Airline doubles its fleet as domestic operations continue to grow
ATR today announces the sale of two ATR 72-500 aircraft from its asset management portfolio to Hi Air. With this purchase, the South Korean start-up, which began operations in December 2019 will increase its ATR fleet to four. The two additional aircraft will be delivered in August and October. Supported by the superior economics and versatility of the ATR 72, which burns 40% less fuel and emits 40% less CO2 than a comparable regional jet, the airline is already ready to grow its fleet and expand the number of routes it offers. This summer, Hi Air will launch services on five domestic routes, including to the popular tourist destination of Jeju Island. ATR aircraft are proven route openers, having opened 164 routes globally in 2019.
Hi Air’s capacity for growth at this time also illustrates the resilience of the regional aviation market which is likely to make a faster recovery, with domestic short haul routes proving to be the first to resume as countries around the world begin to lift lockdown restrictions. The airline continued to serve passengers during the Covid pandemic, ensuring connectivity to Korean communities. Regional aviation will continue to play an important role for communities and economies worldwide, ensuring vital access for families, businesses and essential supplies – supporting the economic recovery in a Post-Covid19 world.
HyungKwan Youn, Chief Executive Officer of Hi Air remarked: “Selecting the ATR 72 to begin operations has been important for Hi Air’s early success. Launching an airline is hugely challenging. To be successful, new airlines need an aircraft that is efficient, reliable and offers passengers a good in-flight experience. To be in a position already to expand our operations is because the ATR fulfills these criteria. At Hi Air, we believe that increasing regional connectivity in Korea will benefit passengers, communities and businesses and we look forward to continuing this mission with the support of ATR.”
ATR Senior Vice President Commercial, Fabrice Vautier, said: “Regional connectivity is more vital than ever and this is why the regional aviation segment will be resilient. In many countries, we are already seeing that domestic and regional routes are the first to return and in the case of Hi Air they continued to fly. Businesses, governments and people around the world are looking for solutions to this crisis and regional aviation has a key role to play. Our ATR aircraft have the right blend of economics and operational versatility to support airlines. Furthermore, with their advantage in fuel burn and CO2 emissions, they are the perfect solution to help aviation emerge from this global recovery as a more sustainable industry.”
Air New Zealand has shared what customers can expect while travelling with the airline when the country moves to Alert Level 1. These changes will be progressively rolled out over the coming days.
Air New Zealand General Manager Customer Experience Nikki Goodman says Alert Level 1 will mark a return to normal with regards to domestic flying.
“Social distancing is no longer a requirement, unaccompanied minors will once again be able to travel domestically, and customers will be able to travel around New Zealand again with pets as checked baggage.
“Customers are still encouraged to check-in for their flight via the Air New Zealand mobile app to save time at the airport. We recommend allowing plenty of time to process through the airport as we expect to see more people travelling at this level. As we’ve adapted our processes to support customers through Alert Level 2, we’ve gained some great insight into changes that we will adopt going forward, and customers can expect to see some of these as they travel.
“Our domestic lounges are open except for Auckland Domestic, which is undergoing refurbishment, and Wellington and Christchurch regional lounges which remain closed at this stage. Hot food will be available again and served to our customers, while other food will be pre-portioned and available at the buffet. Inflight, customers would have noticed our food and beverage service resumed under Alert Level 2 with the exception of Koru Hour. We are working closely with our partners and suppliers to bring this back over the coming weeks.
“As always, our top priority is ensuring we keep our customers and people safe, so high touch surfaces on board and in our lounges and airport spaces will continue to be cleaned regularly. Our jet aircraft are fitted with hospital-grade air systems that filter out viruses, and hand sanitiser will continue to be available across the airport, kiosks, service desks and all our aircraft for customers and staff to use as they wish.
“As we get back into more frequent flying, please be patient with us, as our contact centre and customer care teams continue to receive a high volume of enquiries. If your travel isn’t urgent, we’d appreciate if you would wait to contact us so that those with imminent travel can be prioritised. We’re thrilled to welcome more people on board, but please remember to be kind to our frontline employees – and if you are unwell or have Covid-19 symptoms please do not travel.”
