Author: Andrew Bashuk

August 19, 2020

China, U.S. Agree to Double Flight Volume

1 China and the United States have agreed to double the number of flights that operate between the two countries to up to eight per week. The U.S. had threatened to end flights between the two nations in June when China ~~wouldn’t share General Tzo’s chicken recipe~~ threatened not to allow any US carriers to operate. China eventually relented.

United will increase flights to China to four flights per week from San Francisco to Shanghai/Pudong effective September 4. Delta, the other U.S. airline operating to China will also double flights from both Detroit and Seattle to Shanghai – an additional frequency for each – starting this weekend.

Both airlines have operated their Chinese flights via Seoul/Incheon since the outbreak of the pandemic to avoid having crew needing to layover in China.

Hawai’i to Keep Quarantine Until October 1

2 Hawai’i Governor David Ige announced today that the state will remain closed to visitors, except those who are willing to undergo a mandatory 14-day quarantine until at least October 1. The governor went on to say that officials “will continue to monitor the conditions here in Hawaii [sic] as well as key markets to Hawaii [sic]” to determine when these steps can be curtailed.

Oahu and the city of Honolulu are also instituting new protocols on the island including requiring face coverings at open-air shopping malls. The city is reducing the number of people allowed at any gathering to just five. Restaurants, along with indoor attractions such as museums and movie theaters, also must limit groups to five or less.

Officials also debunked the rumor that the quarantine requirement can be avoided by promising to carry the maximum luggage allowance worth of SPAM from to the mainland.

JetBlue Launches Fly Now, Pay Later Scheme

3 JetBlue announced today that it has partnered with Goldman Sachs to offer a no-fee, no deposit, fixed-rate installment loan option at the time of purchase. The option is available on flights priced between $750 and $10,000.

Payments will begin one month after the flight takes place. This is one of those things that marketing professionals think sounds great in a headline (does it thought?), and they’ll likely swindle some people to take JetBlue up on its offer. The full payment terms, including interest rate will be revealed to the customer before purchasing, but the rate is going to be between 10.99% to 25.99%. Tera Blue chips are great and all, but that’s an awfully high price to pay to hold off on paying for a holiday trip to Grandma’s until January.

Despite Popeye’s friend Wimpy perfecting the concept of paying you Tuesday for a burger he’ll eat today, this offer from JetBlue seems designed to extract more money from passengers, albeit over a longer period of time. Time will tell if this work; if it does, Spirit I’m sure is already salivating in the corner.

Breeze Drops Bid for Compass’ Operating Certificate

4 The winds of change are afoot at Breeze as the startup airline has decided to withdraw its bid for Compass Airlines operating certificate and instead operate under its own.

The airline still plans to launch passenger operations next year with 15 leased E190s. Breeze eventually plans to also obtain 60 new A220s late in 2021.

Breeze had originally planned to take over Compass’ operating certificate as a way to shorten the process to get the airline flying with passengers. But the process wasn’t the…ahem…breeze that the airline expected it to be, with both the Air Line Pilots Association and Sun Country gusting in the opposite direction. Instead of responding to the objections, the airline instead chose to withdraw its request and go at it on its own. Perhaps the ALPA & Sun Country didn’t just object, but they strenuously objected.

Boeing Receives Order for 737 MAX, Changes Aircraft’s Name

5 Boeing received a commitment for two 737 MAX jets from Poland’s Enter Air today, and in the announcement of the sale, it both conspicuously and subtly changed the name of the aircraft to the 737-8.

It’s a smart move by Boeing as it looks to get the MAX aircraft back in the air all over the world, but the name 737 MAX is buried in passengers minds as an unsafe aircraft. The 737-8 is another plane that no one has necessarily heard of, and most customers won’t balk at boarding. The idea of changing a name for deflection purposes is not new…just ask ValuJet Airlines.

The name change alone is unlikely to be enough to regain full traveler confidence in the jets, but it is a first step. Studies show that passengers want to see that the plane can consistently be controlled by pilots at all times before they feel safe on the aircraft regardless of its name.

Airline Potpourri

British Airways has formally requested a quarantine exemption from those entering the UK with a negative test.
Emirates is indefinitely suspending service to Fort Lauderdale.
French Bee will continue to stop in Vancouver on its Papeete-Paris/Orly flight through the end of September.
LATAM posted a loss of $695 million in Q2.
LOT is retiring its lone 737-300 aircraft. The shocking news is that LOT was still operating a 737-300.
Virgin Atlantic is delaying the delivery of 11 widebody aircraft from Airbus. Probably a good idea since the airline is broke.
Wizz Air is resuming service to St. Petersburg. The one in Russia, not Florida, making it the only UK-based airline flying to St. Petersburg.

Andrew’s Moment of Levity

I had a bunch of books fall on me today when I was cleaning. I have only my shelf to blame.

August 18, 2020

United Makes New Offers to Avoid Cabin Crew Layoffs

1 With the expiration of CARES Act funding approaching very quickly, United Airlines is attempting to avoid as many involuntary layoffs and furlough of cabin crew it possibly can. The airline has said that up to 15,000 of its in-flight crew could be facing furlough in the coming weeks.

The airline’s newest strategy is to offer “no-activity lines” to its flight attendants, essentially voluntary unpaid leave for one month at a time. The flight attendants would remain active in the system but would not bid on any flights for an entire month, allowing them to keep their job while not receiving a paycheck.

This option would keep the crew in the mix so that when demand does begin to ramp back up, they can be mobilized by the airline more quickly.

American to Continue Cargo

2 American Airlines will continue cargo operations, with the airline planning more than 1,000 cargo-only flights to 32 destinations in September, double what it flew in August.

American began operating cargo-only flights on March 17, in the early days of the pandemic as it looked to salvage some revenue operations as it was grounding planes. Since March, AA has transported more than 45 million pounds of cargo, and that doesn’t include the dense, dry chicken it usually serves in first class.

