November 24, 2020

Qantas to Require Vaccination for International Travel

In what may be a preview of the future of air travel, Qantas CEO Alan Joyce said in an interview that the airline expects to require travelers get a COVID-19 vaccination before being allowed to travel internationally.

Qantas has been one of the most conservative airlines in one of the most conservative countries when it comes to allowing international travel. The airline currently isn’t taking bookings from the United States, for example, until at least October 2021.

Though details have not yet been worked out, it’s believed that there will be few exceptions — for example, people who check a can of beer as checked luggage and koalas, since they’re so damn cute.


Hawaiian Ends Seat Blocking on December 15

According to a memo sent to travel agents, Hawaiian Airlines has become the latest to end seat blocking on its aircraft with the removal of capacity caps beginning December 16. This leaves Delta as the only airline to block seats after this year’s holiday season concludes.

Hawaiian had been only selling 70% of available seats on its flights, and it committed to doing that through December 15. With the peak holiday season approaching and studies showing limited transmission of COVID on airplanes, Hawaiian has made the decision to remove the capacity caps.

Those who bought tickets before November 20 expecting middle seats to be blocked can opt to change their seat to the lavatory for social distancing… or request a refund, even if their ticket is non-refundable. Refunds have to be requested by December 2 or regular fare rules will apply.


IATA Predicts Worsening Industry Losses, Appoints New Leader

The irony was not lost on anyone when the airline industry lobbying group International Air Transport Association (IATA) had to have its annual general meeting virtually this week, but, well, welcome to 2020. The group announced its newest leader and put out an updated, weaker forecast for airlines.

IATA’s new forecast predicts losses for 2020 to be $118.5 billion. That’s considerably worse than the $84.3 billion forecast in June. The “good” news is that in 2021, the industry will lose a mere $38.7 billion, much less than in 2020 but still worse than the June forecast of $15.8 billion.

North America will be responsible for the biggest chunk of losses in 2020 with $45.8 billion but in 2021, North America’s $11 billion loss is actually only good enough for second place behind Europe’s predicted $11.9 billion. U.S. airline leaders promised to try harder to put North America back in first place where it belongs.

In other news, IATA has announced that former IAG CEO Willie Walsh will take over as director general next year. Willie is known as a blunt realist who might be expected to shake the stodgy place up a little. Then again, it’s unclear if anyone can actually make sweeping changes at at an old-line organization like IATA.


UK, Ireland Award Airport Slots to New Entrants

United Kingdom and Ireland airport plans for summer 2021 have been released, and at several slot-controlled airports, there will be some new airlines visiting. Those include:

Of course, these are airlines that hope to be flying. If you’d like to bet on Play actually taking a flight, we’ll be happy to, ahem, play along. May the odds be ever in your favor.


United Increases Holiday Bag Fees on Latin Routes

When travelers fly home from the US to Latin America for the holidays, they tend to bring a whole lot of gifts with them. This year, United will be increasing bag fees on some of those heavily-trafficked routes.

TPG reports that on flights to Bogota (BOG), Lima (LIM), Panama City (PTY), Quito (UIO), and San Jose, Costa Rica (SJO), the first bag fee will be $30, the second $100, and the third $200 for travel December 1 through January 15.

Airlines have been known to take the drastic step of limiting or blocking checked bags during the holiday period since they can’t physically accommodate them all. Once they realized, however, that they could actually just charge a lot more for bags to reduce demand while also making a bunch of money, they shockingly changed their plan.


Airline Potpourri

  • Advanced Air Charters will fly from Burbank, Carlsbad, and Hawthorne (near LAX) to Mammoth Lakes during ski season.
  • AirAsia X is hoping to begin losing money by flying airplanes again in early 2021.
  • Delta will add Comfort+ to its A350 aircraft by increasing legroom in some rows and reducing it in others.
  • El Al will fly twice daily from Tel Aviv to Dubai.
  • Love2Fly, a Malaysian startup, has returned its only aircraft to the lessor. If it really does love to fly, it doesn’t show.
  • Pakistan International will lay off a third of its staff, but it’s unclear if any fake pilots are included in the cuts.

Brett’s Moment of Levity

If I keep stress-eating at this level, the buttons on my shirt will start socially distancing from each other.

November 23, 2020

Delta and WestJet Abandon Transborder Joint Venture Plans

Delta and WestJet have withdrawn their application to form a transborder joint venture and will instead settle for continuing their existing relationship as is. In a scathing filing with the Department of Transportation (DOT), the airlines called the pre-conditions required to complete the deal “arbitrary and capricious.”

The biggest roadblock to completing the deal was the DOT’s requirement that the airlines forfeit eight slot pairs at New York’s LaGuardia Airport. In the filing, the airlines pointed out that the forced divestiture would not do anything to offset anti-competitive concerns in the US-Canada market, instead likely just redirecting slots to new entrants in the domestic market.

In addition to the slot issue, the airlines also took umbrage with the requirement that Swoop and WestJet’s parent company be excluded from the joint venture. They were further displeased with the requirement that WestJet be forced to interline with any US carrier that asked, besides United.

The uncharacteristically strong language was immediately flagged by the Canadian politness police as being unbecoming of a respectable Canadian. WestJet will now be forced to personally apologize to every person who reads the document.


UK to Reduce 14-Day Quarantine to 5 Days With Testing

The United Kingdom is planning to reduce quarantine requirements for people coming into the UK from 14 days to 5 days under a new program expected to go into effect before the Christmas holiday season.

Travelers currently subject to the 14-day quarantine will be eligible for parole assuming they test negative on the fifth day after arrival into the country. Rapid tests will be used to speed along the process of getting people out of quarantine and into the local economy.

Despite these changes, those who prefer to sit alone in a far-too-small hotel room eating PizzaExpress delivery for two weeks are welcome to continue to do so.


Alaska Trades A320s for 737 MAX 9s

Alaska Airlines will lease thirteen Boeing 737 MAX 9 aircraft from Air Lease Corporation, and, in exchange, Air Lease will buy ten of Alaska’s unwanted Airbus A320s.

Alaska has been trying to exit the A319/A320 fleet it inherited in the Virgin America acquisition. The A319s are all gone, and after these ten aircraft leave the fleet, only 39 A320s will remain. When these aircraft actually leave the fleet remains to be seen since Alaska will lease them back for a “short period of time” after the transaction closes.

The thirteen MAX aircraft — which will begin arriving in the fourth quarter of 2021 — will complement the 32 that Alaska already has on order from Boeing. The first from that order is supposed to be delivered in January and will go into service in March.

Steven F. Udvar-Házy, executive chairman of Air Lease Corporation, was quoted as saying that he’d happily take 10 junky old A320s if it meant he could find someone to take those MAX aircraft into the fleet. “I’ve been thinking about going into metal recycling business anyway, and these A320s will certainly help provide substantial raw material.”