Further details on the customer journey for Alert Level 1 can be found on the COVID-19 hub on the Air New Zealand website.
The airline plans to operate around 55 percent of its usual domestic capacity (compared to pre-COVID-19 levels) from July and August. On Monday the airline began operating to all 20 of the domestic ports it previously flew to.
Delta’s summer schedule continues to be shaped by customer demand, CDC guidelines and government travel regulations. While the June schedule is significantly reduced in comparison to last year, customers will see the return of several major routes, both U.S. domestic and international, which were previously suspended due to the COVID-19 pandemic.
Customers traveling with Delta can feel confident in a safe flying experience. In addition to requiring customers and employees to wear face coverings throughout the travel journey, Delta has implemented policies like capping seating between 50 and 60 percent to ensure customer spacing on all aircraft, elevated its cleaning measures to deliver a new standard of clean, and streamlined its in-flight services to decrease touch points on board. Customers also have added flexibility if they need to change their plans.
Here’s a snapshot of where Delta is planning to fly in June. This schedule, including routes and frequency, remains subject to change due to the evolving nature of COVID-19. This page may be updated.
U.S. DOMESTIC
Ensuring connectivity for customers with critical travel needs, Delta continues to provide flights to all U.S. hubs and top markets, though frequency is significantly reduced. While Delta has temporarily consolidated operations in some markets served by multiple airports, the airline is adding more flights to its June schedule in comparison to May, primarily in Atlanta, New York and between hubs.
CANADA
Detroit to Montreal (daily)
Detroit to Ottawa (daily)
Detroit to Toronto (daily)
Minneapolis to Calgary (daily)
Minneapolis to Edmonton (daily)
Minneapolis to Winnipeg (daily)
New York-JFK to Toronto (daily)
Seattle to Vancouver (daily)
LATIN AMERICA & CARIBBEAN
Caribbean
Atlanta to Aruba (less than daily service restarts in second half of June)
Atlanta to Bermuda (less than daily)
Atlanta to Bonaire (Saturday only service restarts in second half of June)
Atlanta to Kingston, Jamaica (less than daily)
Atlanta to Montego Bay, Jamaica (daily)
Atlanta to Nassau, Bahamas (daily)
Atlanta to Providenciales, Turks and Caicos Islands (less than daily)
Atlanta to Punta Cana, Dominican Republic (less than daily)
Atlanta to San Juan, Puerto Rico (less than daily)
Atlanta to St. Croix (Saturday only)
Atlanta to St. Lucia (less than daily)
Atlanta to St. Maarten (less than daily)
Atlanta to St. Thomas (less than daily)
New York-JFK to Santiago, Dominican Republic (less than daily)
New York-JFK to San Juan, Puerto Rico (less than daily)
New York-JFK to Santo Domingo, Dominican Republic (less than daily)
Central America
Atlanta to Liberia, Costa Rica (less than daily service restarts in second half of June)
Atlanta to Panama City, Panama (less than daily)
Atlanta to San José, Costa Rica (less than daily service restarts in second half of June)
Atlanta to San Pedro Sula, Honduras (less than daily)
Atlanta to San Salvador, El Salvador (less than daily)
Mexico
Atlanta to Cancun (daily)
Atlanta to Mexico City (daily)
Detroit to Mexico City (less than daily)
Los Angeles to Los Cabos (less than daily)
Los Angeles to Puerto Vallarta (less than daily)
Salt Lake City to Mexico City (daily)
South America
Atlanta to Bogotá, Colombia (less than daily)
Atlanta to São Paulo, Brazil (less than daily)
TRANS-ATLANTIC
Atlanta to Amsterdam (daily)
Atlanta to Frankfurt (less than daily)
Atlanta to Lagos (less than daily*)
Atlanta to Paris-Charles De Gaulle (less than daily)
Detroit to Amsterdam (daily)
Detroit to London-Heathrow (less than daily)
New York-JFK to Amsterdam (less than daily)
New York-JFK to Paris-Charles De Gaulle (less than daily)
New York-JFK to Tel Aviv (less than daily)
*Delta’s restart of service to Nigeria is subject to foreign government approval.
