Author: Andrew Bashuk

February 1, 2021

Countries Tighten Lockdowns & Border Closings

Several new lockdowns, travel bans, and border closings went into effect today throughout the world as countries flail in their attempts to stop the continued spread of COVID-19.

France is instituting a travel ban to non-EU countries, effective today. A complete ban on non-EU travel is France’s most drastic measure taken yet. It will also require a negative test for travel within the EU. The French ban further restricts travel to France’s overseas territories, limiting the one tropical vacation option for French citizens this year. The most punitive measure of the French travel ban, however, is that the suspension of overseas travel forces the French to interact with themselves — and even French citizens know that no one likes the French.

Germany’s travel ban went into effect this morning as well, and it prevents all non-German residents traveling from countries deemed “areas of variant concern.” Those include the United Kingdom, South Africa, Portugal, Ireland, Brazil, Lesotho, and Eswatini (which we’ve embarrasingly just learned has been the correct name for Swaziland since 2018). Visitors from these nations are banned from entering Germany until at least February 17 – even if they have a negative PCR test.

Australian borders have been closed to foreign visitors for nearly a year, but now, all states and territories have imposed restrictions on visitors from Western Australia and its capital, Perth. South Australia has banned all visitors from Western Australia with the exception of essential workers. New South Wales is requiring visitors from WA to follow stay-at-home orders imposed by the WA government as if they were still in Western Australia. Queensland has imposed a 14-day quarantine while Tasmania is forcing WA visitors into a mere 13-day quarantine… with the 14th day being spent volunteering at a Tasmanian Devil rescue. Victoria and the Northern Territories are requiring quarantine until a negative PCR test can be produced, with Canberra and the Australian Capital Territory closing its borders to visitors from WA entirely.

JetBlue New Seats a Breath of Fresh Air

JetBlue Airways unveiled its new Mint experience and seat today as it readies to launch transatlantic flights later this year.

The refresh includes JetBlue’s latest innovation in the first row – the Mint Studio – which JetBlue claims will offer the most space of any premium product amongst U.S. airlines. While comparing premium options between U.S. airlines might be like comparing the most memorable Pro Bowls in NFL history, it’s still something for JetBlue to hang its cap on.

JetBlue launched Mint in 2016 on cross-country flights from New York to Los Angeles & San Francisco. It has since grown it to more than 30 routes throughout the country and the Caribbean. The new 16-seat studio/suite layout will debut this summer on JetBlue’s service to London and on select flights between New York and Los Angeles.

In the new product, every seat is a suite. Previously JetBlue had four private suites with more traditional international-style business class seats in the rest of the Mint cabin.  JetBlue partnered with Tuff & Needle, the mattress company that pioneered the mattress in a box concept, to design the flat bed portion of the seat. Each arrives in a box just before departure time and must be opened by the flight crew prior to boarding to allow it time to take the shape of an airplane seat before passengers arrive.

Southwest to Return 737 MAX to Skies in March

Southwest Airlines announced its plan to return the Boeing 737 MAX to the skies on March 11. The airline made the announcement during its Q4 earnings call on Thursday.

Southwest plans to fly the MAX exclusively on ten-daily point-to-point routes before transitioning it into the entire network in mid-April. The airline expected to wait until April to return it to its fleet, but Boeing purchased Southwest’s EarlyBird service, allowing it to begin 30 days earlier than previously planned.

CEO Gary Kelly said that every active pilot at the airline would receive training and be eligible to fly the aircraft. Southwest had 34 MAX aircraft before it was grounded. Adding the 7 that arrived during December plus more that are coming now, the airline expects 65 MAX aircraft to be ready by the end of April and 69 by year-end. Southwest has a firm order from Boeing for another 230 MAX aircraft with options for 115 more.

Emirates to Skirt U.K. Ban with One-Way Flights

Despite a ban on flights from the United Arab Emirates to the United Kingdom, Emirates Airline plans to continue operating to the UK, but by only flying passengers one-way back to the UAE. Emirates had originally suspended all service to and from the UK, but will now operate in one direction, ferrying empty planes to the UK for their return journeys.

Initially, Emirates will maintain 11-weekly passenger flights from the U.K., once-daily service from London/Heathrow and 4x-weekly flights from Manchester. Emirates will also continue to fly from both Birmingham and Glasgow, operating cargo-only flights.

The UK travel ban to the UAE and other nations came into effect last week over concerns over the new virus strains. The British government gave less than 24 hours notice of the new restriction which left many travelers stuck all over the world. It affected those in the U.K. as much as anyone – there’s nothing pleasant about being stuck in a London winter with nowhere to go – just ask Londoners.

Lufthansa Expands Reach in Southern Africa

Lufthansa and its partner SWISS signed an interline agreement with South African carrier Airlink, which will provide both European airlines with increased options for connecting passengers throughout southern Africa.  

Lufthansa & SWISS passengers will have access to 20 regional destinations across the continent and 25 domestic cities in South Africa via Airlink’s hubs in Johannesburg (JNB) & Cape Town (CPT). Airlink flights were previously sold by Star Alliance partner South African until they broke up, so this is just rekindling a former love affair under a different name.

The interline agreement is typically the lowest level of cooperation between competing airlines, but can offer significant benefits to travelers, allowing the two airlines to sell each other’s tickets, transfer checked baggage without a need for it to be claimed and rechecked, and provide for (theoretically) seamless connections.

Airline Potpourri

  • Air Transat has suspended all regularly-scheduled passenger service due to the latest Canadian border closings and travel ban to sun destinations.
  • Avianca will begin 3x-weekly service from its San Salvador (SAL) hub to Ontario, CA (ONT) beginning in July. This will be the first nonstop flight from Central America to Ontario. According to the release, the SAL to ONT segment will be operated by A320s and A319s with the return operated only by A319s. How the plane will transform from an A320 to A319 while on the ground in Ontario remains to be seen, but we assume Shrinky Dink technology is involved.
  • Delta is now up to 950 passengers banned from flying on the airline in the future due to their refusal to wear a mask in-flight. No Biscoff for you, it seems.
  • Ryanair reported a Q3 loss of €306m with a 78% drop in traffic.
  • SWISS is reducing its operating at its Geneva hub to just 13-weekly flights to Zurich and once-daily flights to Frankfurt.
  • TAP will operate just 7% of its schedule this February as compared to February 2020.
  • Thomas Cook Balearics is shutting down operations. The Palma-based airline had 90 employees and two aircraft.

Andrew’s Moment of Levity

I hadn’t seen my ex-girlfriend in years, but I saw her today at the other end of the museum hall. I was going to say hello, but there was just too much history between us.

January 29, 2021

Canada Announces Tighter Border Restrictions

Canadian Prime Minister Justin Trudeau announced new, tighter border controls for Canada as the nation looks to flight the new strains of the virus that are making their way around the world.

Effective immediately, Canada is eliminating international flights to “sun destinations,” meaning flights from Canada to the southern U.S. and Caribbean that are highly unlikely to have essential travel and are for Canadian residents going on vacation to avoid the great white north. Further, all international flights in the arriving in Canada will be restricted to landing at one of just four airports: Calgary, Montreal, Toronto/Pearson or Vancouver. This includes transborder flights to the United States.

