Author: Andrew Bashuk

October 16, 2020

United Bulks Up With New Latin Routes

1 United Airlines announced it is adding eight new routes to sun-splashed destinations in Mexico and Central America from several of its U.S. gateways. It is also bulking up flights on several other existing routes.

With Americans limited in where they can travel internationally, these new routes from United will connect U.S. passengers to warm-weather destinations currently accessible with an American passport. In this vein, we can undoubtedly look forward to new Newark – Kabul, Dulles – Sana’a, and Houston – Nouakchott flights soon.

The actual new routes for United are:

From Denver: Service begins December 19 to Belize City, Belize (BZE) and San Jose, Costa Rica (SJO)
From Los Angeles: Service begins December 17 to San Pedro Sula, Honduras (SAP), December 19 to San Jose, Costa Rica and January 8 to Liberia, Costa Rica (LIR)
From San Francisco: Service begins January 9 to Liberia, Costa Rica
From Washington/Dulles: Service begins December 17 to Santo Domingo, Dominican Republic (SDQ)

United is also restarting two routes that had been suspended – service from Cleveland to Cancun and Houston/Bush to Mazatlan, Mexico (MZT) both will resume on December 19.

American Prepares to Add HEPA Filters to Small Regional Jets

2 American Airlines made the bold decision that passengers traveling on small regional jets have the right to breathe Coronavirus-free air just as much as those on larger regionals and mainline AA aircraft. To ensure that happens, AA is installing HEPA filters on 50-seat Embraer jets operated by its wholly-owned subsidiary Piedmont Airlines.

The ERJ-145s operated by Piedmont were said to have enough fresh air coming in and out that the aircraft didn’t need extra filtration from the HEPA filters. But due safety concerns during the pandemic, AA was able to fast-track the installation project, now expecting all 59 ERJ-145 to have the filters installed by the end of the year.

The lack of a first class cabin on AA’s ERJ-145 aircraft give the HEPA filters an extra chance of success on the small 50-seat aircraft due to the lack of hot air being bellowed from elite members complaining about not being upgraded on their 40 minute flight. The aircraft only have Main Cabin, lacking Main Cabin Extra as well. An AA spokesman might have said “can’t miss out on an upgrade that was never available in the first place!”

Europe’s Top Safety Expert Declares Boeing MAX Safe — He Pinky Swears

3 Patrick Ky, the executive director of the European Union Aviation Safety Agency, says he is satisfied that changes to the 737 MAX aircraft have made the plane safe enough to be operated in Europe before the end of 2020.

The Agency plans to issue an airworthiness directive next week which will be followed by four weeks of public comment that will surely be grounded and rational at all times.

The FAA is making progress in its own review of the airplane’s safety, but it is not yet ready to make a statement. FAA chief Steve Dickson flew the MAX last month (literally, he’s a pilot) and declared it comfortable but also said his organization is not complete with its entire review process.

Wizz Air Reverses Course in Norway

4 Wizz Air, which earlier this month announced plans to launch a domestic operation in Norway based in Oslo, said today that it will comply with Norwegian law, allowing its employees to organize.

The low cost carrier has always taken an anti-union position, as most LCCs do, in order to keep costs as low as possible. Current laws in Norway make it illegal for employers to deny workers the right to unionize. Initially, Wizz had planned to ignore the law and maintain its non-union stance, challenging the Norwegians to boycott or attempt to stop them in court.

The airline has relented from its original position, saying that it will comply with all Norwegian regulations. The reversal comes just days after Wizz Air CEO József Váradim stated that Wizz Air is “an airline without unions.”

That might be the case, but if it remains true, it’ll also be an airline that doesn’t operate a domestic operation based in Norway. With Wizz relenting in Norway and cracking the door open for unionized employees, it’ll be interesting to see if Wizz employees based elsewhere in Europe start to get the idea to organize as well.

Lufthansa Schedules Final Flight into Berlin/Tegel

5 With the closure of Berlin/Tegel rapidly approaching, Lufthansa has filed the its final flight into the airport — scheduled to operate on November 7 — operated by an A350.

Lufthansa 1954 will depart at 7 p.m. from Munich to Berlin/Tegel, followed by Lufthansa 1955, returning to Munich at 9:10 p.m. The flight is available at a discounted rate to anyone who can show that they attended Wheneverfest, the 2020-themed German drinking celebration.

Lufthansa has served Tegel for decades, resuming service on October 28, 1990, 25 days after German reunification.

Both Lufthansa and Easyjet will open the new Berlin/Brandenburg Airport on October 31 with simultaneous, parallel arrivals early that morning.

Airline Potpourri

American has renewed its long-term worldwide distribution agreement with Sabre.
California Pacific Airlines had its certificate of authority revoked by the DOT, not that it was using it.
Qantas will operate eight flights from London/Heathrow, Delhi, and Johannesburg in the next few weeks to help return Australian citizens home who are stuck abroad.
Silver has delayed the launch of its new service to Charleston, SC to November 23.
TAP Air Portugal has secured a loan guarantee of about $580 million from the Portuguese government.
Vistara is upping its frequency between Delhi and Heathrow to 5x-weekly beginning November 21, and will increase further to daily service beginning December 1.

Andrew’s Moment of Levity

Someone dropped a tub of margarine on my foot two weeks ago. I can’t believe it’s not better.

October 15, 2020

Government Study Says Commercial Air Travel Poses Little COVID Risk

1 The United States Transportation Command (aka USTRANSCOM) released results from its Commercial Aircraft Cabin Aerosol Dispersion Test, showing that the exposure risk to aerosolized pathogens — such as coronavirus — is very low on commercial aircraft. After completing the test, the government rejected our idea to name the test CACADT, under the reasoning that CACADT was too long and clunky.

The military used ~~non-elite members of various airlines~~ mannequins with and without masks on its test aircraft while fluorescent tracer particles were released at intervals to simulate breathing for a minute. Tests were performed both on the ground and in-flight on United 767-300 and 777-200 aircraft. To simulate real-life flying conditions, the mannequins were dressed in Polaris pajamas and served watered-down mixed drinks.

Results showed that the aerosol released to mimic virus transmission was rapidly diluted in the air and that particles remained traceable for less than six minutes — compared to 90 minutes in the typical American home.

The combination of the high air exchange and the HEPA filtration system aboard the aircraft result in a commercial aircraft’s air supply providing greater protection than that of a patient isolation room or a hospital room.

We understand that upon hearing the news, Spirit immediately began considering adding a fee of nine cents per passenger per particle filtered out by onboard HEPA filters as part of a “safe-breathing fee.” Legacy airlines American, Delta, and United plan to continue the HEPA filters on flights that consist of 50% or more elites on-board, while Southwest will continue to offer clean air to those who purchase EarlyBird boarding.

Bain Capital Replaces Virgin Australia CEO

2 Virgin Australia CEO Paul Scurrah will be leaving the airline within the week, depending on how long it takes him to clean his belongings out of his office. Scurrah was planning on keeping Virgin Australia as a full-service carrier competing head-to-head with rival Qantas, but Bain Capital is choosing to take more of a hybrid model, splitting the difference between legacy carrier Qantas and LCC Jetstar.