United Begins Testing Partnership for Caribbean/Latin Travel

United is partnering with Advanced Diagnostic Laboratory to provide a COVID-19 testing option for travelers going from or via Houston into those Caribbean and Latin American countries that require testing before arrival.

The test kits — which cost $119 and are sent via mail — will be made available to travelers going to Aruba, the Bahamas, Belize, El Salvador, Guatemala, Honduras, Panama, and Peru. This will not be available for travelers going to Kokomo, even if that’s where you wanna go to get away from it all.

Testing will be available for flights beginning December 7.


Kenya Airways Suspends Joint Venture with Air France/KLM

Aviation Week reports that Kenya Airways is temporarily pausing its joint venture with Air France/KLM due to a lack of schedule predictability. In other words, Kenya Airways can’t predict when it will start bothering to operate a schedule again.

Kenya Airways and KLM had been in a joint venture for more than twenty years. It was recently expanded in 2018 when Air France joined, though Kenya Airways has suggested in wants to negotiate a better deal.

Kenya Airways has suffered greatly during the pandemic, and regularly suspends long-haul flights as it waits for demand to return.


Airline Potpourri

  • Aegean Airlines will get €120m in state funding, primarily in the form of spanakopita.
  • Air Asia Japan has now officially filed for bankruptcy, as expected.
  • Air India has been banned from flying to Hong Kong for the fifth time, because it keeps flying COVID-19-positive passengers into the city.
  • Azul is getting small… like, really small, with 9-seat Cessna Grand Caravans.
  • British Airways is selling off inflight dishware, utensils, and more for the discerning traveler who really, really misses being on an airplane. Act now and you can get 10 hot towels for only £12.00.
  • Hawaiian has now expanded in-person testing partnerships to Las Vegas, Portland, and Seattle along with a second LA location.
  • Virgin Atlantic is playing the Black Friday game with big discounts and 50% off award travel.

David’s Moment of Levity

Why do melons have weddings?  ‘Cuz they cantaloupe.  

November 11, 2020

Singapore & Hong Kong Finalize Plans for World’s First Travel Bubble

Hong Kong and Singapore will launch the world’s first true travel bubble on November 22. The bubble will replace travelers having to endure required quarantine. Proof of a negative test will allow for hassle-free and quarantine-free travel for all visitors, regardless of the reason for travel.

Both Cathay Pacific and Singapore Airlines will operate several weekly flights — upping that to daily beginning December 7 — that are a part of the new bubble. Up to 200 passengers will be permitted on each flight that is considered in the bubble, and no connecting passengers will be allowed. Travelers must have been in Hong Kong or Singapore for at least 14 days before departure.

Application to travel in the quarantine-free bubble must be made seven days prior to departure. It requires a negative test to be taken within 72 hours of departure. Should travelers fall ill while away from home, they would be personally responsible for the cost of any medical treatment in addition to extended accommodations. They will also be showered with shame at no extra charge.


Alaska Wins DOT Approval For Foreign Carrier Stopovers

The State of Alaska has won approval from the federal government to allow stopovers by foreign airlines carrying passengers en route to the rest of the United States. The state has had DOT permission to do so for cargo since 1996 but just received permission to apply the same rule for human cargo passenger flights.

What it means in reality is that an airline operating from Asia can stop in Anchorage or Fairbanks and let passengers off and then pick them up days later to transport them to their eventual destination — if the passengers so choose. They can operate a hub that would carry travelers between Asia and the other 49 states, opening up more short-haul options for Asian airlines to feed their flights into Anchorage. What the airlines cannot do is violate cabotage , meaning the foreign airline could not sell and transport passengers solely between two U.S. destinations. 

Passengers arriving in Alaska on the foreign carrier would of course still clear U.S. Customs & Immigration upon arrival in Alaska since that would be their first stop in the country. It remains to be seen if any airline would dare try to implement this plan. We’d bet not.


Rex Moves Closer to Full-Service, Confirms Business Class Offering

Rex, the regional carrier in Australia that is expanding to full-service in an attempt to challenge Qantas & the carcass of Virgin Australia, confirmed on Wednesday that it will offer a business class offering on-board its newly-acquired aircraft.

The airline secured its new Boeing 737 fleet from Virgin Australia’s creditors during VA’s administration earlier this summer at deeply discounted prices. Speculation was rampant Down Under as to whether or not the airline would keep the business class seats on the planes or retrofit to an all-economy fleet which we’re told is all those Aussies deserve anyway.

Rex did confirm that it would offer the premium class in order to up its offering to compete with Qantas on the bloodbath that is Australia’s triangle routes between Melbourne, Sydney, & Brisbane. 

In addition to the premium class, Rex is also planning to ramp up its route network, with service to every capital city across Australia, using a network of 40 jets. Rex will have six aircraft in its fleet by April when Brisbane will join the route network. It then hopes to have 40 by 2022 providing a wide-network of flights all over the continent.


Cathay Pilots & Cabin Crew Agree to Lower Wages

An overwhelming majority of pilots and flight attendants at Cathay Pacific have agreed to reduced wages in exchange for the airline guaranteeing no further job cuts.

98.5% of pilots and 91.6% of cabin crew agreed to the new contracts which will allow the airline to reduce significant cost as it attempts to remain operating while the pandemic rages on. For the small number who declined the new offer the airline told them don’t let the door hit you on the way out offered what it described as a generous severance package that includes any unpaid leave taken in 2020.

The new contracts cut salaries and benefits by anywhere from 20% to 60% per employee but will save their jobs. The savings allow Cathay to reduce its monthly cash burn by $65 million. The airline has committed to not seeking any further bailouts or job cuts through 2022. 


Pakistani-Based Airlines Face Worldwide Ban

The more things change…the more Pakistan has fake pilots. The International Civil Aviation Organization (ICAO) is exploring banning all Pakistani-based airlines and their pilots from operating to or in any of the 188 countries the that are members of the organization.

This time, the ire of ICAO (say that ten times fast) is not just directed at Pakistan International Airlines, the official airline of Cranky Daily. The UN-based organization also has set its sights on Airblue and SereneAir, the two other international airlines in Pakistan for perhaps being…a little loose with their pilot certifications as well.

Shockingly, ICAO has determined that the issue with shady and fake licenses for pilots in the country goes beyond just the pilots terminated by PIA earlier in the summer. PIA had completed an “investigation,” announcing that the problem had been snuffed out and eradicated. To the surprise of many no one, that does not appear to be the case.

If ICAO’s ban is finalized, Pakistani airlines would be restricted to domestic routes only. PIA operated to 23 international destinations prior to the pandemic and its subsequent ban from operating in the EU.