The country also will implement mandatory PCR tests for returning travelers to Canada, including its own citizens. Travelers will be required to quarantine at local hotels while awaiting the result of the test-on-arrival. The cost of testing & the quarantine while waiting is expected to run travelers approximately C$2,000 — or roughly the same price as the monthly heating bill for residents of the Yukon Territory.

While in quarantine, residents and visitors alike will have a button in their hotel room that provides unlimited poutine, maple syrup, and Tim Horton’s coffee. TVs will be programmed to show hockey on a 24-7 loop on one channel; the other TV will be a cycle of Drake, Justin Bieber, Celine Dion, and Nickelback concerts. The International Court of Justice is currently looking into whether or not this can be considered torture.

FAA & DOT: Delta Wins, Allegiant Loses

The FAA & DOT sent out two rulings today, with Delta winning in its round of exemption roulette and Allegiant taking a loss from the FAA.

Delta was granted a request exempt service to three destinations: Harlingen, TX (HRL), Montrose, CO (MTJ), and Steamboat Springs, CO (HDN). The DOT concurred that those three cities are a part of Delta’s seasonal schedule, and it does not have the resources to begin operating there prior to the end of March. The three locations already have air service from other major airlines and none of the three airports objected to Delta staying away.

On the losing side, Allegiant issued a request to the FAA on February 27 of last year, and the FAA in a very timely manner, responded today, 11 months later. The FAA denied the airline’s request to publish all potential countries of final assembly for its aircraft instead of the actual location of final assembly on seatback cards.

The FAA says in its decision that the information, required by Congress, must be disclosed and say “Final assembly of this airplane was completed in (name of country),” and that listing possible countries simply isn’t legal, nor is it that difficult, so Allegiant should just figure it out. We now await the FAA to rule on Allegiant’s other critical requests, such as whether or not it should offer a salty snack mix or a sweet snack mix aboard its flights or if it will offer whole cans of soft drinks for sale or just individual cups.

Hainan Airlines Parent Files for Bankruptcy

Hainan Airlines, the fourth-largest airline in China, along with its parent HNA Group was forced into bankruptcy proceedings Friday due to pressure from its creditors. The bankruptcy will be overseen by the bankruptcy court in China’s Hainan Province.

HNA Group, one of China’s largest conglomerates, has seen its fortunes hit hard by the pandemic. It once possessed partial ownership of major international brands such as Hilton International, Deutsche Bank AG, and other airlines throughout the world. The conglomerate is currently in talks to sell its controlling stake in Hong Kong Airlines. Despite having in excess of $150 billion in assets as recently as 2017, HNA Group was in debt up to its eyeballs and lost more than $2 billion in 2020.

Hainan Airlines itself has already been defaulting on aircraft loans and been forced to return planes to its lessors. What happens to the airline itself will be decided by the bankruptcy court. All options are to be considered including liquidating the airline, resuming as a slightly trimmed-down version of itself, a dramatic debt restructuring that leaves it as a shadow of its former self, or converting into a global Hainan chicken fast casual chain.

Pakistani Government Turns to the Brits

In the wake of the well-covered scandal over issuing fake pilots licenses, Pakistan’s Civil Aviation Authority (CAAP) has made the very surprising yet rational decision to outsource its licensing exams for commercial pilots in the country.

The CAAP will be outsourcing to Trump University the UK’s Civil Aviation Authority to handle all pilot licensures in the country. The UK will resume offering exams to potential Pakistani pilots approximately two months after the agreement is formally in place. The agreement comes a year after the Pakistani government revealed that at-least one-third of its commercial pilots held fraudulent licenses.

In an announcement that shocked, well, no one, it was disclosed that Pakistani authorities were offering commercial pilots licenses to the highest bidders, regardless of experience, to line their own pockets. With the switch to the UK, the practice isn’t expected to cease, but at least the cash for the bribes now will have the Queen’s face, and a full English breakfast will come standard with pilots’ licensing exams.

Bring a Part of Berlin’s Tegel Airport Home

With Berlin’s Brandenburg Airport finally operational after a decade of stops and starts, Berlin’s former Tegel Airport is liquidating much of its stockpile of airport-related…stuff. Now is your chance to own the pizza oven once used in an employee commissary at Tegel Airport to cook lukewarm, mediocre pizzas for German airport workers who didn’t really want pizza in the first place – all for just €360.

Also for sale are the multi-seat benches that once comprised the waiting area at each gate. You can simulate the experience of waiting for your delayed Ryanair flight to visit your in-laws for the holidays in the comfort of your own home! The auction house does have a disclaimer on the site, warning potential suckers treasure hunters that all sales are final and as-is. So if your new industrial snowplow that you plopped down €11,000 for is a lemon, well, buyer-beware.

Airline Potpourri

  • Air Belgium will add four cargo aircraft to its fleet, with the first two arriving as soon as this March.
  • Air Transat is suspending its flights to Toronto/Pearson until at least May.
  • ANA posted a loss of $3 billion for the nine months of 2020 ending on December 31. The loss comes at the same time it announces a new cargo hub at Okinawa’s Naha Airport (OKA).
  • Flyr, Norway’s newest strtup airline announced today that it plans to oprate a fleet of 28-30 Boeing 737-800 aircraft in a 186-seat configuration. The airline is still awaiting approval of its Air Operator’s Crtificate, which it submitted in Octobr of last year.
  • SWISS named Benedikt Escher Head of Network Management.

Andrew’s Moment of Levity

I’ve never been married. But I’ve had a few near Mrs.

January 28, 2021

American Regional Subsidiary PSA Grounds All Flights

PSA Airlines, a wholly owned subsidiary of American that flies as American Eagle, grounded itself on Thursday afternoon to complete a necessary, standard inspection on the nose gear door of most of PSA’s aircraft that it somehow missed. PSA currently operates a fleet of 130 aircraft, split between 69 CRJ-900s, and 61 CRJ-700s.

The issue as explained to Cranky is that certain bolts on the nose-gear door need to be re-torqued every so often, and it was discovered that work had not been completed as required. The grounding did not come as a result of an incident in the air or on the ground, and it doesn’t appear passengers were in any danger.

Due to the grounding of the fleet, American has been forced to cancel more than 200 flights with that number expected to grow. The airline is accommodating passengers as best it can, but will find some difficulty as PSA operates flights to 91 airports on behalf of American, many of them where PSA is the only operator.

Thousands of AA passengers have been affected, but on the bright side, most of them doesn’t even realize it. By choosing to fly American, they all resigned themselves to the fact they’d be sitting at the gate for hours waiting for boarding to be called, so at this point, nothing seems out of the ordinary.

American Closes Up 2020 with Year-End Financials

On a busy day for airline financials, American Airlines released its year-end earnings report for 2020. The airline saw a $2.2 billion loss for Q4, ending the tumultuous year $9.5 billion in the red. The loss would have been much higher had it not been for airline’s foresight to go onto Antiques Roadshow and have appraisals run for items found in passengers’ luggage that the airline lost and was never claimed.

AA reduced its daily cash burn from $100 million at the onset of the pandemic down to about $30 million in the fourth quarter. The airline secured $9 billion from the federal government through both PSP offerings. It also has drawn $550 million of a potential $7.5 billion from the federal government through the CARES Act loan program, putting up millions in gift cards to each Chili’s To Go location at Dallas/Ft. Worth as collateral.