Rumors say that Bain pulled the plug on being a full-service legacy carrier after the Italian government said that’s the direction it would be going in with ITA — its latest reincarnation of Alitalia. Bain just assumed if that’s what was happening to Alitalia, it wasn’t a good idea.

Scurrah will be replaced by former Jetstar CEO Jayne Hrdlicka who previously worked at Bain Capital before her time at both Qantas and Jetstar. Hrdlicka was an adviser for Bain during the acquisition of Virgin earlier in 2020.

Virgin’s unions are skeptical of the change, concerned that Bain and Hrdlicka will pivot the airline to more of a LCC model, hurting its members in the future in the form of reduced salaries and fewer jobs overall. The unions were in favor of Scurrah remaining in the CEO position and supposedly shocked by the change. The pilots union has decided to halt all negotiations with the airline while waiting to see how the leadership change shakes out and what direction the airline goes in.

Singapore & Hong Kong Plan Travel Bubble

3 The governments of Singapore and Hong Kong have agreed on a travel bubble, allowing residents in both cities to travel without any form of quarantine with proof of a negative test.

Those traveling between the two cities will not have to provide an itinerary or details of their movements during travels. The bubble calls on airlines operating routes between the two hubs to provide dedicated service without any transit passengers allowed on the flights.

The exact date the bubble will launch is not yet known, but the two governments are working out the details with a hope of launching the bubble prior to the start of the holiday season.

Hong Kong is hoping to form travel bubbles with as many as ten other destinations including Singapore: Australia, France, Germany, Japan, Malaysia, New Zealand, South Korea, Switzerland, Thailand, and Vietnam. Shockingly, that list does not include the United States or other COVID-friendly nations such as India, Brazil and Russia.

Ryanair Revises Winter Schedule, Closes Bases

4 Ryanair released a revised winter schedule today, expecting to fly approximately 40% of its schedule from last winter, a drop of the previously planned 60%. The airline will maintain much of its network but will reduce frequencies in most markets.

Ryanair will be closing three bases for the winter in Cork (ORK), Shannon (SNN), and Toulouse (TLS). In addition to the three closures, it will cut aircraft at its bases in Austria, Belgium, Germany, Portugal, and Spain.

Ryanair is now projecting 38 million passengers next year, but — as always — makes that projection with a pout on its face saying that it could be forced to lower the projection if EU governments continue to “mismanage air travel” while imposing more lockdowns.

What we need is to have EU government leaders and Michael O’Leary switch jobs for a month. Let him run the EU and its pandemic response and have the EU run Ryanair. Then we can see who knows what the hell they’re talking about. Just imagine the nickel and dime fees O’Leary could implement if he were running government for a few weeks. Endless possibilities.

Qatar Launches Vegan Options

5 Qatar Airways introduced new vegan options for its premium passengers flying out of Doha as well as on limited flights into the airport.

New dishes include smoked moutabel, spiral courgettes and arrabbiata sauce, tofu and spinach tortellini, Asian barbecue tofu, noodles, scallions and shiitake, fried tofu with vegetable tajine, cauliflower couscous and kalamata bruschetta, and chickpea flour omelette. We’re told all of that is food, but have not confirmed with a second source.

The options will be available to premium class passengers in-flight, while those in economy can access the vegan options by making a special meal request prior to travel or bringing their own carrot sticks.

Airline Potpourri

Air Canada plans to resume service on its Vancouver-Sydney route with 3x-weekly flights beginning December 10.
Air Transat is consolidating its service to Portugal in November and December, offering a once-weekly triangle flight nicknamed “The Isosceles” from Toronto/Pearson to Porto and then Lisbon.
Emirates has delayed the resumption of service to London/Gatwick into March 2021 after previously planning to resume service in December.
Norwegian Air UK is extending its the delay to resume service to March 2021
Qantas has extended its cancellation of all flights to the United States & Japan through February 2021.
Saudia is resuming international operations today to 20 destinations.
SKY Express has placed an order for four A320neo aircraft.

Andrew’s Moment of Levity

I had a job interview today. It was going well, so I asked about the salary. The interview said the salary was $40,000 now and would increase to $60,000 later. I said “Sounds good, I’ll come back later.”

October 14, 2020

United’s Multi-Billion Dollar Loss is… Good?

1 The spin machine is in full effect. There’s not much good to say about a Q3 loss of $1.8 billion — or $2.4 billion excluding special charges — but United has found a way. “United expects that third-quarter revenue performance will be the best, even in a historically difficult environment, among our large network competitors”

That may be the case, but the results lagged Wall St expectations thanks to weaker revenues. Total revenues were down 78 percent versus last year, and operating costs dropped 59 percent — 48 percent excluding special items. United burned $25 million in cash per day in Q3, down from $40 million in Q2. At the end of the quarter, United had $19.4 billion in liquidity with half in stroopwafel futures and the rest in stuffed Polaris bears.

Looking for a bright spot? You are not alone. But hey, good news… cargo revenue was up 50%.

American AAnounces AAdvantage Changes for 2021

2 American Airlines announced several customer-friendly changes for its 2021 AAdvantage program, making it easier to earn elite status next year.

For starters, American will allow its members a three-month head start on earning their 2021 status, with all activity in Q4 of 2020 (which… checks calendar… is already underway) to count toward earning 2021 status. American is also reducing the elite qualifying thresholds by approximately 20% for each level from Gold through Executive Platinum.

The airline is also waiving the elite qualifying dollar (EQD) spend requirement for all but Executive Platinum if members have $30,000 in spend on an AAdvantage credit card.

Lastly, American’s analytics team has finally completed work on the mythical, proprietary Passenger Annoyance Quotient (PAQ) rating system. Consequently, in 2021 it will guarantee any Executive Platinum advance notice and the right to swap seats with a non-elite passenger on the same flight when seated next to someone with a PAQ of six or higher.

Allegiant Furloughs 100 Pilots

3 Allegiant Air furloughed 100 pilots this week despite the airline improving its liquidity. The airline recently completed a $150 million bond sale and has seen a steady improvement in future bookings, but it was not enough to save the jobs for 10% of its pilot workforce.

Allegiant had a daily cash burn of $1.3 million during Q3, an improvement from earlier in the year but still an untenable figure for the airline. Capacity was down 6.5% for Allegiant in Q3 compared to Q3 2019 with a load factor just under 50%. September was slightly improved at 57%.

Allegiant’s pilot union says it had a handshake agreement with the airline to delay furloughs but the airline went ahead with the job losses anyway. The union said that Allegiant reneged on their handshake deal at the 11^th hour, choosing to furlough the pilots rather than continue to seek alternatives.

For Silver, Charleston is Gold

4 Silver Airlines is expanding its U.S. route network out of Florida and into South Carolina. The airline is moving into Charleston, providing service from the coastal town to its three Florida hubs.

From Charleston, Silver will operate to Orlando, Tampa, and its Fort Lauderdale base. Passengers on Silver will be able to connect on to five destinations through both Tampa and Orlando with nine connecting options through Fort Lauderdale. Silver operates an all-propeller fleet, featuring the Saab 340 and both the ATR 42 & 72.

