EasyJet has slumped to a GBP1.3b annual loss, the first in its 25-year history, as the industry-wide aviation crisis shows few signs of easing. The low-cost airline on Tuesday said it expected to fly just a fifth of its normal schedule for the rest of this year, as it tried to keep losses to a minimum. With demand for flying expected to be low even over the traditionally busy Christmas period and recovery hopes delayed until next year at the earliest, EasyJet CE Johan Lundgren again called for more government support. Lundgren, who has repeatedly pressed for more government backing in the past few weeks, said he would welcome new state loans or the removal of air passenger duty to stimulate demand. Although he stopped short of calling for direct cash injections into UK airlines, he noted that some continental carriers have received billions of euros in support. “I am concerned funds are being very unevenly distributed around the network to some of these airlines. We are having a constructive dialogue with the government,” he said. The company had announced earlier an extension to the repayment of a GBP600m UK government rescue loan to manage its finances through the winter season. The airline will repay the loan in two stages in March and November, rather than in full in March.<br/>
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International Consolidated Airlines Group ICAG.L has managed to cut the purchase price for Spanish carrier Air Europa to 300-400 million euros ($355-$474 million), news website El Confidencial reported on Tuesday citing unidentified sources. The London-based group would pay the new price for Air Europa in IAG shares, El Confidencial reported. IAG’s top executives had said they were reviewing the acquisition unveiled a year ago with a price tag of 1 billion euros before the coronavirus pandemic ravaged the travel industry. <br/>
A Tiktok user has been banned from flying with Spirit Airlines after posting a video that appeared to show a “travel hack” enabling passengers to take on a large cabin bag without paying for it. User “robkallday”, who has more than 180,000 followers, shared a video in which he used editing software to change a Spirit Airlines boarding pass to read “1” instead of “0” under the section marked “carry-on bag”. Much like other budget airlines, including Ryanair, Spirit Airlines charges extra for passengers to take on a large cabin bag that needs to be stored in the overhead lockers. Rob K was suggesting travellers could bypass the fee by editing their digital boarding pass. Titling the video “Spirit carry on hack”, Rob K made it clear that he had not used this “hack” himself, posting it alongside the caption: “Didn’t actually do this, my bag fits”. However, this wasn’t enough to save him from the wrath of Spirit Airlines. In a later video, Rob K shared a letter he had received from the carrier banning him for at least the next two years.<br/>
AirAsia Group is reviewing investment in its cash-starved Indian affiliate, hours after its Japan unit filed for bankruptcy. “Our businesses in Japan and India have been draining cash, causing the Group much financial stress,” Bo Lingam, president of airlines at AirAsia Group, said. “Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India.” AirAsia Japan filed for bankruptcy with the Tokyo District Court earlier Tuesday, after flagging last month it would cease operations in the country as the coronavirus pandemic that’s wiped out travel globally took its toll. Airasia Japan received a provisional administration order from the court Tuesday, it said. The group has also stopped funding AirAsia India, leaving the future of the company largely dependent on its 51% shareholder, Indian conglomerate Tata Group. Long-haul budget arm, AirAsia X, isn’t faring much better, earlier this month submitting a new debt restructuring proposal to creditors. Representatives for Tata and AirAsia India declined to comment. AirAsia Japan had already canceled all flights, including one between Nagoya and Taipei. Services operated to Japan by AirAsia’s other carriers in places like Thailand and the Philippines won’t be affected. International services to Japan from Malaysia, Thailand and the Philippines will resume as travel restrictions are eased and borders reopen, the airline said Tuesday. “Given AirAsia Japan’s current financial position, we regret to inform that AirAsia Japan is currently unable to settle the outstanding refunds,” according to another statement. “We sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan flights.”<br/>