The 1,000 cargo-only flights in September will be accompanied by another 1,200 that will carry cargo in the belly as well as ~~cargo~~ passengers in the seats. Passengers will be available to fly in the belly with the cargo on combo flights for a savings of 15% off the basic economy price or 20% off the price paid in AAdvantage miles. These upgrades will only be available on the day of departure and can be processed by the gate agent.

Wizz Air to Expand at Gatwick

3 Wizz Air announced today that it would be expanding at its London/Gatwick hub, adding four new routes from the airport. These additions make Gatwick the second-largest operation in London for Wizz Air, behind just Luton.

The Budapest-based airline was Hungary to expand in London, just one day after LCC rival easyJet reduced its UK operation, cutting back flights at two airports — London/Stansted and Newcastle while ending service altogether at London/Southend.

The four new destinations for the airline from Gatwick are Athens (ATH), Lanzarote (ACE), Malta (MTA), and Naples (NAP).

PIA is Back Flying to the UK

4 Pakistan International Airlines, the official airline of aspiring airline pilots everywhere, is again operating to the UK after a seven-week hiatus. The airline was barred from flying to the United Kingdom, along with the United States and the EU, as all three have hardline anti-fake pilot policies.

The airline will resume service from Islamabad (ISB) to both Birmingham (BHX) and Manchester (MAN). The flights will be operated by European-based charter carrier Hi Fly on behalf of PIA. The UK Civil Aviation Authority granted the approval provided that PIA pilots not only be barred from operating the aircraft, but they also cannot go to the airport to watch the planes takeoff or track the flights on their own personal devices.

Hi Fly will operate A330Neo aircraft on the route, with 371 seats — 18 and upfront and a whopping 353 in coach.

Rochester, NY to Rename Airport

5 Greater Rochester International Airport (ROC) will be renamed in honor of Frederick Douglass, a 19th century abolitionist, author, and leader in the antislavery movement.

Douglass lived in Rochester for 25 years, and is buried in the city. He published his first abolitionist newspaper, the North Star, from the basement of the Memorial AME Zion Church in Rochester.

The airport’s new name will be: Frederick Douglass – Greater Rochester International Airport.

Airline Potpourri

Air India has been banned from serving Hong Kong for two weeks due to the number of positive virus cases it brought onto the island. There’s no confirmation that the pilot who flew the flight in question was actually employed by the airline.
Air Serbia is resuming service to Montenegro tomorrow with a flight to Tivat (TIV) from its Belgrade hub.
Emirates is returning to Warsaw, with 2x weekly service beginning on September 4, followed by 3x weekly service on October 7.
Ryanair has reduced its September and October capacity by 20%.
SAS will be receiving €1 billion in aid after their aid package from the Danish and Swedish governments was approved by the European Commission.
SATA will be receiving €133 million from the Portuguese government.
United is requesting an extension of its service exemption to St. Thomas (STT) on the U.S. Virgin Islands through September 30.
Virgin Australia and its new owner, Bain Capital were victorious in Australian Federal Court, with the court denying its creditors the right to own part of the airline as repayment for VA’s outstanding debt.

Andrew’s Moment of Levity

What’s the leading cause of dry skin all over the world?

Towels.

August 17, 2020

Southwest Adds Four New Routes; United Visits Two New Cities

1 In addition to announcing service to Steamboat Springs last week, Southwest Airlines is introducing a new route from four significant cities in its route network for this winter’s schedule. Southwest will add a new city into service from each of Denver, Nashville, San Diego, and Washington/National. Here are the details:

Nashville and San Juan, PR – for the Spring Break crowd, flying weekend-only March 13 through April 11.
San Diego and Norfolk begins January 5, 2021 – shuttling Village People cover bands between gigs.
Denver and Charlotte starting December 18 – because somehow they hadn’t done this before.
Washington/National to West Palm Beach (PBI) starting January 5 – relocating newly out-of-work politicians into retirement.

For more information on Southwest’s most-recent schedule extension, check out today’s post on crankyflier.com.

Meanwhile, United Airlines is adding two new cities to its route network, via United Express and its partner SkyWest. The airline will begin daily service to both to Cheyenne, WY (CYS) from Denver, and Tallahassee, FL (TLH) from Houston/Bush (IAH). Both flights will be operated by 50-seat Bombardier CRJ200 jets.

Alitalia May Simplify Operation & Save Money… With Expensive Airplanes

2 Alitalia is currently working on a reorganization courtesy of the Italian government which has bailed the airline out ~~for the millionth time~~ yet again. As it re-emerges once the pandemic is over, the airline plans to be leaner, meaner, and focused on long-haul. It wants to do so by flying just two aircraft types – the A320 and B787.

On the surface, the plan makes perfectly good sense. Except for one small detail – Alitalia doesn’t own any 787s. Personally, I want to consolidate my car fleet to just Teslas and Porsches, but I don’t own either, so I’ll be rolling with what I’ve got. Alitalia, however, isn’t letting the lack of 787s get in its way. It plans to purchase a bunch of 787s while retiring its fleet of 14 A330s and 12 B777s. Ok then.

Alitalia believes it can introduce great cost savings with the purchase of the 787s, seemingly forgetting the enormous upfront cost to actually purchase the airplanes. When asked its opinion of the deal, Boeing, which only delivered four airplanes in July, said that it was a stroke of genius from Alitalia and that the company fully supports the decision.

EasyJet to Close Three UK Bases

3 London/Luton-based easyJet will be closing three UK crew bases as a part of the airline consolidating its employee numbers through redundancy (fancy British term for layoffs).

The airline will be shuttering two bases in London, at both London/Stansted & London/Southend and also at Newcastle by August 31. The next step for easyJet will be to work with its pilots union to encourage voluntary layoffs and buyouts before it begins the ugly process of doing so involuntarily.

To reduce the number of involuntary layoffs, the airline is looking at moving full-time crew members to part-time or seasonal contracts, base transfers, and unpaid leave.