Airline Potpourri

  • Air Asia posted a $66 million lost in Q3, and the airline plans to operate 96% of its 2019 Q4 schedule during Q4 2020.
  • easyJet has completed a sale and leaseback on 11 of its A320 aircraft to two different lessors to raise $170 million in cash.
  • Embraer posted a loss of $148 million in Q3.
  • Iberia Express will operate a limited, holiday-only service from Newcastle (NCL) to Madrid, Lanzarote (ACE), and Gran Canaria (LPA). The flights will be full of drunk holiday-goers and will operate from December 26 through January 3.
  • Jeju Air is set to receive $170 million in aid from the Korean government.
  • Jet2 is opening a base at Bristol Airport (BRS), it’s 10th UK base.
  • Qantas plans to re-open most of its domestic lounges by December 2.
  • Qatar is resuming service and increasing frequencies to nine destinations in the next month including Chicago (9x-weekly service beginning November 15), Miami (2x-weekly service beginning November 14), and New York/JFK (2x-daily service beginning November 14).

Andrew’s Moment of Levity

I had a very happy childhood. My siblings used to put me in tires and roll me down the hill on our street. Those were Goodyears.

October 2, 2020

United Previews Anemic November Schedule

1 United will be filing its November schedule plans this weekend, and it has given a sneak preview of what will be rolled out. There is only modest growth compared to October, but that growth comes primarily in sun destinations as the US heads toward a long, cold winter.

The November schedule will see United operate 49% of its domestic schedule and 38% of its international schedule leading to a combined total of 44% versus last year. That is a slight increase over the 40% operated in October.

Look for a lot more Florida flying along with hot spots Redmond/Bend (OR), Boise, and Palm Springs. (This is likely the first time in recorded history that Boise has been called a hot spot.) There will also be limited international growth including a return to Santiago and Rio de Janeiro.

For more, visit crankyflier.com on Monday morning.


Delta Grounds A220s Due to Crew Shortage

2 Delta has sent nine of its fleet of A220s into storage, because it doesn’t have enough trained crew to fly the airplanes. Previously, Delta had been flying all of its A220s, seeing the small, efficient aircraft as ideal for the lowered demand during the pandemic.

Reports that the entire fleet was grounded have proven untrue. Delta spokesperson and perfectly-named future soap opera star Drake Castañeda explained in an email:

Based on adjustments we’ve made to our network and pilot staffing plan due to the impact of the pandemic and the time it takes to retrain pilots to new fleet types, we will temporarily park a portion of our Airbus A220-100 aircraft. There will be no impact to customers or changes to our current network schedule as we will shift A220 flying to other aircraft.

What Drake didn’t say is that Delta will reactivate some old DC-3s it found in the corner of the Monroe airport, so passengers may see a slightly degraded level of service until A220 pilot training is completed.


ExpressJet Flies for the Last Time

3 Wednesday marked the last day of operations for ExpressJet. The airline had most recently been flying solely as United Express, but United opted to consolidate its Embraer regional jet flying with Commutair, leaving ExpressJet as the odd man out.

ExpressJet began life in the 1990s when smaller regionals were bound together as Continental Express. Later in life, Continental spun off ExpressJet and it even flew under its own brand as a small-scale Southwest-style operation for a time. ExpressJet merged with Atlantic Southeast under SkyWest’s ownership until it was sold to a company partially-owned by United in recent years. Perfectly clear, right?

ExpressJet’s last flights all descended on Houston in two waves on Wednesday. The larger first wave arrived early in the morning with barely a half dozen in the final wave getting to Houston in the early afternoon. The final flight to land, ExpressJet 4001, arrived from Memphis at 1:24pm.

Over the last couple weeks, ExpressJet has been sending airplanes primarily to Knoxville and Kingman (AZ) to be turned into beer cans for storage.


Emirates Fined $400,000 for Flying Over Iran

4 Emirates has been slapped with a $400,000 fine for flying between the US and Dubai over Iranian airspace. Though Emirates says this punishment is unwarranted, it agreed to pay the fine.

It seems odd that the US government would be able to dictate flight paths, but thanks to a loophole in the Fly America Act, it had jurisdiction. Fly America requires those traveling on government business to fly on an American airline unless there is no option to do so. With no US airlines serving Dubai, JetBlue partnered with Emirates to sell seats under the JetBlue code on an Emirates flight so it could get the government contract.

When the US government banned overflights of Iran due to safety concerns, Emirates kept on chugging along. Now it has to pay.


Ryanair May Be Looking to Buy More MAX Aircraft… Or Not

5 A report out of Ireland suggests that Ryanair is looking at adding to its existing order of Boeing 737 MAX aircraft with an additional 150 to 200 airframes, but not everyone agrees.

Ryanair CEO Eddie Wilson told Reuters that the airline’s priority now is simply to get its existing order for 135 aircraft flying. It also has options for 75 further aircraft on the books. That being said, Ryanair has always been one for a good deal.

The list price of a 737 MAX 200 (the high-density version of the 737 MAX 8) hovers around $125 million, but no airline ever pays list price. Things are so bad for Boeing right now that Ryanair must be salivating at the idea of knocking the price down to previously-unheard of levels.


Airline Potpourri

  • American has expanded its testing program for flights to Costa Rica… for those people Costa Rica will allow in.
  • Berlin Brandenburg Airport has received its operating permit, meaning it may actually open later this month after a decade of delays.
  • Green Africa, a Nigerian start-up, has delayed launch until early 2021.
  • Oman Air and Salam Air — both from Oman — have signed a codeshare agreement.
  • Philippine Airlines will cut 35% of its workforce.
  • ProFlight Zambia has begun regular international operations again with flights from Lusaka to Johannesburg.
  • Ukraine International will resume flying nonstop to New York next spring.

David’s Moment of Levity

When life gives you melons, you’re dyslexic.

May 30, 2020 – Special Edition

Welcome to a special Saturday edition. Why are we posting today? Well, we told you about Southwest’s cuts yesterday but boy, were we off. Now that Diio by Cirium has been updated with the details, we were able to dive in. This is a whole lot more involved than the cursory look we had yesterday, and we want to set the record straight for you as quickly as possible.

Southwest’s Cuts Are Broader Than Reported

Southwest’s route cuts are much more complicated than we originally said yesterday. There are several routes, including Cincinnati to Phoenix and Dallas to Pensacola, that only operate a couple days around Thanksgiving. There are others, like Boston to Orlando and Dallas to Seattle, that operate once weekly but only through December 12. Then they disappear.

Really what we’re looking at here is a tale of two schedules. There’s one before December 17 and then another after. On that day, Southwest is scheduling the return of the 737 MAX to the skies. With it comes an increase in daily flights from 3,770 to just over 4,000. Some routes that temporarily disappear before that, like El Paso to Los Angeles and Charleston to Denver, return on December 17.

