Delta Plans to Block Middle Seats Beyond September
1 Delta Air Lines is currently blocking selling of the middle seat on its aircraft through September 30, but CEO Ed Bastian said on Tuesday’s earning call that the airline expects to extend its policy beyond the September deadline. Delta’s pledge prevents it from selling up to 40% of its economy cabin (middle seats on three-seat rows and alternating window & aisle seats on two-seat rows), along with 50% of its first class cabin.
Bastian said the airline would put more planes in the air to increase capacity if demand creeps up rather than open up more seats on its aircraft currently flying. He noted that Delta has plenty of planes that are grounded and that the airline could put them into service on an as-needed basis. This would, however, take them out of service as shade-providers in the hot summer sun.
This move confirms that Delta is digging in on its decision not to sell middle seats and that it feels it can stand out in a market where its two chief rivals, American and United, are going a different way. The airline is betting that its strategy will earn customers who will choose Delta for peace-of-mind and that those customers will stick with Delta once the pandemic is over.
American to Send WARN Act Notices to 25,000 Employees
2 In a notice to its 130,000 employees on Wednesday, American Airlines CEO Doug Parker and President Robert Isom announced that 25,000 staff would be receiving WARN Act notices regarding a possible furlough on October 1 when CARES Act funding expires.
As with other airlines, AA does not anticipate furloughing everyone who receives a notice, as it expects to have 20,000 too many employees on October 1. In order to avoid furloughs, AA is offering extended leave programs for employees as well as a buyout option for employees with 10 or more years experience.
Flight attendants lead the way, receiving 9,950 of the 25,000 notices. Fleet service is next with 4,500 followed by maintenance, customer service and pilots.
In addition to AA’s disclosure, the bad news was flowing at regional carrier Republic Airways as well. That airline is set to inform up to 40% of its workforce that they too should prepare for possible furlough on October 1.
Lufthansa Launches Ocean, Another New Subsidiary
3 In an effort to reduce the complexity of its offerings for long-haul tourist routes, Lufthansa has naturally decided to…launch a new subsidiary? Named “Ocean,” the new entity has been incorporated by Lufthansa with the airline currently looking to secure it an operating certificate quickly.
Ocean will not operate under its own brand but will exist as a part of Lufthansa’s existing network. Lufthansa currently serves long-haul tourist destinations both through its budget subsidiary Eurowings and under its mainline brand. Eurowings, in turn, operates its long-haul flights via SunExpress Deutschland, a JV with Turkish Airlines that is going to be shut down. Lufthansa has also had another member airline, Brussels operate on behalf of Eurowings, so why not add another airline in the mix just for fun?
Lufthansa says that Ocean will concentrate on “touristic short- and long-haul routes” from its Frankfurt and Munich hubs and “complement the portfolio of Lufthansa and Eurowings.” Glad we got that all cleared up.
DOT Blocks Pakistan International Airlines from Operating in U.S.
4 Well, you can add the United States to the list of countries that frown upon airlines using fake pilots. The DOT has banned PIA from operating in the United States.
As you might imagine, PIA is flummoxed at the decision, just as they were when the EU made a similar announcement last week. PIA spokesman Abdullah Hafeez Khan told Bloomberg that it “was a setback for the airline,” and that “PIA had worked very hard” to get permission to fly to the U.S. Again, I’m sure that’s true, but ya know, fake pilots.
To make matters worse for the airline, the Public Authority for Civil Aviation in Oman has gotten word about the fake pilot caper and has considered barring PIA from flying to Oman. That’s the thing about fake pilots — when it rains, it pours.
Austria Adds Ten New Countries to Banned List
5 Austria added ten new countries to its list that bans residents of those countries from traveling to Austria. The announcement was made early Wednesday and goes into effect tomorrow, July 16. It caught airlines and travelers alike by surprise.
The new countries on the list are:
- Albania
- Bosnia and Herzegovina
- Bulgaria
- Egypt
- Kosovo
- Moldova
- Montenegro
- North Macedonia
- Romania
- Serbia
These ten join seven nations already on Austria’s block list: Belarus, China, Iran, Portugal, Russia, Sweden, and Ukraine.
Airline Potpourri
- Aeroflot plans to shrink the size of its operation and become a five-star airline. In other news, my cousin began a diet today and plans to become a model.
- Alitalia is moving 16 daily flights to three destinations back to the reopening Milan/Linate (LIN) airport. As always, some of them will operate on-time.
- Emirates A380 returns to service today and it will operate on the airline’s daily flight to Amsterdam.
- French Bee plans to resume flights between Newark and Paris/Orly on August 1.
- Jazeera Airways plans to restart service on August 1 to 20 cities from its Kuwait City (KWI) hub.
- Skymark Airlines continued its suspension of service through late October.
- Thai has extended its suspension of flights until September.
- Wizz Air is adding five new routes from St. Petersburg (LED).
Andrew’s Moment of Levity
I went to karaoke night last night at the zoo. It was a pretty good show. Not every performance was amazing, but I enjoyed the lion’s Cher.