September 2, 2020

Oops, our bad: We reported that Spirit was beginning 3x-daily service from Orange County (SNA) to both Las Vegas & Oakland. Spirit will actually be operating 3x-daily total from SNA, with two flights to Oakland and one to Las Vegas each day. We have paid a $39.99 mistake fee to Spirit for our error and a $29.99 republishing fee to print this correction.

United to Cut More Than 16,000 Jobs Next Month

1 United Airlines announced today that it is cutting 16,370 jobs next month when the CARES Act funding expires on October 1. Most of the job losses will be furloughs, giving the airline the option to recall some employees when demand does return.

The 16,370 employees represent approximately 1/6 of United’s total employee figure at the end of 2019.

The good news — if there is any — is that the number is far lower than the 36,000 employees who were WARNed that their jobs were at risk earlier in the summer. More than 7,000 United employees took some form of early buyout or unpaid leave to lessen the number of involuntary separations.

The expected involuntary cuts include 6,920 flight attendants, 2,850 pilots, 1,400 management jobs, 2,010 mechanics and 2,260 in airport operations.


Delta Helps Former Partner Gol Refinance Loan

2 Anyone who ever had to ask their parents to co-sign a loan or be a guarantor on an apartment lease knows the feeling that Gol had this week, as the airline had a $300 million loan from 2015 come due on Monday that it could not pay. It had used its then-partner, Delta, to guarantee the loan, granting Gol a better interest rate at the time.

But now, despite the airlines ending their partnership last year when Delta bought a stake in LATAM, the Atlanta-based airline was still on the hook when the loan came due.

Delta ended up working with Gol to “replace the existing loan guarantee with a smaller loan secured with incremental collateral,” Delta said in an internal memo. To provide collateral for the new, refinanced loan, Delta provided 18 “Keep Delta My Delta” employee buttons from the mid-2000s when the airline was fending off takeover attempts along with an eight-week stash of biscoff cookies, and 2,000 SkyMiles.


Hawaiian Issues Furloughs

3 Hawaiian Airlines sent notice to flight attendants and pilots that will be furloughed on October 1 when the CARES Act expires. Hawaiian had previously warned that it might need to cut as many as 2,135 jobs, including 956 pilots and flight attendants.

Hawaiian’s overall flight attendant numbers will be reduced by 816, 341 of which would be involuntary furloughs. The balance of the 841 took buyouts or unpaid leave offered by the airline. Hawaiian is also cutting 173 pilot positions, with 101 of those being involuntary.

The airline is also beginning furloughs today for employees who live on neighbor islands and commute into Honolulu for work. Sixteen flight attendants & six pilots who live on the Big Island and commute to Oahu were furloughed this week and were informed their jobs would return if travel picked back up and the airline needed them back.

Hawai’i is currently under a mandatory 14-day quarantine for anyone arriving to the islands from the U.S. mainland or another country. The state’s tourism sector has taken a huge hit with Hawaiian Airlines at the top of the list.


Saudi Arabia Opens Airspace to El Al to operate UAE Flights

4 Saudi Arabia is now permitting all flights to and from the UAE to transit its airspace. This is relevant because it means the Kingdom is allowing El Al to operate through Saudi airspace to and from Abu Dhabi on its new Tel Aviv flight.

Without the use of Saudi airspace, the flight would take up to seven hours instead of the crisp three hours and 40 minutes the inaugural flight took last week.

As of now, the policy only applies to flights to and from the UAE, meaning other El Al flights would need to skirt Saudi airspace. But this is a step that many thought we would never see, and hopefully will lead to greater normalization of relations for the benefit of air passengers, but more importantly, for the millions people living in the Middle East. Progress is slow, but progress nonetheless. We don’t expect Saudia to begin offering Kosher meals on-board anytime soon, but when the day comes that you can get a quality bagel and lox in Riyadh… that’ll be real progress.


Lufthansa & easyJet to Open New Berlin Airport Together

5 After a (literal) decade of delays, brand new Berlin/Brandenburg is supposed to finally open on October 31. However, we have not discounted the possibility the “airport” is just an industrial park dressing up as an airport for Halloween.

Working under the assumption the airport is actually going to open next month, the decision of who would be the first airline to land a flight was split between the airport’s two largest operators: easyJet and Lufthansa.

The two airlines will perform a parallel inaugural landing to open the airport. The idea seems great in theory, but just like when twins are born and one is a couple minutes older than the other, one of the two planes is going to land before the other — it’s going to be a race to touchdown.


Airline Potpourri

  • Alaska has moved the resumption of its Anchorage-San Francisco route to May 2021.
  • Bamboo Airways, VietJet, Vietnam Airlines are all seeking government approval to restart service as the Vietnamese government has given the green light for 4x weekly service to both Japan & South Korea.
  • flydubai is the latest airline to unveil free Covid-related travel insurance as a part of flying on the airline.
  • Japan Airlines and Vistara have entered into a frequent flier partnership that allows members to earn and burn on miles on both airlines.
  • Qantas extended its suspension of Trans-Tasman flying through at least December.
  • Swoop released its winter schedule today including the airline’s first service from Toronto/Pearson.
  • Vistara is asking all of its pilots to take three days of unpaid leave.

Andrew’s Moment of Levity

My friend wanted me to put his joke in here about his TV remote. But I told him I wouldn’t do it — the joke wasn’t remotely funny.

September 1, 2020

The Day After: Alaska Joins the Change Fee Party

1 A day after American and Delta followed United’s move to eliminate change fees, it’s Alaska’s turn to drop change fees on most fares. Alaska, the fifth-largest airline in the United States, gives a clean sweep for the top-5, having waived change fees on (at least) most domestic travel going forward. Southwest remains unimpressed, as it has never had change fees on any flight, domestic, international, or to the moon.

Alaska is matching American’s more generous policy in eliminating change fees on both domestic and international tickets. Alaska serves locations in Canada, Costa Rica and Mexico, along with the United States and will remove change fees except on saver fares, which are Alaska’s version of Basic Economy. This used to be a benefit solely offered to the airline’s top-tier elite members. Now everyone gets it.

Alaska joins Delta and United in announcing only the elimination of change fees, and not sweeping additions on basic economy as American did. Alaska also is keeping its same-day standby fee in-place for now, as did Delta, while American and United both eliminated the fee.


Aer Lingus Considers UK as Transatlantic Alternative

2 Aer Lingus is considering moving its Shannon-based transatlantic operation east from Ireland to the UK. The airline is struggling to deal with EU travel restrictions due to the virus, and a move to the UK would reduce some obstacles for the airline.

Alongside Edinburgh and Manchester, four other UK airports are interested in the potential service but have not yet been named. They were hoping to be included in yesterday’s MLB trade deadline as an airport to be named later, but a deal never came together.