Below you’ll find a list of routes that are gone the entire time with one exception. If they are scheduled to operate only for 1 or 2 days around Thanksgiving, we’re considering them canceled for the purpose of this list.

Note: We have tried to report the disappearing markets by the primary city impacted, but in some cases, we’ve reported it twice. For example, Baltimore saw many long-haul cuts while San Jose saw broader cuts, so we included the loss of Baltimore – San Jose under both cities. Those with * are ones we reported yesterday.

  • Atlanta – Los Angeles*/Oakland*/San Diego
  • Baltimore – Sacramento/Salt Lake*/San Jose*
  • Boise – Spokane*
  • Boston – Columbus*/Dallas/Houston*/Milwaukee
  • Charleston – St Louis
  • Cincinnati – Orlando/Phoenix
  • Cleveland – Dallas/Milwaukee*/Ft Myers/Tampa
  • Denver – Lubbock*
  • Houston – San Juan
  • Indianapolis – Austin/Chicago*/Los Angeles/New Orleans
  • Islip – Tampa
  • Kansas City – Ft Myers
  • Las Vegas – Detroit/Ft Lauderdale*
  • Milwaukee – Boston/Cleveland/Los Angeles
  • Nashville – Buffalo/Ft Myers/Norfolk/Omaha
  • Panama City – St Louis
  • Pensacola – Chicago/Dallas
  • Portland – Burbank*/Kansas City/Los Angeles*/Ontario*/San Diego*
  • San Antonio – Albuquerque/Oakland
  • San Diego – Atlanta/El Paso*/Honolulu/Omaha*/Orlando*
  • San Francisco – Ontario*
  • San Jose – Albuquerque*/Baltimore*/Reno/Salt Lake*/Tucson*

In addition, we reported the following route closures which aren’t actually closing:

  • Charleston – Houston (weekly through December 13)
  • Raleigh – Ft Lauderdale/Las Vegas (latter takes a break from daily service Nov 1 – 11)
  • Tampa – Albany/Hartford/Manchester

May 21, 2020

Oops, Our Bad
In the first story yesterday, we mistakenly said that United capacity would be down 90% in April/May and 75% in June. It was actually 90% in May/June and 75% in July. Also, American’s capacity cut of 70% is only for June.

Air France Retires the A380 While Emirates Tries to Cut Orders

1 The monstrous Airbus A380 had already proven to be a sales dud before the pandemic struck, but now its demise is being hastened, at least with Air France and to a lesser extent, Emirates.

Air France originally had 10 A380s, and now none of them will fly in that dirty white-ish livery again. The airline will now immediately retire the full fleet and replace them with A350 and 787 deliveries. The Air France A380 was scheduled on Paris/CDG flights to Abidjan (ABJ), Atlanta (ATL), Johannesburg (JNB), Los Angeles (LAX), Mexico City (MEX), Miami (MIA), New York/JFK, Shanghai/Pudong PVG), and Washington/Dulles (IAD) this year.

Meanwhile, Emirates — by far the largest and most enthusiastic operator of the type — is trying to get out of its final five orders. This doesn’t indicate the fleet will be retired soon, but it’s just a reflection of every airline’s desire to have less capacity.

Most other airlines have grounded part if not all of their A380 fleets during the pandemic, but most have not indicated whether they will return. Lufthansa, previously an operator of 14 of the type, appears to be an exception. It is poised to return only half the fleet to service operating solely from Munich.


Delta to Begin Cape Town Flights Out of Necessity

2 Last week we told you that Delta was retiring its 777 fleet and would use A350s instead. That left the airline’s four longest flights — Atlanta (ATL) to Johannesburg (JNB) and Shanghai (PVG), Los Angeles (LAX) to Sydney (SYD), and New York/JFK to Mumbai (BOM) — in a state of flux due to A350 range limits.

Now as first noted by Edward Russell at TPG, we’ve learned Delta plans to three of those routes with the A350 as scheduled. The fourt, ATL to JNB, however, is just too far. To clarify, it’s actually the return from JNB — an airport that rests at over 5,000 feet — that’s causing problems, so Delta has a new plan.

The airline’s solution is to add in a stop in Cape Town (CPT). In a DOT filing, Delta outlined plans to fly ATL to JNB, then on to CPT, and back to ATL from October 24 of this year. CPT is 300 miles closer to ATL than JNB and it’s at sea level, so range is much less of an issue. Those who want to go to JNB may not appreciate the stop, but the many people who want to visit CPT will now have a new option.


EasyJet, Volotea Begin to Ramp Up for Summer

3 Unlike in the U.S., European airlines cut back and even suspended operations entirely during the pandemic. Low-cost carriers are now starting to show signs of life as we roll into the summer season.

UK-based easyJet will end its shut down on June 15, primarily with domestic flights in the UK and France. The airline even dared to use the “p” word by saying, “A small number of flights will restart on routes where we believe there is sufficient customer demand to support profitable flying.”

When easyJet restarts, it will have a few changes to its service pattern:

  • Customers and crews will be required to wear masks
  • Enhanced cleaning and disinfection of easyJet aircraft
  • Availability of disinfectant wipes and hand sanitizer onboard
  • No onboard food service to start

Meanwhile, Spain-based Volotea will start flying again as it ramps up its plans for summer. It is planning 40 new routes in France, Greece, Italy, and Spain. Its focus is on domestic growth this summer since that’s where the most likely travel opportunities lie.


Delta Using Downturn in Travel to Accelerate Renovation at Hubs

4 In a small consolation to the dramatic downturn in demand, Delta is attempting to use its time wisely, accelerating the timetable to open new terminals at two of its hubs: Los Angeles (LAX) and Salt Lake City (SLC).

In Los Angeles, Delta’s massive rebuilding of Terminal 3 and renovation of Terminal 2 could be finished as much as 18 months earlier than planned with completion as soon as the second half of 2022. Delta is creating one unified terminal which will also be connected to the Bradley Terminal behind security for easy access to partner airline flights.

Delta is so proud of this terminal complex that it has given it a name, the Delta Sky Way. Our alternate proposal to call it Terminal 2.5 was hastily dismissed.

Meanwhile, Salt Lake City is essentially building a new airport on the same footprint as the current airport, with the project being cleverly named “The New SLC.” The current SLC serves more than 26 million passengers a year in a disjointed layout designed in the 1960s that was intended to serve half as many travelers.

The first phase, scheduled to be completed this fall will include a new Delta Sky Club coming in at 27,000 sq. ft. plus a 2,000 sq.ft deck. Phase two of The New SLC was not supposed to be complete before 2024, but Delta now believes it could come online as soon as 2022.


The Bright Side: Greece to Reopen for Tourists June 15

5 Greece’s tourist season will begin on June 15 with the opening of seasonal hotels and the arrival of the first foreign visitors. International flights will begin heading directly for holiday destinations gradually as of July 1.