In a note to employees from CEO Doug Parker and COO Robert Isom, the pair said that AA ended the year with $14 billion in available liquidity. The airline welcomed its furloughed employees back on December 24 and is hopeful that by the time this round of PSP funding goes away, it will have seen enough demand return to keep most of them – if not all – still employed. And if not, they can be loaned out to subsidiary PSA Airlines to help oversee the torquing program on each of PSA’s nose-gear doors.

Southwest Chimes In to DOT on Northeast Alliance

Southwest Airlines filed an addition to its previous letter to the DOT with regards to the Northeast Alliance between JetBlue and American. The government gave its go-ahead to the alliance earlier this week despite objections from several airlines including Spirit, Southwest, and United.

In this letter, Southwest’s says JetBlue needs to pick one or the other – it’s an independent LCC, or it’s a partner of AA’s but it can’t be both. By having permission to coordinate on scheduling and price, JetBlue is able to tap into AA’s traditional hub-and-spoke model, connect passengers, and split revenue, making the airline an extension of AA and no longer a spunky, upstart LCC in the Northeast.

JetBlue –according to Southwest — wants to have its cake and eat it too. Southwest says JetBlue received 90% of its slots at Washington/National, and 50% of its slots at New York/LaGuardia due to government disbursement of the slots to LCCs in previous years. By joining forces with American, Southwest believes JetBlue is no longer entitled to the access. Either you use the slots at slot-controlled northeastern airports given because you’re an LCC, or you’re tied into American and its legacy airline advantages but not both.

JetBlue is willing to divest itself of slots in the northeast, especially at what it calls some of its most strategic airports: Albany, Portland, ME, Stewart/Newburgh, and Worcester, but this doesn’t seem to be enough to satisfy Southwest.

Southwest Posts Q4 Earnings

Southwest Airlines posted its earnings report for the 4th quarter of 2020 and for the full year, showing a loss for Q4 — but a loss that was less than expected. Southwest lost $908 million during 2020’s final quarter, finishing the year down $3.1 billion. Revenue in Q4 was just over $2 billion, a 69% drop from Q4 2019. The airline operated 40% less capacity in Q4 2020 than it did a year ago, with a load factor of 53.8% after posting a load factor of 83.1% in 2019.

Southwest’s cash burn dropped to just $12 million in Q4, its best by far since the start of the pandemic, but it does expect that figure to rise to as high as $17 million during Q1 2021. The Q1 number is worse due to January always being a softer booking month, combined with another slow down in travel as COVID-19 continues to rage. Southwest remains encouraged that it will begin to bounce back this summer as it introduces several new routes and destinations that people actually want to visit… plus Jackson, MS.

Southwest closed 2020 with $14.3 billion of liquidity, $12 billion in unencumbered assets, and approximately 13 billion honey-roasted peanuts it has never been able to get rid of once it stopped serving them onboard.

JetBlue’s Fourth Quarter Results Are In

JetBlue, the airline that willingly reminds you of NYC subway stations while using the restroom in its A220 fleet, completed the airline financials trifecta by announcing its Q4 results today. The loss — $454 million for the quarter — comes one year after posting a $227 million profit in Q4 of 2019. For the year-ending 2020, JetBlue posted a total loss of $1.7 billion, a 314% drop from 2019’s profit of $800 million.

The airline ended 2020 with $3.1 billion in unrestricted cash, which represents 38% of its 2019 revenue. JetBlue paid $100 million in regularly scheduled debt and lease obligations during Q4, and also spent $1,100 to supply employees at headquarters with free Dunkin’ Donuts coffee for the month of December.

Q4 traffic for JetBlue dropped 62.2% from 2019. It flew a load factor of 52.4%, down from 82.9% a year ago. JetBlue’s cash burn for Q4 was $6.7 million per day, and this will be the final cash burn reported by the company. Moving forward, it plans to report daily EBITDA in order to make accountants and economists feel better about themselves because they are the only ones who actually know what EBITDA is.

Airline Potpourri

  • El Al, in an effort to remind us they still exist, completed a slot swap with Wizz Air, picking up four slots at London/Luton for this summer.
  • Emirates is adding 12 months of status before expiration for all elite members.
  • FedEx is relocating all of its Hong Kong-based pilots to San Francisco to avoid quarantine.
  • Malaysia is revamping its frequent flier program, with points now being earned based on spend, not distance flown.
  • Qatar is extending elite status for all current elite members through December 31.
  • Spice Jet has been formally granted permission by the DOT to operate between India and the United States.
  • Southwest is adding four new routes to its network. Miami to Atlanta (twice-daily) and Dallas/Love (once-daily). Sarasota to Atlanta (once-daily) and Maui to Long Beach (once-daily). All four routes begin March 11.

Andrew’s Moment of Levity

I was eliminated from a spelling bee today when I misspelled Armageddon. I knew I’d be upset if I lost, but I didn’t realize losing would be the end of the world.

January 27, 2021

U.S. Government Considers Mandatory Testing for Domestic Travel

Dr. Marty Cetron, director for the Division of Global Migration and Quarantine at the CDC, said Wednesday that the federal government is considering placing a requirement of a negative virus test as a condition for domestic travel within the United States.

The federal government instituted a policy this week that requires most travelers entering the United States to provide a negative test to be permitted entry into the country, but that does not apply to domestic travelers… yet. President Biden directed the government to make recommendations that could make domestic travel safer for the public, and the administration is actively considering this idea. In additiona, those traveling over a weekend would be asked to show a negative test for Saturday Night Fever before being permitted to fly.

Were the requirement to be put in place it would be another obstacle for airlines to overcome in their efforts to repair their balance sheets after a brutal 2020. That’s why some ULCCs such as Spirit have considered a compromise, adding a fee if you’d like to be seated in the section with passengers who have tested negative, leaving other passengers to take their chances.

Boeing Posts Record Losses, Delays 777X Delivery to 2023

Boeing’s Q4 earnings report painted a bleak picture for the aircraft manufacturer, with the pandemic driving a stake through the airline’s business. Boeing posted a monstrous loss of $11.9 billion in 2020. The demand for widebody planes for long-haul service has dropped dramatically, and that along with the 737 MAX mess contributed to the negative result.

The good news kept flowing when Boeing also announced it would push the delivery of its 777X plane to late 2023. The 777X program has been besieged by delays, with Boeing originally expecting to begin deliveries of the airplane this April. But engineering issues combined with weaker demand and shifting focus to increased certification requirements for the MAX have slowed down production. The company took a $6.5 billion charge for Q4 for the 777X program alone.

Boeing posted a loss of $15.25 per share in Q4, after analysts had predicted a loss of just $1.80 per share. Boeing also posted a $468 write-down against “abnormal production costs” related to the 737 MAX. Q4 revenue dropped 15% from a year ago to 15.3 billion, with total loss for the quarter being $8.4 billion; compared to a loss of $1 billion in Q4 2019.

In an attempt to raise revenues in the short-term, Boeing will partner with Carmax to both buy and sell used aircraft on Carmax lots all over the country. Carmax will buy your used plane, even if you don’t buy one of theirs, making you an offer on the spot.  Prices will be non-negotiable, per Carmax policy, and Boeing will receive 70% of any plane Carmax sells on its behalf.

American to Clamp Down on Shady Travel Agents

In a message posted for travel agents on Tuesday, American Airlines said that it would be clamping down on agents skirting ticketing and fare rules when booking flights for clients.