The flights would still be operated by Aer Lingus on its own aircraft. If the airline moved its A321 transatlantic operations to the UK, it would still leave open the possibility of basing other aircraft in Ireland to potentially restore U.S. and London/Heathrow flights if conditions warranted it next year & beyond.

One Aer Lingus represenative, who declined to be named, said that the move of flights to the U.S. away from Ireland had nothing to do with Lucky Charms recently coming out with marshmallow-only pouches, and that the timing was merely a coincidence.


Spirit Adds Orange County

3 Try imagining a meeting today at Spirit’s HQ in Miami — someone, some brave soul, probably said something like “hey, did you see the big airlines are eliminating change fees — any chance we want to consider doing the same?” Assuming he or she wasn’t shot or fired for making such a ludicrous request, once the laughing subsided, the Spirit executive team realized it had to do something.

Enter Orange County. The addition of the capacity-controlled SNA to Spirit’s route map comes as other airlines have reduced service to the airport in the midst of the pandemic. This will be Spirit’s third airport in the LA area, following LAX and Burbank.

Spirit will serve two cities to begin from Orange County, with 3x-daily service to both Las Vegas and Oakland. Those interested in booking Spirt’s newest routes can pay Spirit $12.99 for the right to access the schedules for the 3x-daily flights and can expect to see a $29 “new-destination fee” on added onto their final bill which Spirit charges for the first 60 days after it launches a new destination.


Air Canada & Toronto/Pearson to Begin COVID Testing Trial

4 As Canada maintains a strict border policy in the midst of the pandemic only allowing Canadian citizens and permanent residents to enter the country, Canada’s airlines, led by Air Canada are looking to get creative to return some normalcy to international air travel.

Air Canada is partnering with Toronto/Pearson, the nation’s busiest airport to start a trial program of pre-flight virus testing that to hopefully prove that the Canadian government can open the nation’s borders slowly with confirmed negative tests from travelers. Air Canada’s main domestic rival WestJet is in the planning stage of a similar trial program in Vancouver.

Canada’s chief public health officer Dr. Theresa Tam says officials are looking into whether it’s practical to test people for COVID-19 when they enter Canada instead of requiring them to quarantine.

The trial will start after Labor Day — or Labour Day as our Canadian friends would call it. In the meantime, Canadians returning home will still be required to quarantine for 14 days and are only allowed to drink Tim Horton’s coffee and dine on poutine while running out the clock.


Delta Improves Companion Upgrade Policy

5 If a tree falls in the woods and no one is there, does it make a sound? Along those same lines, if Delta improves its companion upgrade policy but no one has ever gotten a companion upgrade — does it really matter?

Nevertheless, Delta updated its upgrade priority for elite Medallion members traveling with non-status companions. Before the change, a non-status companion would never, ever only clear an upgrade beginning a day before departure. The companion will now never be upgraded be upgraded in the window of their Medallion traveling companion.

This will be good news for Diamond Medallion travelers with non-status companions. For Platinum and Gold — not so much, as non-status travelers will move ahead on the upgrade list, not that Platinum or Golds would ever get upgraded on Delta anyway.


Airline Potpourri

  • Air France is adding service from Paris/CDG to two locations in the Caribbean — both will continue to also operate from Paris/Orly. Fort-de-France will see 3x-weekly service, with Pointe-a-Pitre (PTP) operating 4x-weekly.
  • Delta is resuming service between Los Angeles and Guadalajara (GDL) in October for the first time since 2017.
  • EgyptAir and Air Cairo have signed a codeshare agreement.
  • Emirates received a whopping $2 billion in bailout funds from the Dubai government. The airline plans to use it to outfit each 380 with an extra minute of shower time plus an extra ounce of caviar per first class passenger.
  • flydubai and Emirates have resumed their codeshare agreement that is valid on flights to 100 cities across the globe.
  • Ukraine International Airlines is temporarily cutting service to nine cities as Ukraine closes its borders due to an increase in positive virus cases.
  • Wings Over Lebanon, which apparently was a real airline, has suspended operations.
  • Wizz Air plans to operate at about 60% capacity during its upcoming Q2.

Andrew’s Moment of Levity

I heard a funny joke about a boomerang earlier.

I’m sure it’ll come back to me eventually.

August 31, 2020

The Winds of Change Reach United… Fee Free

1 The first pandemic-era adjustment to travel to stick permanently is the elimination of change fees at United Airlines. Effective immediately, United is ending change fees on non-basic economy U.S. domestic travel “forever.” The end of the previous $200 change fees is valid on flights between the 50 states, Puerto Rico and the U.S. Virgin Islands. United will also allow customers to standby for free the day of travel, as opposed to the current $75 fee.

The exceptions to the rule (there’s always a catch…) are for basic economy tickets and international travel. Those itineraries are still changeable without fee through December 31 under United’s original waiver. When that waiver expires, international change fees will apply as before and basic economy tickets will be non-changeable.

You’ll be shocked to know that there is a downside to this seemingly customer-friendly policy. United will not permit travelers to keep any residual value remaining on a ticket if it is changed to something with a lower fare. That’s going to create some real headaches for travelers sitting on expensive credits.

Last year United took in $625 million in change fees, third behind Delta and American. By eliminating the fees, the airline will be able to save further funds by laying off the guy who was in charge of extending the change fee waiver every month during the pandemic.


American Looks at United’s Changes and Says “I Got This…”

2 American Airlines had its own changes brewing, and it was clearly unimpressed by United’s announcement. AA has gone a couple steps further with its plan which was announced earlier this afternoon.

American will also put an end to change fees on domestic flights within the United States, but is going a step further, including Canada, Mexico and the Caribbean. Unlike United, American will allow the customer to keep any residual value on its ticket from the change.

AAdvantage members will be pleased to know that the new rule on change fees also applies to AAdvantage redemptions. Although if you’re regularly redeeming your miles for domestic flights, we need to have a different conversation.

American is also expanding the options for Basic Economy cheapskates customers, allowing a la carte additions to basic tickets. Basic customers can now purchase priority boarding, access to premium seats including Main Cabin Extra, same-day changes and cabin upgrades. American elites can now access the good seats in economy (exit row, MCE) on Basic Economy tickets and be upgraded… but they won’t be able to earn elite qualifying miles.


Cash Your Trifecta Tickets: Delta Says “Hey, Us Too!”

3 Remember back when the Big Three U.S. airlines all charged $200 change fees to make a change to your domestic itinerary? That was yesterday. Today, none of them have change fees for domestic travel.

In a refreshing reversal of normal protocol, Delta has now copied United… choosing to eliminate change fees on all flights booked within the 50 states, Puerto Rico, and the U.S. Virgin Islands, with the exception of Basic Economy fares. Basic Economy customers will instead be required to collect all cans used on-board the flight, then take them to an aluminum can redemption center and send Delta the coins received in exchange for the cans.

