State Department Lifts Level 4 Travel Advisory
1 The U.S. Department of State lifted its blanket Level 4 travel advisory it had put into place on March 19 indicating Americans should not travel abroad. The State Department typically has a four-level rating system, where 1 means free to travel and 4 means DON’T EVEN THINK ABOUT IT, PUNK.
With the lifting of the blanket advisory, the department is back rating each individual country from 1-4 based on how safe it is for Americans to visit. Most countries are still at Level 3 (reconsider travel) or Level 4 (do not travel). But two countries are back at Level 1: Taiwan and Macau. If you enjoy baseball or gambling, the U.S. says go ahead and pack those bags. Several other locations are listed as Level 2 (Exercise Increased Caution): Antarctica (naturally), Brunei, Fiji, French Polynesia, Mauritius, New Caledonia, New Zealand and Thailand.
Of the nations remaining as Level 4, many are the usual suspects such as Iran, Iraq, North Korea, Somalia, Syria, Detroit, and Yemen. (Ok, ok, not Detroit.) But those nations are joined by more traditional vacation spots for Americans — countries where the virus is still surging — such as The Bahamas, Egypt, India, Mexico, Russia, and almost all the tourist spots of Central & South America. Pakistan remains at Secret Level 8 because…fake pilots.
Keep in mind that just because the U.S. says Americans can travel to these countries, that doesn’t mean these countries will let Americans in. Very few are willing to do that today.
Congress Contemplates Additional Funding for Airlines
2 Sixteen senators on Thursday came out in favor of additional funding for U.S. airlines to support payroll in order to reduce the number of involuntary layoffs and furloughs on October 1.
“In recent weeks several airlines have notified significant segments of their workforces that their jobs could be at risk on October 1, 2020, following the expiration of CARES Act relief,” the senators wrote to Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer. Discussions have centered around getting the airlines through the long, cold winter.
The letter from the group of senators follows a similar sentiment in the House of Representatives where over 200 representatives have come out in favor of additional funding to preserve airline jobs into Spring 2021.
Congress would be well-advised to save time and just plan the next round of funding now, since there is little to no chance the industry will have significantly recovered by next spring if this package is approved. We covered the issue of additional federal funding earlier this week at crankyflier.com.
Mobile, AL to Relocate Commercial Operations Downtown
3 It turns out that the airport in Mobile, AL is, well, mobile. City officials unveiled a plan to relocate commercial flight operations from its current location at Mobile Regional (MOB) to the more convenient Mobile Downtown (BFM) “in a few years.”
The city says that the timeline of the move will “depend on planning, design and construction work for the terminal.” Well, yeah, no kidding. You yada yada’d over the whole thing.
The belief is that the new downtown location for commercial flights will be more attractive to flyers and will drive prices down, attracting discount airlines. What Mobile really means is that it wants service from Allegiant and Spirit. Currently, the city believes it loses 55% of its air service customers to Pensacola and New Orleans. No offense to Mobile, but Pensacola has miles of beaches and New Orleans is…well, New Orleans.
So in summary, at an undetermined point in the future, dependent on cost, construction, and planning, Mobile, Alabama plans to move commercial airport operations from its current airport located 13 whole miles from downtown (DEN laughs at you) to a new downtown terminal. Got it.
Lufthansa Plans to Eliminate Up to 22,000 More Jobs
4 After posting a loss of €1.7 billion in Q2, Lufthansa is warning unions in Germany that it will be shrinking further, likely losing up to 22,000 jobs by the end of the year.
In addition to the job loss, Lufthansa will be reducing its fleet by 100 airplanes while beginning to work on paying back the €9 billion it owes the German government that the airline received as aid to keep it flying during the crisis. Lufthansa offered the government buy one, get one passes to Whenevefest Oktoberfest celebrations this fall as repayment, but the treasury is demanding cash.
Lufthansa has already reduced its workforce by over 8,000 from a year ago, but it still has a long way to go. It also plans to cut up to 20% of management roles to reduce cost. It has also detailed moves to cut 20% of management and 1,000 office posts.
Etihad Sees 99% Drop in Passengers in Q2
5 Etihad posted its Q2 financial report, and the airline lost $520 million in Q2 of 2020, flying 99% fewer passengers than it did in Q2 2019. Even for a state-supported airline like Etihad, that is not sustainable.
Etihad only flew 30,000 passengers in Q2 and brought in a grand total of $440 million in revenue including cargo. The airline was able to cut its expenses by 70%, which is easier to do when you park your entire fleet for weeks at a time.
Airline Potpourri
- Aeroflot is delaying the delivery of 10 A350s it has on order.
- Air Canada is resuming its Toronto/Pearson to Tokyo/Narita flight with 3x weekly service beginning October 20.
- Emirates is ending its flight to Fort Lauderdale.
- LATAM is continuing the suspension of its flight to the Falkland Islands through November.
- Philippines Airlines has suspended service to and from its Manila hub due to virus spikes in the city.
- Ryanair may or may not be banned from flying to Italy due to its COVID protocols.
- United was impressed enough by JetBlue’s UV rays used to kill germs in its cabins that United decided to use its own UV lighting to disinfect its flight decks.
Andrew’s Moment of Levity
Anyone want to buy my broken barometer? No pressure.