The Greek government will release a list of countries whose citizens will be permitted to travel into Greece by the end of May. The selection will be based on “epidemiological criteria” as determined by Greece’s committee of experts dealing with the pandemic.

Balkan and Baltic countries, Germany, and regional countries such as Israel and Cyprus are expected to be in the first wave of those whose citizens will be allowed to enter the nation.

Athens International Airport (ATH) will be open for international visitors as soon as June 15 with other airports targeting a July 1 opening.

Greece will not subject visitors to any required quarantine or testing but will reserve the right to test visitors on an individual, as-needed basis. Worry not, travelers, as anyone entering Greece suspected of having COVID-19 symptoms will be instructed to down a hearty-sized bottle of ouzo and shout “WHOOOOOOO!,” the combination of which is known by locals to kill all germs — good and bad — in its path.


Airline Potpourri

  • Boutique Air is adding service to its first new city in two years, taking over Essential Air Service to Gogebic-Iron County Airport (IWD) in Ironwood, MI from Air Choice One.
  • China Eastern has extended its US cancellations through June 30. Until then, only a weekly flight from JFK to PVG will operate.
  • Condor will resume service to 29 destinations from eight German airports beginning June 25.
  • EgyptAir has requested authorization to resume service to Washington/Dulles (IAD) once Egypt and the United States reopen their borders to each other.
  • El Al has pushed back its resumption of service to June 20.
  • JetBlue will not book any passengers into middle seats through at least July 6.
  • LOT Polish Airlines announced it will resume domestic flight operations on June 1.
  • Lufthansa is close to securing a bailout package from the German government worth $10 billion.
  • Scoot — the low-cost subsidiary of Singapore Airlines — will bring back mainland China service in June with a weekly flight from Singapore (SIN) to Guangzhou (CAN).

Andrew’s Moment of Levity

I read a Yelp review this morning for a new restaurant that’s actually on the surface of the moon. Great food, but no atmosphere.

May 20, 2020

U.S. Airlines Show Moderate Upward Trend in Bookings

1 Major U.S. airlines are seeing a modest bump in bookings for summer 2020 and even earlier — nothing like last year, but a positive trend during a time that has been devoid of good news for airlines.

American Airlines is expecting a 35% load factor in May which is a marked improvement from the 15% load factor it ran in April. After slashing 80% of its April and May capacity, the airline will slash “just” 70% for the coming summer months June.

As we reported yesterday, Delta is adding about 100 flights back to its schedule next month to increase onboard capacity. Delta is also seeing a positive trend for June & July bookings. The caveat is that the airline continues to offer no change fees which brings into question whether or not passengers will actually fly what they’ve booked.

Southwest is also seeing some strength with load factors between 25 and 30%. This is good news since Southwest has cut flying less than others, so it demonstrates significant passenger numbers.

United will “only” be cutting capacity in June July by 75%, an improvement from the nearly 90% cut it has endured in April and May and June. Like everyone else, nearly all of United’s near-term focus is on the domestic market, but the airline is seeing an upward trend for its bookings in Latin America. United plans to run approximately 20% of the international operation it ran last summer, with much of it being fueled by cargo, not passenger traffic.


United Brands Its Cleaning Process as CleanPlus

2 First there was Delta Clean, then there was the Southwest Promise, and now we have United CleanPlus. United has announced that it is bundling together all of its new cleaning/distancing procedures into one neat package under the CleanPlus brand. As part of this, United will partner with Clorox for cleaning products and the Cleveland Clinic for guidance on policies and procedures.

United CEO, Scott Kirby said “We recognize that COVID-19 has brought cleanliness and hygiene standards to the front of customers’ minds when making travel decisions, and we’re not leaving a single stone unturned in our pursuit to better protect our customers and employees.”

Most of this appears to be a marketing effort for the robust initiatives that are already in place, though a couple of the inclusions appear to be new. Most notably, United said that starting this Friday, coach passengers flying more than 2 hours and 20 minutes will no longer have a beverage/snack service. Instead, they will receive a snack bag that includes wrapped sanitizer wipe, an 8.5 oz. bottled water, a Stroopwafel, and a package of pretzels.

This leaves American as the last of the big four to not brand its cleanliness programs. We suggest CleAAn AAdvantage.


Scott Kirby Officially Takes the Helm as United’s CEO

3 It’s been a long time coming, but today Scott Kirby officially ascended to the role of CEO of United Airlines. Previous CEO Oscar Munoz has become the Executive Chairman of the Board while Brett Hart moves into Scott’s old position as President.

In his first official public communication as CEO, Scott tried to strike an uplifting tone. That contrasts with many of his most recent communications that are known for being truthful and realistic… but also gloomy. Scott has already been shepherding United through the COVID-19 crisis, so no transition hiccups are expected.

For Oscar, this marks the end of a turbulent but mostly positive time as United’s CEO. He is widely credited with steering the airline’s culture in a positive direction for the first time in years, if not decades. This was more remarkable considering that shortly after taking over, he had a heart transplant and was forced to sit on the sidelines for a surprisingly short time. His tenure was not without trouble. Most notably, the Dr Dao incident and the ensuing fumbled response set back his turnaround efforts, but his tenure will undoubtedly be remembered for the positive impact he had.


Qatar Cabin Crew to Wear Hazmat Suits

4 In order to protect its employees and improve passenger confidence, Qatar will have its on-board crew wear full personal protective equipment (PPE).

For the foreseeable future, Qatar cabin crew will wear hazmat suits over their uniforms, along with safety goggles, gloves, and masks during flights. There appears to be no truth to the rumor that, in a partnership with Intel, Qatar will have cabin crews break every hour to sing along and dance to “Play that Funky Music.”

Crew on Qatar have been wearing masks or face coverings on-board for several weeks now, and the airline will require the same of its passengers beginning this Monday, May 25.

Additionally, further new protective measures include serving business class meals on a tray with a cutlery wrap offered to passengers rather than individual cutlery service. Large bottles of hand sanitizer will also be placed in the galleys for all to use, and everyone is asked to adhere to social distancing guidelines on board, as if that were possible.


Etihad Flies Historic Aid Flight to Tel Aviv

5 Etihad flew from Abu Dhabi to Tel Aviv on Tuesday on a plane loaded with virus aid for Palestinians. The flight is the first known commercial flight between Israel and the UAE.

The United Nations coordinated a 16-tonne shipment of “urgent medical supplies” from the UAE to help curb the spread of COVID-19 in the Palestinian territories, according to a statement from the United Nations Special Coordinator for the Middle East Peace Process (UNSCO).

“The aid includes personal protective equipment (PPE) and medical equipment. Most notably, it includes 10 ventilators that are acutely needed,” the statement added.