EasyJet currently serves nine year-round destinations from Southend with another 12 cities receiving seasonal service. Flights to all 21 locations will end on August 31 while Stansted and Newcastle will remain a part of easyJet’s route network.

Air India Lays off 48 Pilots — One Continues to Fly

4 Air India laid off 48 pilots last week in an effort to save costs and right-size its operation with the shrunken demand in air travel. The 48 pilots had resigned previously, but withdrew their resignations as permitted by Indian labor law. But when the airline needed to make cuts, the 48 who had resigned were the first on the chopping block.

Only Air India forgot to let their scheduling staff know about the layoffs, leading to one pilot still operating a roundtrip turn to Bangalore from Delhi despite no longer being employed by the company. The pilot operated AI804 and AI506 on Friday despite being laid off on Thursday.

When asked to comment, Air India officials may have glanced at a map and cast a side-eye at their Pakistani neighbors before saying “yeah, it’s true, he didn’t work for us anymore…but at least he’s a real pilot.”

Qurantine Roundup

5 ‘Twas a busy weekend for countries updating their quarantine guidelines and lists all over the world.

Staying close to home, the U.S. Virgin Islands shut back down to tourism due to a new outbreak of the virus in the territory. A stay-at-home order is in place for residents effective today, August 17, while the islands will not accept tourists effective this Wednesday, August 19. Hotels are not permitted to check-in new guests beginning Wednesday, and the order will be in place for at least a month.

The United Kingdom has added four new counties to its quarantine list: France, Malta, Morocco and the Netherlands.

Lastly, Iceland is not only going to test for the virus – it’s going to double test, showing that they really mean business. All arriving passengers must then choose between a 14-day quarantine or a double testing procedure along with a quarantine for 5-6 days. Those who choose the latter option will be allowed to leave quarantine if both tests return negative. No word if there is a double-secret quarantine because, well, it’s a secret.

Airline Potpourri

Blue Air is expanding its Turin (TRN) base, adding three new destinations and adding frequencies on its current routes.
Copa is resuming flights to the United States — to Miami and New York/JFK — after a five-month hiatus.
Fiji Airways will be keeping its A350s, as it was unable to break its lease agreements on the aircraft.
Hawaiian has once again requested an extension to its Pago Pago service exemption — this time through September.
KLM is adding service to Poznan (POZ), making it the airline’s fifth destination in Poland.
Israir has applied for a landing permit in the UAE.
Turkish Airlines, Iraqi Airways, Fly Baghdad, and UR Airlines have all suspended service between Turkey and Iraq as the Iraq Civil Aviation Authority has halted flights between the two countries.

Andrew’s Moment of Levity

Arial, Times New Roman and Comic Sans all walked into a bar. Before they could even sit down, the bartender said “No! Get out! Don’t even think about it! We don’t serve your type!”

August 14, 2020

Canada & United States To Extend Border Closing

1 In what has become a regular ritual around the 15th of each month, the United States and Canada have agreed to extend the closure of the border between the two countries for non-essential travel another 30 days, until September 21.

The two nations will reevaluate next month before making a decision on reopening on September 22. In other words, Canada will decide if it’s willing to take on the risk of letting Americans into the country.

Americans who are returning to America and Canadians who are returning to Canada are exempt from the border closure as are Americans passing through en route to Canada. The Toronto Maple Leafs who were eliminated from the NHL playoffs last week by the Columbus Blue Jackets were reportedly pleading their case that the Blue Jackets should not have been considered essential travel and were not in the country legally… and that they should have to forfeit the series to the Leafs. It is rumored that many in the Canadian government support this interpretation, but the Quebecois are strongly against it.

Virgin Australia’s Loss is Rex’s Gain

2 Regional Express Airlines — Rex — is the world’s largest operator of Saab 340s, flying around Australia to small towns and underserved airports 36 passengers at a time. Now it’s getting cheeky.

The airline announced last year that it planned to compete with the big boys in Australia and begin flying the vaunted triangle route between Brisbane, Melbourne, and Sydney. In order to do so, it needed bigger planes and had been in the market for up to ten A320s or 737s but had not yet found a seller at a suitable price.

Enter Virgin Australia. With the airline undergoing a reorganization following voluntary administration, it is shedding airplanes as fast as it can — no matter the buyer. And despite Rex looking to buy the planes for the sole purpose of competing with Virgin Australia, VA’s creditors want their money and Rex’s money looks as good as anyone else’s.

While taking Virgin Australia’s former planes doesn’t mean the airline will keep the same configuration or its business class up front, that can’t be ruled out either.

EasyJet Raises $771 Million Through Sale & Leaseback

3 EasyJet successfully completed a sale and leaseback deal for 23 of its aircraft to raise $771 million in cash.

The final part of the deal to close was for five A321neo aircraft with Jin Shan 37 Ireland Company, a unit of BOCOMM Leasing, in return for $266 million in cash, with the aircraft leased back until each reaches around 10 years of age.

EasyJet has been looking to increase its cash positions in the wake of the pandemic and has done so successfully, now sitting on $3.15 billion in liquidty on-hand in addition to 416,000 bangers and 386,000 pounds of mash.

KLM Unilaterally Withholds Raise from Employees

4 As it works desperately to save money and reduce its daily cash burn, KLM is withholding a 2.5% raise that was due to kick in for employees this month. The raise was negotiated last year, long before the pandemic and the disappaerance of almost all international air travel demand.

The airline has reduced its daily cash burn to €10 million per day but says it still cannot afford to pay out the raise. KLM says it went to its unions to negotiate a suitable compromise for all parties but that the unions did not want to discuss the situation — causing the airline to act on its own.

KLM ended June with €1.5 billion cash on-hand plus the world’s largest collection of miniature blue delft houses in the world.

Qantas Ready to Meet Your Holiday Shopping Needs

5 It’s never too early to begin holiday shopping for loved ones — or your family — and Qantas is ready to take care of your needs right here and right now. With the airline shuttering its international route network through at least March, it has thousands of excess premium class amenity kits that are gathering dust.