In addition, Delta is extending its waiver on change fees for newly purchased flights — including international and Basic Economy fares, through the end of 2020, and will extend its expiration on travel credits through December 2022 for all travel booked prior to April 17.


American Adds Snowbird Routes

4 American Airlines also announced a bunch of new routes featuring sunny destinations in the south and outdoorsy-type places where people like to sip cocoa and do things in and around snow.

The airline introduced 23 new routes with Mexico being the big winner, seeing service to nine new cities. Cancun will see once-weekly service on Saturday to four new cities: Colombus, Indianapolis, Kansas City and St.Louis, while also adding daily service from Raleigh-Durham. Los Cabos (SJD) will see three new cities, with 2x-daily service from New York/JFK and Saturday-only flights to Austin and Sacramento. Lastly, Puerto Vallarta (PVR) will see once-weekly flights from Charlotte.

Good luck at the immigration hall in Cancun on a Saturday afternoon. Hope you’re not in a hurry.

AA is also adding 14 new flights from two of its hubs – five from Miami and nine from Phoenix. Those destinations are:

Miami (all Saturday-only):

  • Dayton (DAY)
  • Lexington (LEX)
  • Milwaukee (MKE)
  • Portland, ME (PWM)
  • Rochester, NY (ROC)

Phoenix:

  • Billings (BIL) — daily
  • Bismarck, ND (BIS) — daily
  • Calgary (YYC) — daily
  • Cincinnati — 4x weekly
  • Cleveland — 1x weekly
  • Nashville — 4x weekly
  • Pittsburgh — daily
  • Raleigh/Durham — daily
  • Tulsa — daily

For more on AA’s schedule updates please visit today’s post at crankyflier.com.


JetBlue Raises $115 Million

5 JetBlue used 25 of its fleet of A321s to secure an additional $115 million in cash. The airline closed the deal last week allowing it to increase its cash reserves as demand for air-travel continues to wane.

JetBlue has been looking to increase its liquidity since the beginning of the pandemic, having used its slots at LGA, JFK, and DCA as collateral earlier in the summer to raise funds.

The airline used pass-through certificates to raise the money with interest on the loans payable twice a year through 2027. This comes in addition to a $115 loan JetBlue obtained using its stash of Dunkin Donuts coffee as collateral.


Airline Potpourri

  • Air Antwerp delayed its restart to September 14, two weeks later than originally planned.
  • American removed the 737 MAX from its October schedule, with the earliest the aircraft would return to the skies for AA being November 4. Don’t bet on that happening.
  • Avianca had a $370 million loan approved by the Colombian government.
  • Comair has announced the details of its plan to recover from bankruptcy which it was obligated to share by September 2.
  • LEVEL will resume 1x-weekly service between Barcelona and New York/JFK on September 11.
  • Lufthansa Cargo took delivery of its eighth B777F this past weekend.
  • Qatar is resuming 3x weekly flights to Mogadishu, Somalia (MGQ).
  • Rex announced a FY20 loss of $19 million, but he was a good boy, so it’s ok.
  • Royal Air Maroc announced 140 job layoffs.
  • Wizz Air is reducing its weekly flights from Hungary from 126 to 32 effective September 7 as the country closes its borders due to a spike in virus cases.

Andrew’s Moment of Levity

I saw a beautiful piece of art hanging in the local county jail last week. I asked a guard why it was there, and he said “because it was framed.”

August 28, 2020

United Plans to Cut 21% of its Pilot Workforce

1 Absent a CARES Act 2.0, United Airlines plans to cut 2,850 pilot positions from its workforce, equalling 21% of its pre-pandemic pilot totals.

The job losses would occur between October 1 — the date the CARES Act funding ends — and November 30. United, which has warned that 36,000 jobs are on the line across the company, has not yet provided final furlough numbers for other work groups.

Nearly 1,750 of United’s 13,000 pilots will be furloughed indefinitely Oct. 1, with a chance to return to work if air travel demand returns to anything near pre-pandemic levels.. Another 572 will be furloughed at the end of October and 531 on Nov. 30.

About 450 pilots opted for the early out program, a form of early retirement that allows them to receive reduced pay for a limited time period until they fully retire, according to the union – but that figure wasn’t nearly enough for the airline to avoid mass furloughs.


Alaska Adds Jackson Hole; Allegiant Adds Seven Routes

2 With the pandemic raging on, outdoor destinations are leading the way when it comes to leisure travel demand. Alaska Airlines is continuing the trend, putting Jackson Hole, WY (JAC) on its route map, with seasonal service from San Diego, San Jose and Seattle.

San Diego & Seattle will both see 5x weekly service, with San Jose seeing 2x weekly flights on the seasonal route. Jackson Hole will get Alaska service during ski season, beginning this December and running through April. If you want to go during the summer… too bad. Fly someone else.

Allegiant is adding seven new routes to its route map for seasonal service this winter as well. The airline will be adding:

  • Boise (BOI) and Eugene (EUG) 2x-weekly each to Palm Springs (PSP)
  • Bozeman, MT (BZN) 2x-weekly to Nashville returning after what was a “short hiatus”
  • Chicago/Midway and Houston/Hobby 2x-weekly each to Punta Gorda, FL (PGD)
  • Provo, UT (PVU) 2x-weekly to Denver
  • Santa Maria, CA (SMX) to Phoenix/Mesa (AZA) 2x-weekly
  • Sarasota, FL 2x-weekly to Boston

Norwegian’s Financial Situation is Less than Ideal

3 Norwegian Air is potentially on-track to become insolvent as early as Q1 2021. The airline currently lacks cash to make some of its short-term obligations, and its stock is down 97% for 2020. Norwegian is currently down to about $60 million in cash reserves.

The airline lost $600 million in the first half of 2020, has grounded 140 aircraft, and furloughed 8,000 employees. In Q2, Norwegian only operated 8 domestic routes within Norway. It opened up some international service on July 1 but that hasn’t stopped cash from flying out the door.

During the first six months of 2020, 5.3 million customers flew on the airline, compared to 18.1 million during the same period in 2019. It’s tried to prove that the long-haul, low-cost model can work, but this attempt appears headed toward the same fate as all other efforts before it. Whether any piece of the airline can be salvaged remains to be seen.


Celera 500L is Introduced to the World

4 Otto Aviation has finally introduced its mysterious looking bullet-plane — now known as the Celera 500L — to the world.

Otto boasts that its fancy new plane “is the most fuel-efficient, commercially viable aircraft in existence.” The plane runs at 18 to 25 miles-per-gallon (compared to the 2-3 miles-per-gallon of a comparable jet aircraft or your mom’s old Buick Roadmaster wagon). It can seat six passengers comfortably with an hourly operating cost of $328.

The plane has a range of 4,500 nm at a cruise speed of 460 MPH. The range would allow it to fly between any two cities in the continental United States without needing to refuel.