Silver’s Charleston service will begin on November 23, just in time for the holidays. The airline expects to garner the business of thousands of families begrudgingly making their way to Florida to visit Gammy and Gampy who moved south because they enjoy the heat and humidity year-round. In addition to the new flights, Silver is working with ground transportation companies to offer complimentary shuttle service to Del Boca Vista from Fort Lauderdale during the holiday season.

JetBlue Continues its Winter Ski Trip

5 JetBlue is adding another ski town to its route map, introducing seasonal service to the newly-popular Montrose, Colorado (MTJ) this winter. JetBlue enters the fray at MTJ just a week after Southwest announced it would fly to the Colorado ski town this winter as well.

JetBlue will serve Montrose from three cities, Boston and New York/JFK in the east and Los Angeles in the west. All three routes will begin service on December 19, with JFK and LAX flying the route through February 20 and Boston through March 27.

Service from Boston will be between once and twice weekly, with service in both directions on Saturdays and select Wednesdays, while JFK and LAX will see the flight operated on select Saturdays during the winter. In commemoration of the new service, Telluride, the famed ski town nearest to MTJ airport has agreed to paint the caps of its snow-covered mountains blue during the duration of JetBlue’s service to the town. Its a good thing Spirit didn’t announce service with its bright yellow airplanes…

Airline Potpourri

ANA signed a five-year agreement with De Havilland Canada to manage maintenance on the airline’s fleet of 24 Dash 8-400.
Pakistan International Airlines is extending its service from Islamabad to Manchester using leased aircraft and real pilots employed by someone else through its current October 25 end date. The flights will continue once-weekly through December 15 and then twice-weekly beyond that.
Royal Air Maroc is “pondering” the idea of starting a LCC subsidiary. In other news, I’m already pondering what to have for lunch on Thursday.
SWISS has added one extra Zurich-Lisbon flight, operated by a Boeing 777 on December 19. Try and contain your excitement.
WestJet is reducing its operation in Atlantic Canada, politely suspending service to four cities Moncton (YQM), Fredericton (YFC), Sydney (YQY) and Charlottetown (YYG). It’s also reducing service to Halifax (YHZ) and St. John’s (YYT). Outside of that futuristic time zone, it’s also suspending service to Quebec City (YQB). All the suspensions and service reductions are effective November 2.

Andrew’s Moment of Levity

Today I learned that boomerangs are Australia’s biggest export. It’s also their biggest import.

October 13, 2020

Look Away: Delta Announces Q3 Financials

1 Delta Air Lines announced its Q3 financial results on Tuesday. The airline ended Q3 with $3.1 billion of revenue… and a net loss of $5.4 billion. Amazingly, the $3.1 billion in revenue is an improvement after the airline earned just $1.5 billion in revenue for Q2 of 2020, giving it a more than 100% increase during the third quarter. We can’t forget to celebrate the little things.

Delta still took it on the chin in Q3, with $4 billion in virus-related expenses such as voluntary departure packages for staff, early retirement of aircraft, and getting everything really, really clean. I mean, it can never be clean enough. Out, damned spot! Out, I say!

The $3.1 billion in revenue was a 76% drop compared to Q3 2019, with the expenses of $9.4 billion representing a 10% drop from a year ago. Excluding all those one-time charges, however, costs dropped 52%. Delta’s cash burn was $24 million per day for the quarter, dropping down to $18 million per day in September.

Delta ends the quarter with $21.6 billion of liquidity. That figure is comprised of a combination of cash reserves, Biscoff cookie futures, and barrels of Woodford Reserve.

A Real PITA – Alitalia Gets a New Name, We Think

2 The on-again, off-again relationship between Alitalia and the Italian government may finally be coming to an end – at least in name. The Italian government will launch a new airline next year, named ITA. This new airline will represent a “clear discontinuity” from the past. That comment seems like a real burn coming from the people who are mostly responsible for Alitalia’s ineptitude, but such is life in Italy.

Alitalia has most recently been in financial limbo ~~since it began operating in 1946~~ since 2017 when Etihad finally cut it off like a parent to a child with an online shopping addiction.

The Italian government has been keeping Alitalia financially afloat since 2017, finally scrapping its current plan once and for all by declaring that Alitalia won’t exist anymore starting next year while starting a new airline with a new name. This genius plan seems very likely to totally fix everything. The problem wasn’t gross mismanagement of the airline – it was its name.

We don’t really believe this anyway. Alitalia by any other name… is still Alitalia. But the Italian government loves that name, and we would not be surprised to see them reverse course. Regardless of the name, the Italian government says ITA will be a full-service, global airline. What it doesn’t say — or need to say, for that matter — is that it’ll lose a ton of money, just like its predecessors.

Alaska Sets the Date for its Alliance Wedding

3 Alaska Airlines was hoping for a very short engagement, but it has taken a little more time to sew the dress than hoped. The hiccups have been overcome, and it is now official. Alaska will join oneworld on March 31, 2021 in holy matrimony.

Alaska had announced it would join oneworld earlier this year when it also bulked up its relationship with American Airlines. The original plan was to have everything done by the end of 2020, but the airline just ran out of time. In particular, tying together IT systems has taken a great deal of work.

In lieu of presents, please just buy tickets on the airline. PLEASE. Any ticket will do…. to anywhere… please?

Norwegian Pilots Union Pushes for Price Floor

4 With the announcement that Wizz Air is entering the Norwegian domestic market, the pilots union in Norway is calling for the government to set a price floor keeping prices from dropping due to the added LCC competition.

The Norwegians likely got the idea from the wily Austrians who implemented a €40 floor earlier this summer to fend off LCC competition for national flag carrier Austrian Airlines. The pilots union believes Wizz will depress the domestic market in the country, undercutting both SAS and Norwegian. A look at one-way fares from Oslo to Bergen show Wizz Air is entering the market with flights starting at about $22, compared to a $75 starting domestic fare for SAS. Norwegian finds itself priced between the two, with a $22 basic fare and as much as $100 for a Flex fare.

It seems if the Norwegian airlines cannot hack it against competition, they likely weren’t long for the world anyway. While SAS has been a strong carrier for decades thanks only to mounds of government support, Norwegian is seemingly on the brink of collapse every few months, pandemic or not. No government-mandated price floor is going to save them when their main offering is flights from Europe to North America for $39 each way. At some point, the floor will go the way of Wile E. Coyote, and the airline will fall through the floor. Roll credits.

JetBlue Devalues Mosaic Upgrade Perk

5 JetBlue is unusual amongst U.S. airlines as it does not allow its elite members, even its highest tier, access to extra legroom seats at the front of the plane for no charge. However, JetBlue has always offered them to its Mosaic members for a low-priced amount of TrueBlue points, giving elites a reasonable option to upgrade.

But JetBlue has now quadrupled its pricing for on-board seat upgrades for elite members, greatly reducing the value it had provided. A three-hour flight from JFK to Florida cost 600 points to redeem for the extra-legroom seat, opposed to a $55 cash buy-up. The cash buy-up has remained the same, but the elite buy-up with points now costs 2,400.

