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.
LONDON (Reuters) – Airbus <AIR.PA> will furlough around 3,200 staff at its Broughton factory in Wales, the European planemaker said on Monday after it warned staff that the coronavirus crisis had put its survival at stake.
Airbus has given its starkest assessment yet of damage from the crisis, telling the company’s 135,000 employees to brace for potentially deeper job cuts as it grapples with the impact of the COVID-19 pandemic on the aerospace sector.
Earlier this month, the group said it would furlough some 3,000 French workers by tapping a government-backed scheme for four weeks.
“Airbus confirms it has agreed with its social partners to apply the government’s Job Retention Scheme for approximately 3,200 production and production-support employees at its commercial aircraft site in Broughton,” it said in a statement.
Britain’s job retention scheme allows employers to furlough staff and claim cash grants up to 80% of wages, capped at 2,500 pounds per worker.
Airbus will top up gross salaries to bring pay up to 85-90% of pay, in accordance with an agreement signed with trade union representatives.
The deal affects the majority of the production and production support teams in Broughton, the north Wales factory which assembles wings.
Furlough periods will be staggered, with all starting in the next three weeks and lasting for at least three weeks.
The move does not affect Airbus’ 3,000 staff in Filton, western England, where wings are designed and supported.
(Reporting by Alistair Smout; editing by Stephen Addison)
Boeing [NYSE: BA] completed its first COVID-19 transport mission, using a 737-700 aircraft from its corporate fleet to bring personal protective equipment (PPE) from China to the United States. Working in partnership with FIRST® Robotics Founder Dean Kamen, the company transported 540,000 medical-grade face masks that will be delivered to healthcare professionals battling COVID-19 in New Hampshire.
Kamen, who has a longstanding relationship with Boeing through FIRST Robotics, is also a founder of DEKA Research and Development Corporation. He worked with DEKA to secure the face masks from manufacturers in China and turned to Boeing to facilitate their transport. DEKA is the importer of record for the delivery and provided the masks to New Hampshire for distribution to healthcare professionals in the state.
“Another life-saving delivery of PPE has arrived in New Hampshire,” said Governor Chris Sununu. “Thanks to Dean Kamen for facilitating this deal, and to Boeing for donating the cost of this mission transport. The state will deliver these masks to the greatest areas of need across New Hampshire so those on the frontline have the necessary resources to fight COVID-19.”
“Boeing has been a long-time partner of FIRST Robotics and I’m proud that I can again partner with the Boeing team to meet the needs of our frontline healthcare professionals fighting COVID-19,” said Kamen. “Now more than ever, help from companies like Boeing is critical so we can continue to make sure protective equipment gets to the people who need it most.”
Boeing continues to support local communities and the heroic healthcare professionals working tirelessly to stop the spread of COVID-19. Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future. Boeing is coordinating closely with U.S. government officials on how to best assist areas with the greatest need.
“I want to personally thank Governor Sununu, the entire New Hampshire congressional delegation and Dean Kamen for their leadership in helping secure and distribute this much-needed personal protective equipment for our frontline healthcare workers and first responders here in New Hampshire,” said Dave Calhoun, Boeing president and CEO. “We are honored to have conducted today’s airlift mission and we look forward to providing continued support in the fight against this pandemic.”
A Boeing-owned aircraft loads 540,000 medical-grade masks in China destined to New Hampshire. (Boeing photo)
During the scheduled two weeks of suspended operations at the Boeing [NYSE: BA] Philadelphia facility in Ridley Township, the company has been working to restart production with enhanced safety measures. Boeing will resume operations in our production facilities and other areas deemed essential on Monday, April 20. The number one priority is and will continue to be protecting the health and safety of our employees, their families and all of our stakeholders.
Since suspending operations on April 3, Boeing Philadelphia has taken a number of steps:
Enhanced cleaning of the entire facility and implementing improved procedures. We’ve posted signage throughout the facility to help keep enhanced hygiene top-of-mind. Hand sanitization stations have been added at entry points to the site.
Physical distancing practices reinforced. Shift times will be staggered. Virtual meetings will continue, where possible, to reduce face-to-face interactions. Work areas have been spaced farther apart with visual markers displayed to encourage physical distancing. Cafeteria areas will be adjusted to allow for more physical distancing.
Personal mask use. Consistent with recent direction from the state government, employees are required to wear masks or other face coverings in the workplace. Masks will be made available onsite for employees who need one.