In order to solve this problem and raise some much-needed cash, the airline is selling amenity kits for A$25 — which comes out to just $18 in U.S. dollars. The kits, of which sales are capped at 10 per customer, include:

One pair of Qantas Business Class PJ’s
One Business Class amenity kit with mini ASPAR products
12 individually wrapped Tim Tam biscuits
A 200g pack of First Class smoked Almonds
A pack of 10 T2 lemongrass and ginger teabags
A wallaby (or not)

The price is a steal for the Tim Tam biscuits alone, but make sure you act fast — only 133 days left until Christmas (132 if you’re in Australia)!

Airline Potpourri

Air Canada is resuming its 3x weekly service to Delhi tomorrow, August 15.
China Airlines is considering a $68 million cash injection into its LCC Tigerair Taiwan, the last of the surviving Tigerairs.
Qatar is resuming daily service to London/Gatwick next week.
TUIfly removed its long-haul schedule from Dusseldorf that was scheduled to begin in November.
Turkish is delaying the start of service to both Newark and Vancouver — two places that have never been confused for one another — to October.
Vietnam Airlines posted a loss of $284 million for the first half of 2020.

Andrew’s Moment of Levity

I asked my realtor if a new place I like would cost me more because it has a chimney. She said “Nope, it’s on the house.”

August 13, 2020

American Prepares for a Smaller Route Network Without More Government Money

1 With the expiration of the CARES Act looming in about six weeks, American Airlines is first out of the gate with possible cuts to its route network when the financial spigot from the federal government is turned off.

Airlines were required to maintain service levels from prior to the pandemic in exchange for the CARES Act funding, but with the money about to expire and the government not yet making a decision about a CARES Act 2.0, American is publicly making it clear what will happen without more money coming in.

The airline reportedly will shutter up to two dozen destinations currently on its route map in a schedule update to be released next week. We’re told the airports will all be lined up and handed a package of premium nuts if they are going to remain in the network.

The cessation of service would take effect shortly after the CARES Act funding expires on October 1. Whether AA is serious about the cuts or is bluffing to force the government to act remains to be seen — we expect it’s the former — but it’s real money and real jobs that the airline is putting on the chopping block.

Southwest Extends Schedule Through April

2 Southwest Airlines today has extended its schedule from January through April 11, 2021. The airline is showing luv to Steamboat Springs, CO (HDN), the only new destination on the early 2021 schedule. Let’s keep in mind that ANY new destination these days is something to celebrate.

Seasonal service to the skiing haven will begin on December 19 and last through April 5. Service to HDN will operate 3x daily from Denver and once-daily on the weekends from Dallas/Love Field.

The rest of the schedule is reported to be fairly quiet, but we’ll post more about that on Monday on crankyflier.com when we can review over the weekend.

Air New Zealand Putting Hold on Future Australian Bookings

3 With Australia putting significant caps on the number of passengers permitted to fly into the country, Air New Zealand will be placing a hold on future reservations for flights into Australia, with some restrictions lasting until late-October.

The Australian government is currently permitting only 25 passengers per flight into Brisbane and 40 into Sydney, with Melbourne being closed for international flights. Air New Zealand is suspending new Sydney bookings until early September, Melbourne until late October, and Brisbane is currently up in the air.

Much like waiting in line for a crowded bar on a Saturday night — remember what that was like?– the airline will open up bookings if current customers cancel or change their travel plans opening up a seat. One out, one in — we’ve all been there. In the meantime, if getting on an Air New Zealand flight to Australia is a major priority, there’s always slipping $20 to the bouncer….

Air France and its Pilots Come to Agreement to Increase Transavia Flying

4 Air France has come to an agreement with its pilots union to permits the airline’s LCC subsidiary — Transavia — to operate domestic flights on behalf of Air France, because apparently Transavia isn’t losing enough money as it stands today.

The vote was a rout, with over 90% of Air France’s pilots approving the measure. Air France’s domestic operations have lost money for years, and the airline now faces increasing competition from new LCC carriers and France’s TGV high-speed train network.

Reports say that Pakistan International Airlines made a last-minute bid to fly Air France’s domestic operations for them at an even cheaper rate than it was paying Transavia, but Air France declined because…fake pilots.

Interjet Finds New Domestic Partner

5 Interjet, Mexico’s weakest and third-largest airline, has opted to partner with Mexico’s next weakest airline, Mexico City (MEX)-based Aeromar Airlines. Both airlines look to improve their financial footing which was already perilous before the pandemic.

Both airlines will sell seven routes on behalf of the other, also allowing for connections between the two airlines for a seamless (in-theory) passenger experience. The airlines plan to expand the agreement in the near-future to cover the entire network of both airlines.

Interjet currently operates a total of 238 weekly frequencies on 10 routes, all of which are within Mexico, with Aeromar operating 265 weekly frequencies on 16 routes.

Airline Potpourri

Air India is ending service to five European destinations: Copenhagen, Madrid, Milan, Stockholm and Vienna.
Cathay Dragon will debut its first A321neo this October, assuming it’s actually flying places.
Finnair will be cutting service to Nice (NCE) and Turku, Finland (TKU) in September while reducing frequency to other European destinations.
IranAir is resuming once-weekly service to Vienna this Saturday, August 15.
TAP Air Portugal will resume service in September to Chicago/O’Hare, New York/JFK, and San Francisco. This will see the airline operating in all nine U.S. gateways from prior to the pandemic. Whether any passengers will actually be onboard remains entirely unclear.
Wizz Air is planning on opening a second UK base at Doncaster Sheffield Airport (DSA) with seven new routes being added.

Andrew’s Moment of Levity

My roommate saw a cockroach in the kitchen this morning, so he sprayed everything down and cleaned it thoroughly. Tomorrow I’m going to put a cockroach in the bathroom.