Its unusual look is unfamiliar to most of the flying public, as the plane does not have windows on the fuselage to allow for better aerodymanics. To allow potential passengers to feel more at-home aboard the aircraft, Otto plans to add uncomfortable middle seats and undersized overhead bins. The standard model comes with a screaming baby in the row behind you, and the deluxe package also includes vegetarian meals for those who eat meat, and a steak sandwich if you identify as vegetarian.


California Man Really, Really Doesn’t Want to Wear a Mask

5 47-year old Mark Hicks of California was arrested Monday when he assaulted Alaska gate agent Jill Simpson Lopotosky as she enforced the airline’s mask policy during boarding of a flight to Sitka, AK (SIT).

Police arrived at the scene shortly after the assault and were shocked to see that the man had a California drivers license, as they fully expected him to be from Florida based on his ridiculous actions.

Hicks was inebriated, when he started to “go through one of the people, a woman, and essentially walked right through her and over the top of her as she fell down onto the ground and tried to continue on through to the jetway” according to a surveillence video.

Hicks was taken into custody and charged with fourth-degree assault. He used his one phone call from jail to call Alaska’s customer service line to make sure he received IDB compensation and original routing credit for his Mileage Plus account since he was involuntary denied boarding by the Seattle police.


Airline Potpourri

  • Air New Zealand is resuming its full domestic schedule from its Auckland hub.
  • Allegiant had an array of CARES Act exemptions ruled on by the DOT. Some were granted. Some were not.
  • Azur Air has requested permission from the DOT to operate 2x-weekly service to Miami from Russia.
  • Emirates is resuming daily service to Bangkok on September 1.
  • Hawaiian‘s saga with American Samoa continued, as the airline was granted another extension to exempt flying to Pago Pago through the end of the CARES Act on September 30.
  • United was granted a suspension of service through September 30 for St. Thomas, USVI (STT).
  • WestJet is resuming transatlantic service from its Calgary hub, with 2x-weekly service to Paris/CDG and 3x-weekly to London/Gatwick.

Andrew’s Moment of Levity

I fell asleep with my contact lenses in last night. I’ve never seen my dreams so clearly.

August 27, 2020

AA Reacts to Hurricane Laura

1 With Hurricane Laura bearing down on the Gulf Coast, American Airlines detailed what disruptions it had planned for its operation due to the storm.

The airline canceled 19 flights yesterday, and has canceled 46 today (as of the last update from the airline) with another six already canceled for tomorrow. These are in addition to delays related to mechanical issues and other missteps throughout American’s network.

American has canceled all ops through Friday morning at three airports:

  • Alexandria, LA (AEX)
  • Beaumont, TX (BPT)
  • Lake Charles, LA (LCH)

Lake Charles, you’ll note, is one of the 15 markets from which American will be suspending service in October, so, we’ll call this a practice run.

American is operating, albeit with a limited schedule, at three airports, all in Louisiana:

  • Baton Rouge (BTR)
  • Lafayette (LFT)
  • Shreveport (SHV)

The hurricane made landfall early this morning in Louisiana and is expected to make its way north into Arkansas as a tropical storm before continuing on toward the Atlantic seaboard for days.


Virgin Atlantic and its Creditors Agree on Deal

2 Virgin Atlantic and its creditors have come to an agreement allowing the airline to survive and re-emerge (as a born-again Virgin) out of administration. The airline’s creditors voted Tuesday on a recapitalization deal in London’s High Court that will see VS’s debt reduced by 20% and a long-term, staggered payment plan created to repay debts.

Virgin Atlantic had submitted debt to the court earlier this month at just under $2 billion. Without today’s vote passing, the airline would have run out of cash to operate sometime next month and that would have been the end of the runway for the airline.

Although Tuesday’s decision is a major milestone, the process is not yet complete. The details will need to be approved by a final court hearing in the U.K. on September 2 followed by a U.S. hearing on September 3. As a backup plan, Virgin Atlantic is expected to make all seats from London to the US on the evening of September 2 available for $2 billion each.


Delta Removes Trip Extras

3 For those passengers who enjoyed paying for things they didn’t need just because it was on offer, today is a sad day. Delta Air Lines has removed its “Trip Extras” offerings from delta.com that allowed passengers to pay wildly inflated prices for priority boarding and mileage “boosts” for their upcoming Delta trip.

For the princely sum of $15, Main Cabin passengers could purchase priority boarding to secure overhead bin space. Mileage boosters were available, starting at $29 for 1,000 miles — or the princely sum of 2.9 cents per mile.

Lastly — and perhaps the only somewhat relevant change — Delta has removed the option to pre-purchase in-flight wifi. Previously, Delta offered wifi for $16 through the Trip Extras menu. Now the pre-purchase price is $19 at delta.com/wifi. One could have fun with numbers to point out that this is a 19% increase passed along to passengers, but it is also just a $3 increase. That’s not likely going to make or break anyone deciding if they want to purchase wifi, especially considering Delta already allows free texting. Regardless, it’s generally still a far better deal to buy in advance than paying those exorbitant prices onboard.


EASA to Begin 737 MAX Tests

4 The EU’s Aviation Safety Agency (EASA), is set to begin test flights of the Boeing 737 MAX from the very European city of Vancouver, British Columbia, beginning September 7. The EASA also confirmed it will perform test flights on simulators at London/Gatwick next week.

The announcement from the EASA comes one day after Transport Canada began its own test flights in the very Canadian City of Seattle. Presumably to keep up with its counterparts, when the FAA is ready to run tests, it’ll need to do so in Europe.

Both the EU and Canada are focusing on the maneuvering characteristics augmentation system (MCAS) of the aircraft, which contributed to crashes in both October 2018 and March 2019.

As we reported last week, Boeing has quietly renamed the MAX to the 737-8 to reduce customer fears about flying on the plane. Boeing is apparently not familiar with the idea that if it looks like a 737 MAX and it quacks like a 737 MAX…well, you know the rest.


Virgin Atlantic Announces Three New Routes to Pakistan with Real Pilots and Everything

5 Virgin Atlantic continues its busy news day, announcing three new routes from the United Kingdom to Pakistan, launching this December.

The airline will operate from both London/Heathrow and Manchester to Islamabad (ISB) and from Manchester to Lahore (LHE).

Virgin Atlantic is smartly moving into the U.K.-Pakistan market which is currently devoid of any direct service since Pakistan International Airlines was barred from operating in the U.K. for using, well, fake pilots. PIA plans to charter a HiFly A330 to return to the UK, using HiFly’s crew to operate the flights.

In the meantime, those interested in flying direct from Pakistan to the U.K. or connecting on to the United States with an assurance that their plane will come with seat belts, landing gear and qualified crew can do so on Virgin Atlantic. Of course, that’s provided it doesn’t go out of business.