JetBlue, when questioned by representative from The Points Guy, said their pricing model aligns with changes in travel demand and that redemption values are linked to fare and ancillary fees. Looks to us like they just jacked up the price and hoped no one would notice. Either way, it’ll cost elites significantly more to upgrade their seats on JetBlue going forward if they want to use points.

Airline Potpourri

Air Arabia will resume flights between Sharjah, UAE (SHJ) to Kiev with 3x-weekly service beginning October 25.
Air Côte d’Ivoire is planning to replace its A319 fleet with A320neo aircraft.
Berniq Airways of Libya took delivery of its first A330-200.
China Eastern will receive a $4.6 billion cash injection from four state-owned investment firms in China.
Flair Airlines, missing an easy opportunity to name a certain 16-time World Heavyweight Champion as its new CEO, named Stephen Jones to the position.
GOL is considering adding Salvador (SSA) as a hub.
LOT is delaying the opening of its short-haul base in Budapest.
Porter has delayed its resumption of service for the fifth time now, hoping to restart flying on December 15.
Ukraine International Airlines has posted its winter schedule with service to three domestic and 23 international destinations from its Kiev hub.

Andrew’s Moment of Levity

I had a first date last week and we went to the skating rink. It was half-priced night, so it seemed like a good idea. But she refused to see me again, calling me a cheapskate.

October 12, 2020

Southwest Expands to Chicago/O’Hare and Houston/Intercontinental

1 Southwest Airlines announced today it will continue its expansion into the country’s largest and busiest airports. It plans to serve both Chicago/O’Hare and Houston/Intercontinental in the first half of 2021. This will be Southwest’s first foray at O’Hare while the airline served IAH on and off since its founding in 1971 through 2005.

Southwest planned to begin service at both airports in 2022, but the airports both purchased EarlyBird on Southwest.com for $15 each, convincing the airline to move in about six months early. Schedules will be announced in the near future.

The announcement from Southwest is notable in that it will be adding an airport in cities where it is already the dominant carrier at alternative airports. Southwest has a massive presence at Chicago/Midway and Houston/Hobby, accounting for over 95% of the traffic MDW and over 92% at HOU. The addition of these two new airports follows Southwest’s move into Miami, despite its large presence at Fort Lauderdale.

For a more detailed look, see crankyflier.com Tuesday morning for a full rundown.

Big Island Opts Back In to Hawai’i Pre-Travel Testing

2 Big Island Mayor Harry Kim announced over the weekend that his island will participate in the state of Hawai’i pre-travel testing program after all. The Big Island opted out last week amid concerns of growing cases on the island and a lack of confidence in the state’s pre-testing program.

In order to bypass the mandatory quarantine on the Big Island, visitors will be taking a second, rapid COVID test upon arrival in Hawai’i to supplement the one required by the state. If the test is positive, a second PCR test will be required and the passenger will remain in quarantine until the results are available. The state approved Mayor Kim’s proposal once the mayor was able to secure an unlimited supply of ~~mai tais~~ test kits from the federal government.

With the Big Island joining the pre-travel test program, all four main Hawaiian counties will be able to receive visitors who bypass the quarantine with testing starting Thursday, October 15.

The only group lobbying against the pre-travel program was the HAP, Hawaiian Association of Pigs, as the lack of visitors have led to fewer luaus, a great development for the pigs who are so often roasted at the center of the event. HAP director Barbie Q. Sandwich commented that the decision was short-sighted by the state and would result in more deaths for members of its group. Assistant Director and musical director Jimi Hamdrix plans to host a benefit concert for the pigs sometime later in the month.

Air Canada to Purchase Transat at a Fraction of the Original Price

3 Air Canada and Transat originally came to an agreement back in June of 2019 for Air Canada to acquire the tour operator and its airline for $13.70 per share, a total purchase price of $549 million. But the downturn in demand from the pandemic has forced the two sides back to the negotiating table with Air Canada now expecting to go through with the purchase at the greatly reduced price of $3.80 per share, coming to a total of $144 million.

Despite the dramatic savings for Air Canada, the revised price still shows a 31.6% premium on the 20-day rolling average of Transat’s stock, indicating that Transat is still getting a decent value. The deal must be approved by two-thirds of Transat’s shareholders.

The vote will take place in December and is also subject to court approval. Air Canada plans to provide bottomless Tim Horton’s coffee at the Transat shareholder meeting to help grease the skids. The shareholders are expected to approve the deal at the meeting, as it seems the proper Canadian thing to do. After the two sides came to a second agreement, it would be downright rude to vote it down, eh?

Malaysia Airlines Faces Uncertain Future

4 Malaysia Airlines had its restructuring plan rejected by its lessors on Friday, leaving the airline in a state of uncertainty as it looks to stay solvent and remain in operation.

With travel still at an all-time low in southeast Asia, majority shareholder Khazanah Nasional is trying to cut its losses and push the airline into liquidation. The two sides cannot even agree on how far apart they are on a deal with a group of lessors calling the restructuring plan “fatally flawed.” MH CEO Ismail Izham has a different take on the proposal saying that some lessors agreed with the plan, and the rest are 50-50.

The general outline of the restructuring called for a significant cash injection from Khazanah Nasional to keep the airline solvent as it attempts a recovery. The plan is relying on a return to pre-pandemic travel levels by Q3 2022 at the latest, with MH breaking even by 2023.

Australia Plans to Keep Borders Closed

5 With many countries working on travel bubbles and planning to reopen their bubbles in the not-too-distant future, Australia is taking the opposite approach. It is likely to keep its border closed deep into 2021.

Josh Frydenberg, the Treasurer of Australia said “international travel, including by tourists and international students, is assumed to remain largely closed off until late next year and then gradually return over time, and a vaccine to be available around the end of 2021 is one of the assumptions in the budget.” He did say, however, that he’d make an exception for any country that was willing to take Mel Gibson off his hands for good.

Despite the ban on international travel expected to continue, the country does plan to resume unrestricted domestic travel later in 2020. Western Australia will be the exception as that state does not plan to reopen to interstate travel until April.

Airline Potpourri

British Airways CEO Alex Cruz is “resigning” from his position, and will be replaced by Aer Lingus chief executive Sean Doyle.
easyJet is demanding a bailout package from the UK Government or…or else.
EVA plans to resume 2x-weekly service between Taipei and Bangkok on October 25.
Hawaiian is suspending its regional carrier ‘Ohana by Hawaiian’s interisland operations between its Honolulu hub and both Molokai (MKK) and Lanai (LNY). The suspensions are effective on November 1.
Lufthansa will operate aircraft without a first class cabin on all flights this winter to the United States.
LOT is resuming 5x-weekly service from its Warsaw hub to Ostrava (OSR) later this month.
PAL Airlines, an appropriately-named Canadian airline, is looking to add a Q400 to its fleet.
SKY Airline has received DOT approval to operate passenger and cargo flights between the United States and Peru.

Andrew’s Moment of Levity

My friend came over to join us for dinner over the weekend. He asked me why we don’t pray before eating and I told him that we don’t have to, my mom is a good cook.