Malaysia’s flagship budget carrier AirAsia Group has given its strongest indication to date that it could exit India, saying on Tuesday it was reviewing its investment in a joint venture airline there. The group said that its operations in India, like those of its now-shuttered Japan business, have been draining cash and adding to the group’s financial stress. “Cost containment and reducing cash burn remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” it said.<br/>
Nok Air’s pre-tax losses deepened in Q3 to Bt2.59b ($86m), from Bt482m in the year-ago period. The Thai low-cost carrier attributes its poorer financial performance to the Covid-19 pandemic, while new accounting standards and the liquidation of subsidiary NokScoot were also contributing factors. In the recently concluded quarter, Nok’s passenger and service revenues were down by 47.5% to Bt1.43b, while the costs of passenger and services increased nearly 48% Bt1.56b. In the three months ended 30 September, the airline cut ASKs by 45.2% year-on-year, while RPKs fell 58.8%. Passenger yield increased 24.7% to Bt2.22 and load factor was down by 24.9 percentage points to 64%. For the nine months ended 30 September, Nok posted pre-tax losses of Bt4.65b, compared with Bt1.39b in the corresponding nine months of 2019. During this period, passenger and service revenues declined by 48% year-on-year to Bt4.76 billion, while the associated cost was down by 43% to Bt5.6b.<br/>
Bangkok Airways sank deeper into the red, as third-quarter revenues declined by 86.5% to Bt903m ($30m). Revenue from airlines, which in the year-ago period accounted for more than two-thirds of total revenues, was nearly wiped out, declining by 91.3% year-on-year to Bt394m. Over the same period, costs associated with airline operations were down by 69.5% to Bt1.36b. The group’s total expenses fell by 62.6% to Bt2.42b, and it posted a loss before interest and tax of Bt1.15b for the three months ended 30 September, compared with a Bt141m EBIT in the same period last year. For the period of January to September, airline revenues fell 65.9% year-on-year to Bt5b, while costs associated with airline operations were Bt6.87b, down 49.9%. Overall ASKs for the third quarter were cut by 90% year-on-year, while RPKs dropped nearly as much. Load factor increased slightly from 64.8% in the third quarter of 2019 to 68.6% in the recent quarter.<br/>
Pakistan has approved funding of about $81m in cash to support flagship carrier Pakistan International Airlines’ planned voluntary redundancy scheme, which could affect thousands of jobs. The loss-making carrier has been looking to reduce costs, particularly since the impact of the pandemic, as well as the fallout from a fake pilot credentials scandal. PIA is aiming to cut roughly one-third of its workforce, a document seen by Reuters showed, which would reduce the airline’s headcount to roughly 7,000-7,500 employees from the around 11,000 staff PIA said it employed in its 2019 annual report. The government has approved 12.87b Pakistani rupees ($81.46m) in funding for the airline to move forward on the voluntary retirement scheme, the document also showed. The Pakistan government said Tuesday: “After ... discussion, it was decided to approve, in principal, the voluntary separation from service scheme for PIA.” In the document seen by Reuters, PIA said it was looking to reduce its aircraft to employee ratio to 250 employees per aircraft.<br/>
Virgin Australia will position itself as a mid-market airline targeting around a one-third share of the domestic aviation market under the ownership of US private equity firm Bain Capital, the airline’s new chief executive said on Wednesday. Virgin’s shift from being a full-service carrier will mark the end of a decade-long arms race with Qantas for corporate travellers involving lavish airport lounges, celebrity chefs and lie-flat business seats on longer domestic flights. “Australia already has a low-cost-carrier and a traditional full-service airline, and we won’t be either,” new Virgin Australia Chief Executive Jayne Hrdlicka said, in reference to Qantas and its low-cost offshoot Jetstar. “Virgin Australia will be a mid-market carrier appealing to customers who are after a great value airfare and better service.” The country’s second-biggest airline said it would introduce new on-board food purchase options in economy class but would retain business-class seats and airport lounges in major cities. It would also continue to include checked baggage in its economy-class fares. In-flight Wi-Fi and entertainment remains under review.<br/>