Remembering 9/11: On the 19th anniversary of the September 11 attacks, we remember the 33 on-duty crew members who were murdered that day. Those names are posted today, as they are on this date every year, on crankyflier.com. Visit the site, read them, and remember.
Envoy Air Closes Two NYC Bases
1 American Airlines’s wholly-owned regional subsidiary Envoy Air is closing its two NYC bases at Kennedy and LaGuardia, from which it flew 44- to 50-seat ERJ-140/145 aircraft to nearby destinations.
The decision to shut down the two bases comes just months after American announced a partnership with JetBlue for New York flying. AA had said it would remove its 50-seat jets from the market, so this is entirely expected, but what’s not clear is how many of these will be replaced with larger 76-seat jets. An alternative would be to lease slots out to JetBlue, something that was discussed when the partnership first came together. A third option — sacrificing the slots to the rat gods that inhabit the airports — was deemed impractical.
Envoy previously sent out WARN notices to 2,000 employees for potential furlough, but the airline did not say if the base closures in New York would lead to further job losses.
Finally: Delta’s Clears the Air in the Jet Bridge
2 Delta Air Lines announced late Thursday that the airline will begin replacing the air filters that pump air into its jet bridges with “LEED Platinum MERV14 filters” that will reduce the air particles in the jet bridge by 40%. That sound you hear is the nation rejoicing.
Delta will be updating more than 600 gates at 31 airports, however, if you don’t fly from one of those 31 airports, Delta is comfortable with you rolling the dice with the air particles while boarding. Delta hope to have the new filtration system in place by mid-September, which (checks calendar…) is now.
Delta’s next project on the books is a filtration system at 13 airports between curbside and the terminal entrance. After that, it is expected to come to every customer’s home and install filters.
U.S. Judge Rejects LATAM Bailout
3 A U.S. Bankruptcy judge has rejected LATAM’s $2.4 billion financing plan sending the airline back to square one in its bankruptcy proceeding.
LATAM’s proposal included a $900 million convertible loan from shareholders in addition to $1.3 billion from Oaktree Capital Management Firm. The court found that the $900 million loan would lead to improper treatment of other shareholders.
LATAM filed for Chapter 11 protection back in May and presented the now-failed proposal in July. LATAM will have to find another way to find the liquidity it needs to continue operating during the pandemic.
LATAM’s sugar daddy, Delta Air Lines, purchased 20% of the airline group a year ago for just shy of $2 billion. Delta paid LATAM’s exit fee from Oneworld and agreed to take delivery of part its A350 aircraft order (which it then paid to not do). Delta recently paid a loan back on behalf of former partner Gol, whom it dumped when it linked up with LATAM, and must be asking itself if another payment is in the works to keep its new parter afloat.
Asiana Sale Collapses
4 Kumho Industrial’s planned sale of Asiana Airlines to Hyundai Development Company has fallen through. Hyundai had agreed to purchase the airline back in December for $2.1 billion, but the air travel industry has changed just a bit since then.
Hyundai attempted to renegotiate parts of the deal with the dramatic downturn in demand due to the virus, but the two sides could not come to an agreement despite a generous offer that would see the $2.1 billion replaced with three Sonatas, 2 Elantras, and a 1989 Hyundai Excel. Asiana saw its debt soar during the pandemic, making the sale more challenging for both sides.
To keep the airline functioning in spite of the sale falling through, the South Korea government will inject $2 billion into the airline through its state-run Korea Development Bank, which will make another attempt to sell the airline as soon as it can.
South African Really, Really Needs Cash
5 South African Airways is in the midst of administration as the airline tries to use the bankruptcy process to re-emerge a leaner, more (read: still not, but at least it’s trying to be) efficient airline. But its two administrators warn that without a large cash infusion, the airline is on the brink.
South African has canceled 33 of its 40 aircraft leases, but still needs at least $300 million dollars to continue operating. It has bills coming due to pay both severance packages, and post-commencement creditors.
South Africa’s Department of Public Enterprises, issued a statement saying a decision on the sources of funding would be announced soon. The airline has been in administration and business rescue since December, pre-dating the pandemic. SAA’s creditors approved a plan that would see the government raise $600 million over the next three years, but with the deadline now September 17, the timetable will be moved up considerably if the airline is to be saved.
Airline Potpourri
- airBaltic announced the resumption of nine destinations from its Riga hub.
- Lufthansa is expected to retire its entire A380 and B747-400 fleet, and a majority of its A340 fleet.
- Peach plans to resume international flying on October 25 with service to Nectarineville, Appletown, and Strawberry City.
- Spirit will operate the first international flight out of Colombia — from Cartagena to Miami — when the country resumes international flying on September 19.
- Vietnam Airlines is resuming scheduled international flights, starting with once-weekly flights to Tokyo/Narita next Friday, September 18.
- Virgin Australia will allow unlimited bookings changes with no change fee through January 31.
Andrew’s Moment of Levity
A fire hydrant has H-2-O on the inside and K-9-P on the outside.