The sensitive nature of relations in the Middle East meant that special precautions had to be taken. Painted all white and lacking any visible Etihad logos, the aircraft bore the letters YP on its front landing gear doors, consistent with an Airbus A330-200 with the Emirati registration A6-EYP. This is just a one-off event, but thawing diplomatic relations could lead to further flying down the road.


Airline Potpourri

  • Alitalia will bring back long-haul flying on June with the return of a Rome to New York/JFK flight. It will also re-start flying from Rome to Spain and from Milan to Southern Italy.
  • EasyJet was a hacking victim, or rather its customers were, with nine million of them having some portion of their data breached.
  • LATAM will be laying off 1,400 staff in Chile, Colombia, Ecuador and Peru.
  • Norwegian lives to see another day. Now that its recapitalization plan is complete, it has accessed the state funding offered by Norway.
  • Singapore posted a full-year loss of $149 million for its fiscal year that ended March 31, the first full-year loss in the nearly 50-year history of the airline.
  • South African received another lifeline from the government as it waits for a rescue plan to magically appear.
  • Turkish has extended its shutdown of domestic flights until June 4 with international flights suspended until June 10.

Andrew’s Moment of Levity

I started losing hair when I was a senior in college, and I was nearly completely bald by 30. I still carry a comb around in my pocket, I just can’t part with it.

April 28, 2020

Help us determine our future!
Take this short, four-question survey
Please.


Delta Decimates Summer Seasonal Flying to Europe While United Trims Further

1 American already made its big summer cuts and United did as well, but now Delta has joined the game by scrubbing 28 European routes from the schedule for the rest of the year according to Diio by Cirium data. If you’re hoping to visit Europe this summer on Delta, get ready to spend some time in Amsterdam or Paris.

The cuts focus on four main areas.

  1. Atlanta (ATL) loses 6 routes to Barcelona (BCN), Dublin (DUB), Madrid (MAD), Milan/Malpensa (MXP), Venice (VCE), and Zurich (ZRH). Except for VCE, all of these will maintain service from New York/JFK to keep them in the network. DUB also has a Boston (BOS) flight.
  2. Boston (BOS) loses most of its routes including Edinburgh (EDI), Rome/Fiumicino (FCO), London/Gatwick (LGW), Lisbon (LIS), and Manchester (MAN). LGW and MAN will not see another Delta flight this year from anywhere while the rest continue to be served from JFK. FCO also keeps an ATL flight.
  3. New York/JFK will lose most of the leisure-focused, summer routes it has. That includes Berlin (TXL), Copenhagen (CPH), Glasgow (GLA), Keflavik (KEF), Lagos (LOS), Nice (NCE), Prague (PRG), Shannon (SNN), and Venice (VCE). With the exception of LOS which will continue to be served from ATL, these cities lose all Delta service for the rest of the year. This includes KEF which will also not see its Minneapolis/St Paul (MSP) flight operate.
  4. Secondary cities in the US that were connecting to partner hubs in Europe will lose service. This means no flying to Amsterdam (AMS) from Orlando (MCO) or Tampa (TPA), to London/Heathrow from Portland (PDX), or to Paris/CDG from Indianapolis (IND) or Salt Lake City (SLC). 

Detroit sees minor cutting with FCO and Munich (MUC) disappearing in addition to the rest.

As for United, it will not operate from Newark (EWR) to Naples (NAP), Oporto (OPO), or Venice (VCE) this year. It will also cancel Washington/Dulles (IAD) to Lisbon (LIS). EWR to LIS flights will operate but on a shortened summer schedule.


JetBlue First to Require Masks for Passengers; Delta & American to Do Same for Staff

2 Beginning Monday, May 4, JetBlue will require all passengers to wear masks or face-coverings for their entire journey starting at check-in, with small children exempt. JetBlue is the first US carrier to do this since Virgin America’s controversial plan to require unattractive people to hide their face in shame.

JetBlue staff have been wearing masks since earlier this month, and this measure will look to continue to slow the spread of the virus on-board JetBlue aircraft. Look for other airlines to eventually follow.

In the meantime, Delta will join the list of carriers requiring its staff to wear masks when social distancing is not possible beginning Tuesday, April 28. The edict is in place through June 30. Delta also intends to make masks available for customers at ticket counters, gate areas and on-board if requested. 

American is doing the same as Delta and will implement its policy beginning May 1.  American will require flight attendants to wear masks and will distribute masks and sanitizing masks to passengers on an as-needed and as-available basis.

When asked for his thoughts on the idea of widespread face coverings, Wilson, who has been Tim “The Toolman” Taylor’s neighbor for years, had no comment.


A Spirited Plea to Drop Six Large Hubs

3 If at first you don’t succeed, ask DOT to reconsider. If at second you don’t succeed, ask DOT again but come armed with facts and precedent.

Spirit is back again asking for relief of service obligations to six so-called “large hubs” around the country, and it’s attempting to use DOT’s own logic to bolster its case. DOT relieved Cape Air of its service to New York/JFK when it stated that “both the carrier’s small marketshare (less than 10%) and that the airport was a large hub and therefore enjoyed ‘abundant service’ from larger operators.”

Spirit is making the point that DOT’s own thought process applies to itself at six major airports: Charlotte (CLT), Denver (DEN), Minneapolis (MSP), Phoenix (PHX), Portland (PDX), and Seattle (SEA). Spirit has less than 10% market share at each airport (and in some instances, significantly less than 10%), and each airport is a hub for at least one major airline. None of these airports would likely suffer from losing service from Spirit in the best of times, but there’s no doubt that’s the case today.

What DOT chooses to do is anyone’s guess, but Spirit has seemingly backed the department into a corner here using its own logic against it.  


Lugano Airport to Be Liquidated

4 It’s not often you see an airport go under, but that’s what’s happening in Switzerland. Lugano-Agno Airport (LUG) will be closing and the assets of the company that owns it will be liquidated.

The airport is located in the southeast of Switzerland, approximately 40 miles north of Milan. It had one regularly-scheduled, year-round route, to Zurich on Adria Airlines on behalf of SWISS. That route went away last fall when Adria went into bankruptcy and ended operations. The airport currently has seasonal service on Czech-based Silver Air (not to be confused Florida-based Silver Airways) to two Czech cities, but both those routes are suspended indefinitely due to the virus outbreak.

This doesn’t mean the airport will go away. Instead, the locals will be looking for a new owner to step in. In the meantime, the airport will retain a skeleton staff in order to remain open for private air traffic.


The Bright Side: Kazakhstan and Fiji to Resume Domestic Operations

5 As air travel ever so slowly climbs out of hibernation around the world, two nations are ready to resume limited domestic service after having suspended all operations.

Air Astana, the national carrier for Kazakhstan will resume domestic operations this Friday, May 1 with 3x daily service from Almaty (ALA) and Nur-Sultan (TSE).

