unaligned

Southwest hopes to break even by mid-2021 as air travellers return in greater numbers. Gary Kelly, the Dallas-headquartered airline’s CE, says on Monday that the company’s cash burn has slowed and revenue is improving thanks to increasing demand for leisure travel. Southwest lost $3b in 2020, its first full-year loss since 1972, ending a 47-year streak of profitability. “It feels like it’s the beginning of the end,” Kelly says. “Our hope is that by the time we get to June, where you’ve had most of the population having had access to vaccinations, we have got a chance at breaking even at least.” In a 15 March filing with the SEC, Southwest said its average daily cash burn in February was $17m. It expects Q1 daily cash burn to come in around $14m. That is down from a high of $30m daily in April 2020, just weeks after the pandemic took hold. “My hope is that by the time we get to the end of this year we have most of this pandemic behind us,” Kelly adds.<br/>

Pilots at Canada’s Jazz Aviation have approved a deal that will allow the company to become the exclusive operator of Air Canada Express flights. The approval from the pilots, represented by union Air Line Pilots Association, International (ALPA), is the last piece of an agreement under which Air Canada will consolidate all its region-aircraft operations under one regional partner – Jazz. Air Canada said last week it intends to transfer the operation of Sky Regional Airlines’ 25 Embraer 175s to Jazz. That leaves Sky Regional without any aircraft, and the company confirmed last week it intends to cease operations on 31 March. “A long-term goal of Jazz pilots has been to reach consecutive agreements with airline management to facilitate the consolidation of Air Canada Express flying at Jazz,” says Claude Braglia, chairman of the Jazz chapter of ALPA, on 15 March. “Jazz pilots are proud to become the sole operator of Air Canada Express, and we are prepared to support Air Canada’s recovery through the pandemic and into the future.” The agreement calls for Sky Regional pilots to be offered jobs at Jazz.<br/>

Air Atlanta Icelandic has acquired one of BA’s Boeing 747-400 full flight simulators following the retirement of the type from the UK carrier’s fleet last year. Under a related agreement, the simulator will remain at BA’s Global Learning Academy at London Heathrow where the flag carrier’s engineering team will host, maintain and recertify it for UK and European qualifications. The simulator, which has GE Aviation and Rolls-Royce engine capability, will also be available for hire by other airlines that operate 747 aircraft. Baldvin Mar Hermannsson, CE of the Icelandic airline, says: ”With the purchase of the Boeing 747-400 simulator, Air Atlanta Icelandic is looking forward to further expanding its excellent co-operation with British Airways. The Atlanta Flight Academy (ATO) will offer Boeing 747-400 type rating as well as with other training modules for both Air Atlanta Icelandic and third-party customers.“<br/>

Latvian carrier Air Baltic is to begin restoring flights outside of the European Union, initially resuming services to the Ukrainian capital Kiev. Air Baltic will operate Riga-Kiev flights from 17 March. It plans to follow from the start of the summer schedule on 28 March by resuming flights to Georgian capital Tbilisi, Tel Aviv in Israel, the Russian cities of Moscow and St Peterburg, and the Belarusian capital Minsk. Airline CE Martin Gauss says: ”Now that flights from Latvia to countries outside the European Union are allowed, we are gradually resuming connections to a few key destinations, to improve the essential connectivity we provide for the Baltic region. For many people, who need to travel for essential reasons, aviation is the safest mode of transportation.” Air Baltic carried out just 480 flights in February – compared with over 4,100 for the same month in 2020 – and handled just 23,500 passengers. This is the lowest number flown by the carrier since it resumed flights in May last year following a temporary grounding when the pandemic first hit.<br/>

Wizz Air’s largest shareholder, Indigo Partners, is planning to sell up to GBP400m ($555.56m) worth of shares in the Hungarian low-cost airline, Barclays Bank said on Monday. Private Equity firm Indigo Partners owns 15m shares, or a 17.5% stake, in Wizz Air as of Monday, said the bank, which is acting as the global coordinator on the deal. Based on the last closing price of Wizz Air shares, Indigo Partners’ stake in the airline amounts to about GBP825m. Barclays said on Monday the share sale would be done through an accelerated bookbuild offering that starts immediately.<br/>

A group of executives instrumental in Norwegian Air Shuttle's failed attempt to provide low-cost, trans-Atlantic travel are trying again, this time with a new airline. Norse Atlantic Airways aims to start operations by year-end, according to a statement Monday. It is 53% owned by shipping entrepreneur Bjorn Tore Larsen, whose company OSM Aviation provided flight crews for Norwegian Air before the carrier filed for insolvency. Larsen will serve as chief executive officer of Norse Atlantic, while Norwegian Air founder Bjorn Kjos and former chairman Bjorn Kise own 15% and 12% of the new company’s shares. Norse Atlantic will begin service in December with nine leased Boeing 787 Dreamliner jets, the same model that Norwegian Air deployed on trans-Atlantic services, according to the statement. The discount carrier’s rapid push into trans-Atlantic flights rattled competitors, but left it with too much debt from hundreds of aircraft orders and splurges on new routes. Norwegian Air is now seeking to reorganize under Irish insolvency laws. It has largely ditched long-distance flights and has said it will focus on regional routes in Europe.<br/>