August 12, 2020

United Heads to Florida

1 United Airlines announced 28 new daily nonstop flights to Florida this fall with service beginning on November 6 — just in-time to go visit your grandparents.

The first flights to launch on November 6 will be Boston, Cleveland and New York/LaGuardia to four destinations in the sunshine state: Fort Lauderdale, Fort Myers, Orlando and Tampa. Then, in December, United will add in service from Columbus, Indianapolis, Milwaukee, and Pittsburgh to both Fort Myers and Tampa.

The new routes are expected to last about as long as most family’s holiday decorations are up — United plans to end all of them on Jan. 10, 2021, meaning they’ll operate only for the holiday season.

Hong Kong Plans to Reopen for Mainland China Transit… For Now

2 After Coronavirus-related closures, Hong Kong is planning to temporarily resume transit flights to mainland China beginning this Saturday, August 15.

Prior to the pandemic, Cathay Pacific operated 360 weekly flights to 23 airports in mainland China — the most airports served of any foreign airline. As of today, the airline is operating just 11 flights to four different locations. That’s probably partially due to the pandemic but really we assume it’s due to the fear of competing with mighty new entrant Greater Bay.

While Hong Kong and Cathay Pacific resumed allowing passengers to transit Hong Kong months ago, they have not been able to resume transiting passengers for the purpose of returning to the enormous mainland China market. The ban that was put in place at the outset of the pandemic is likely being lifted — albeit temporarily — to allow for repatriation as well as for international students a chance to resume overseas studying.

American Bans Masks with Valves or Vents

3 American Airlines is joining the rest of the Big 3 — Delta & United — in banning masks that have valves or vents, closing a loophole that allowed some passengers to claim they were in compliance with the spirit of the face covering rule when they clearly were not.

The new rule will be effective on August 19 and any customer not in compliance runs the risk of being kicked off the flight and being banned from future travel on American — which isn’t necessarily a deal breaker for everyone.

Singapore Becomes Latest Airline to Offer Early Retirement

4 Singapore Airlines is offering unpaid leave and early retirement options to the 27,000 employees of both Singapore and Silk Air. Employees will have until the end of the month to make a decision, at which point layoffs and furloughs will likely begin for the airline.

Prior to this offer, approximately 6,000 employees have agreed to take unpaid leave from the airline, but with international travel being hit the hardest, Singapore has a long way to go on the path to break even. The airline posted a record loss of $816 million in the first half of 2020, and is hopeful of operating 50% of its pre-pandemic schedule by the end of this year — at best.

In the meantime, Singapore and its union have agreed to 10% salary cuts across the board for those whose jobs survive the layoffs. The buyout offers aren’t as generous as some of what we’ve seen from U.S. airlines, ranging from one month’s salary for probationary cabin crew, to three months salary for confirmed crew.

Mesa Ekes out $3 Million Profit

5 For the quarter ending June 30, Mesa Air Group posted a $3.4 million profit, making it the only publicly-traded U.S. airline to post a profit for the quarter.

The airline benefitted from its agreements with American and United, because it is compensated at a fixed rate regardless of the number of seats that are sold per flight. The airline also managed to reduce its expenses by 65% down to just $58 million for the quarter.

Mesa executives will be holding a seminar for other U.S. airline execs titled “How to turn a profit during COVID.” Breakout sessions include: “Have other airlines be responsible for most of your costs,” and “Don’t actually be responsible for finding passengers — pass that off to someone else.”

The airline plans to take delivery of 20 new Embraer 175’s beginning this September and continuing through June on behalf of United Express. Mesa ends the quarter with $65 million in unrestricted cash and as the only airline in the country moving forward with plans for a holiday party.

Airline Potpourri

Air New Zealand is now requiring masks for all flights to or from Auckland.
Azul and LATAM are beginning a codeshare on 64 domestic routes in Brazil today.
Eastern Airlines plans to operate 2x weekly service from New York/JFK to Los Cabos (SJD) beginning August 29.
Emirates is adding three more destinations back to its network — Cebu (CEB) on August 20, Houston/Bush on August 23, and Birmingham, England (BHX) on September 1.
Etihad has been slapped with a one-week ban from operating to China after six passengers tested positive on a flight to Shanghai last week.
Fiji extended its suspension of service through the end of September.

Andrew’s Moment of Levity

My roommate and I purchased a world map and decided we’d throw a dart and wherever it landed is the first place we’d travel to after the pandemic. Whelp, looks like we’re spending two weeks behind the fridge.

August 11, 2020

Delta to Test Pre-Flight Fever Scanning at LAX

1 Delta Air Lines will begin a program today, August 11, in which it will take the temperature of passengers prior to boarding flights at Terminal 2 at LAX.

Passengers who fail two temperature checks — by coming in above 100.4 degrees — will be denied boarding. Those passengers will be offered the option to reschedule their trip or receive a refund. It is believed passengers can also trade 10,000 Skymiles per 1/10 of a degree to get their temperature reading down if needed.

Delta’s test program at LAX makes it the first large network U.S. airline to screen temperatures of its passengers following Frontier, which has been testing throughout its network for several weeks now. Despite not being prevalent in the U.S. yet, thermal temperature scanning has become commonplace around the world including on Air Canada, Air France, Emirates, and Singapore.

Aeroplan Comes Home

2 Air Canada released the details of the revamped Aeroplan program today, reorienting the program to drive more volume to Air Canada itself, for both earning miles and burning them.

Most of the changes are being views as consumer-friendly which is unusual enough in today’s climate. Aeroplan is retaining the use of award charts, a concept that has been going away for several years on our side of the border. Air Canada is making it cheaper for customers to burn their miles for flights on AC metal, as opposed to other Star Alliance partners.

Other positive changes include award discounts for AC elites, family sharing of points, and stopovers for only 5,000 points more.

Current Aeroplan account holders will see their accounts transition to the new Aeroplan on November 8. For those who can’t wait, just know that hockey playoffs start today, so that should keep you busy until then.