Fiji Link, a subsidiary of Fiji Airways will also be resuming domestic service in the next week. Flights will operate from Nadi (NAN) and Suva (SUV) to Taveuni (TVU) and Savusavu (SVU) 3x weekly, with one weekly flight from Nadi and Suva to Kadavu (KDV), Vanuabalavu (VBV), Cicia (ICI), Koro (KXF), and Lakeba (LKB).


Airline Operation Potpourri

  • American moved up the time passengers need to be at the gate by 15 minutes — passengers need to be present 30 minutes prior to domestic flights and 45 minutes for international.
  • Air New Zealand is slowly ramping its domestic operations back up, now serving seven routes, including four from its Auckland hub.
  • Bamboo Airlines suspended international operations through September 30.  The Hanoi-based airline will resume service to Kaohsiung, Taiwan (KHH) on October 1, with Prague (PRG) following on October 3 and Seoul/Incheon (ICN) on October 6.
  • Fuji Dream Airlines will be suspending all flights through May 17.  
  • Japan Airlines will be blocking middle seats and requiring passengers to wear a mask on all flights for the indefinite future.
  • Turkish has extended its flight suspension until May 28.

Andrew’s Moment of Levity

As the quarantine rolls on towards its third month, I’ve taken up gardening as a stress reliever and a way to pass the time. I felt like it would be a chance to really brighten the yard, so I planted several bulbs.

April 27, 2020

DOT Exemptions: Sun Country’s Endless Summer Sounds Better than Frontier’s Winter of Discontent

1 Both Frontier and Sun Country are ultra-low-cost carriers, and both airlines made big requests for exemptions from DOT minimum service guarantees. You’d think they’d be treated the same, but the results couldn’t be more different. Sun Country saw 24 of its 25 exemption requests approved while Frontier only had 3 of its 34. Why? It appears to be an issue of seasonality.

Sun Country chose to use its summer schedule as a baseline, and DOT found that reducing Sun Country’s obligations for a couple months would be just fine. The airline can suspend service until June 21 in Baltimore (BWI), Boston (BOS), Chicago/O’Hare (ORD, Dallas/Ft. Worth (DFW), Denver (DEN), Honolulu (HNL), Los Angeles (LAX), Nashville (BNA), Newark (EWR), Portland (PDX), San Diego (SAN), San Francisco (SFO), Seattle (SEA) and St. Louis (STL). It can also delay seasonal service starts until June 21 in Anchorage (ANC), Austin (AUS), Madison (MSN), Sacramento (SMF), San Antonio (SAT) and San Juan (SJC).

Then, in one final victory lap, DOT granted Sun Country the authority to reduce service from 3x weekly to a sole weekly flight in Las Vegas (LAS), Orlando (MCO) and Phoenix (PHX). The only loss the airline took was that its request to reduce service to Ft. Myers (RSW) was denied. 

Meanwhile, Frontier chose to use the winter schedule as its baseline, and DOT shut the airline down despite the similarity of its requests to Sun Country. For example, Sun Country asked and was granted the right to delay service to Madison until June 15. Frontier asked and was denied the right to delay service to Madison until June 10.

Frontier was granted an exemption to suspend service through June 10 to four locations: Boston (BOS), Charlotte (CLT), Detroit (DTW), and Providence.  It was also allowed to remove Portsmouth, NH (PSM) from its obligations as Frontier had ceased service to Portsmouth last summer. This feels like a pretty sad consolation prize.


United Fails to Convince DOT With Most Exemption Requests

2 United had asked DOT to approve exemptions for 22 cities, but it only received approval for the 7 that were expected. All flying to Hawaiian neighbor islands, Puerto Rico, and Saipan have been exempted. That’s in line with the requests of those locations as approved for other airlines since visitors are not welcome.

The one outlier was Fairbanks in Alaska which can be delayed until July 6 per the summer seasonal plan. This lends further credence to the idea that DOT is punishing those who chose the winter schedule baseline.


Argentina Won’t Allow Flights Until September 1

3 Proving once again its dysfunctional nature, Argentina has made the strange decision to not allow any tickets to be sold on flights to/from/within Argentina until September 1. A Reuters article suggests that no tickets can be purchased until September 1 regardless of when travel occurs, but local airlines appear to be selling tickets for travel in September now.

A check of Aerolineas Argentinas, LATAM, JetSMART, and Flybondi websites all show flights for sale from September 1. Flights have been largely suspended since Argentina shut down entry into the country in March.

This decree was made due to the uncertainty about when travel could safely resume. Instead of simply allowing airlines to book and requiring refunds be given if cancellations occur, Argentina has instead decided to simply ban all flights. This means Argentina can now proudly say that its actions can even make Norwegian’s previous strategic decisions look good. Norwegian, remember, sold its Argentinian operation previously and got out of the country.


Big 3 US Airlines Begin to Sit Entire Fleets

4 With the prospect of reduced demand extending further and further into the future, airlines have begun working to figure out the best ways to shrink their airlines for the foreseeable future, and in many cases that means parking entire fleet types.

American kicked things off when it grounded its 757 and 767 fleets. The 767s are retired for good while it’s highly likely the 757s will never come back to serve the airline.

Delta has already announced its MD-88s will be retired by the end of July with the MD-90s not far behind. Now it says it will sit its A320s and 737-900s until demand returns. The A320s are one of the older fleets at the airline, so a return is less likely than for the brand new 737-900s.

Meanwhile, United has canceled all 757 and 767 flying from May 4 through early June. Unlike American which was planning to phase these out, United has been investing in these airplanes recently. It has many 767s with brand new interiors including expanded Polaris sections. It just began refitting its 757s as well. In May, the airline is also not scheduling flying on the A320, 737-900, or 777-300ER.


The Bright Side: New Connections For Your Airport as Airlines Struggle with CARES Act Rules

5 In order to comply with government requirements to meet minimum service levels for CARES Act funding, both JetBlue and Spirit are following Alaska’s lead and getting creative. They are all using tag flights to link multiple destinations together in a chain. That may be good news for those of you who actually would use some of these strange routings, though in many cases, the flights aren’t bookable on their own.

JetBlue will be pairing up nearby cities to operated together on service to and from its focus cities.  Examples includes New York/JFK service to Seattle (SEA) and then Portland (PDX) as one flight.  Or also from JFK to San Francisco (SFO) and then Sacramento (SMF). JetBlue’s service from Long Beach (LGB) to JFK will make a stop in Palm Springs (PSP) before continuing on to New York.  

Spirit has taken a similar tact as JetBlue, as it pairs up nearby airports to create triangle flights.  Examples loaded for sale for Spirit include Orlando (MCO) to Pittsburgh (PIT) and Latrobe, PA (LBE). From Fort Lauderdale to Raleigh (RDU) and Charlotte (CLT), and from Chicago (ORD) to both Jacksonville (JAX) and Ft. Myers (RSW).