Delta’s Frankfurt and London flights also double as scheduled cargo service.
TRANS-PACIFIC
Detroit to Seoul-Incheon (daily)
Detroit to Shanghai (daily*)
Seattle to Seoul-Incheon (less than daily)
Seattle to Shanghai (daily*)
Seattle to Tokyo-Haneda (less than daily)
*Delta’s restart of passenger flights to China is subject to government approval. We will also operate cargo-only scheduled service from Shanghai to Atlanta and Los Angeles. Read more on our cargo flights to Asia.
Delta’s second quarter schedule is 85 percent smaller than last year, with reductions of 80 percent in U.S. domestic capacity and 90 percent internationally.
Range of measures introduced to ensure a safe travel environment and give extra peace of mind.
Masks on board, hand sanitising stations and enhanced aircraft cleaning among the improvements.
More flexibility added to bookings so people can plan with confidence.
Qantas and Jetstar will roll out a series of wellbeing improvements to give peace-of-mind in preparation for domestic travel restrictions easing.
The ‘Fly Well’ program brings together a number of temporary measures already in use by the Qantas Group, including on repatriation flights from virus hot-spots, and represents a combination of best-practice medical advice and feedback from customers.
Pre-flight
Rolling out from 12 June, the key measures at each point of the journey will be:
Information sent to all customers before they fly, so they know what to expect.
Contactless check-in (via online/app) and self-serve bag drop strongly encouraged, including use of Q Bag Tags.
Hand sanitising stations at departure gates.
Temporary changes to Qantas Lounges, including increased physical distancing, hand sanitising stations, enhanced disinfection of surfaces and adjustments to food and drink service.
Working with airports on other safeguards in the terminal, including regular disinfection of security screening points and installing hygiene screens at airline customer service desks, wherever practical.
On board
Masks provided to all passengers on each flight – while not mandatory from a safety point of view, they are recommended to be worn in the interests of everyone’s peace-of-mind.
Enhanced cleaning of aircraft with a disinfectant effective against Coronaviruses, with a focus on high contact areas – seats, seatbelts, overhead lockers, air vents and toilets.
Sanitising wipes given to all passengers to wipe down seat belts, trays and armrests themselves, if preferred.
Simplified service and catering to minimise touchpoints for crew and passengers.
Passengers asked to limit movement around cabin, once seated.
Sequenced boarding and disembarkation to minimise crowding.
In addition, the air conditioning systems of all Qantas and Jetstar aircraft are already fitted with hospital-grade HEPA filters, which remove 99.9% of all particles including viruses. Air inside the cabin is refreshed on average every five minutes during flight.
All airline employees are required to follow strict personal hygiene protocols, for the benefit of themselves and others.
All passengers are encouraged to download the Australian Government’s COVIDSafe app as part of improving the ability of health authorities to contain the spread of Coronavirus. In-line with public health advice, anyone with cold and flu like symptoms should stay at home.
Air New Zealand will restart flights to and from Taupo and Timaru on 8 June.
Lake Taupo, New Zealand
The airline has started operating to the majority of its domestic ports with the country’s move to Alert Level 2.
Air New Zealand General Manager Networks Scott Carr says the airline has been encouraged by the customer response to its recently released schedule.
“We’re pleased to be able to restart both our Taupo-Auckland and Timaru-Wellington routes early next month and we know this news will be welcomed by these towns and their wider regions.
Timaru, New Zealand
“Bringing Taupo and Timaru back into our domestic schedule means we’ll soon operate to all 20 of the domestic destinations we serviced pre COVID-19, albeit with reduced frequencies.”
