More than 70 Grupo Aeromexico pilots have tested positive for the coronavirus during a surge of infections from the Omicron variant, leading to 22 canceled flights, a union that represents pilots of the Mexican airline said. Jose Suarez, press secretary for pilots' association ASPA, told television station Milenio the cases triggered a "domino effect," forcing Aeromexico to isolate entire crews to prevent the virus from spreading. ASPA Secretary General Jose Gual told the same TV station that the pilots who tested positive made up 5% of Aeromexico pilots represented by ASPA. He added the cancellations represented 5% of Aeromexico's operations and affected planes heading to the Mexican cities of Guadalajara, Cancun and Monterrey, plus an international flight. Among Aeromexico's flight attendants, 140 had tested positive, according to a statement on Thursday by the Trade Union Association of Aviation Flight Attendants of Mexico (ASSA). An additional 65 of the company's flight attendants were suspended for not having the valid travel documents, ASSA said. The absent workers represent 10.3% of the airline's staff, the statement added. "We are seeing a quite severe wave of infections," ASPA's Gual said. He attributed the jump to the highly contagious Omicron variant that has caused airlines around the world to cancel hundreds of flights during the busy winter travel season. Aeromexico said the new spread of COVID-19 had affected "some flights," without providing details. <br/>
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Garuda Indonesia is proposing that holders of its $500m Islamic bonds switch parts of the debt to equity, take a haircut and extend the tenure to 10 years, as part of the airline's debt restructuring, executives and an official said. State-controlled Garuda is undergoing a Jakarta court-led debt restructuring, known as PKPU, after a vendor petitioned the court over unpaid liabilities. The airline has an estimated $9.8b outstanding liabilities and has been running on a negative cashflow throughout the COVID-19 pandemic due to a slump in air travel. Garuda is offering sukuk holders a recovery rate of 19 cents on the dollar, combined with converting a third of the debt into equity, Garuda's CFO Prasetio told a briefing on Friday. When asked about whether Garuda will extend the maturity, he said: "For the bonds, we offer 10-year (maturity) with a 7.25% coupon rate." Garuda defaulted on the Islamic bonds last year. It had extendedthe bonds' tenure by three years in June, 2020 around the time the bonds were originally due. The majority of Garuda's lenders, lessors and vendors have submitted their claims and the airline is currently verifying them, deputy minister of state-owned enterprises Kartika Wirjoatmodjo said. For plane lessors, the airline is offering that they subscribe for new bonds, while asking for leasing rates to be lowered to market rates and for Garuda to pay by the hour for plane usage during the pandemic, he said. The airline is also looking to return more planes as it seeks to slim down its fleet to 66, its CFO said. It had 142 planes in its fleet before the pandemic.<br/>