October 9, 2020

Basic Business Class Has Arrived

1 Japanese LCC ZIPAIR is launching its inaugural passenger flights next week between Tokyo/Narita and Seoul/Incheon and the airline is offering four levels of service both in its economy and fully-flat business class. One option of the four is a “Simple” tier that is just that. It does not include anything other than the airfare and a seat — but no advance seat assignment.

ZIP’s “Simple” fare will be offered in both business and economy, but neither will include a checked or carry-on bag, nor does it include a meal or any sort of on-board service. All will be available for a fee at ticketing and again at check-in.

The idea of a basic business class fare has been around for several years, including Emirates president Sir Tim Clark saying that his airline had considered the idea as early as 2017 and even experimented with a more limited business class offering.

U.S. and European airlines — both legacy and LCC — will undoubtedly be watching to see if the ZIP experiment is successful. If it works, it’s very likely that we will see the concept of a basic premium seat cross the ocean in the coming years. Spirit should have released a statement saying that it was unimpressed with this development and that its Big Front Seat has been a basic premium seat for years.

Mesa Dips its Toes in the Cargo World

2 Mesa Air operated its first revenue cargo flight on behalf of DHL Express on Monday, marking a new partnership for the regional carrier.

Mesa is currently using one 737-400F aircraft on behalf of DHL for five years with a second scheduled to enter service next month. That first aircraft — N306GT — was formerly operated by Southern Air. It had a busy day Thursday flying roundtrip from its Cincinnati base to Memphis twice and then on to St Louis before going back to Memphis. The aircraft then operated what, as a passenger flight, would be the worst redeye of your nightmares — a post 1am departure from Memphis to Cincinnati on a cargo aircraft… operated by Mesa.

The airline shifted into the cargo business to diversify its revenue generating opportunities amidst the pandemic. DHL was looking for a partner who was comfortable flying with overstuffed airplanes packed to the gills. With its history as a regional carrier, the airline has a proud history of jamming as many items into a confined space as possible while transporting them through the air. This is expected to be the beginning of a beautiful partnership.

Alaska Offers to Turn Future Credit into Miles

3 Alaska Airlines is offering an incentive to its Mileage Plan members holding credits from cancelled or postponed travel due to the pandemic to turn their stored value into miles.

The offer from the airline is 10,000 miles for every $100 in credit on file. Members can convert their current credit in increments of 25%, 50%, 75%, or 100% of their current balance into Mileage Plus miles. The offer is valid through Monday night.

This is a chance for Alaska to get much of the credit it has outstanding on its books converted to miles, and allows customers to convert their credits into a longer-lasting currency.

Alaska’s chief rival in its hometown of Seattle is considering a similar promotion to match its competitor. Wanting to keep the offer in-line with the street value of ~~SkyPesos~~ SkyMiles, Delta is considering an offer of 100 SkyMiles for every $10,000 dollars in credit on file.

Delta Schedules Farewell 777 Flights

4 After announcing back in May that it planned to retire its Boeing 777 aircraft this fall, Delta Air Lines has set the schedule for the aircraft’s final flights.

Two flights will send the aircraft off to the big parking lot in the sky, with Delta 8787 operating from Atlanta to Los Angeles on October 30 and Delta 8807 operating from New York/JFK to Los Angeles on October 31.

It is important to note that both flights will deplane all passengers in Los Angeles before being removed from service. No one who chooses fly on these farewell flights will be forced to go to the desert with the aircraft. Delta may disagree, but similar to a final game in a stadium before it closes, passengers should feel free to grab any souvenirs they can from the aircraft. Boarding with a toolkit is advised, as some of those trickier items, like seats, tray tables, and wings are bolted in.

Delta has operated the 777 since 1999, but has recently opted to turn to Airbus for much of its long-haul fleet. With the airline phasing out the 777 and other aircraft such as the Boeing 737-700, it is using the lack of demand during the pandemic as an opportunity to simplify its fleet more quickly that was previously expected.

Israel & Jordan Sign Airspace Agreement

5 Israel and Jordan signed an agreement allowing flights from one of the countries to fly through the other’s airspace en route to their destinations, a move which will shorten flight times and possibly open the door to new routes in the region.

Commercial airlines’ ability to fly through the airspace of both nations will dramatically increase efficiency on flights within the region and to Asia, Europe, and North America. The agreement will also “lead to significant fuel savings, reduce pollutant emissions, and contribute to the environment,” according to Israel’s transport ministry.

The news brought elation from Jewish mothers all over the world when they found out they this would shorten travel time to and from Israel, bringing their loved ones home sooner, and possibly even in time for dinner.

Airline Potpourri

Air Canada completed the sale and leaseback of nine Boeing 737 MAX 8, earning $365 million from the sale. That’s way better than what a 757 is going for.
Air Seychelles plans to resume operations on November 1, flying to three cities: Mauritius, Johannesburg and Tel Aviv.
American plans to move its Beijing operation from PEK to the new Beijing Daxing International Airport (PKX) when it resumes flying from Dallas/Ft. Worth on March 27.
Korean will operate to Guangzhou (CAN) once weekly from Seoul/Incheon using an A380 through the end of the winter season in March.
Volotea is adding 10 new routes and 33% increased capacity for the 2020 holiday season, compared to its 2019 offering.

Andrew’s Moment of Levity

I knew a guy who was a fisherman by day, but he enjoyed being a magician. He often forgot which job he was working, and he would start a trick by saying “pick a cod, any cod.”

October 8, 2020

Southwest Points its Skis Towards Colorado Again, Reveals Miami and Palm Springs Schedules

1 Keeping with its current strategy of adding cities frequented by outdoor enthusiasts, Southwest Airlines is adding a second Colorado ski town to its route map. Service to Montrose (MTJ) — the gateway to Telluride — from both Dallas/Love Field and Denver begins December 19. The flights from Love Field will operate once daily, with Denver seeing up to 3x daily service on the route during the peak winter season.

In addition to Montrose, Southwest recently announced new service to three cities — fellow Colorado ski town Hayden/Steamboat Springs (HDN) along with warm-weather destinations Miami and the now absurdly popular air travel destination: Palm Springs.

For those warm-weather spots, Southwest has now released which cities will be connected. Miami will see four cities served including Baltimore (4x daily), Chicago/Midway (1x daily), Houston/Hobby (4x daily), and the biggest surprise, Tampa (3x daily). Palm Springs will see service on Southwest from Denver (1x daily), Oakland (2x daily), and Phoenix (3x daily). Fortunately, Southwest did not follow JetBlue’s lead and try to connect these two warm-weather destinations to each other.

Japan and South Korea to Resume Business Travel

2 Travelers on short business trips between Japan and South Korea will be exempt from the required 14-day quarantine for travel between the two countries provided the travelers can show proof of a negative virus test.

Japan has had a ban on foreign visitors into the nation since February but has been slowly opening its borders to countries with diminishing positive tests. In other words, the US isn’t even remotely under consideration. The opening with South Korea for short-term business travel marks an important point in the reopening of both nations.