American is specifically addressing these violations:

  • Churning
  • Hidden City Ticketing
  • Inactive Segments
  • Marriage Segment
  • Origin & Destination Manipulation
  • Hogging the armrest if you aren’t in the middle seat
  • Asking someone to close the window shade if you aren’t sitting in the window seat

Each of these — er, at least, the first five — come down to agents and/or travelers who are willing to violate the agreement of the ticket to find a more favorable fare. Airlines rarely have the time or wherewithal to investigate one-off instances by individual travelers to save a few bucks, but as the practice becomes more prevalent and technology improves, the airline is going to do what it takes to protect its revenue. Travel agents who are offenders can expect to see debit memos coming their way to pay the difference.

New Zealand Plans for Borders to Remain Closed for 2021

New Zealand is likely to keep its borders closed for all of 2021, according to Prime Minister Jacinda Ardern. New Zealand and Australia have been in discussion for several months about a Trans-Tasman travel bubble, but the prime minister is not confident of any sort of bubble anytime soon.

New Zealand’s strict policies to combat the virus have allowed the country to resume many normal operations domestically including the lifting of most restrictions and quarantine. The prime minister did say that if the country were to explore travel bubbles with Australia, it would likely be done on a state-by-state basis, and not for all of Australia. (We’re looking at you, Victoria, you problem child.) The decision would be based on the rate of positive cases and the success of vaccine distribution.

New Zealand, along with Australia, is expected to receive the first doses of vaccine for the general population to arrive sometime next month. Both countries do not expect to open their borders to the rest of the world until there is more evidence that vaccinated individuals still cannot transmit the virus.

Avatar Airlines Has a Billion Reasons to be Confident for Launch

Avatar Airlines, the Florida-based startup airline that plans to begin operating at some point between now and the end of civilization, plans to be valued at over $1 billion when it operates it first flight. The airline, which appears to take the idea of a New Year’s Resolution very seriously, plans to raise capital through two private equity offerings and an IPO instead of using debt.

Founder and CEO Barry Michaels said that his plan is “different,” and it sure is. Avatar plans to exclusively operate Boeing 747s with very high density. Each aircraft will have 539(!) economy seats on the lower deck, always priced at $99 one way or less. It will have 42 “office class” seats on the upper deck, priced at $179.

Avatar also plans to be a “flying billboard,” willing to raise capital by selling space all over its airplanes, both inside and out. Seems like a perfect idea for any business who’s struggled to market to the “birds that fly above 10,000 feet” demographic.

We would have assumed this is just some scam drummed up in a Reddit thread like buying a bunch of Gamestop stock, but this start-up plan has been around for several decades, pre-dating the existence of Reddit by far.

Airline Potpourri

  • American is extending Admirals Club access on all international flights to elite members Platinum & above along with passengers seated in business or first. This includes short international flights within North America & the Caribbean.
  • British Airways wants to move its daily flight to Accra (ACC), Ghana from Heathrow to Gatwick. And Ghana’s government is not happy.
  • Flair Airlines is adding 13 new B737 MAX 8 aircraft to its fleet. It acquired them by pinning the owner of the aircraft after a low blow when the referee was distracted.
  • Jetstar is sending its fleet of B787 aircraft to Alice Springs for extended storage.
  • United has joined the state of Hawai’i’s pre-clearance program. United fliers on all 110 of the airline’s weekly flights to the islands can submit their negative virus test online and receive a wristband when boarding to bypass arrival screening and head right to the bar beach.
  • Virgin Australia is operating at 40% of its pre-pandemic January capacity, lower than the 60% figure it expected to operate.

Andrew’s Moment of Levity

I went to the doctor today and got some news that was very hard to hear. I’m going deaf.

January 26, 2021

Alaska & Hawaiian Post Q4 Earnings

Both Alaska and Hawaiian announced their earnings reports for both Q4 and 2020 today. Alaska was up first this morning, and the Seattle-based airline said it lost $430 million in the quarter, capping off the year with a total loss of $1.3 billion. This compares to a $181 million profit for Alaska in Q4 2019, which ended a year that saw an operating profit of $769 million.

Any hopes of improvement in January were dashed when the airline said revenue is expected to to be down 60-65% from January 2020, the last month that was completely free of Coronavirus concerns in the United States. Alaska will operate with 30% less capacity this January and expects a load factor shy of 50%. The airline closed the year with $3.3 billion in unrestricted cash and a debt-to-capitalization ratio of 61%.

Hawaiian released its Q4 earnings shortly after the market closed — the time when management finished catching some morning waves — on Tuesday, with a net loss of $162 million for the quarter and $511 million for the year.

Hawaiian notes it began its recovery from rock bottom on October 15 when the state of Hawai’i launched its pre-travel testing program, re-opening the state for tourism. Hawaiian raised $41 million during Q4 through the sale of stock, giving it $864 million in unrestricted cash. The airline has an outstanding debt of $1.3 billion that includes POG juice futures and thousands of leis in a storage room in Honolulu.

JetBlue Wants Help in London

JetBlue Airways filed a complaint with the DOT, alleging that its plans to expand to London are being hindered due to the challenge of finding slots at London-area airports.

JetBlue claims it is being “locked out” of the major airports in London due to the UK delaying its decisions to address the unused slots available at both Heathrow and Gatwick… even though it did secure some slots for Gatwick service. JetBlue wants the DOT to politely nudge the UK government to honor the commitment to slot transparency signed under the new US-UK Open-Skies Agreement.

JetBlue specifically points out issues at Gatwick, where Virgin Atlantic has left indefinitely, and Norwegian has announced its plan stop all long-haul flying. Both airlines have still maintained their slots at the airport.

All options are on the table for JetBlue, including the possibility of redoing the restrooms on its new A220 aircraft that it designed with NYC subway tile as a nod to its hometown. Some UK officials have said off the record that if B6 would change the restrooms to look like London’s Underground Tube stations instead of NYC, the UK would release the slots JetBlue desires immediately.

Sun Country Announces New Cities & Routes

Minneapolis/St. Paul-based Sun Country Airlines announced it would be adding nine cities to its route map this summer while adding 16 new routes.

The nine new cities that will see Sun Country flights are:

  • Cincinnati
  • Fairbanks
  • Hartford
  • Houston/Intercontinental
  • Indianapolis
  • Jackson Hole
  • Kalispell (MT)
  • Orange County
  • Raleigh/Durham

All nine new cities will see service to Minneapolis/St.Paul. Orange County (SNA) will see 4x-weekly flights to MSP beginning May 6. Fairbanks will see Saturday-only service beginning May 29 while the rest operate twice weekly. Orange County will also get Dallas/Fort Worth flights while Hartford and Indianapolis will receive flights to Orlando. Additional new flights include twice-weekly flights from Houston to Cancun and Las Vegas along with flights from Dallas/Fort Worth to Puerto Vallarta and San Antonio to Cancun.

The domestic expansion shows hope from the airline that the vaccine rollout will grow in numbers, encouraging Americans back to get back in the skies this summer. It’s either that, or that it had a bunch of leftover pushpins when cleaning the office and someone put them on random spots on a map in the office, not realizing it was used by its route planning team.

Lufthansa Discovers New Brand

Lufthansa announced its plan to launch a new brand for long-haul flights to leisure-oriented destinations, naming it Eurowings Discover. You have to really respect the logic of announcing a new brand that is an offshoot of Eurowings which already exists as a subsidiary of Lufthansa’s to begin with.