Both airlines are doing all they can to save money — they might be required to serve unprofitable destinations, but they don’t have to fly planes exclusively to those destinations.

This seems to be catching on. Even United has begun some flights in this pattern like San Juan (SJU) to St Thomas (STT) and Honolulu (HNL) to Hilo (ITO). None of these flights are commercially-viable, and only some can be booked on their own, but if you’re traveling this summer, you might find some interesting new options.


Airline Operation Potpourri

  • American has decided to join the party and require flight attendants wear masks beginning May 1. Extra masks will be stocked for customers who didn’t bring their own but later realized it’s the right thing to do. (Which it is.)
  • Eurowings has canceled all long-haul route launches this summer except for Phoenix which will now get flights to Frankfurt 5x weekly starting August 2. That means Frankfurt-Anchorage/Calgary and Munich-Las Vegas/Orlando are all put on ice.
  • EVA Air has suspended Milan flights for the rest of the year. Italy is going to take a really long time to recover, EVA thinks.
  • Hawaiian will restart daily service from its Honolulu (HNL) hub to Seattle (SEA), beginning May 1 even though the feds gave the airline carte blanche to keep it suspended for longer.
  • LOT Polish has extended its suspension of flying until May 15.
  • Porter has extended its flight suspension through June 29.
  • Singapore will extend its suspension of 96% of its pre-virus schedule through at least June 30.  Its only US destination will continue to be Los Angeles (LAX).
  • Skywest will receive $438 million from the federal government under the Payroll Support Program from the CARES Act.
  • Wizz Air will resume limited operations from London/Luton (LTN) on May 1.

Andrew’s Moment of Levity

I really feel for the kids in the class of 2020 — they always say your senior year goes quickly, but i didn’t realize it would just zoom.

April 24, 2020

United Becomes First US Airline to Require Cabin Crew to Wear Masks — Are Passengers Next?

1 United Airlines flight attendants will be required to wear a mask or face-covering while on duty beginning today, April 24. The decision was welcomed by the Association of Flight Attendants (AFA) whose members work for United.

The AFA had made a request to the federal government to require masks in-flight for crew, staff and yes, passengers. Last week, Canada installed temporarily guidelines required face masks for passengers at the airport and in-flight, but the US government has not followed suit.

It will be worth watching to see what airlines, if any, match United with this requirement for in-flight crew, and to see if any airline will make the same requirement of passengers while waiting for the DOT to issue a ruling on the matter.


Virgin Australia Owes $4.4 Billion to Creditors

2 Virgin Australia owes $4.4 billion to its 10,000 creditors according to its administrators. The airline entered into voluntary administration this week, a process similar to Chapter 11 bankruptcy in the United States.

The administrators first plan to request a three-month waiver from the airline’s aircraft lessors in an effort to get cash reserves more under control. Virgin Australia owes $1.2 billion to its aircraft lessors, and $287 million to its employees.

Deloitte, which is handling the administration on behalf of the airline, is requesting an extension of up to four weeks from its appointment to decide if those leased planes are necessary for the airline to stay in business. If not, there’s talk that Virgin Australia will pursue a strategy of filling up all the planes that are behind on payments with Vegemite. This would result in a terrible stink engulfing the cabin to a point where the lessors do not want the planes back, and if you’re Virgin Australia — boom — free planes.


Lufthansa Files Q1 Financials and Like Everyone Else… Not Great, Bob.

3 Lufthansa Group (Lufthansa, SWISS, Austrian, Brussels and Eurowings) submitted its preliminary Q1 financials and the drop-offs are staggering. Similar to its brethren around the world, Lufthansa’s numbers tanked after a strong January and February. More doom is forecast for Q2.

Lufthansa Group saw its Q1 revenues fall 18% from €7.8 billion to €6.4 billion. March saw a dramatic drop in YoY revenue of 47% with a €1.4 billion drop from March 2019. With the extreme drop in the price of oil, Lufthansa Group expects its bottom line to receive another blow from the price of its fuel hedges — now well above market value.

Going forward, these airlines know they cannot sustain themselves on their cash reserves and expected future revenue. Each airline is currently in negotiation with its home government to request a financial lifeline. Currently, Lufthansa Group is working with about $4.4 billion of liquidity, with $900 million of that in financing measures and the remaining $3.5 billion tied up in bratwurst and Belgian waffles.


Indonesia Bans All Air Travel Through June 1

4 In an effort to prevent the spread of Coronavirus, Indonesia has banned all air travel in the country — commercial and private — through June 1. As a result, Lion Air will be launching a new service where it drives airplanes on roads to get passengers where they need to go. (We feel the need to point out that we’re kidding, because this doesn’t sound entirely false.)


The Bright Side: Norway Passes New Law That Could Save Norwegian Air

5 Norway’s legislature approved a new law Friday that relaxes regulations on companies attempting to restructure during the Coronavirus outbreak. The new law could potentially help save hundreds of Norwegian businesses, including low-cost carrier Norwegian Air.

The new Norwegian law requires that only 50% of shareholders and 50% of debtors agree on a restructuring plan, allowing companies more flexibility in how they survive the crisis. Norwegian is currently seeking to convert debt to equity in order to qualify for federal funding needed to survive the crisis. This is a still an uphill battle, but it does give Norwegian a shot at survival.


Airline Operation Potpourri

  • Air New Zealand has postponed the start of its service to Newark until at least 2021. It also announced that its route between Los Angeles & London/Heathrow, which was already scheduled to disappear later this year, is done and not coming back.
  • Alitalia will be fully-run by the Italian Government by June. The government said it plans to restart the airline with around 90 aircraft, compared to the 113 it had pre-outbreak. If there’s only one airline that survives this crisis, it will clearly be Alitalia.
  • British Airways will up its number of weekly cargo flights between London and China to 21 in order to transport vital medical supplies and personal protective equipment (PPE).
  • Cabo Verde Airlines has been suspended by the IATA from its Billing and Settlement Program due to its potential bankruptcy. This is a red flag.
  • Cape Air had its request granted by the federal government to suspend service to New York/JFK through September 30.
  • Icelandair will be converting three of its four 767s into cargo aircraft.
  • Japan Airlines has extended the validity period of miles, e-JAL points and e-coupons that were set to expire through September 30. Registration with JAL is required to rescue your lost miles or credits.
  • Thai Airways has requested $2.2 billion in aid from the Thai government to keep it funded through October.
  • WestJet filed its schedule for May, featuring 584 domestic flights on 48 unique routes with 24 originating from its Calgary (YYC) hub.

Andrew’s Moment of Levity

I’ve been thinking about all the things I’ve been saving money on during the quarantine. Gas, dry cleaning, breath mints, pants…