Airline Potpourri

  • Air New Zealand posted a loss of NZ$89 million for FY 2020, the first annual loss for the airline since 2002. The airline also does not expect long-haul international travel to return until at least 2021.
  • Air Serbia resumes service to Brussels today from its Belgrade hub. The flight will operate 2x weekly.
  • Alliance Airlines, which ironically is not part of an alliance, has ordered 14 Embraer 190s and will take delivery of the first of the 14 next month.
  • Emirates is resuming service to two African destinations on September 3 — Conakry, Guinea (CKY) and Dakar (DSS).
  • JetSmart has received a $7.8 million cash infusion from the Chilean government.
  • Lauda Europe plans to operate its inaugural flight on September 13.
  • Qantas is closing its B717 bases in both Cairns and Perth.

Andrew’s Moment of Levity

A man sued his airline for losing his luggage that included very important documents for a business meeting. The airline ended up deciding to settle the lawsuit before it went to court. The lawyer for the airline said “The case is lost. Let’s not make it worse.”

August 26, 2020

Spirit & Pilots Union Avoid Furloughs

1 Spirit Airlines came to an agreement with its pilots to avoid furlough of up to 600 pilots when CARES Act funding expires next month.

About half of Spirit’s 2,500 pilots have agreed to work reduced hours, creating enough savings to allow the 600 jobs to be kept. Spirit had previously said that it planned to furlough up to 2,500 workers throughout its operation but now expects the number of furloughed staff to be “a small fraction of that.” The airline has posted the actual number it expects to furlough on an internal website and staff can pay $4.99 to see the expected number.

Spirit offered one, three, six, and eight-month leaves for pilots starting in October plus an additional three-month stint for Q1 2021 to help reduce pressure on staffing needs. With enough pilots taking the offers, the airline is celebrating with a small reception at corporate headquarters. A cash bar will be available.


Qantas Plans to Cut 2,500 Jobs by Outsourcing Ground Ops

2 Qantas announced its plan to cut an additional 2,500 jobs as it looks to outsource its ground operations in Australia. This comes as the airline braces for a $7 billion loss this year. These 2,500 jobs come in addition to the 6,000 the airline to cut back in June.

The airline said that outsourcing can save up to 40% each time they turn an aircraft, equaling a A$100 million savings per year. This old refrain will sound familiar to plenty of former airline employees in the US who saw the same thing play out at their airline.

As part of its agreement with its unions, Qantas will have to offer its more than 2,000 ground staff the opportunity to bid for the new, outsourced work. Most of its ground staff have been on furlough for months as is due to the pandemic. The expectation is that those that are at home are currently enjoying footy on television (Go Magpies!) waiting to be recalled to work.


El Al to Fly First Commerical Flight from Israel to UAE

3 El Al, the national flag carrier of Israel is planning to operate the first commercial flight between Israel and the United Arab Emirates next week, an important symbol as the two nations look to normalize relations.

An American delegation on Monday’s flight will be led by President Trump’s senior advisor Jared Kushner and National Security Advisor Robert O’Brien.

The flight will be the first known direct flight by El Al to a Gulf Arab Country in history. Royal Jordanian has operated between Tel Aviv and Amman since the countries agreed to a peace accord in 1994. The mysterious Air Sinai — owned by Egyptair — flies between Egypt and Israel.

Mileage-runners the world over are salivating at the thought of cheap premium class fares on Emirates or Etihad on flights originating in Israel. Some have been rumored to be looking into Israeli citizenship to get a first-crack at dirt-cheap business and first class fares on the two premium, UAE-based airlines.


Korean Outsources In-Flight Business

4 In an effort to raise cash, Korean Air has sold its in-flight business, including in-flight catering and its very lucrative duty free operation to Seoul-based private equity firm Hahn & Company for a cool $836 million plus two bottles of whisky and a carton of cigarettes.

The hedge fund will transfer the Korean Air operation to a new company that it will establish in the coming weeks, selling a 20% cut of the new company back to Korean Air.

In addition to the sale of its in-flight business, the airline is also looking to sell other assets, including a plot of land in Songhyeon-dong, in central Seoul, and the Wangsan Leisure Development, which operates the Wangsan Marina close to Seoul’s Incheon airport. At one point the airline had considered turning the marina into a first-class lounge, shuttling passengers back to the airport, but the fish complained that they didn’t want the first class passengers having loud phone calls with shoes off in their presence, so the airline backed off.


Swoop Shifts Strategy, Goes to Toronto

5 Canadian ULCC Swoop plans to begin service from Canada’s busiest airport on October 25 as the airline swoops in to begin operating at Toronto/Pearson. Swoop plans to operate both domestic and international routes from the airport, unveiling its schedule in the coming weeks.

The airline, which is owned by Air Canada’s main domestic competitor, WestJet, is based in Hamilton, Ontario (YHM). Hamilton is a secondary airport an hour southwest of Toronto, so the airline’s move into Toronto itself is notable.

Swoop’s current focus is domestic travel as well as taking Canadians to well-deserved vacations in warm locations. Internationally, Swoop flies to four beach locations in Mexico, Montego Bay in Jamaica and five U.S. destinations: Fort Lauderdale, Las Vegas, Orlando, Phoenix and Tampa.

Swoop often promotes that its fleet is equipped with AC power and USB ports at every seat on each of their aircraft. Not only is that true, but they also have seat belts and restroom on every aircraft and most of their planes connect to jet bridges or stairs. The airline should not be confused with Swoop, the beloved Philadelphia Eagles mascot, as that Swoop is not Canadian and definitely does not have a passport.


Airline Potpourri

  • Delta will resume flying to Grand Cayman (GCM) from New York/JFK in December, the first flights for Delta between the two cities since 2016.
  • Samoa Airlines will launch with its first domestic flight this Friday, August 28.
  • Singapore will resume its service to New York/JFK via Frankfurt with 3x weekly service beginning November 1.
  • United will now permit Basic Economy customers to purchase an Economy Plus more-legroom seat at check-in, when available.
  • Vistara is joining Aeroplan as its 37th worldwide partner.

Andrew’s Moment of Levity

My neighbor got a brand-new shrub trimmer this weekend. He told me how expensive it was and I was shocked. I asked how he could spend that much and he said “it was worth it…it’s cutting hedge technology.”

August 25, 2020

American Expects to Furlough or Layoff up to 19,000 on October 1

1 In a memo to employees today, American Airlines’ Doug Parker and Robert Isom said that the airline is bracing to layoff or furlough an additional 19,000 employees when CARES Act funding expires provided an extension is not passed by Congress.

The duo said that American will have at least 40,000 fewer employees on October 1 than it did prior to the pandemic. That staggering number includes 12,500 staff who have come to terms on a buyout or early retirement and another 11,000 who will be taking an unpaid leave of absence.