Eurowings Discover will operate exclusively long-haul flights on behalf of Eurowings, on behalf of Lufthansa. It might eventually also operate short and medium-haul flights within Europe, but for now that will remain being flown by Eurowings on behalf of Lufthansa and Lufthansa on behalf of itself.

Flights will have three classes – Economy, Premium Economy and Business Class. Eurowings Discover will operate using Eurowings existing long-haul product, making it the same as Eurowings, just with a different name on the outside of the airplane.

Non-Essential Travel to Belgium Banned Through March 1

Belgium is closing its borders between January 27 and March 1 with the lone exception of travel deemed by the government to be essential. By closing its borders, the country is rejecting the advice of the European commission, which expected EU states to continue to allow unfettered travel across the EU’s internal borders. The commission said that travel between EU states that is non-essential should be “strongly discouraged,” but stopped short of supporting the outright ban.

Belgium has had some of the strongest restrictions in the EU, having a 10 p.m. curfew in place since October, closing all indoor sports venues, and keeping only essential businesses open. Belgium was able to go from one of the highest positive test result countries in the EU in September to now being the lowest thanks to its tight restrictions. By closing its borders, Belgium ensures it will contain the entry of the virus and that no visitors will be eating any Belgian chocolate over the next several weeks, leaving more for its own citizens.

Air Belgium and Brussels Airlines will be forced to suspend nearly their entire schedules due to the ban, leaving only the bare-minimum required to meet essential travel needs. Both airlines are giving three choices to travelers: refunds for anyone scheduled to travel between tomorrow and March 1, the option to travel later in the year, or the equivalent value of their tickets in waffles, french fries, and/or beer.

Airline Potpourri

  • Alaska announced that pilot Daniel Elwell is joining the airline’s board of directors.
  • ANA is cutting service to both New York/JFK and San Francisco from Tokyo/Narita into April. It is also suspending two flights from Haneda, its daily flight to San Jose, and one of its two daily flights to Los Angeles
  • Greater Bay Airlines applied for 104 route permissions from Hong Kong as it continues to plan its launch. Forty-eight of the 104 destinations are in mainland China, and none of them will make any money for the airline.
  • Southwest has become the latest U.S. airline to ban emotional support animals. It will continue to allow emotional support cabin crew to work its flights, however.
  • Vietravel Airlines, a startup in Vietnam, began passenger operations on Monday. The airline is operating five routes from its Ho Chi Minh (SGN) hub.
  • West Atlantic Airlines took delivery of its first ATR-72F.

Andrew’s Moment of Levity

My friend today was frantic today asking me if I had seen his dog bowl. “No,” I told him, “I didn’t even know your dog knew how. But I’d love to.”

January 25, 2021

Alaska & Southwest Take Delivery of the MAX

Alaska Airlines took delivery of its first Boeing 737 MAX 9 aircraft on Sunday when the airline flew the very short route from Boeing Field to the airline’s hangar at Sea-Tac International Airport. The aircraft type will enter service on March 1, flying nonstop flights between Seattle and two west coast destinations – San Diego and Los Angeles. The airline expects to have its second MAX in service later in March.

Each aircraft will take approximately five weeks from delivery to being ready to fly passengers. Those five weeks of preparation include pilots flying each individual plane roughly 19,000 miles around the entire country including to Alaska & Hawai’i. Alaska’s maintenance staff will undergo more than 40 hours of training specific to the MAX, and cheese shops across the northwest will begin to prepare the cheese plates that Alaska makes available for sale on-board its flights.

Alaska will take delivery of 13 MAX aircraft this year and 30 next year as a part of its agreement with Boeing to delivery 68 planes over the next four years with an option for 52 more.

In semi-related news, Southwest Airlines joined Alaska in welcoming new aircraft to its fleet this weekend, as it took delivery of seven new 737 MAX 8aircraft. These are the first seven MAX planes Southwest will acquire this year, with five more coming to the airline, but not until the planes’ boarding group is called and they are permitted to proceed to the airline’s Dallas HQ.

United Doesn’t Agree with Spirit – Except it Does

United Airlines submitted an addendum to Spirit’s complaint to the DOT in regards to the recently-approved Northeast Alliance between American & JetBlue. United begins its filing stating that it takes no official position on Spirit’s (and other airlines) complaints about the NEA, and United then spends the next four pages taking an official position by explaining its issues & concerns with the JetBlue/American tie-up.

United insists it has no opinion on the agreement or the DOT’s ruling, but it does have an opinion that the DOT did a poor job reviewing the alliance and missed the boat on completing due diligence. United continues not having an opinion by writing that the DOT’s review “lacked transparency and merits reconsideration.” United does not think the DOT needs to have a formal investigation, but it does believe the DOT needs to have a more thorough review process, similar to previous formal investigations.

It gets better. United reminds the DOT it has no thoughts on the Northeast Alliance itself — but United is requesting the DOT pause its approval of the NEA between JetBlue & American and undertake a deeper, lengthier investigation. Despite that, United still doesn’t want a formal investigation, because that would require having an opinion. With the casualwear trend in full swing while working from home, perhaps what United means by informal investigation is it’s done from home by investigators in their pajamas.

Lastly, United continues to express its lack of interest in the decision by reminding the DOT of its intent to obtain slots at JFK when they are up for grabs. The question remains – if United had this much to say about something that have no interest in, how long would this filing of been if the airline actually had an opinion on the subject?

Lufthansa Group to Require Medical-Grade Masks

Lufthansa Group airlines are amending their on-board mask policies to require medical-grade protective masks on all flights to and from Germany, beginning February 1. The requirements state that passengers may no longer board with the masks made of paper, cloth, aluminum foil, human hair, or anything else that even Germans define as “super weird.” Instead, a surgical mask, FFP2, KN95/N95, C-3PO, or R2-D2 mask will be required throughout the journey.

Medical exemptions from the heightened requirements are available only with prior approval from the airline and a negative test that was taken no more than 48 hours prior to departure.

The medical-grade masks are required in German airports in addition to on the aircraft. Those who do not comply with the regulation while in the airports will be offered a complimentary mask that is compliant. If the passenger refuses, they’ll be escorted from airport property, denied boarding, and banned for five years from attending Wheneverfest.

What’s in a Name? Ask Avelo Airlines

To start an airline, you need a name, and Houston Air Holdings’ new ULCC has one. It was growing tired of older, more established airlines simply referring to it as “hey you” and “yeah, you in the corner without a livery.”

The new airline, being started by former Allegiant & United executive Andrew Levy, will be named Avelo Airlines, after filing for a trademark with the U.S. patent office. Avelo means “by bike” in French, making some wonder if the airline plans to offer frequent service on very quick flights between spots in the neighborhood you grew up in or if it will supplement passenger income with a paper route.

Avelo announced last year that it plans to operate as a ULCC in the United States, flying Boeing 737-800 aircraft. Avelo acquired XTRA Airways’ Part 121 commercial airline certification, clearing a key hurdle to getting planes in the air with actual paying passengers paying actual money to be flown somewhere. At this point, all that’s left is to pick a buy-on-board menu and create a snazzy marketing slogan and you’ve got yourself an airline.