Those traveling between the two nations on long-term trips or for non-business travel will also be permitted to transit between the two nations, but will be required to adhere to a 14-day quarantine upon arrival.

Cathay Pacific Braces for Layoffs

3 Rumors are flying that Cathay Pacific is planning to eliminate up to 2,600 jobs, including 1,500 flight attendants, 700 pilots, and 400 management staff.

The airline sent notice to flight attendants that it was suspending an arrangement allowing crew members to swap flights, similar to notice sent to pilots earlier in the summer. The move goes against Cathay’s long-standing policy and has many believing it is a precursor to layoffs.

The airline’s flight attendant union is trying to downplay the rumors, saying that it will be meeting with the airline today to discuss the outstanding issues and for its members not to panic. The union also issued a statement to Mary Todd Lincoln telling her to enjoy the play and not worry about rumors regarding her husband’s life.

US Startup Airbahn Gets Its Certificate

4 After an avalanche of startup airline announcements earlier in the summer, we’ve had our first in a long time actually make it through the gauntlet. The Department of Transportation (DOT) has issued a Certificate of Public Convenience and Necessity for Interstate Air Transportation to Airbahn this week. What the lengthy string of words from the DOT really means is that Airbahn is on its way to legally transport people and property in the United States. Upon hearing the news, the SARS-CoV-2 virus laughed loudly.

The airline says it would be based in Southern California, likely at Long Beach (LGB) or Orange County (SNA). Both airports have capacity controls — slots at the former, passenger caps at the latter — that seem to suggest this plan isn’t viable.

Airbahn hopes to operate the A320 at launch, leasing two from Airblue, a Pakistani airline also owned by Airbahn founder Tariq Chaudhary. The airline initially plans to operate up and down the West Coast of both the United States and Canada with all planes & staff returning to their base at the end of the day. Good luck to them.

58 Fake PIA Pilots Now Actual Pilots

5 The Pakistan Airline Pilots Association announced in a statement that 58 pilots who were previously suspended have since been cleared and that the union is committed to flight safety and service.

This is the same flight union that represented pilots that were not actual pilots saying that it is committed to safety. Okay. The union said it has never compromised safety, and that the pilots who broke the rules have been reprimanded.

The union also says that of the 141 pilots in the crosshairs for faked licenses, 26 were charged incorrectly. While that may very well be true — and those 26 deserve to get their jobs back if that’s the case — it’s an awful weak hill for the union to die on. It’s basically saying “we were accused of having 141 pilots fake their licenses, but really it’s just 115! So who’s the fool now?!?” The answer, unfortunately, is still the pilots and their union.

Airline Potpourri

Aeromexico flew 708,000 passengers in September, a 10% increase from August and an even bigger increase compared to every year prior to 1903.
Boutique Air has added its third destination in Oregon, Redmond/Bend (RDM). It will connect RDM to Portland with 2x daily service.
Icelandair is selling three Boeing 757s for a total sale price of about $21 million. Coincidentally that’s probably about what Boeing can get for three 737 MAX aircraft as well.
Israir received a $20.4 million bid to purchase the airline from Israeli businessmen Rami Levy and Shalom Haim.
TAROM had €19.3 million in aid from the Romanian government approved by the European Commission.
Virgin Atlantic had an A350 suffer tug damage at Heathrow on Wednesday. Good thing it has plenty of spares these days.
Volaris plans to inaugurate service between Mexico City and Dallas/Ft. Worth with 2x weekly flights beginning December 12.

Andrew’s Moment of Levity

My neighbor tripped and fell into an upholstery machine at work, amazingly, for the second time. Luckily, he recovered.

October 7, 2020

Hawai’i Island Opts out of Pre-Travel Testing Program

1 With a week to go until the state of Hawai’i reopens to visitors — provided they can produce a negative test within 72 hours of travel — the Big Island is opting out of the pre-travel testing program. It has chosen instead to keep the mandatory 14-day quarantine in place for all visitors.

Big Island mayor Harry Kim made his decision due to his concern about the virus surging on the island with 43 new cases on Saturday, its highest daily count since the onset of the pandemic.

Kauai had been hoping the state would adopt a post-travel testing program to supplement the pre-travel testing that will be in place next week. The state rejected that proposal and instead gave each island the option to opt-out of the statewide policy. The Big Island is the only to take the state up on the offer — for now. Maui and Kauai are both considering their options, but it sounds like this could all fall apart before it even starts.

Southwest’s Flight Attendant Union to Southwest: Not So Fast

2 Following Southwest CEO Gary Kelly’s video plea to garner concessions from the airline’s unions to avoid furloughs or layoffs, Southwest’s flight attendant union told Kelly to slow his roll.

Approximately 32% of Southwest’s flight attendants have already agreed to voluntary leave or early buyouts, and the flight attendant union feels that that’s plenty. TWU Local 556 President Lyn Montgomery is hesitant to make changes to a contract that they worked decades to obtain, believing the airline has not done all that it can on its own.

President Trump announced that he would not be negotiating further on any more virus relief bills until after the election which would likely have left the airline out of luck on a second government-funded lifeline… but then the president backtracked completely. So… who knows what might happen?

Meanwhile, Southwest’s pilots union has agreed to meet with the airline to discuss potential cost savings. The pilots’ willingness to come to the table will likely put more pressure on the flight attendants to do the same. One option Southwest is considering is to require pilots to purchase EarlyBird boarding to begin their pre-flight checks, otherwise they’ll be required to check-in 24 hours prior and board based on their check-in number.

Delta to Restructure Management Staff

3 Delta Air Lines is planning to make changes in its management ranks in an effort to be more streamlined to prepare for a post-pandemic world.

With more than 17,000 Delta employees taking buyouts or early retirement offers during the summer, the new slimmer Delta is evaluating whether it has the right people in the right places.

The airline says this round of moves is not about eliminating jobs but rather moving people to different departments in the name of efficiency. It will include replacing some key senior roles that are currently vacant due to early retirements and buyouts. The airline previously declared it would be moving its management team into new roles after the retirement of then-COO Gil West in September.

Here Comes the Boom

4 Boom Supersonic unveiled the final design of its XB-1 demonstrator aircraft today as it inches closer to bringing supersonic commercial aviation to the skies.

The prototype unveiled today is fully functional and will allow Boom to test its capabilities and systems as it works to make its Overture supersonic jet a reality.

The XB-1 prototype is a scaled-down version of what the Overture aircraft will eventually be, with the XB-1 lacking a passenger cabin (don’t get any cute ideas, Spirit), but it does have a cockpit for the pilots to test fly the aircraft. The original plan of having the pilots fly on temporary seating located on the wing was considered unsafe, so Boom went ahead and included the cockpit.

Boom plans to test the XB-1 at Mojave Air and Space Port in the Mojave Desert in the coming weeks. Ground testing will begin now, with testing of the aircraft in the air to begin sometime in 2021.

Party Like It’s 1990: Liberia to Bring Back its National Airline

5 Liberia’s flag carrier, Air Liberia, last operated in 1990, leaving the West African nation of 5 million without a national airline. But those days are over for the people of Liberia, with Lone Star Air ready to fill a void 30 years in the making… with “ready” being a very loose term.