Jet2 is to access a loan of GBP200m from the UK government’s Covid Corporate Financing Facility (CCFF). The UK carrier had originally qualified for a GBP300m loan under the facility, but this was reduced by a third after the government amended the eligibility requirements in October. The CCFF was established by the UK Treasury and the Bank of England to assist companies through the Covid-19 pandemic. Jet2 says it “intends to issue the full amount” prior to the closure of the scheme on 22 March, and will use the funds to provide standby liquidity. The loan “provides the group with additional headroom to deal with the ongoing cost of disruption to our sector”, states Jet2 executive chairman Philip Meeson.<br/>

Hundreds of non-tenured workers have received dismissal notices as the airline cuts its workforce as a precondition for a state loan. Hundreds of El Al employees received letters summoning them to a hearing prior to being dismissed. In the first stage, employees who have no tenure, which includes most of the cabin crew, are being dismissed. El Al said, "As part of the streamlining program, El Al is announcing at a critical juncture on the way to receiving a loan from the state that the company has sent dismissal notices to hundreds of temporary employees only at this stage." The company's employees will remain on unpaid leave until at least March 31.<br/>

China’s aviation regulator said on Monday it is suspending Donghai Airlines from adding new routes, flights and capacity after concluding an investigation into a mid-air dispute between crew members on a recent domestic flight. The pilot, who, according to media outlet Caixin, blamed the head flight attendant for not clearing his way to the bathroom, will have his license revoked, Wu Shijie, deputy director of the Office of Aviation Safety at the Civil Aviation Administration of China (CAAC), told a monthly briefing. Wu did not specify how long the restrictions on routes, flights and capacity would last. He also did not offer the details on the mid-air fight. <br/>

Short sellers are taking aim at AirAsia Group after the stock more than doubled from recent lows. The carrier, once the pioneer of a low-cost flying revolution in Asia, is now the third-most shorted stock in Malaysia, exchange data show. AirAsia shares have rebounded amid bets the worst may be over as global vaccine rollouts boost market hopes for global reopenings. The rally has left the gap between analysts’ 12-month price target for the stock and its current value at the widest in almost three years. Its relative strength index rose to 82 on Monday, a level signaling overbought conditions. While a revival in travel “will be exponentially rewarded in airline stocks, in the case of AirAsia there might be some concern around balance sheet,” said Nirgunan Tiruchelvam, head of consumer sector equity research at Tellimer. “Within the cohort of airline stocks, it might be looking a bit vulnerable.” With the airline business taking a hit from the coronavirus pandemic, AirAsia was forced to recast its business. It launched a “super app” last year offering services from travel and shopping to logistics and financial services. The carrier is seeking to introduce a flying-taxi business as soon as next year.<br/>

Thailand’s Central Bankruptcy Court has granted low-cost carrier Nok Air a one-month extension to file its rehabilitation plan. In a Monday stock exchange disclosure, Nok chief Wutthiphum Jurangkool says the court allowed the carrier up to 15 April to submit its business restructuring plans. The troubled carrier had asked for a deadline extension, citing “several important aspects” of the proposal, which it says requires “the all-aspect analysis, consideration and formulation of the debt structure, capital structure, and organisational structure”. “This is in addition to legal issues and contractual obligations with employees, business partners, and debtors; as well as in conjunction with financial estimates, capacity for debt repayment and future business plans,” Jurangkool discloses. He adds that the rehabilitation plan “requires consideration [and] detailed analysis to result in a just outcome for all creditors”. <br/>

The government of the Pacific island of Vanuatu has taken control of Air Vanuatu after firing its board of directors in an effort to save the state-owned airline from bankruptcy. “The situation of the airline is very, very critical, that’s why we took this decision,” said Finance Minister Johnny Koanapo. He said the country’s Council of Ministers on March 11 had terminated the tenure of the board with immediate effect following a decision last month by the state-owned airline’s shareholder representatives. He confirmed that CEO Atu Finau remained in office to manage the airline, but the Ni-Vanuatu government had taken control of the Board and the Finance Ministry had taken over the financial control of the company, keeping close watch over spending. He said the government intended to restructure and partially privatise the company to reduce its heavy reliance on state coffers, as was the case at present. “We anticipate that there will be very little control or interference from the government (in the airline) in the near future,” he said.<br/>