United Adds Five New Routes

3 United Airlines is planning to launch five new domestic routes this fall despite the airline planning to shrink to 50% of its size from a year ago. Included in the new routes are two destinations: mega travel hubs Abilene, TX (ABI) and Alamosa, CO (ALS).

Three new routes will debut from its hub in Denver — Alamosa, Rochester, MN (RST), and Sioux City, IA (SUX). Houston/Bush will see two new routes: Abilene and Chattanooga, TN (CHA).

All five new routes will all be flown by SkyWest on 50-seat CRJ200s. Alamosa’s new flight is subsidized by the federal government’s essential air service program, while the Sioux City route is supported by local funds. The chairman of the Sioux City city council was frustrated at the lack of stroopwaffels available in the city, and felt that subsidizing UA service from Houston would be the most cost-effective way to enjoy their sweet & salty goodness.

For more on this story and other fall schedule updates visit crankyflier.com.

American Extends Travel Waiver

4 American Airlines extended the validity of its current travel waiver to cover travel booked by September 30 that takes place by December 31. Previously it was only for travel through September 30. Now you can get those Thanksgiving and Christmas bookings done on the off chance that we can actually gather this year.

The airline will allow itineraries the one change without a fee, but a fare difference might apply. American’s move comes one day after it also extended the validity of miles in AAdvantage accounts through December 31 as well.

Canada to Require Doctors Note for Mask Exemptions

5 Transport Canada, in an effort to reduce the number of Canadian air passengers not traveling with a mask, now requires an official doctor’s note in order to be able to fly without wearing a mask.

Canada has been requiring masks of air travelers since April 20 and is now addressing those that choose not to wear them for medical reasons. To be exempt, a passenger must provide a doctors note that:

has been issued by a medical professional.
is on official letterhead.
is dated.
clearly states the passenger’s name and that they have a medical condition that prevents them from wearing a mask.

In other unrelated news, several Canadian doctors are advertising online that they will offer official mask exemption letters in exchange for Tim Horton’s gift cards.

Airline Potpourri

airBaltic is resuming twice weekly service from its Riga hub to Budapest.
Alaska will be expanding its codeshare with American, adding its AS code on 60 additional routes.
Copa now plans to resume flights in September. Suuure it does.
Kenya Airways is resuming service to Guangzhou on October 25 via Bangkok.
LOT is restarting flights on its oddball Vilnius (VNO) to London/City (LCY) route.
Qatar will double its service to New York/JFK on September 1, moving from once-daily to twice-daily flights. It will resume flights to Houston/Bush on September 2 and Philadelphia on September 15. The airline will also be requiring a negative PCR test when traveling to or from: Bangladesh, Brazil, India, Iran, Iraq, Nepal, Nigeria, Pakistan, Philippines, Russia, and Sri Lanka.
Thai Air Asia is returning to Bangkok/Suvarnabhumi after an absence of eight years, starting four routes from the airport.

Andrew’s Moment of Levity

Before the pandemic, my co-workers used to say that I was very indecisive. Since I’ve been home so long, now I’m not so sure.

August 10, 2020

Australia Likely to Keep its Borders Closed Until 2021

1 Australian Prime Minister Scott Morrison says it’s unlikely his country will open its borders before Christmas — keeping the country closed to foreign visitors into 2021.

Morrison’s sentiment appears to be shared by Qantas, with the airline choosing not to operate the majority of its international operation until at least March of 2021 and instead sending many of its long-haul aircraft to be parked for the foreseeable future.

The news also confirms that the idea of a travel bubble between Australia and New Zealand is unlikely to occur with New Zealand Prime Minister Jacinda Ardern expressing that the second wave in Victoria and New South Wales will prevent the two countries from allowing free movement for its citizens.

With the decision to close the borders, both countries have sent negotiators to the North Pole to discuss a waiver with representatives from Santa Claus in order to permit Santa, his elves and reindeer to enter both Australia and New Zealand to deliver presents at Christmas without a 14 day quarantine.

American Extends AAdvantage Miles Validity

2 American Airlines is extending the suspension of the expiration of AAdvantage miles through December 31. The airline had previously extended the life of AAdvantage accounts through June 30, causing dormant accounts to see their miles expire.

With this update, the airline is reinstating miles for anyone who lost theirs on July 1. Those who bought flowers or threw money away on a newspaper subscription to extend their mileage validity, however, are likely out of luck. AAdvantage miles usually expire after 18 months of inactivity on the account, but AA has extended that time frame due to the pandemic.

When asked to comment, a Delta spokesperson might have shook their head and laughed and said “Mileage expiration? Please, our miles never expire. You can’t ever redeem them for anything, so what’s the point in having them expire? Suckers.”

Philippines Airlines Raises the Bar on PPE

3 As U.S. airlines are still working on removing the loopholes to require face coverings aboard their aircraft, Philippines Airlines is stepping its PPE game up to new heights. The airline will now require full face shields for all passengers.

In addition to checking the temperature of all its passengers, the airline will require face shields beginning August 15, and unlike masks in the U.S., it will be BYOFS. Philippines Airlines will not be supplying the shields, and it will not have any sympathy for those who leave them at home — no shield, no flight.

The airline will also have its cabin crew outfitted in full PPE from head to toe. With a recent outbreak of a second wave of the virus in Manila, the country and its flag carrier are not messing around right now.

Alaska Sold Three Seats for the Price of One

4 Alaska Airlines ran a very creative buy one, get one — BOGO — offer over the weekend to take advantage of the blocked middle seat strategy which will remain in place through October.

Customers were able to purchase a main cabin seat at regular price on Alaska and could also buy the other seat available for sale in the row for just the taxes and fees.

While Alaska is committed to leaving middle seats open through October 31, the seat on the other side of the middle is not guaranteed to be vacant — leaving the now-outrageous possibility that there are strangers seated in your same row. This option eliminated that possibility, giving passengers an additional level of personal space and ~~freedom to binge trashy Netflix series~~ peace of mind while traveling during the pandemic.