This memo, in addition to the proposed service cuts by American, is another shot across the bow to lawmakers to speed up the potential passage of an extension to the CARES Act. Unfortunately it also details the precarious situation for employees across the industry with just weeks left until the funding runs out.


Delta Plans to Furlough 2,000 Pilots in October

2 The good news just rolls on…Delta Air Lines is currently planning to furlough 1,941 pilots when CARES Act funding expires on September 30. This is actually an approximately 20% decrease over what the airline had previously warned. This is due to a higher number of early retirements than expected, allowing it to retain almost 600 pilots.

John Laughter, Delta’s ironically-named senior vice president of flight operations, told pilots in a memo Monday, “we are simply overstaffed, and we are faced with an incredibly difficult decision.”

Delta will need approximately 9,500 pilots to operate its peak schedule next summer, but at this rate will have in excess of 11,000 pilots on the payroll. The current plan to have all 11,000 pilots in an over-the-top-rope Royal Rumble on pay per view to see who could continue their employment was rightfully shot down by Delta’s corporate HR team.


San Francisco Debuts First U.S. Airport Rapid Testing Site

3 San Francisco International Airport has become the first U.S. airport to offer rapid testing on-site for the virus. Currently, the test is only available for airport workers and flight crews, not passengers. Anchorage had the first U.S. airport to offer testing on-site, but SFO’s test can return a result in fewer than 15 minutes.

The testing site is located in a ground floor of the International Terminal. The roll-out of the test was kept to just workers and crew to ensure the reliability of the results, as well as the process of administering the test before making it available to travelers at the airport.

The test is offered in partnership with Dignity Health-GoHealth Urgent Care. Both the airport and the healthcare provider proudly announced that the nasal swab returns a result in about 13 minutes. Unlike the rest of the airport, it functions just fine when fog rolls in.


Virgin Australia Bondholders & Creditors Left Holding the Bag

4 Bain Capital, the new owner of Virgin Australia, has announced the intended payouts to the airline’s creditors and bondholders, and most of them will be left with their hands out waiting for more.

Bondholders are expected to receive between 9 and 13 percent of their outstanding debts, assuming they sign-off on the deal next week. If they do not, the sale is still expected to go through, and payments could be a low as 3 cents on the dollar.

Most notably, the airline’s various shareholders will get nothing in return for their investments. Etihad, Singapore Airlines, HNA, and Nashan Group all owned about 20% of the airline and will get zilch back. We can only hope there are some parting gifts for them backstage to soften the blow.


SWISS to Offer Rail Connections in Geneva

5 SWISS has found a solution to its reduction in domestic services as it is now offering codeshare opportunities on Swiss Rail to help connecting international passengers get to the western part of the country.

Pre-pandemic, SWISS operated up to 10 daily flight from Geneva to Zurich. But with daily service down to four flights per day, it has left many passengers with long layovers en route to Zurich and other locations west of Geneva.

SWISS is now putting its code on up to 10 trains a day on the three hour train ride to Zurich. While that is considerably longer than the 50-minute flight, it’s far more convenient that a multi-hour layover in Geneva and comes with the advantage of arriving in downtown Zurich. Delays are also less likely as the trains run with the precision of a Swiss watch, or as they call it in Switzerland…a watch.


Airline Potpourri

  • airBaltic is delaying delivery of 28 A220s until 2024.
  • Avianca and other Colombian airlines are continuing to increase domestic operations but are not yet returning to international service.
  • Croatia Airlines is cancelling its current A320neo order.
  • Finnair has completed a sale and leaseback agreement for one of its A350 aircraft.
  • Gulf Air has taken delivery of its first A321Neo.
  • Iberia has retired its last Airbus 340. Spanish fans of hair dryer engines are sad.
  • LOT is adding once-weekly service to Wroclaw (WRO) from its Budapest hub.
  • Surinam Airways is looking to start service from Guyana (GEO) to New York/JFK.

Andrew’s Moment of Levity

A child asked me today for the definition of procrastinate. I told him I’d tell him later.

August 24, 2020

Delta to Resume Bulk of Flying to Asia & Europe Next Year

1 Delta Air Lines will be resuming much of its pre-pandemic service trans-Atlantic and trans-Pacific flying from its U.S. gateways in the coming months. It plans to add over 50 transoceanic flights next summer, compared to the record-low summer 2020 schedule.

Over the Pacific, Delta plans to serve Tokyo/Haneda from seven destinations including 4x weekly service from Honolulu beginning this December, with Seoul/Incheon seeing service return to Minneapolis in April. Delta plans to continue its 3x weekly flight to Sydney from Los Angeles, which will become daily in 2021.

Across the Atlantic, Delta will ramp its operation back up as quickly as September which is — checks calendar — next week. Service will resume from Atlanta to Lagos, Boston to Heathrow and JFK to Accra, Barcelona, Madrid and Rome.

Delta also expects to resume service next summer to many of its secondary international gateways including Paris/CDG to Cincinnati, Los Angeles, Minneapolis, Raleigh-Durham and Salt Lake City; and Amsterdam to Portland.

Just to be clear, yes, this is an airline announcing that they are adding service right now. This is most of the good news today.


Hawaiian Braces for More Layoffs

2 Hawaiian Airlines sent official notice today that they are preparing for more layoffs. This notice will affect 35 employees at both HNL and OGG airports plus the airline’s corporate headquarters. This notice comes in addition to one sent earlier this month, announcing the airline will lay off about 2,000 workers, including more than 600 flight attendants.

Hawai’i has a mandatory 14-day quarantine for visitors that has decimated tourism to the state and caused Hawaiian to see a 90% reduction in loads from a year ago.


ExpressJet to End Operation on September 30

3 ExpressJet had little to look forward to after last month’s announcement that it lost the competition to be the lone E145 operator for United Express. Today, the airline announced it will close up shop at the end of next month.

With September 30 being the final day that the airline will receive CARES Act funding, it will lay off the bulk of its workforce the next day and cease flight operations. The airline will keep a handful of employees around to wind down the business side of the operation and turn the lights out — but its final flight will be on September 30.

ExpressJet had received $110 million in funds from the CARES Act, which, like all other airlines was conditional on not implementing any involuntary layoffs or furloughs prior to October 1.


Virgin Atlantic Introduces COVID Insurance

4 In an attempt to convince people to buy tickets on a bankrupt carrier, Virgin Atlantic is adding comprehensive COVID insurance for all passengers flying on the airline beginning today, August 24. The policy, according to Virgin Atlantic, is the most comprehensive of all insurance policies currently offered in the industry. It will be offered at no cost for flights through the end of March 2021.

Coverage will be applied automatically to all existing and new bookings but only applies if a customer falls ill with the virus while on a trip they flew on with Virgin Atlantic. It’s important to note that the insurance only covers COVID-related illnesses and does not replace traditional travel insurance.