Initially the airline will operate three return services a week between Taupo and Auckland on Monday, Wednesday and Friday as well as three return services per week between Timaru and Wellington also on Monday, Wednesday and Friday.
Additional frequencies will be reintroduced back into Air New Zealand’s domestic schedule as demand permits.
SEOUL (Reuters) – South Korea’s largest airline, Korean Air, plans to sell around 1 trillion won ($816.55 million) in new shares in its biggest rights issue in 20 years to raise funds amid mounting strains in the industry due to the pandemic.
Korean Air is the latest carrier to raise funds as travel restrictions imposed by governments around the world have led to airlines grounding their fleets worldwide.
Korean Air separately plans to receive 1.2 trillion won in support from South Korean state-owned banks.
About 79 million newly issued shares, to be listed on July 29, will be first bought by the carrier’s shareholders, including holding company Hanjin Kal which has a 30% stake in the carrier, followed by general public, the company said in a statement.
“Korean Air will continue to carry out self-rescue measures to overcome the dismal business environment due to COVID-19,” the company said.
Korean Air had 70% or more of its employees working in South Korea take a six-month leave of absence in April. Woo Kee-hong, the airline’s president, warned in March that the coronavirus outbreak could threaten its survival if the situation becomes prolonged.
Korean Air also picked last month a preferred bidder to buy its real estate and non-core assets, which some analysts value at about 400-500 billion won.
Korean Air had a debt-to-equity ratio of about 870% as of end-2019. It is expected to announce January-March quarter earnings later this week.
A spokeswoman for Korean Air said it was operating just 10% of its previously planned international schedule, and 60% of its domestic schedule.
The airline said it expects its June international schedule to rise to 20% of its previous plan, as it announced the addition of more international passenger flights to prepare for increased travel demand once COVID-19 restrictions are relaxed.
United Airlines Holdings Inc said earlier this month it plans to raise $2.25 billion through a bond offering, after announcing a public offering to raise more than $1 billion in April.
In March, Singapore Airlines said it would issue S$5.3 billion ($3.70 billion) in new equity and up to S$9.7 billion($6.78 billion) via mandatory convertible bonds in a rights issue backed by state investor Temasek Holdings.
($1 = 1,224.6700 won)
(Reporting by Joyce Lee; Editing by Simon Cameron-Moore and Louise Heavens)
Korean Air’s passenger planes are parked following outbreak of COVID-19, at Incheon International Airport
Australians and Kiwis have chosen Air New Zealand as their most trusted, respected and admired company – and the airline has a message of thanks as it faces a tough road ahead.
Quiet skies haven’t stopped Aussies sharing their love for the Kiwi airline, making it four consecutive years Air New Zealand has topped The RepTrak Company’s annual reputation ranking in Australia. Air New Zealand has also claimed the top position at home, pipping Toyota New Zealand, The Warehouse, and KiwiBank in RepTrak’s New Zealand ranking.
In ranking first in both Australia and New Zealand, Air New Zealand has continued to outperform on reputation pillars such as innovation, citizenship, products and performance.
Air New Zealand Chief Marketing and Customer Officer Mike Tod says the news is heartening as the airline faces the most disruptive period in its 80-year history.
“This award belongs to our hardworking people, who despite deep uncertainty about the future, continue to represent our nation and airline with pride, serving our customers with outstanding dedication.
“Our Aussie connection began 80 years ago, when we took our first flight to Sydney’s Rose Bay on 30 April 1940. Australia is Air New Zealand’s largest international market and before COVID-19, at peak times we operated around 375 flights a week across the Tasman.
“While we’re down to a handful of international services and a fraction of our domestic flying for essential travel and cargo, we’ve been overwhelmed by messages of support and care from customers. Thank you Australia, and New Zealand, for continuing to put your faith in us. Our Air New Zealand family can’t wait to welcome you on board again, when we can.”
Chief Executive Officer for The RepTrak Company Kylie Wright-Ford says the high esteem in which Australians and New Zealanders hold Air New Zealand will stand the airline in good stead as it continues to navigate the ongoing COVID-19 disruption.