Brazil Fights Spread of Virus by Banning…Pillows

5 A pillow fight is developing aboard airplanes in Brazil with the government banning pillows on board flights operating to or from the country as well as on domestic flights.

Airlines are being told not to provide pillows on flights and passengers are not permitted to bring their own. United says that it will increase the number of duvets it provides in its premium cabin to allow passengers to roll the blankets up to serve as a pillow which seems to be one of several easy ways to get around this regulation. United’s original strategy of telling customers to just look in dark corners of the airplane to find pillows that were abandoned years ago has been thwarted by new pandemic-related cleaning procedures which have resulted in those pillows finally being found and removed.

There’s been no comment from the Brazilian Health Regulatory Agency on their policy on balled-up sweatshirts and jackets standing in for pillows. The powerful Brazilian pillow industry was blindsided by the decision and said it would not take this lying down.

Airline Potpourri

Bahamasair has suspended service to the United States, the only international destination it serves.
Greater Bay Airlines is seeking Hong Kong government approval to launch its operation, because what Hong Kong needs most right now is a new airline.
JetStar Asia is resuming weekly service to three cities: Jakarta (CGK), Ho Chi Minh City (SGN), and Penang (PEN).
Qatar is resuming service to Adelaide with 2x weekly service from Doha on August 16, making it the only international airline serving five Australian cities.
Singapore is resuming service to Perth with 3x weekly flights beginning August 18, making it one of several international airlines NOT serving five Australian cities… but it’s one step closer.
Ukraine International Airlines is resuming its flight to Toronto/Pearson later this week with plans to return to New York/JFK and Delhi in April.
United is reducing the capacity of some its 76-seat Embraer aircraft down to 70 seats to comply with the terms of its contract with its pilots.

Andrew’s Moment of Levity

My neighbor caught his kid chewing on electrical cords. He’s since been grounded.

August 7, 2020

Hawai’i to Reinstate Interisland Quarantine

1 The State of Hawaii’s interisland quarantine is back as Governor David Ige will require a 14-day sit for anyone traveling within the state and arriving on the Big Island, Kauai, Maui, or Molokai.

The governor had removed the interisland quarantine on June 16 as the state’s number of cases dwindled, and he flirted with the idea of removing the quarantine for international and mainland visitors as well — provided they could provide a negative test. But the cases in the state are going the wrong way, forcing the governor’s hand.

The refreshingly-named Sumner La Croix, economics professor emeritus at the University of Hawai’i at Manoa, made the wildly-obvious point that reinstituting a quarantine isn’t going to help the state’s economy.

The new quarantine will be in place through August 31, although the governor will have the authority to end it early or extend it as needed. We’d be surprised if that didn’t happen.

Not an Error: Korean Air Shows Q2 Profit

2 After Q2 loss after loss from airlines big and small across the world, Korean Air managed to post a $125 million profit for Q2 2020 thanks to an incredibly strong cargo operation. Cargo sales increased 95% from Q2 2019 to an impressive $1 billion in revenue.

Korean Air and its rival Asiana benefit from enormous demand for smartphones, TVs and components from Korean conglomerate Samsung, and memory chips from powerhouse SK. (Go Wyverns!) Samsung and LG both beat earnings estimates for Q2 with SK tripling theirs, helping lead the surge for Korean.

It wasn’t all roses for Korean as revenue did drop by 44% from 2019. Passenger demand cratered the same as it did for the rest of the world. Korean cut its expenses in half from Q2 2019, from $2.6 billion to $1.3 billion.

But a profit is a profit, especially in 2020. Rumors from the airline’s headquarters at in Seoul are that it plans to use the Q2 operating profit to take everyone in Korea out to bbq.

United Extends Global Services for 12 Months

3 United Global Services members who were concerned about losing their super fancy elite status due to a lack of flying this year can breathe easy, just in time for the weekend. United will extend the status of its Global Services members for 12 months due to the pandemic.

The airline had already announced that it would extend other elite members status for a year but had held off on doing the same for its Global Services members since they are way more special and important. Global Services fliers on United are in the top tier of fliers for the airline and can be identified on-board with gold-plated seat belts, monogramed glassware, and an extra bag of salty snack mix. If you need to ask how much you need to fly and spend with United to earn the status…you don’t fly or spend enough.

GS members will also see a new perk start in January — complimentary access to United Club lounges while traveling on domestic itineraries. The perk was already offered on international trips, but by adding it to domestic flights, the top-tier elites can enjoy more complimentary pre-packaged, socially-distant snacks prior to boarding.

Sydney Treating Flights from Melbourne as International

4 In an effort to control the spread of the Coronavirus and respect various border closures within the country, Sydney and the government of New South Wales are treating flights coming from Victoria — the state that includes Melbourne — as international flights when arriving in Sydney.

Sydney is the only airport accepting flights from Victoria right now, but when they land they do not land at the domestic terminal but instead at T1 — the international terminal.

Travelers then go through a similar process to arriving on an international flight including identity checks — but a driver license is enough; passports are not required. Passengers will experience a health screening and are then sent directly to mandatory hotel quarantine. They may not pass GO, they may not collect $200, and they may not leave the hotel.

Once arriving at the passenger-funded quarantine hotel, visitors must ~~bathe in vegemite~~ quarantine for 14 days before being permitted to leave their room.

Air India Express Flight 1344 Crashes

5 Air India Express Flight 1344 crashed on landing Friday night in the Indian city of Calicut (CCJ) after having taken off from Dubai earlier in the evening.

There were 190 people on board the plane including 184 passengers, and six crew. At least 16 died in the crash including both pilots.

Another 46 people were seriously injured and are were transported to local hospitals. There was heavy rain in the area being reported at the time.

