Use It (At Least Some of it) or Lose it, Says European Commission
The European Commission is reinstating its use it or lose it rule for slots this winter – at a 50% threshold – requiring airlines to fly at least half of their slots at slot-controlled airports or risk losing them.
Slot usage requirements around the world have generally been suspended since the beginning of the pandemic, allowing airlines to relax their networks and frequencies without risk of losing slots that would again be valuable when demand fully returned. The European Commission’s decision to bring its slot-usage policy back, even at a 50% threshold, was not warmly received by IATA – the world’s leading airline trade association.
The EC says that the recovery of intra-EU traffic justifies the return of the usage requirements, while IATA argues that intra-EU recovery is not a reasonable indicator of the recovery at these slot controlled measures. It also says that the combination of winter demand lagging behind the summer – the time period the usage requirements are coming back for, and the hesitancy of some countries to open their borders create an untenable situation for the airlines. Let’s just forget that the EC is just saying they have to use half their slots, not all.
As with most things in Crankyland, it’s our hope that this resolves itself with a feats of strength battle between IATA Director Willie Walsh and EC President Ursula von der Leyen.
Alaska Posts $397 Million Profit* In Q2
Alaska Airlines Q2 earnings are out, and the airline posted a net profit of $397 million when adding in the $489 million of PSP funds it received from the federal government.
Alaska officially joined oneworld on March 31, the final day of Q1, making the recently completed quarter its first as a member of the alliance. Alaska officials, while holding up the July 23 edition of the Seattle Times to prove their video was filmed today, said that oneworld officials were offering them three hearty meals a day and plenty of recreational time in the outdoors.
Expenses for Alaska totaled $978 million reduced by the PSP offset, following expenses of $709 million in Q1, also with the offset. Its revenue of $1.5 billion in the quarter outpaced Q1 by 263%.
During Q2, Alaska repaid $570 million in debt, including the full $135 million loan it received from the federal government as part of the CARES Act. It closes the quarter with $4 billion in unrestricted cash, much of which is being spent on the new pool in American CEO Doug Parker’s house.
WestJet, Canadian Government End Discussions over Pandemic Relief
WestJet ended negotiations with the Canadian government over financial support to help the airline recover from the pandemic. The airline said it was instead now focusing on ramping up its operation for the reopening of Canada’s borders to foreign visitors.
Other Canadian airlines including Air Canada, Air Transat, and Porter received more than C$6.8 billion between them in government support since the pandemic, but WestJet will remain shutout of the cash trough. Air Canada received the bulk of the funds – C$5.9 billion – but still doesn’t want to pay refunds going forward because it prefers to keep its government money than give back to the customers to whom it should belong.
WestJet flies to 109 destinations in 24 countries, but the bulk of its flying is domestic within Canada and transborder service to the United States. The airline flies to 24 destinations in the USA, and many warm-weather cities in Mexico and the Caribbean.
Tasman Travel Bubble Bursts
New Zealand Prime Minister Jacinda Ardern is closing the Tasman travel bubble between Australia and New Zealand for at least eight weeks following Australia’s most recent outbreak of COVID-19’s Delta variant.
Air New Zealand will operate “managed return flights” for the next seven days to repatriate New Zealanders in Australia. Kiwis returning home will need proof of a negative pre-departure test and proof they are not bringing Vegemite into New Zealand. Travelers from returning from New South Wales and Victoria will be subject to more extensive quarantine upon arrival.
More than 200,000 travelers have flown between the two nations since the bubble first opened in April. New Zealand ended the bubble for Australian residents of Victoria or NSW several weeks ago.
Absence Makes the Heart Grow Fonder…Maybe? ExpressJet Restart Approved
ExpressJet suspended all flying last fall when it lost its contract to fly on behalf of United for United Express. UA opted to move all of its E145 flying to CommutAir to simplify operations and cut costs during the pandemic.
When United ended its relationship with ExpressJet, it left the regional carrier without any passengers to fly, a non-profitable way to run an airline. But in April, ExpressJet announced it would explore a restart as an independent regional carrier with a single E-145 aircraft. It does plan to add at least nine more planes over the next 12 months because if there’s anything Sandpiper Air taught us, it’s that running an airline with just one airplane leads to fun and hijinks but little profit.
The airline’s authorization from the DOT covers its first ten airplanes. Should it expand beyond that number, it would need further approval from the government. The carriers plans to focus on second- and third-tier cities in the US, although starting off by calling them third-tier probably isn’t the best way to win new business.
- Aeroflot took delivery of a new A321neo aircraft.
- American confirmed it is will not bring IFE screens back on its narrow-body aircraft, instead offering fights between passengers as entertainment.
- Avianca filed a motion seeking approval from bankruptcy court from its preliminary documents to exit Chapter 11 reorganization.
- Cathay Pacific is considering closing its London pilot base.
- Cayman Airways received a $8.5 million aid package from the Cayman Islands government.
- Frontier took delivery of the second of four A320neos that it will receive through the end of next month.
- Hi Fly took delivery of a new A330-300 with 46 flat bed seats up front and 203 seats in the back.
- Icelandair finished installing and receiving certification on Viasat wifi on its B737 MAX 9 fleet.
- United has mostly phased out cargo-only flights because it has begun converting its cargo-only widebodies back into passenger service. Some basic economy passengers might be seated with cargo pallets until the conversions are complete.
Me: “Can I get a bagel with cream cheese please?”
Person at the register: “No, we only accept cash and credit cards here.”