The policy includes coverage for the whole trip, regardless of the length of the trip, age or passenger or cabin class of the flight.  The airline originally planned to only offer insurance to those in Upper Class, because it didn’t deem anyone flying coach worth the hassle. There was concern, though, about the optics of reminding the public it even had a coach cabin.


Ryanair, Employees Come to Agreement to Save Jobs

5 Ryanair and its employees have come to an agreement to cut salaries in exchange for saving jobs and preventing some of the airline’s planned layoffs. This comes a long way from the rumo(u)red original offer from Ryanair that the employees pay the airline.

The airline originally planned up to 3,000 more layoffs, but has now revised its estimate of job losses after 97% of pilots and more than 90% of cabin crew signed up to pay cuts and work practice changes. The BBC is reporting that some of those changes include a 50% price increase in all vending machines at corporate HQ, charging pilots a €20 ignition fee to turn the aircraft on at the beginning of each day and charging flight attendants a 10% commission for all on-board sales.

In the meantime, Ryanair says number of redundancies will depend winter sales levels and how much the industry recovers in early 2021. To continue its quest to drive revenue, the airline is reportedly considering placing its website behind a paywall, charging would-be customers to search for flights and accessing their reservations.


Airline Potpourri

  • Air Serbia announced that it is now the leading carrier on flights between Switzerland and Serbia, which is less impressive than if it were the leading carrier on flights between Switzerland and say…Malaysia.
  • Emirates is in discussions to swap some of its 777s currently on order for 787s instead. When asked why it was considering the swap and airline spokesperson said “because the 787s are 10 better than the 777.”
  • Lufthansa says they have paid out over 90% of its refund requests that have come in this year — totaling €2.3 billion. Color us skeptical.
  • KLM plans to resume service to Hangzhou, China (HGH) later this week with once-weekly service from Amsterdam, via Seoul.
  • Nepal Airlines will resume international operations on September 1.

Andrew’s Moment of Levity

I starting losing my hair years ago. I started going bald in college. Now, 20 years later, I won’t throw my old comb away. I just can’t part with it.

August 21, 2020

Court Clears Way for Bain’s Virgin Australia Purchase

1 One of the final obstacles for Bain Capital to take control of Virgin Australia on September 4 were some of the airline’s main creditors who had banded together to make an end run for control of the airline.

The bondholders were among the 10,000 creditors owed nearly $7 billion from Virgin’s administration process (Australian for bankruptcy) that began earlier this year. The bondholders are concerned they will receive far less than they’re owed once the administration and reorganization is fully approved.

Their attempt to take control was denied in Australian Federal Court earlier this week, and, after a couple days of evaluating their options, the group has decided to drop their pursuit of the airline. Instead they will now focus on new possible endeavors, to include a kangaroo petting zoo and opening a Vegemite museum.


Southwest Expects Rest of 2020 to Be More Not Good

2 In a filing with the SEC (this one, not this one), Southwest Airlines said that it expects its September capacity to decrease by 40% compared to September 2019, as opposed to the 20-25% it had previously expected.

Southwest now estimates third quarter capacity to decrease an additional 10% in the range of 30 to 35% year over year. The airline has turned a net-profit every year since 1973, but July saw a daily cash burn of $17 million. Southwest can’t say whether or not it will be able to get to break-even by the end of 2020.

The good news, however, is that despite the cash burn, the airline is in a strong enough financial position that it declined a $2.8 billion loan from the US government. When raising funds, the airline took inspiration from Qantas selling its amenity kits for $25. Southwest tried selling a snack pack consisting of a can of water, a tiny cup, and a small bag of pretzels for $3.99. Very few sold because the purchase process proved too confusing. Customers had to log-on exactly 24 hours before the sale began to claim a spot in line to make the purchase.


Singapore to Open Travel Bubble with New Zealand & Brunei

3 As of September 1, Singapore will allow free travel between its island and New Zealand and Brunei. Visitors from the two nations can apply for a special air travel pass beginning September 1.

On arrival from the two countries, passengers will have to take a COVID-19 test in Singapore and self-isolate until the results are known. Once a test comes back negative, the traveler will be free to leave quarantine.

In addition to the update for New Zealand and Brunei, the length of required quarantine for visitors from Australia (except Victoria), mainland China, Macau, Malaysia, Taiwan, and Vietnam will be reduced by half to seven days. Introverts who prefer no human interaction are free to quarantine as long as they like, whether in Singapore or anywhere else in the world.


Aeromexico Plans to Reduce Fleet by 30%

4 Aeromexico expects to be a considerably leaner airline after it exits bankruptcy (American — and apparently Spanish — for administration) reorganization. The process allows the airline to rid itself of planes through lease renegotiation and rejection of current and future leases.

Aeromexico currently has 19 Boeing 787, 4 B737-700, 29 B737-800, 6 B737 MAX, and 47 Embraer E190. It has already eliminated its nine Embraer E170, and additional aircraft are likely to adios the fleet as well.

In the coming months, Aeromexico is likely to up-gauge its narrowbody fleet to its 737s — aka Espiritu-ize aka adding more seats, making them more like their Mexican LCC competition. The airline is also expected to reduce the number of regional aircraft it operates in favor of its fleet of 737s.


When PreCheck Just Isn’t Fast Enough

5 A woman attempted to make her way through TSA security at Pittsburgh International Airport on Wednesday by throwing water on the TSA agent checking her ID and then making a run for it.

Shockingly, she was not successful. Brandi Bailey, age 32, was subdued by police just beyond the checkpoint and then attempted to break free to board the airport’s train that travels between concourses. Again, she was not successful. One could wonder where she thought the train went and how far she was going to get even after boarding, but that be a massive waste of time.

That won’t stop us, though! We spent way more time than we should have going through the different options and all we decided that, if she were a video game character, her awareness rating would be very, very low.

PIT does have some great post-security dining & shopping, as it is one of the few airports that offers the opportunity to go beyond security without a boarding pass. Perhaps Ms. Bailey was very excited to do some early holiday shopping at the airport and panicked. Either way, she’s been charged with disorderly conduct, resisting arrest and criminal trespass. We’d make another joke here, but we thought the hilarity stood on its own.


Airline Potpourri

  • Blue Air is feeling less blue these days as the European Commission approved the €62 million buyout from the Romanian government.
  • Blue Panorama, which apparently is changing its name to Luke Air, is launching a new route from Milan/Bergamo (BGY) to Dakar/Blaise (DSS) that will operate 2x weekly beginning October 23.
  • Delta will not fly to Shannon, Ireland (SNN) in 2021.
  • El Al has extended its suspension of all service through September 30 while it looks to find a buyer for the airline.
  • Ibom Airlines, one of the most unfortunate names in all of aviation, took delivery of its fourth CRJ900.
  • JAL will increase frequency from Tokyo/Narita to Singapore from 2x weekly to 3x weekly. It will also resuming service to Sydney with one weekly flight from both Narita and Haneda. The Sydney flights will be capped at 30 passengers each.
  • Lübeck Air, a brand-new airline in Germany, ambitiously launched operations with 2x daily service to Hamburg from its Lübeck (LBC) hub.
  • Thai is considering absorbing its regional carrier Thai Smile.
  • Viva Aerobus is launching a new destination, flying from Monterrey (MTY) to Dallas/Ft. Worth with 2x weekly service beginning September 17.

