United Airlines said Friday it is temporarily pausing service between Chicago and New Delhi in June and delaying the planned launch of flights between San Francisco and Bangalore as a catastrophic explosion of COVID-19 cases hits demand. India reported another record daily rise in coronavirus infections on Friday, bringing total new cases for the week to 1.57m, as its vaccination rate falls dramatically due to a lack of supplies and transport problems. Until the Chicago-Delhi route is halted on May 31, United said will use its larger Boeing 777-300ER jets on seven roundtrip flights to accelerate the repatriation of citizens between the two countries and the delivery of vital medical supplies. It was previously using the Boeing 787-9. United, the only US carrier flying to India, said it will continue its daily flights to Delhi from Newark and San Francisco and to Mumbai from Newark. However, it will "continue to monitor customer demand to determine if any additional changes to its schedule are necessary," it said.<br/>
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Air Canada on Friday reported its fifth straight quarterly loss as tough government restrictions aimed at curbing the spread of COVID-19 weighed on air travel and drove the company to secure a C$5.9b government aid package. Speaking on an investor call, Air Canada executives said they assume the country’s travel restrictions - which have been more strict than those implemented in neighboring United States - will ease somewhat by Q4. Once that happens, they said travel patterns should be similar to those in the United States, where a fast vaccine rollout and falling numbers of COVID-19 cases have driven a surge in travel demand. Meanwhile, the Montreal-based airline is focusing on cargo and domestic flights while slashing capacity for international travel and cutting costs. Air Canada projects a net cash burn of between $13m and $15m per day in Q2 2021. Operating revenue fell to $729m in Q1 from $3.72b a year earlier. Canada’s largest carrier reported a loss of C$1.30b, compared with C$1.05b. Its shares rose 1.3% in early trading. Hopes that travel restrictions would loosen in time for the peak summer travel season are fading as Canada grapples with a third wave of coronavirus infections.<br/>
Flush with bailout funds, Air Canada called on the government of its home country to lay out a plan for reopening borders as vaccination progresses. Canada’s biggest air carrier is in a position to ramp up operations after reaching a deal for nearly C$5.9b ($4.8b) in debt and equity with the federal government last month. CEO Michael Rousseau said it’s now “essential” for officials to follow the US in easing rules that have stopped most air travel. “Starting with replacing blanket restrictions with science-based testing and limited quarantine measures where appropriate, Canada can reopen and safely ease travel restrictions as vaccination programs roll out,” Rousseau said in a statement accompanying Q1 results. “We have seen elsewhere, notably in the US, that travel rebounds sharply as Covid-19 recedes and restrictions are lifted, and we fully expect this can be replicated in Canada,” Rousseau said. Air Canada says there’s pent-up demand for both leisure and business travel. Conversations with corporate clients suggest a recovery will start in September, Rousseau said.<br/>
The Finance Ministry will not recapitalise financially troubled THAI of which it is the biggest shareholder, the State Enterprise Policy Office (SEPO) chief said. The remark by SEPO director-general Pantip Sripimol comes amid concerns the carrier will regain the status of a state enterprise through the re-acquisition of the ministry's majority stake in THAI. The airline lost its state-owned status last year when the ministry decided to reduce its stake to under 50%, to help ease the debt-rehabilitation process. Several cabinet ministers, however, were concerned the government would need to guarantee a loan worth billions of baht to prop up THAI if it were to come under the state enterprise umbrella again. Reportedly supporting THAI's reinstatement as a state enterprise were Finance Minister Arkhom Termpittayapaisith and Deputy Prime Minister Supattanapong Punmeechaow, who is also chief of the government's economic team. They argued the reinstatement, which would require the Finance Ministry returning as a majority shareholder, would boost the airline's financial strength and its bargaining power with creditors. Creditors are meeting on Wednesday to decide whether to accept the airline's debt restructuring plan.<br/>
While uncertainty remains over when — or if — travel demand will make a full-fledged recovery from the coronavirus pandemic, Japan's two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services. With leisure demand expected to recover much faster than business travel, ANA Holdings and Japan Airlines are both strengthening ties with low-cost carriers. But the move by the two airlines, which have established themselves as full-service carriers, could be a double-edged sword, aviation experts say. ANA Holdings, the parent company of All Nippon Airways Co, is planning to launch a new LCC brand in the year to March 2023 with flights connecting Japan with Southeast Asia and Oceania. Its domestic rival JAL, meanwhile, said on Friday it will make Spring Airlines Japan Co a consolidated subsidiary in June. The two budget carriers reflect JAL's strategic shift away from what used to be seen as the Japanese airline's cautious stance on LCCs.<br/>