The Liberian government signed an agreement with Ghana’s Goldstar Air to provide management services for the new national airline. Lone Star Air will operate to 11 destinations in West Africa from Monrovia (ROB) the nation’s capital.

Of course, it has to actually begin operating first, something that its partner Goldstar has also yet to achieve. Oh sure, it has a picture of its first airplane, but that is very clearly just photoshopped.

We decided we could improve it with a tribute to the only Lone Starr that counts.

If you’d like to keep abreast of the airline’s progress (or lack thereof), follow them on Twitter @LoneStarAir2. Make sure you have the “2” in there or you’ll be following a Texas-based HVAC company.

Airline Potpourri

AirAsia X announced a restructuring plan today designed to get its airplanes in the air and the airline operating again.
British Airways will send its two final 747s off to retirement tomorrow with simultaneous takeoffs from London/Heathrow. Both aircraft, like many Brits, will head to Wales to enjoy their retirement.
Hawaiian’s first 787 Dreamliner, scheduled to be delivered in April, will be the final Dreamliner assembled in Everett, Wa.
Jetstar is going to resume flying between Gold Coast (OOL) and Hobart (HBA) for the first time since 2013 with 3x-weekly service beginning December 1.
KLM is reducing its weekly flights from Amsterdam to Vancouver from 4x-weekly to 3x-weekly for the six weeks between October 25 and December 11.
Qatar cares not about actually making money, so it will be begin flying to its ninth U.S. gateway — San Francisco — with 4x-weekly service from Doha beginning December 15.
United is adding two new routes this winter, serving Johnstown, PA (JST) once-daily from Chicago/O’Hare and Victoria, TX (VCT) twice-daily from Houston/Bush.

Andrew’s Moment of Levity

I borrowed a new book from the library last night about gravity and its affect on space travel. I can’t put it down.

October 6, 2020

FAA Extends Slot Waivers at Three Airports

1 The FAA is extending its slot waivers at three of the nation’s busiest airports: LaGuardia and JFK in New York along with Washington’s National Airport.

Prior to the pandemic, airlines were required to utilize their slots 80% of the time or risk losing them to a competitor. Major U.S. airlines have lobbied the FAA to extend the waiver that was set to expire this month, knowing that demand will be far below 80 percent for some time. The FAA waiver will now be in place until March at three airports, and it is also continuing a review of its restrictions at four other major airports: Chicago/O’Hare, Newark, Los Angeles, and San Francisco.

The major carriers — those with the slots — applauded the decision while LCCs and those outside the big three — those that want the slots — were disappointed by the ruling. United praised the FAA decision that “will provide more stability and certainly during this historic pandemic.” Meanwhile, American was overjoyed at the fact that it will be able to continue to pretend to serve New York while not actually doing so.

Spirit was dismayed, as it completely opposed even the idea of a slot waiver. The airline said the decision was “unacceptably protective of dominant incumbent carriers at the expense of the traveling public and of low-cost carriers ready and willing to serve.” The airline followed up its discussion by sending a bill for $27.99 to the FAA as part of a “waiver extension fee” and also charged anyone who just read that quote $1.99.

British Airways Unveils its First Class Suite

2 British Airways has unveiled its inaugural first class suite, to be debuted on the A350 as a part of ~~the world’s nicest business class~~ its First Class cabin.

The suite will be on the airline’s Boeing 777-300ER, but only on the 77H version, as the 77L version of the plane will not have the suite but instead will have metal folding chairs borrowed from an elementary school near Heathrow in the first class cabin.

The new aircraft orders were placed by BA and the suites were developed prior to the pandemic.

British Airways also confirmed an order in February of 2019 for 42 Boeing 777-9X aircraft. The 9x is still in development, and BA says it will have yet another unique first class product that will be “differentiated service” from the newly-unveiled suite. Knowing BA, that could mean a lot of things, from an even newer suite product, to the aforementioned elementary school folding chairs and everything in-between.

Alaska Looks to Retire More Airbus Aircraft

3 Alaska Airlines is speeding up the retirement process for 10 A320s it inherited from Virgin America in its fleet, another reduction in the number of non-Boeing aircraft operated by the airline. The decision to retire the planes early will cost Alaska somewhere between $115 and $125 million in impairment charges, plus a handling fee of $13.99 per plane.

The 10 planes Alaska plans to retire are the last remaining Airbus aircraft owned by the airline — all other Airbus (Airbi?) are leased, with leases expirations ranging from 2021 to 2025. It’s highly likely that all A320s will disappear, but there is still no good Boeing replacement for the awesome power of the A321s in the fleet.

Assuming you blindly ignore wholly-owned subsidiary Horizon’s regional operations, Alaska operated an all-Boeing fleet of aircraft prior to its merger with Virgin America when it inherited 71 Airbi. With Boeing seeing an all-time low in demand for their planes due to a combination of the pandemic and the MAX having that whole crashing problem, the time could be ripe for Alaska to strike a good deal with the manufacturer to keep the fleet at full strength later in the decade. What can adequately replace the A321, however, still remains to be seen.

Virgin Australia has a New Sugar Daddy

4 Virgin Australia has secured A$200 million from the Queensland government in exchange for the airline maintaining its base in Brisbane.

The A$200 million will flow to the airline in the form of loans, financial incentives, and subsidies. In addition to the cash, the state government is making an equity investment into the airline of about A$20 million, which constitutes about 2% of the airline with its new owner Bain Capital.

Virgin Australia will maintain its base in Brisbane for at least 10 years as part of the agreement. The Queensland government believes the investment in the airline is a sound decision and taxpayers will reap the benefits for many years to come. The joke is on Queensland, however, since it didn’t specify WHICH Brisbane. The good people of Brisbane, California — which is located just north of SFO — are hoping to lure the airline away.

The unfortunately named Queensland Treasurer Cameron Dick said that the ROI to the taxpayer will be in the 7% range and that the investment helped prop up the airline and saved jobs for thousands. In addition to the 7% return, the airline will send a Vegemite sandwich to each citizen of the state annually on the anniversary of the signing of the deal as a thank you for the cash.

Norwegian Hits Record Lows; Wizz Smells Blood in the Water

5 Norwegian Air posted record low numbers in September with the airline flying just 319,370 passengers a titanic drop of 90% from September of 2019.

Load factors were down to 53% in September after being filled to 90% in September of 2019. The only bit of good news is that the flights departed on-time, with 98% of the airline’s schedule operating on-time for its anemic passenger loads.

The airline posted a lost of $570 million for the first half of 2020, and that number is expected to be worse for the final fix months of the year.

With Norwegian on the ropes, rival LCC Wizz Air is making a move for its frozen home turf. Wizz announced that it is opening its first base in Scandinavia and is going for the kill shot. Wizz is opening a base in Oslo, and will begin a domestic operation in Norway. To begin, it will operate one plane on three routes: Bergen (BGO), Tromsø (TOS), and Trondheim (TRD). Wizz Air’s Norwegian base will open November 5 — just in time for that Norwegian winter.

