January 20, 2021

President Signs Executive Order on Masks, Travel Ban

President Biden planned to issue a flurry of executive orders in his first hours in office today, two of which are travel-related. One from the president requires masks while on federal property and during interstate travel. The other reverses the travel ban to the United States from several majority Muslim countries that was first issued early in the Trump Administration.

The mask requirement during interstate travel specifically includes travel on airplanes and trains, providing teeth to the policy most airlines, airports, train stations, and Amtrak have had for months. In addition to the requirement where he has the power to do so, Biden will also ask Americans to commit to wearing masks for the first 100 days of his presidency to help slow the spread of the virus.

The president masked up when he flew to DC from his home of Wilmington, DE (ILG) on a Boeing business jet Tuesday. His staff, security team, and members of the press flew to Washington on Sunday on two chartered aircraft from Sun Country. After hearing rave reviews from the flight, and in the spirit of his 100 days of mask-wearing, the president also plans to ask Americans to commit to 100 segments crammed into the back on ULCCs during his first term since, “we now gotta meet that Paris climate accord goal somehow….”

President Biden also will sign an executive order ending the prohibition of travel to the United States from predominantly Muslim nations. The countries covered in the Biden executive order include: Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. For anyone wishing to plan their travel to any of the seven countries on the list, Cranky Concierge is always at the ready to plan your next dream vacation.


KLM Suspends Long-Haul Flying

KLM will suspend all 270 of its weekly long-haul flights effective Friday in response to new policies from the Dutch government for entry into the country.

The Dutch government will now require a rapid test immediately prior to travel to the Netherlands followed by a PCR test upon arrival, which Prime Minster Mark Rutte called “a double lock on the door.” KLM’s beef with the policy is concern if a member of its crew failed the rapid test and was then stranded in a foreign country without a way home or access to traditional Dutch stroopwafel. KLM will for now only operate flights to destinations close enough to Amsterdam that its crew will not need to overnight on the trip.

In addition to KLM halting long-haul flights, the number of destinations it could fly to if it wanted was reduced today. The prime minister announced that the country would put a temporary ban on flights to the United Kingdom, South Africa, and countries in South America until a new quarantine law is instituted. The flight ban is effective this Saturday. Passengers are encouraged to book as many flights on KLM as it can safely do between now and Saturday to stock up on KLM Delft houses. With the ending of long-haul flights – for now – there is sure to be a shortage, and eBay is your friend.


United Posts Q4 Earnings Report

United Airlines posted its Q4 earnings report late Wednesday, possibly hoping investors would be distracted by the presidential inauguration and not see the gruesome figures.

United posted a loss in Q4, its fourth consecutive quarter in the red, spanning the entire pandemic thus far. Q4 revenue fell a not-nice 69% for United down to $3.41 billion, with a reported $33 million cash burn per day. Expenses in the quarter did drop 45% for United, but that was not nearly enough to prevent the overall loss.

The loss for Q4 was $1.9 billion, putting a bow on a $7.1 billion loss for the full-year 2020. Looking ahead to Q1 2021, United does not see any immediate relief, expecting revenue to be down 65-70% from Q1 in 2019. United optimistically notes that a more rapid distribution of the vaccine could improve the Q1 outlook (and beyond) but it did not include that in its projections, wisely not counting its chickens before they hatch.

United closed the year with $19.7 billion in liquidity plus potential funds available through the CARES Act. It expects to exceed its 2019 financial performance by 2023. The next two years — 2021 and 2022 – will be recovery years for the airline, something many of its passengers need after rushing through a tight connection in Newark.


Frontier, PSA Plan to Resume Hiring Pilots

In a sign of (very) cautious optimism, Frontier Airlines and American’s wholly-owned regional subsidiary PSA Airlines both plan to resume hiring pilots later this year.

PSA furloughed 723 pilots and 323 flight attendants back in October but was able to recall those wanting to return when the second PSP was approved by Congress last month. Meanwhile, Frontier plans to hire about 100 pilots this year, starting with the list of pilots it has from when the airline instituted a hiring freeze back in July.

Frontier managed to avoid frontline furloughs in October, with enough of its staff agreeing to early buyouts or unpaid leave to keep the airline from having to cut jobs involuntarily. It helped that the airline offered each employee who took a buyout a live animal of its choosing to take home, based on the employee’s favorite aircraft tail. Hector the Sea Otter, who finds himself on the tail of N935FR, an A319-111 was the most popular request, with the airline doling out dozens of sea otters to its newly-retired staff.


Greece Will Not Require Proof of Vaccine for Visitors

Greece Prime Minister Kyriakos Mitsotakis informed the European Commission that Greece will not require proof of the COVID-19 vaccine as a requirement for tourists to visit his country. Greece, which relies on the summer tourism season for much of its economy (along with olive oil sales, commissioned statues of mythological gods, and ouzo exports), took a hit in 2020 as the pandemic began just as its high season was beginning, and cannot afford a repeat in 2021.

Tourism Minister Haris Theoharis added that the country plans to continue its policy of requiring a negative test within 72 hours of travel and on arrival. Greece is considering allowing visitors who bring a negative test result and proof of having completed the vaccine to skip testing on arrival and passing directly (while not collecting $200 for passing GO) into the country in order to avoid “wasting resources.”

While Greece will not require vaccinations to enter the country, vaccinations will be highly encouraged. Prime Minister Mitsotakis has asked the president of the European Commission to introduce a vaccination certificate for all EU member states to ease travel amongst the bloc. The certificate would allow for free travel amongst EU citizens throughout the EU (nope, not you, Brits) for the purpose of business, tourism or attending a Big Fat Greek Wedding.


Airline Potpourri

  • American has extended its change-fee waiver on all tickets purchased by March 31. With the airline ending change fees on almost every ticket last year, this waiver applies only to those purchasing basic economy or with travel originating somewhere outside the Americas.
  • Eurowings will be adding staff for its summer schedule and will do its parent company, Lufthansa a solid by hiring 130 of its furloughed staff. The airline hopes to add more employees after the summer in anticipation of the return of Wheneverfest in communities across Germany.
  • Iberia, on behalf of parent IAG, has confirmed the details on its purchase of Air Europa. The price, halved from the original purchase price of €1 billion closed at just €500 million. The first payment on the purchase won’t be due until six years after the deal closes, provided the payment comes with a package of the delicious Spanish candy Conguitos.
  • Spicejet is launching once-daily service from Delhi to Pakyong Airport (PYG), near the eastern Himalayan city of Gangtok, the first commercial service to PYG in 18 months.
  • United is operating 3x-weekly cargo service between Atlanta and Frankfurt using Boeing 787-10 aircraft.
  • Volaris will begin 4x-weekly service on January 26 from Mérida (MID) to Oakland.
  • West Atlantic UK saw one of its B737-400 freighter aircraft suffer damage on a hard landing Tuesday when arriving at Exeter (EXT) from East Midlands Airport (EMA).

Andrew’s Moment of Levity

My nephew just finished his fifth year owning his own roofing company. He’s not the best in our city, but he’s up there.