Airline Potpourri

Air Europa will be shrinking its fleet by up to 20% in the coming months.
American is returning ~~questionable~~ hot food to its Admirals Club lounges on August 12.
Emirates will resume its service to Toronto/Pearson with 5x weekly A380 service beginning August 16.
Qatar is resuming service to Auckland — via a stop in Brisbane — on August 19.
Ryanair plans to operate up to 60% of its schedule in August that it had planned prior to the pandemic. To see what routes the airline will operate in August, you’ll need to submit a €6.99 schedule revelatory fee to the airline.
SkyUp Airlines is introducing service to Istanbul from its Kiev (KBP) hub.

Andrew’s Moment of Levity

I bought a new sweater on Amazon this week, but when it got here it kept picking up static electricity. I returned to Amazon and they sent me another one free of charge.

August 6, 2020

State Department Lifts Level 4 Travel Advisory

1 The U.S. Department of State lifted its blanket Level 4 travel advisory it had put into place on March 19 indicating Americans should not travel abroad. The State Department typically has a four-level rating system, where 1 means free to travel and 4 means DON’T EVEN THINK ABOUT IT, PUNK.

With the lifting of the blanket advisory, the department is back rating each individual country from 1-4 based on how safe it is for Americans to visit. Most countries are still at Level 3 (reconsider travel) or Level 4 (do not travel). But two countries are back at Level 1: Taiwan and Macau. If you enjoy baseball or gambling, the U.S. says go ahead and pack those bags. Several other locations are listed as Level 2 (Exercise Increased Caution): Antarctica (naturally), Brunei, Fiji, French Polynesia, Mauritius, New Caledonia, New Zealand and Thailand.

Of the nations remaining as Level 4, many are the usual suspects such as Iran, Iraq, North Korea, Somalia, Syria, Detroit, and Yemen. (Ok, ok, not Detroit.) But those nations are joined by more traditional vacation spots for Americans — countries where the virus is still surging — such as The Bahamas, Egypt, India, Mexico, Russia, and almost all the tourist spots of Central & South America. Pakistan remains at Secret Level 8 because…fake pilots.

Keep in mind that just because the U.S. says Americans can travel to these countries, that doesn’t mean these countries will let Americans in. Very few are willing to do that today.

Congress Contemplates Additional Funding for Airlines

2 Sixteen senators on Thursday came out in favor of additional funding for U.S. airlines to support payroll in order to reduce the number of involuntary layoffs and furloughs on October 1.

“In recent weeks several airlines have notified significant segments of their workforces that their jobs could be at risk on October 1, 2020, following the expiration of CARES Act relief,” the senators wrote to Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer. Discussions have centered around getting the airlines through the long, cold winter.

The letter from the group of senators follows a similar sentiment in the House of Representatives where over 200 representatives have come out in favor of additional funding to preserve airline jobs into Spring 2021.

Congress would be well-advised to save time and just plan the next round of funding now, since there is little to no chance the industry will have significantly recovered by next spring if this package is approved. We covered the issue of additional federal funding earlier this week at crankyflier.com.

Mobile, AL to Relocate Commercial Operations Downtown

3 It turns out that the airport in Mobile, AL is, well, mobile. City officials unveiled a plan to relocate commercial flight operations from its current location at Mobile Regional (MOB) to the more convenient Mobile Downtown (BFM) “in a few years.”

The city says that the timeline of the move will “depend on planning, design and construction work for the terminal.” Well, yeah, no kidding. You yada yada’d over the whole thing.

The belief is that the new downtown location for commercial flights will be more attractive to flyers and will drive prices down, attracting discount airlines. What Mobile really means is that it wants service from Allegiant and Spirit. Currently, the city believes it loses 55% of its air service customers to Pensacola and New Orleans. No offense to Mobile, but Pensacola has miles of beaches and New Orleans is…well, New Orleans.

So in summary, at an undetermined point in the future, dependent on cost, construction, and planning, Mobile, Alabama plans to move commercial airport operations from its current airport located 13 whole miles from downtown (DEN laughs at you) to a new downtown terminal. Got it.

Lufthansa Plans to Eliminate Up to 22,000 More Jobs

4 After posting a loss of €1.7 billion in Q2, Lufthansa is warning unions in Germany that it will be shrinking further, likely losing up to 22,000 jobs by the end of the year.

In addition to the job loss, Lufthansa will be reducing its fleet by 100 airplanes while beginning to work on paying back the €9 billion it owes the German government that the airline received as aid to keep it flying during the crisis. Lufthansa offered the government buy one, get one passes to ~~Whenevefest~~ Oktoberfest celebrations this fall as repayment, but the treasury is demanding cash.

Lufthansa has already reduced its workforce by over 8,000 from a year ago, but it still has a long way to go. It also plans to cut up to 20% of management roles to reduce cost. It has also detailed moves to cut 20% of management and 1,000 office posts.

Etihad Sees 99% Drop in Passengers in Q2

5 Etihad posted its Q2 financial report, and the airline lost $520 million in Q2 of 2020, flying 99% fewer passengers than it did in Q2 2019. Even for a state-supported airline like Etihad, that is not sustainable.

Etihad only flew 30,000 passengers in Q2 and brought in a grand total of $440 million in revenue including cargo. The airline was able to cut its expenses by 70%, which is easier to do when you park your entire fleet for weeks at a time.

Airline Potpourri

Aeroflot is delaying the delivery of 10 A350s it has on order.
Air Canada is resuming its Toronto/Pearson to Tokyo/Narita flight with 3x weekly service beginning October 20.
Emirates is ending its flight to Fort Lauderdale.
LATAM is continuing the suspension of its flight to the Falkland Islands through November.
Philippines Airlines has suspended service to and from its Manila hub due to virus spikes in the city.
Ryanair may or may not be banned from flying to Italy due to its COVID protocols.
United was impressed enough by JetBlue’s UV rays used to kill germs in its cabins that United decided to use its own UV lighting to disinfect its flight decks.

Andrew’s Moment of Levity

Anyone want to buy my broken barometer? No pressure.