United Nations Prohibits Staff from Flying on Pakistani Airlines

The United Nations issued a directive prohibiting any of its officials from flying on Pakistan-based airlines, including for domestic travel within Pakistan. The UN has issued the advisory for its staff, but also made a recommendation to global agencies including the World Health Organization, UN High Commission for Refugees, UN Development Program, and others to avoid Pakistani airlines.

The directive is based on safety concerns for Pakistan-registered airlines, dating back to the discovery that many Pakistan-based pilots had “dubious” flying credentials – at best. Many were masquerading as pilots without the proper training or licenses, but happily cashing their paychecks. While the government in Pakistan says its cleaned up the problem, not everyone is taking the government at its word.

In the meantime, with UN and other staff not flying Pakistani airlines, many are hoping that startup Avelo Airlines might consider launching a Pakistani subsidiary. In the meantime, NGO staff in the country will be reduced to flying private to get around the country — not the worst outcome in the world.

Airline Potpourri

  • Cargojet plans to acquire seven additional aircraft — five Boeing 767F and 2 Boeing 777F for C$350 million.
  • Delta has hired Dr. Henry Ting as the airline’s first Chief Health Officer.
  • Finnair will resume service to both the U.K. and Ireland from Finland, beginning today, January 25.
  • flydubai will add two cities to its route network — Malta (4x-weekly service beginning May 12) and Salzburg (4x-weekly beginning May 13).
  • Qatar is increasing the number of frequencies it operates from Doha to eight African cities.
  • United will begin Sunday-only service to Bridgetown, Barbados (BGI) this December from its hubs at Newark and Washington/Dulles.

Andrew’s Moment of Levity

I met a lumberjack last week and he said he recently had to cut down 1200 trees in just one day. I asked him how he kept track of how many he cut down and he said, “It’s easy, I keep a log.”

January 22, 2021

President Prefers Foreign Travelers Self-Quarantine Upon U.S. Arrival

Despite numerous reports to the contrary, President Biden has not made quarantine upon arrival a mandatory requirement on a federal level for international travelers arriving in the United States. While some states do have arrival requirements that involve quarantines, the federal government has not done so.

The executive order signed by the president this week states that those flying into the U.S. should have a negative PCR test taken within 72 hours of departure, but there are enough loopholes that it may be more of a suggestion than a request. For example, visitors coming from countries where PCR tests are considered inaccessible are exempt from the tests, especially if the requirement prevents U.S. citizens from returning home. How they determine that seems unclear.

As for quarantine, the executive order calls for the HHS secretary to coordinate a plan to present to the president that includes “CDC-recommended periods of self-quarantine or self-isolation after a flight to the United States from a foreign country, as [the secretary] deems appropriate and consistent with applicable law.”

What the president did require, however, was for all airlines — domestic and international — when on approach to landing in the United States on an international flight to play Katy Perry’s rockin’ performance of Firework at Wednesday’s Inaugural Celebration.

WestJet Doesn’t Care for Air Canada Takeover of Air Transat

Air Canada’s chief domestic rival, WestJet, has very respectfully and politely requested that the Canadian government reject AC’s planned takeover of Air Transat. In its filing, WestJet stated “A fundamental element of Canada’s national transportation policy is to have at least two strong national airlines,” apparently suggesting that the merger will make WestJet either not strong or not national. We’ll go with the former.

WestJet wants modifications to the deal if it cannot get it quashed altogether, including the new combined airline divesting itself of slots across the country and denying Air Transat customers access to Aeroplan, Air Canada’s loyalty program. WestJet singled out three airports where the new combined airline should be forced to divest itself of slots: Toronto/Pearson domestically and then Amsterdam and London/Heathrow in Europe.

Both the Canadian government and EU are expected to rule on the merger within weeks. Both sides are hopeful to receive a ruling from both governments by the February 15 deadline and close the deal, because no one wants to have to return to the negotiating table just as the race for the Stanley Cup Playoffs heats up.

Spirit’s New Loyalty Program Goes Live

Spirit Airlines’ new pyramid scheme loyalty program is live with perks that many Spirit customers never thought they’d live to see. Free checked bags, free seat assignments, less harsh mileage expiration, and actual elite status — it’s real, and it’s spectacular.

The airline had known for years that a reboot of its loyalty program was needed, as its original program had barely changed since its launch in 2006. The new program is revenue-based, just as everything is with Spirit, and gives very frequent fliers a legitimate opportunity to receive many of Spirit’s bevy of paid add-ons for free.

The new program comes with two levels of Elite status – Free Spirit Silver & Free Spirit Gold. Silver members must earn 2,000 qualifying points which equates to $2,000 spend in a year, while gold members need 5,000. Silver members can select a non-premium (not exit row or Big Front Seat) seat at check-in and exit rows at three hours before departure. Silver members also receive free same-day standby, shortcut boarding, and the opportunity to perform one flight attendant beverage service per flight, with the right to keep 10% of what they sell.

Free Spirit gold members really pull in the perks, which anyone who spends $5,000 in a year on Spirit really deserves anyway. In addition to all the silver perks, gold members receive a free checked bag and a free carry-on bag. Revolutionary stuff. Gold members can also select any seat except a Big Front seat at booking for free, free snack and drink on-board, and one free change to their itinerary up to 24 hours before departure. Gold members receive unfettered cockpit access and can land one flight per month at their most visited airport.

Qatar Returns to Atlanta; Adds U.S. Frequencies

In spite of many of the world’s airlines reducing service levels to the United States this summer as the pandemic continues, Qatar Airways will ramp up its offerings to the United States, led by a return of its flight from Doha to Atlanta. Qatar, which began flying to Atlanta in the summer of 2016, seemingly just to annoy Delta, will resume the suspended route with 4x weekly service on June 1.

Qatar will also increase its frequencies on six other routes from sea to shining sea:

  • Chicago/O’Hare: 9x weekly to 10x weekly on March 4
  • Dallas/Fort Worth: daily to 10x weekly on March 2
  • Houston/Intercontinental 4x weekly to daily on March 14
  • Miami: 2x weekly to 3x weekly on July 3
  • San Francisco: 4x weekly to 5x weekly on July 2
  • Seattle: 4x weekly to daily

All new frequencies are loaded up and available for sale on Qatar’s website and will remain so as long as Qatar CEO His Excellency Akbar Al Baker doesn’t wake up one morning and change his mind.

American Announces Plans for Athens & Tel Aviv

We’ve known for quite some time that American Airlines planned to fly to both Athens, Greece and Tel Aviv from New York/JFK in 2021 but had little details beyond that fact. American has now released its plans for the two destinations, expecting to begin flying both this spring.

Up first will be Tel Aviv, with service beginning on May 6. The year-round flight will operate daily, departing JFK at 11:10 p.m. and arriving the next afternoon in Tel Aviv. The aircraft will hang out on the ground for a few hours in Israel, departing back from TLV at 12:50 a.m., arriving in New York at 6 a.m. the same day. American is still currently in negotiations with Manhattan’s 2nd Avenue Deli to cater the outbound flight with traditional Jewish fare including matzah ball soup, bagels & lox, and corned beef sandwiches. Dr. Brown’s soda better be available both inbound and outbound in all classes of service or there might be an uproar.

