAir’s integration with the parent airline. “The introduction of the SIA 737-800 NG will bring about a more comfortable and seamless travel experience for customers on our regional routes,” said Goh Choon Phong, Singapore Airlines CEO. “Integrating SilkAir with SIA also allows us to be nimble and flexible in aircraft deployment, and supports our fleet and network growth strategy.” The full integration of SilkAir into Singapore Airlines is scheduled for completion in the 2021/22 financial year.<br/>

Kenyan stowaway survives 19,000ft flight clinging to landing gear in sub-zero temperatures

A teenage Kenyan stowaway has survived a flight from London to Maastricht after climbing into the landing-gear bay area of the fuselage. The 16-year-old boy was found after the cargo jet landed in the Netherlands city on Thursday. It is thought the youngster may have survived the plane’s earlier – and far longer – flight from Nairobi in Kenya to London Stansted Airport, via a stop in Istanbul in Turkey. A spokesperson for Maastricht Aachen Airport said: “He had tremendous luck to get through this.” The spokesperson said that temperatures within the landing gear bay of the Turkish Airlines Airbus A330 would have fallen to minus 30C, adding: “Stowaways on airplanes are rare, and most people sadly don’t survive the journey.” The teenager is now in hospital suffering hypothermia but is said to be otherwise in a relatively healthy condition. Dutch police say there are currently trying to trace the boy’s exact route and will be investigating potential human trafficking links in connection with the incident.<br/>