“In times of crisis and uncertainty, having a consistently excellent reputation – as Air New Zealand does – is invaluable. Based on more than 20 years of providing data and actionable insights to companies globally we know people will continue to support companies that have stronger reputations.”
Further commentary on the RepTrak Australia and New Zealand rankings is available here.
CHICAGO, April 15, 2020 /PRNewswire/ — Oscar Munoz, Chief Executive Officer, and J. Scott Kirby, President, today issued the following message to nearly 100,000 United Airlines (NASDAQ: UAL) employees:
To our United Family:
We hope all is well with you and your family. Two weeks ago, we hosted a virtual townhall and it was a valuable opportunity for us to connect with you all. And we’ve been really pleased with the response, more than 50,000 of you tuned in live or watched the broadcast on demand.
At the townhall, we discussed the impact of your calls and letters to Congress as they debated financial support for the airline industry. Washington heard you loud and clear, passing vital legislation that will provide commercial airlines with a total of $50 billion worth of grants and loans. We are grateful for the bipartisan cooperation displayed by leaders in the Congress and Administration — and appreciative of the critical role that you played. The thousands of letters and messages you sent, capturing the spirit of our United family and what our service means to our customers and communities, made all the difference in the world. We will need that spirit more than ever as we set our sights on the rest of 2020 and beyond.
The challenge that lies ahead for United is bigger than any we have faced in our proud 94-year history. We are committed to being as direct and as transparent as possible with you about the decisions that lay ahead and what impact they will have on our business and on you, the men and women of United Airlines.
Let’s start with the near-term. We now expect United to receive approximately $5 billion from the federal government through the Payroll Support Program under the CARES Act – to be used to protect the paychecks of our United employees. This government support does not cover our total payroll expense, but we’re keeping our promise that there will be no involuntary furloughs or pay rate cuts for U.S. employees before September 30. And, payroll only represents about 30 percent of our total costs. Fixed operating and non-payroll costs like airport rent, supplies and infrastructure are significant and not going away. That’s why we’ve been so aggressive in reducing our schedule, slashing capital expenditures, scaling back our work with vendors and consultants and cutting executive salaries in half.
We’re planning to go even further to reduce costs. This weekend, we’ll load a revamped schedule that will further reduce our capacity to about 10 percent of what had been planned for May at the beginning of this year. We expect to announce similar reductions to the June schedule in the next few weeks. We have now essentially redesigned our network to be down 90 percent while complying with the CARES Act and maintaining connectivity among nearly all our domestic destinations. And these May and June schedule reductions will have direct consequences for our frontline employees in terms of total hours worked. Those work groups can expect to hear more details from their leaders soon.
The more flexibility we have from a payroll perspective, the better. So, all work groups can expect to see a continued emphasis on payroll cost cutting options over the next few weeks including new voluntary leave offerings and voluntary separation programs. For those who are eligible, please consider signing up for voluntary COLA and ANP days. We’re grateful to the more than 20,000 employees who have already signed up. Your sacrifice is both deeply appreciated and important to our company’s future.
These schedule changes reflect the stark reality of our situation – and unfortunately, it’s something that even legislation as large as the CARES Act can’t fix. Travel demand is essentially zero and shows no sign of improving in the near-term. To help you understand how few people are flying in this environment, less than 200,000 people flew with us during the first two weeks of April this year, compared to more than 6 million during the same time in 2019, a 97 percent drop. And we expect to fly fewer people during the entire month of May than we did on a single day in May 2019.
The historically severe economic impact of this crisis means even when travel demand starts to inch back, it likely will not bounce back quickly. We believe that the health concerns about COVID-19 are likely to linger which means even when social distancing measures are relaxed, and businesses and schools start to reopen, life won’t necessarily return to normal. For example, not all states and cities are expected to re-open at the same time. Some international travel restrictions will remain in place. Meeting planners and tour operators will do their best to accommodate people looking to avoid large crowds. So, while we have not yet finalized changes to our schedule for July and August, we expect demand to remain suppressed for the remainder of 2020 and likely into next year.