AA’s flight to Athens will begin on June 2, as daily service for summer only. The route will conclude on October 30, to prevent passengers from dressing up as Greek Gods in toga outfits on the flight for Halloween. The flight to Athens will leave JFK at 4:20 p.m. arriving in Greece at 8:50 a.m. the next day; the plane turns right around to New York at 11 a.m., arriving at 3:05 p.m.  

Airline Potpourri

  • American will begin painting its aircraft in a new kind of paint that it says is “less expensive, lighter, more fuel efficient and better for the environment.” Unfortunately, the tail will still be ugly.
  • Brussels will cancel up to an additional 900 flights in February and March due to increasing international travel restrictions.
  • flyDubai will reinstate service to Doha for the first time since the Gulf Blockade, flying twice-daily beginning January 26.
  • JSX will continue to operate from Orange County (SNA) indefinitely despite the airport’s attempt to block it from operating.
  • Malaysia received approval from a UK Court to continue ahead with its restructuring.
  • Qatar will continue to fly to Brisbane through at least 2022, extending the route in its schedule through next January.

Andrew’s Moment of Levity

My boss confronted me this past Monday asking why I only ever get sick on weekdays. I told him that it wasn’t my fault, but it was my weekend immune system.

January 21, 2021

Oops, our bad: In Monday’s Cranky Daily we underreported United’s Q4 loss by an order of several magnitudes. Unfortunately for United, it’s loss was $1.9 billion – not $1.9 million, which we reported.

Southwest Reveals Routes & Schedules for Two New Destinations

Southwest Airlines announced last month it would add two cities in California to its route map – Santa Barbara (SBA) and Fresno (FAT) – and today released the schedules and routes for the pair.

Santa Barbara will begin service first, starting on April 12. From SBA, Southwest will fly nonstop to three cities, each a major hub for the airline – even if it refuses to call them hubs. Denver and Oakland will each see once-daily service from SBA while Las Vegas hits the jackpot, receiving three daily flights.

Southwest’s Fresno flights will begin two weeks later on April 25. From Fresno, WN will fly to two cities – Denver and Las Vegas. Similar to SBA, it’ll be once-daily to Denver and three to Vegas. Those Oakland locals will just have to drive if they want to visit Fresno.

These new cities and routes come as Southwest has expanded its footprint in California during the pandemic. The airline is now offering flights to 13 cities in the state, after adding Palm Springs (PSP) last month in addition to dramatically increasing its presence at Long Beach (LGB) after JetBlue dramatically abandoned pulled out to shift its focus in the region to LAX.

Hawai’i and Hawaiian Looking to Make it Easier to Visit the State

State of Hawai’i Lieutenant Governor Josh Green is hopeful travelers to the state who have completed a COVID-19 vaccine program will be permitted to opt out of the state’s arrival requirements of a negative PCR test within 72 hours of travel or mandatory quarantine.

Green presented his plan to the governor, intending to put the policy in place as early as this spring. The state is currently waiting on a CDC study to confirm that those who have been vaccinated are no longer a risk to transmit the virus via person-to-person contact.

For those who haven’t been vaccinated, however, Hawaiian Airlines is expanding its Pre-Clear Program, which allows passengers from Hawaiian’s gateways on the mainland to clear their mandatory COVID screening before departure, reducing the amount of time between wheels down and the first ocean-view mai tai once they land in paradise. The program launched last week in San Francisco and will begin next week at four airports: Boston, Long Beach, New York/JFK, and Phoenix. Hawaiian plans to introduce the Pre-Clear Program to its remaining mainland destinations next month.

Norwegian Receives Government Support in Restructuring Process

Norwegian Air announced today that the Norwegian government has pledged its support for the airline amid the restructuring of its route network and operations. Norwegian announced earlier this month its plan to end its long-haul flying and focus on short-haul routes within Europe and its domestic network in Norway. Now it might have enough money to actually see if that plan might work.

The airline entered into examinership in Ireland late last year as well as financial reconstruction in Norway. The Norwegian government rejected the initial overture from the airline but is pleased with the plan presented last week. Along with the elimination of its long-haul network, Norwegian plans to cut its debt, reduce its fleet of aircraft down to 50 while gradually increasing to 70 aircraft by 2022, and force all passengers to eat pickled herring.

The government will assist the airline in finding investors and leading it through the financial reconstruction. Norway will ensure that domestic jobs with the airline will remain secure while the airline undergoes these dramatic changes.

Qatar and Iberia Cuddle Up

Qatar Airways is continuing to build on its worldwide network of partners, signing an expanded codeshare agreement with fellow Oneworld carrier Iberia, an airline it partially owns via its investment in IAG.

Many in the industry do not believe it to be a coincidence that the announcement came one day after yesterday’s Cranky Daily mentioned that Iberia’s team of executives have access to the delicious Spanish candy Conguitos.

With the new agreement, Qatar passengers can take advantage of travel to 40 destination in Iberia’s network on the Iberian Peninsula and Latin America. Iberia passengers will now have access to 36 routes on Qatar’s network including seven new destinations in Angola, Australia, Mozambique, and South Africa – four countries that have likely never been on a list together before.

Emirates Reverses Course, Resumes Flying to Australia

After suspending service to Australia until April just last week, Emirates Airline reversed its decision and is now planning to return early next week.

Emirates will resume flying to Sydney on January 25, followed by Melbourne on January 26 and Brisbane on January 28. The airline made the decision to pull back on its Australian flights when the country announced a double whammy of restrictions for international carriers – a cut in half off the cap of international visitors Australia would admit into the country per week along with harsher quarantine requirements for all visitors, including airline crew. The new regulation also requires international airline crew to perform a joint rendition of Waltzing Matilda upon entry into the country.

Emirates will stick with its original plan to only offer seats in its first class cabin for sale on its Australian flights – meaning only eight seats will be for sale per flight at about $6,000 each. It does plan to add business class seats as an option, and then eventually economy. In the meantime it will ferry first class passengers, and more importantly, cargo from Dubai to the three Australian cities.

Airline Potpourri

  • Air Serbia will launch twice-weekly service to Geneva, beginning March 1.
  • American disclosed on Tuesday that it will receive $3.09 billion from the federal government as a part of its PSP loan.
  • Flyarystan will launch five new destinations from Kazakhstan this March when its fleet of A320s grows to eight.
  • KLM expects to cut another 1,000 jobs from its workforce in the near-future, bringing it total number of job losses since the onset of the pandemic to 6,000.
  • Lufthansa will operate the longest passenger flight in the 68-year history of the airline on February 1. LH2574 will fly 92 passengers on an Airbus 350-900 nonstop from Hamburg to RAF Mount Pleasant (MPN) in the Falkland Islands. The one-way journey will clock in at about 15 hours of flight time to cover just over 8500 miles.
  • Lufthansa Cargo received approval to overhaul its main logistics center in Frankfurt. The work is expected to be completed by 2028. Hopefully you don’t need your package before then.
  • Okay Airlines did just fine in its negotiations with Aergo Capital, the new lessor on a Boeing 737-800 the Chinese airline operates.
  • Qantas is considering launching nonstop flights to India once travel begins to recover towards pre-pandemic levels or in the year 2100, whichever comes first.
  • Singapore began program on Tuesday, where passengers can book their pre-departure PCR test through the airline and receive their results in one online portal. The program has begun in three cities: Singapore, Jakarta, and Medan, Indonesia (KNO). The airline plans to expand to more cities in the coming weeks.