Temperature screening will be required for all employees daily before coming to work. Screening stations with no-touch thermal scanners will be set up to accommodate workers who need to check their temperature onsite. Employees who are not required to support operations in our production facilities, and who are able to telecommute and work virtually, will continue to do so.
Boeing Philadelphia site leadership will continue to monitor conditions and new information related to COVID-19, including the latest federal and state health guidelines, so we can continuously implement new safeguards and procedures.
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.
OSLO (Reuters) – The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity.
If approved by creditors and shareholders, the plan would convert $4.3 billion of debt into equity, and also raise some new equity, wiping out much of the remaining value of the company’s current shares.
The budget carrier has grounded most of its fleet due to the impact of the COVID-19 outbreak on travel and on March 16 announced the temporary layoff of 7,300 staff, about 90% of its workforce.
Norwegian’s shares plunged 62.5% in early trade to an all-time low of 3.10 crowns, valuing the company at just 500 million Norwegian crowns ($48.8 million).
Norwegian was facing financial problems even before the coronavirus outbreak. Before Tuesday’s fall, its shares were down 78% this year, underperforming other major European airlines, which were down between 30% and 60%.
The airline must now convince its creditors to agree to the rescue plan before it is put to a shareholders’ vote on May 4.
The Oslo stock exchange said on Tuesday that trading in Norwegian’s shares would be subject to special observation until there was further clarification of the airline’s situation.
Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines.
($1 = 10.2490 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Gwladys Fouche/Victoria Klesty/Susan Fenton)
Passengers board a Norwegian Air plane in Kirkenes, Norway
American Airlines is recognizing the loyalty of AAdvantage® members by extending their elite status amid reduced travel related to the coronavirus (COVID-19). Changes include:
Extending elite status for AAdvantage members until Jan. 31, 2022.
Reducing elite status qualifications for 2020.
Extending Admirals Club® memberships purchased from American for 6 months.*
Introducing up to $400 special credits for future travel on American Airlines Vacations packages for elite members.**
Every dollar spent on an eligible AAdvantage co-branded credit card through the end of 2020 will count for one mile toward Million Miler℠ status.
Award reinstatement fees waived for travel through September 2020.
“We are grateful to our AAdvantage members and want to show them that loyalty is a two-way street,” said Bridget Blaise-Shamai, Vice President of Customer Loyalty & Insights and President of the AAdvantage program. “When people are ready to fly again, we will be there to help them reconnect with loved ones, friends and colleagues.”
Extended AAdvantage elite status
AAdvantage members will automatically receive an extension of their current elite status through Jan. 31, 2022. These updates will be reflected in member accounts in a few weeks.
Admirals Club membership extension
Admirals Club memberships and One-Day Passes purchased from the airline will be automatically extended for 6 months beyond their expiration date as part of American’s effort to care for customers.*
American Airlines Vacations credit
Elite members will also receive a special credit up to $400 to use toward an American Airlines Vacations package, giving customers something to look forward to when travel resumes. Customers can receive the credit when they call American Airlines Vacations to book a trip. Members can learn more by visiting aa.com.**
Making it easier to earn elite status
Lowered elite qualification requirements
The airline has lowered AAdvantage elite qualification requirements for all of 2020. AAdvantage members will achieve status more easily during the current elite qualifying year through lower Elite Qualifying Dollar (EQD), Elite Qualifying Mile (EQM) and Elite Qualifying Segment (EQS) requirements.
Reduced qualifications for Executive Platinum rewards
Members who qualify for Executive Platinum status previously received a choice of one reward upon reaching 150,000, 200,000 and 250,000 EQMs. Lowered EQM requirements in 2020 will now make these rewards more attainable.
The above changes will take effect by May 15, 2020.
$1 spent on eligible AAdvantage credit cards equals 1 mile toward Million Miler status
For all Citi®/AAdvantage and AAdvantage Aviator® products, as well as select AAdvantage credit cards outside of the United States, every dollar spent on net purchases that post to your AAdvantage account between May and December 2020 will count as one mile toward Million Miler status.
Making travel more flexible
Waived award reinstatement fees for travel
The airline is also giving members more flexibility with waived reinstatement and change charges for awards booked by May 31, 2020 for travel through September 30, 2020.
Award travel ticketed on or after June 1, 2020 will include free changes if made at least 60 days in advance. A new variable fee structure based on elite status and days before departure will apply to any changes made fewer than 60 days in advance:
More information about these updates is available on aa.com. Customers and AAdvantage members with questions about other actions regarding COVID-19 should visit www.aa.com/coronavirus.