Andrew’s Moment of Levity

I lost my job this week of being a courier driver. I often got lost and had to bring my deliveries back to the office. When she let me go, my boss told me that I just wasn’t delivering the goods.

August 20, 2020

American to Suspend Service to 15 Destinations

1 American Airlines last week threatened to suspend service to up to 30 destinations. Today they made good on their threat and announced the first 15 cities to lose service when the CARES Act funding expires at the end of next month. The cuts to the 15 cities will begin October 7 and are only in place until November 3 — for now.

The 15 cities losing service are:

  • Del Rio, TX (DRT)
  • Dubuque, IA (DBQ)
  • Florence, SC (FLO)
  • Greenville, NC (PGV)
  • Huntington, WV (HTS)
  • Joplin, MO (JLN)
  • Kalamazoo/Battle Creek, MI (AZO)
  • Lake Charles, LA (LCH)
  • New Haven, CT (HVN)
  • New York/Stewart (SWF)
  • Roswell, NM (ROW)
  • Sioux City, IA (SUX)
  • Springfield, IL (SPI)
  • Stillwater, OK (SWO)
  • Williamsport, PA (IPT)

American is currently the only airline to operate at several of these destinations including: Del Rio, Dubuque, Florence, Greenville, Joplin, New Haven, Roswell, and Stillwater.

Some theorize — and they’re probably not actually kidding — this is AA’s way to try to scare 15 Representatives and 28 Senators into pushing for a CARES Act extension.


Happy Holidays: Delta Extends Blocked Middle Seats Through January

2 Traveling to see family around the holidays is stressful enough — and that’s before you throw in a worldwide health pandemic. But if you fly on Delta, you’ll at least know no one will sit next you on your holiday flight.

Delta Air Lines announced today that the airline will be extending its policy of blocked middle seats through January 6, 2021, assuring a middle seat-free holiday traveling season.

Delta will continue to block the middle seat on all three-seat rows for parties of two or less. If a family or group of three or more is traveling together, the option to book the entire row, including the middle seat will be available as an option. Delta will continue to block half the seats in its first class cabin and at least one seat per row of aircraft with just two seats in a particular row. Parents around the country were heard rejoicing shortly after the announcement and started booking flights on RJs and 717s.

The airline also is extending its travel waiver allowing for one free change on travel purchased by September 30. As always, the change is free, but a fare difference could — and likely will — apply.


Qantas Doesn’t Plan to Return to U.S. Until Late 2021

3 Qantas CEO Alan Joyce said this week that he doesn’t expect his airline to resume flying to the United States until a vaccine for the virus is readily available — which he says likely won’t be until the end of 2021. After the briefing, Joyce channeled his inner child and appeared to be pouting while mumbling, “I didn’t want to go the US anyway.”

Joyce also does not expect the airline to restart any international flying until the middle of next year. Qantas is currently only operating domestic flights within Australia, using codeshares on oneworld partners to ferry limited passengers to and from the country.

Qantas’ financial forecast for FY22 — from July 2021 to June 2022 — shows the airline only operating 50% of its pre-pandemic international schedule. He expects no international flying at all for FY21, which would result in an $8 billion hit on the airline’s finances. While Qantas is selling unused amenity kits at $25 a pop, it’s going to take quite a few to make up $8 billion in lost revenue.


Wizz Air Expands in the Baltics

4 Wizz Air is continuing its push for world European LCC domination as the airline announces an expansion of its hub at Vilnius Airport (VNO), the largest airport in Lithuania. They highlight that they will be adding a new A320ceo to its base there. Why they’re bragging about putting ceo rather than neo aircraft there, no one is quite sure.

Wizz is adding five new destinations from the airport in October: Birmingham (BHX), Hamburg (HAM), Liverpool (LPL), Stockholm/Skavsta (NYO), and Trondheim, Norway (TRD). The five new destinations give Wizz 24 unique routes from Vilnius to 14 countries.

A couple countries up in Estonia, Wizz will also add flights in October from Tallinn to Bergen (BGO), Oslo/Sandefjord (TRF) and Trondheim, giving the airport 8 destinations.

Even though Wizz has yet to reach their fair city, Philadelphia residents continue to be confused they cannot buy tickets on the airline with their cheesesteaks.


Avianca’s Majority Shareholders Arrested in Brazil

5 Brothers German and Jose Efromovich were arrested Wednesday by Brazilian federal police as part of a sprawling corruption probe. The brothers Efromovich built Avianca into the second largest airline in Latin America, receiving a large cash infusion from United in 2018.

The court said that the two had created a corporate structure in Brazil and abroad to launder money, stealing $111 million of public money. The two initially built their fortune through contracts with Petrobras and other oil companies in Rio de Janeiro, using the profits to buy Avianca out of bankruptcy in 2003.

Avianca’s subsidiaries in Brazil, Argentina and Peru all folded in the last year, while the Colombian flagship is experiencing bankruptcy restructuring.

Even though the two must now wear electronic monitoring bracelets and cannot leave Brazil, the Efromovichs still possess a majority stake in the bankrupt airline but do not have voting rights. Claiming a complete coincidence, they offered exactly $111 million and the plans to the laundering scheme to retain their voting rights but were rebuffed.


Airline Potpourri

  • Aeromexico has its $1 billion financing plan approved in U.S. Federal Bankruptcy Court.
  • Austrian is resuming service to four cities: Erbil (EBL) with 3x weekly service beginning today, Cologne on August 31, Amman on September 3 and Tel Aviv on September 14.
  • Go2Sky, a Slovenian airline, will Go2Ground as the airline closing up shop and folding — effective next month.
  • JetBlue is adding service from New York/JFK to Steamboat Springs, CO (HDN).
  • KLM is returning to Cairo after a three-year absence, flying 2x weekly service beginning October 9.
  • Qantas has a new busiest route — Brisbane to Cairns. Sydney to Melbourne has been the airline’s busiest route since its inception, but with new travel patterns due to the pandemic, there’s a new champion in Australia, and it’s in Queensland.
  • Thai has been given an extension by Thailand’s Central Bankruptcy Court to submit a restructuring proposal.
  • Virgin Atlantic is extending elite status for its members by six months.
  • Volaris planes to operate at a level of 75% of its pre-pandemic schedule in September.

Andrew’s Moment of Levity

Back in college I was kidnapped one night by a mime. He threatened to do unspeakable things.