IAG has hired four banks to prepare an issue of bonds, its first as a junk-rated borrower since losing its prized investment-grade status in May as the pandemic took hold. The parent company of BA, Iberia and Aer Lingus is seeking funds to strengthen its balance sheet against Covid-19’s impact on international travel, according to a person familiar with the matter. The group appointed Banco Bilbao Vizcaya Argentaria, Goldman Sachs Bank Europe, Morgan Stanley and Banco Santander as joint global coordinators, the person said. IAG and its bankers will meet potential investors on Tuesday and Wednesday to assess demand and a euro-denominated offering of senior unsecured bonds may follow. The sale will include two maturities of debt and will be benchmark-sized, according to the person. That typically means at least E500m. <br/>
oneworld
The US Transportation Department warned it could limit flights by carriers based in Hong Kong after the Asian financial hub imposed quarantine rules that have impacted US cargo carrier FedEx Corp. The department issued an order on Tuesday requiring Cathay Pacific to file flight schedules for all US flights within seven days to determine if any are "contrary to applicable law or adversely affect the public interest." Hong Kong in January issued new rules requiring that locally-based air crews observe quarantine when returning to Hong Kong from international locations, but exempted flights between Hong Kong and Anchorage, Alaska's biggest city. The order was issued in reaction to Hong Kong's quarantine restrictions that exclusively benefit Hong Kong carriers and "impaired the operating rights of US carriers," USDOT said.<br/>
Japan Airlines plans to let its flight attendants age 50 or older choose fewer working hours with salary cuts from fiscal 2021 starting next month, amid weak travel demand due to the coronavirus pandemic, company sources said Tuesday. The airline will cut both working hours and pay for flight attendants either by 20% or 40% depending on the option they choose, without asking them to specify the reason for enrolling, according to the sources. JAL has already conveyed the plan to its labor unions, they said, adding the 40% cut will be available only for one year in fiscal 2021. The company plans to allow experienced flight attendants to continue working on a reduced basis, with the 20% cut in hours to be available beyond the next fiscal year, expecting them to take time for raising children or caring for parents, as well as engage in volunteer activities. Meanwhile, JAL has no plan to provide summer and winter bonuses in fiscal 2021 due to the business uncertainty surrounding the air transportation industry.<br/>
A former Cobham Aviation first officer is seeking $780,000 in damages from Qantas after she was on board a 717 that suffered a mid-air engine failure. Jacinda Cottee claims she suffered post-traumatic stress over the incident, which she blames on the flag carrier for not maintaining its aircraft properly. Qantas has said in response that the situation was caused by a manufacturing fault and insists all pilots are trained to respond to engine failure events. Cottee was operating the QantasLink flight QF1799 from Alice Springs to Brisbane on 10 March 2018 when the Rolls-Royce engine failed about 550 kilometres from its destination.<br/>