So, let us end where we began, the government funding we expect to receive soon is helpful in the near-term because we can protect our employees in the U.S. from involuntary furloughs and pay rate cuts through the end of September. But the challenging economic outlook means we have some tough decisions ahead as we plan for our airline, and our overall workforce, to be smaller than it is today, starting as early as October 1.
Throughout this crisis, we have been candid and upfront with you. And today is no different. We appreciate the partnership and open dialogue we have with all of you as we confront this extraordinary situation that has had an unprecedented impact on our families and our company. We promise to continue to stay in close touch – and will continue to be as transparent as possible – in the weeks and months ahead.
Stay safe. Stay healthy. And please continue to take good care of our customers and each other. It’s because of you that we remain proud to be United Together.
FILE PHOTO: A Malaysia Airlines plane is seen at Kingsford Smith International Airport in Sydney
KUALA LUMPUR (Reuters) – Privately held Golden Skies Ventures (GSV) has made a $2.5 billion offer to fully take over the holding company of ailing state carrier Malaysia Airlines, with financing from a European bank, its executives told Reuters on Monday.
GSV, which was set up by former Malaysia Airlines officials and professionals with aviation experience, made the proposal a month ago, as airlines around the world were hammered by travel restrictions following the coronavirus pandemic.
“We have secured in excess of $2.5 billion from the bank. We will take about three to four months to get the long-term financing,” Chief Executive Shahril Lamin told Reuters in a phone interview.
GSV said it also has a commitment from a Japanese private equity firm to inject immediate funds into the aviation group through an equity deal.
It declined to name the firms involved, adding it was in talks with other foreign banks and private equity firms for further funding.
GSV has submitted its proposal to Morgan Stanley which has been hired by the aviation group’s sole owner, sovereign wealth fund Khazanah Nasional Bhd.
Sources have previously said Japan Airlines Co Ltd, domestic carriers AirAsia Group Bhd and Malindo Air have shown interest in Malaysia Airlines.
GSV said it would assume most of the airline’s debt that is being held by the government in outstanding Islamic bonds.
Khazanah and Morgan Stanley did not immediately respond to emailed requests for comment.
GOLDEN SHARE
The proposal includes keeping the government’s so-called golden share which allows it majority voting rights and maintains Malaysia Airlines’ flag carrier status.
GSV expects it will have ample liquidity to help the airline operate comfortably for up to 18 months.
It intends to reinstate Malaysia Airlines as a premium long-haul airline by expanding its flight network and maximising utilisation of its 81-plane fleet. It also plans to keep other business units such as the budget airline, cargo freighter and maintenance repair and overhaul unit.
“It’s still a viable venture, it has inherent strengths. We are saying we won’t lay off the 13,000 frontline employees and we are not going to asset-strip the airline,” Deputy Chief Executive Ravindran Devagunam said.
The firm aims to achieve positive earnings before interest, taxes, depreciation and amortisation within three years of taking over, and targets 15 billion ringgit ($3.5 billion) in revenue in 2025.
Plans for a listing or possible listing of its units are on the cards in three to five years, they said.
Ravindran said the firm is banking on pent-up travel demand when the coronavirus is contained. “Regardless of how long (the virus) will take this year, we are looking at an uptick in the business from summer 2021.”
($1 = 4.3450 ringgit)
(Reporting by Liz Lee; Editing by David Holmes and Edwina Gibbs)
Qantas Group shares came perilously close to dropping below $2 on the day the airline announced it was suspending two-thirds of its staff.
Shares plummeted from $2.53 on Wednesday to a low of $2.03 before making a partial recovery to close out the day on $2.14. In December, stocks in Qantas were selling for $7.46.
Virgin Australia had a difficult day itself, with shares closing down 12 per cent to just $0.059.
Earlier in the day, Qantas Group dramatically said it was cancelling all international flights from late March and “standing down” 20,000 employees.