Airline Potpourri

American is reducing its daily frequency on its JFK-LAX service down to 2x daily (but using larger airplanes) while reducing SFO-JFK to 1x daily for November.
Avianca has received permission from U.S. Bankruptcy Court to access $2 billion in financing.
Emirates will resume flying from Dubai to Lyon on November 4, starting twice-weekly service a month earlier than previously expected.
Etihad is ending service to Brisbane — the one in Australia.
Finnair plans to operate 45 destinations from its Helsinki hub in its 2020-21 winter schedule with six long-haul destinations. Overall, it plans to operate 275 fewer flights than last year.
LATAM plans to operate its 777-300ER on four new domestic routes this winter in Brazil.
SpiceJet has the spicy idea of launching the first LCC service between London and India. It’s planning to lose money (we assume) on 2x-weekly service from London/Heathrow to Delhi and 1x-weekly to Mumbai.
Spirit plans to resume 3x-weekly service from Fort Lauderdale to Cap-Haitien, Haiti (CAP) on December 3.

Andrew’s Moment of Levity

Ran into my buddy from college, he was the drummer in our band. He’s actually got twins now, he named them Anna 1 and Anna 2.

October 5, 2020

Southwest to Avoid Layoffs Through 2021… if the Unions Agree

1 In a video message posted to southwest.com, Southwest Airlines CEO Gary Kelly said that the airline plans to avoid any furloughs or layoffs through the end of 2021, assuming that the unions will agree to cost saving measures. The airline has famously never been forced to furlough or lay off any employees in its history and plans to continue its streak for another year.

With a second PSP or CARES Act currently stalled in Congress, many Southwest executives, including Kelly, will be taking pay cuts to help the airline curtail spending. Kelly will take a salary of $0 through the end of 2021, while a 20% reduction in salary for the airline’s most senior execs will continue through 2021 as well. Further, payments to Southwest’s board of directors will be reduced 20%, though if those board members really believe in the culture, we’d suggest they should voluntarily further reduce or eliminate their payments.

One option being considered by Southwest is to reduce the number of pretzels in each bag by 33%, but that just didn’t pencil. Instead, it will reduce salaries of all junior leadership 10% effective January 1. The airline will also be entering negotiations with its unions to get concessions. Kelly set a deadline of January 1, 2021. If there is no deal by then, furloughs may still become reality.

The airline will continue to lobby Congress for a second PSP or other stimulus to help sustain itself through March and if one is passed, the salary reductions will be returned to their original levels. The pretzels, however, will still remain on the chopping block.

Hawaiian Slowly Ramps Up Mainland Flying As State Reopens

2 Hawaiian Airlines is slowly building its mainland network back up with the state of Hawai’i welcoming visitors back on October 15 without a mandatory quarantine… with a catch. Visitors will be required to present a negative COVID test upon arrival to avoid the quarantine.

Hawaiian resumed flying to Las Vegas earlier this week. Next up for the airline are Oakland, Phoenix, and San Jose – all three are expected to restart flights to Honolulu in early November. Los Angeles will also be reconnected with Kahului (Maui) next month. Instead of a traditional lei greeting, Hawaiian is instead going to offer a new tradition of greeting travelers with a demand to see their COVID status. It should help provide a warm, welcoming start to the vacation.

To assist customers with their COVID testing needs, Hawaiian has partnered with drive-thru testing centers near both Los Angeles and San Francisco’s airports, but the airline hopes to expand to most – if not all – of its West Coast gateways.

Air Asia Japan Says Sayonara

3 AirAsia Japan will cease operations after its parent company AirAsia Group opted to stop funding the airline on Monday. The closure of the airline was rumored as early as last week, but it held on for the weekend before having the plug pulled.

Prior to the closure, AirAsia Japan had a fleet of three Airbus A320ceos. The airline will look to liquidate the planes to help pay off creditors while operations wind down. This, you may (or very well may not) recall, is the second incarnation of AirAsia Japan. The first was a joint venture with ANA. ANA took control and rebranded it as Vanilla Air, later merging it with Peach.

AirAsia Japan is not the only member of the AirAsia family to face an uncertain future, as reports out of India say that AirAsia is halting its funding of AirAsia India and that the airline is currently for sale. A buyer has made an offer of $54 million from the airline, but negotiations and the future of the airline remain murky. Further, long-haul operator AirAsia X continues to lose massive amounts of money and will likely need an intervention.

One operator not impacted is the fictional AsiaAir of Taiwan, a country that always gets it airline names confused with those from elsewhere.

And We’re Back: Mango Resumes Flying

4 One week after being forced to cease operations, South Africa’s Mango Airlines is taking to the skies once again after reaching an agreement with SAA Technical, the subsidiary of South African Airways that performs maintenance for the airline and hadn’t been paid in months.

The details of the agreement between Mango and SAAT was not disclosed. Mango said it couldn’t comment on the confidential agreement, only sharing that the arrangement is acceptable for both sides. A source close to the negotiation would not confirm or deny that SAAT would agree to the airline’s insistence that payment be made in mangoes, but it is believed that whether fruit or money would be used was a sticking point in previous negotiations.

Mango operates a fleet 14 B737-800s that it relies on SAAT to maintain. The airline operates to eight destinations, seven in South Africa and Zanzibar Airport (ZNZ) in Tanzania. It would seem that paying the people responsible for keeping your planes airworthy would be a smart way to do business, and we assume the airline is going to do its best to adhere to that policy going forward.

Gatwick to Charge for Curbside Drop Offs

5 London/Gatwick airport, desperately searching for new revenue streams, is planning to monetize its curbside in 2021. The airport will levy a £5 charge for all cars who drive onto the airport property and drop a passenger off at the curb.

The best way to avoid the charge is to ~~use another of London’s five airports~~ enter the parking lot, as the airport still offers two free hours of parking in lieu of a cell phone lot, giving passengers and their ride an alternative.

The airline claims that the policy is designed to reduce its carbon footprint with airport drop-offs being the least sustainable type of journey to the airport, but this feels like a straight cash grab being disguised as an environmental benefit. For that reason, we expect Ryanair to gleefully add more flights as a show of approval.

By maintaining the two free hours in the ~~garage~~ car park, dropping someone off at the airport is simply less convenient, but is unlikely to reduce the number of journeys to and from the airport. Instead, the airport will suck revenue out of those who opt for the convenience of the curb.

Airline Potpourri

Air Cairo is resuming once-weekly service from Hurghada (HRG) to Budapest for the first time since 2018.
Emirates is now up to 31 destinations in Europe as it returns flying to Budapest, Bologna, Lyon, Dusseldorf, and Hamburg.
Somon Air, which currently operates eight aircraft, is in discussions with Boeing to purchase the 737 MAX. Buy low, sell high, right?
United will resume 4x-weekly service between San Francisco and Shanghai/Pudong on October 21.
WestJet is now operating the B787 Dreamliner between Vancouver and Toronto/Pearson.
WizzAir saw its September passenger numbers fall 59% from 2019.

David’s Moment of Levity

Everyone studies the historical figure Karl Marx in school, but so few remember his sister, Onya. She invented the starter pistol.