*The membership extension applies to all active members as of March 1, 2020. New annual Admirals Club memberships purchased between March 1 and May 31, 2020 will also be extended for 6 months beyond the normal 12 months. For Admirals Club One-Day Passes, the extension applies to any unused passes with an expiration date between March 1, 2020 and May 31, 2021.
**Terms and conditions apply. Note only U.S. point of origin bookings.
(Reuters) – British aero-engine maker Rolls-Royce will abandon its targets on profits, cash and deliveries, and suspend its dividend, as airlines around the world ground planes due to the coronavirus outbreak, the Financial Times reported late on Sunday.
Rolls-Royce is also aiming to announce new credit facilities in excess of 1 billion pounds ($1.22 billion) to bolster liquidity, the newspaper said https://on.ft.com/2ULsL7q.
Rolls-Royce, which makes engines for large civil and military planes, has been hit hard by the pandemic as its airline customers park hundreds of planes.
In March, engine flying hours were down by about 40%, the newspaper said, citing a source. The company is paid by airlines based on how many hours its engines fly.
At the end of February, Rolls Royce had forecast 2020 free cash flow of 1 billion pounds, excluding any material impact from COVID-19. The group will ditch that pledge, the FT said.
The dividend payment of 11.7 pence per share, which has been frozen since 2016, will also be suspended, the newspaper added.
Rolls-Royce declined to comment.
In addition, the FT said the company on Monday will reopen its civil aerospace facilities in the UK with a fraction of the normal workforce, after suspending operations in March.
The company could also eventually furlough some 50% of its 7,500 UK shop-floor workers, with wages supported by government subsidy, two sources told the newspaper.
(Reporting by Bhargav Acharya in Bengaluru; Editing by Daniel Wallis and Richard Pullin)
Rolls Royce engine of the first Fiji Airways A350 XWB airliner is seen at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse
Airbus continues to purchase and supply millions of face masks from China, the large majority of which will be donated to governments of the Airbus home countries, namely France, Germany, Spain and the UK.
An Airbus flight test crew has just completed its latest mission with an A350-1000 test aircraft. This is the third of such missions between Europe and China. The aircraft returned to France with a cargo of 4 million face masks on Sunday 5 April.
The A350-1000 left Toulouse, France, on Friday 3 April, reaching the Airbus site in Tianjin, China on 4 April and returning to Hamburg the same day.
Since mid-March, the previous two missions were performed by an A330-800 and an A330 Multi-Role Tanker Transport (MRTT). Airbus also deployed an A400M and its Beluga fleet to transport shipments of masks between its European sites, in France, Germany, the UK and Spain.
Airbus will continue to support the fight against the Coronavirus pandemic wherever possible.
“I would like to pay tribute to all the Airbus teams, globally, supporting the fight against COVID-19. They’re living our values in assisting those who are saving lives every day”, said Guillaume Faury, Airbus CEO. “
Airbus is focused on the health and safety of its employees and supporting its customers and the industry eco-system with business continuity. At the same time Airbus is contributing to many vital public and private services and working with partners who rely on aircraft, helicopters, space and security solutions to carry out life-saving missions in support of the global pandemic.
Airbus is deploying its employees, their expertise and know-how and leveraging technology in this fight against the COVID-19 pandemic, for example in designing and manufacturing ventilators and 3D printed visors which are critical resources for hospitals.
The Company is partnering with other organisations in unprecedented ways to achieve this goal as fast as possible.
Boeing is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities.
During the suspension, the company will continue to implement additional health and safety measures at its facilities to protect employees. These measures include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas and staggering shift times to reduce the flow of employees arriving and departing work, among many other improvements.
“The health and safety of our employees, their families and our communities is our shared priority,” said Boeing Commercial Airplanes President and CEO Stan Deal. “We will take this time to continue to listen to our incredible team and assess applicable government direction, the spread of the coronavirus in the community and the reliability of our suppliers to ensure we are ready for a safe and orderly return to operations.”
The volunteers who have been supporting essential site and services work should continue to report to their assigned shifts. Puget Sound area and Moses Lake employees who can work from home should continue to do so.
As the suspension of operations continues, Boeing will monitor government guidance and actions on COVID-19 and associated impact on all company operations. Boeing sites that remain open are being monitored and assessed on a daily basis.