Andrew’s Moment of Levity

Here’s something. If you buy a bigger bed, you have more bed room, but less bedroom.

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.

January 19, 2021

We will not be publishing yesterday due to Martin Luther King, Jr Day. We forget to tell you this Friday, so we figured we’d just tell you after the fact. Oops.

Biden Disagrees With Trump’s Plan to Cut Travel Restrictions

President-elect Joe Biden plans to reverse President Trump’s executive order lifting travel restrictions to Europe and other virus-stricken locations on January 26, mostly because it just seemed like something fun to do.

The president signed an executive order on Monday putting an end to the restrictions imposed early in the pandemic on visitors traveling to the U.S. on non-essential business, but it would not be put in place until January 26th – six days after the end of his term.

Shortly after the order was announced by the White House, the incoming press secretary of the president-elect said the administration would reverse the lifting of restrictions via their own executive order shortly after taking office tomorrow. The Biden administration plans to keep the restrictions in place indefinitely in its attempt to slow down the virus.

The dual presidential announcements come just a week after the CDC said last week it will require a negative COVID-19 test from nearly all air passengers entering the United States — a move designed to slow the spread of the coronavirus. Air passengers will be required to undergo a test within three days of their flight to the United States departs and provide written documentation of their lab results or documentation of having recovered from the virus.

American (Accidentally?) Details Internal Succession Plan for CEO

American Airlines, in its search for a new chief human resources offices (CHRO), may have gotten more than it bargained for from search firm Hanold Associates. The search firm shared in a media statement to Hunt Scanlon Media that the new employee would start by reporting to SVP People and Communications Elise Eberwein until she retires “soon.” The role would eventually report directly to the airline’s new CEO, someone who will be involved in the interview process.

This revelation came as a shock to many, as Doug Parker has been in his role as CEO of American Airlines (née US Airways, née America West) since 2001 – an eternity in the world of major airline CEOs. While many considered President Robert Isom to be a logical candidate to one day succeed Parker, this was the first time that had been effectively stated publicly.

It’s important to note that the posting did not specifically name Isom as the next boss of AA, only saying that the plan is for an internal executive to eventually be CEO. But there are only two logical candidates for that role, either Isom or the person who managed to find a gate for my flight last month that landed 45 minutes early at DFW. He or she is a hero. And in fact, likely too important to the daily operation of the airline to waste his or her talents in the CEO role.

Canada & Europe to Lift 737 MAX Operating Bans

The European Aviation Safety Agency (EASA) and Transport Canada are lifting the ban on operating the 737 MAX in their respective airspace in the coming days. Transport Canada will lift its ban tomorrow, January 20, with EASA lifting its ban next week.

In Europe, Norwegian has the most MAX aircraft in its fleet with 18, followed by both TUI and Turkish which each have 12. Ryanair has a very large order for over 200 of the 737 MAX 200 version. The MAX 200 of the aircraft is expected to be approved to fly in Europe within the next few weeks. The final step in the EU will be for Boeing to finalize software updates and rewire the aircraft to the new specifications required by the agency.

In Canada, both Air Canada & WestJet are expected to return the planes to service very soon. Transport Canada said that it “has gone even farther by introducing unique Canadian measures to further enhance the safety of the aircraft.” While the agency didn’t detail what the further measures were, we can only assume they included adding maple syrup-smelling air fresheners throughout the aircraft, ensuring all seatback cushions have Tim Horton’s coupons, and requiring Labatt be the only beer brand offered onboard.

Emirates to Return to Australia in April – With a Catch

Emirates Airline plans to end its current suspension of passenger flights to Australia as soon as April, but purchasing a ticket will prove to be very expensive.

When Emirates resumes flying in early April to its three Australian gateways (Brisbane, Melbourne & Sydney), it plans to offer the eight first class suites on its B777-300ER jets for sale  – and only the first class suites. That’s eight seats for sale on the entire aircraft, at about $6,000 per seat.

For the many premium class-only passengers (looking at you, online trip report authors) who bemoan the inconveniences of traveling alongside the hoi polloi, this could be a dream come true. A cap of eight passengers means a quick and tidy boarding process, along with a likely 1:1 ratio (or better) of cabin crew to passengers. Also, for just under $50,000, a passenger could buy out the entire first class cabin and have the entire aircraft to themselves. That’s one way to ensure you’re not seated near anyone during a pandemic.

Later in April, Emirates will put business class seats on sale along with first class. Economy will follow in the first week of May. In the meantime, Emirates will continue to fly to the three Australian cities, but will only transport main cabin passengers cargo until it resumes passenger flights this spring.

Routine Spirit Boarding Process Makes Headlines

On Sunday, Spirit Flight 646 to Atlanta began its boarding process in Detroit like any other flight on the airline. Passengers shuffled through the gate area, paying their fees to have their boarding pass scanned, for breathing Spirit’s air both on the jetway and aircraft, while generally keeping to themselves. Some paid Spirit’s $6.99 personal entertainment fee and had headphones or Airpods in to listen to music or a podcast on their phone or other device. Others paid $3.99 to read a book, newspaper, or magazine during the flight.

That was until a party of three passengers, whose names have not yet been released, took exception to being asked about the size of their carry-ons during the boarding process. The party of three elected to bullrush the gate, attempting to board the aircraft with their contraband carry-ons. As the Spirit gate agent prevented the unauthorized boarding of the aircraft, the three physically attacked the agent. A second Spirit staffer immediately closed the boarding door to keep the rowdy group off the aircraft, and that person was also dragged down and struck by the “passengers.”

One Spirit employee ended up needed to go to the hospital to attend to her injuries from the ridiculous and unwarranted aggression.

Two of the three assailants were taken into custody and will be arraigned this week. The third was booked and released. The two taken into custody will owe Spirit $58.99 for each night they spend in the county lockup, and will be subject to Spirit’s $74.99 surcharge on any future travel on the airline. This is standard for passengers who have attacked Spirit employees in the gate area or on-board a Spirit flight.

Airline Potpourri

  • Aeroflot is resuming twice-weekly service from Moscow/SVO to Helsinki on January 28. Flights will operate on Thursday and Saturday each week and parkas are mandatory.
  • Air Canada will institute flexible change policies for customers who politely inform the airline they prefer not to fly on a MAX aircraft when it resumes flying for AC on February 1.
  • Air New Zealand updated its international schedule through June 30.
  • Flyr, the Norwegian startup that plans to begin flying in the second quartr of 2021 announced it will operate a fleet of Boeing 737-800 aircraft while also revealing its inaugural livery.
  • GlobalX took delivery of its first A320 today in Miami. The aircraft came with a welcome kit from Miami airport including tanning lotion, a line pass to LIV nightclub, and a one-way bus pass to Fort Lauderdale.
  • SWISS is flying one-time cargo flights to Seoul/Incheon and Lima. It’s expected to be a big plus for both cities.
  • Sun D’Or is joining its parent airline, El Al, in halting flying on the sabbath each week, sundown Friday until sundown Saturday. The airline will, however, continue to fly during Purim and Tu BiShvat.
  • WestJet COO Jeff Martin will be retiring on February 26. Martin denied reports that he plans to jump ship to Korean LCC Eastar Jet, WestJet’s bitter rival and enemy.

Andrew’s Moment of Levity

I put maple syrup on my shopping list. Now it’s sticky and I can’t read anything I wrote.