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Austrian Airlines Will Temporarily Suspend Flight Operations

  • Last flight will land on 19 March in Vienna / all further flights are temporarily suspended until 28 March
  • Lufthansa Group: entire short and long-haul schedule significantly reduced again 
  • As of 17 March: ten percent of the originally planned capacity will still be available on long-haul routes and 20 per cent on short-haul routes 
  • Lufthansa Group airlines fly thousands of cruise passengers and holidaymakers home 
  • Arrangements for further evacuation flights 
  • Lufthansa Cargo flight operations carries out all planned flights despite corona crisis 

The Lufthansa Group carrier Austrian Airlines will temporarily suspend scheduled flight operations as of Thursday, 19 March 2020. Austrian Airlines is thus reacting to the entry restrictions imposed by many countries in response to the massive spread of the coronavirus. 

For the time being, the last flight with flight number OS 066 will land in Vienna from Chicago at 8:20 a.m. on 19 March. Until then, flight operations are to be reduced in a controlled and structured manner in order to bring all passengers and crews home if possible. Initially Austrian Airlines will cancel all flights until March 28th 2020, and passengers who have booked a flight with Austrian Airlines during this period will be rebooked on other airlines if possible. 

In addition, Lufthansa Group airlines will further reduce their short- and long-haul schedule. The cancellations, which will be published as early as tomorrow, March 17th, will lead to a sharp decline in long-haul service especially in the Middle East, Africa and Central and South America. Overall, the Lufthansa Group’s seating capacity on long-haul routes will be reduced by up to 90 per cent. A total of 1,300 weekly connections were originally planned for summer 2020.

Within Europe the flight schedule will also be further reduced. Starting tomorrow, around 20 percent of the originally planned seating capacity will still be offered. Originally, some 11,700 weekly short-haul flights were planned for summer 2020 with Lufthansa Group airlines. 

The additional cancellations will be published over the next few days and passengers will be informed accordingly. 

Despite the large-scale cancellations, Lufthansa, Eurowings and Austrian Airlines have scheduled more than 20 special flights with over 6,000 guests on short notice to fly cruise passengers and holidaymakers back home. Wide-body aircraft namely, the Boeing 747 & 777 and Airbus A350 are being used to offer as much capacity as possible on these return flights. Since thousands of German, Austrian, Swiss and Belgian citizens are still waiting to return to their home countries, Lufthansa Group airlines have made arrangements for further evacuation flightsand are in close contact with the governments of their home countries concerning this. Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG, said: “Now it is no longer about economic issues, but about the responsibility that airlines bear as part of the critical infrastructure in their home countries.” Lufthansa will work with airports and air traffic controllers to develop a coordinated concept for maintaining the critical infrastructure.

The new timetable for all Lufthansa Group airlines will initially be valid until 12 April 2020. Lufthansa Group passengers planning a trip in the coming weeks are advised to check the current status of the respective flight on their airline’s website before departure. If rebooking possibilities exist, the passengers concerned will be proactively informed about alternatives, as long as they have provided their contact details online. In addition, currently changed rebooking conditions apply on a goodwill basis. Customers can find more information about this at lufthansa.com. 

We are currently receiving an exceptionally high number of customer calls at our Service Centers and at our stations. We are continuously working on increasing capacity to meet this demand. Nevertheless, there are currently long waiting times. Passengers can use the extensive rebooking and self-service options on the airlines’ websites as an alternative to the Service Centers.

Unlike the passenger airlines, Lufthansa Cargo has so far been able to operate all its planned flights except for cancellations to mainland China. The Lufthansa Group subsidiary will continue to do everything in its power to maintain the flight operations of its own cargo fleet and thus support the global supply chains. Especially during the current crisis, logistics and thus also airfreight are of paramount importance.

Norwegian to Cancel Approximately 3000 Flights and Implement Temporary Layoffs Due to COVID-19

Due to the COVID-19 situation, Norwegian is preparing to cancel approximately 3000 flights between mid-March and mid-June. This represents approximately 15 percent of the total capacity for this period. The company has also put several other measures in place, including temporary layoffs of a significant share of its workforce.

The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3000 flights to meet the change in demand. The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June. It will affect the entire network and more details will be shared as soon as they are ready to be implemented. Affected customers will receive information about these changes as soon as they take place.

“This is a critical time for the aviation industry, including us at Norwegian. We encourage the authorities to immediately implement measures to imminently reduce the financial burden on the airlines in order to protect crucial infrastructure and jobs,” said CEO Jacob Schram of Norwegian.

“Unfortunately, cancellations will affect a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions regarding temporary layoffs for flying crew members as well as employees on the ground and in the offices. We will continue to engage in constructive dialogue with unions and employees to work through this difficult situation together,” said Schram.

Norwegian will continue to share updates with its customers, the financial market and the media once new measures are implemented.

Air New Zealand Suspends 2020 Earnings Guidance

Due to increased uncertainty surrounding the duration and scale of the Covid-19 outbreak, Air New Zealand has today announced that it will be withdrawing the full year 2020 earnings guidance it issued to the market on 24 February 2020 and reconfirmed at its interim results announcement on 27 February 2020.

Air New Zealand has taken numerous steps to mitigate the impact of reduced demand resulting from Covid-19, including reducing capacity on its Asia, Tasman and Domestic networks, redeploying its fuel efficient 787 Dreamliner fleet to drive operational efficiencies and using tactical pricing to stimulate demand on the impacted sectors. However, the airline now believes that the financial impact is likely to be more significant than previously estimated and with the situation evolving at such a rapid pace, the airline is not in a position to provide an earnings outlook to the market at this time. An update on earnings expectations will be provided when appropriate.

Over the course of the past week the airline has seen additional softness in demand with a decline in bookings across its network. The further spread of Covid-19 to countries outside of China, including New Zealand, has driven a downward shift in demand.

Chief Executive Officer Greg Foran says that it is increasingly clear that Covid-19 has created an unprecedented situation and it is difficult to predict future demand patterns.

“We have been continuously monitoring bookings and in recent days have seen a further decline which coincides with media coverage of the spread of Covid-19 to most countries on our network as well as here in New Zealand,” says Mr Foran.

In response the airline has implemented further capacity reductions to its network, which include extending the suspension of its Shanghai service through to the end of April, and additional consolidation of services across the Tasman, Pacific Islands and Domestic network in March and April.

As a result of these actions, Air New Zealand has reduced total capacity into Asia by 26 percent, and total overall network capacity by approximately 10 percent since the outbreak of Covid-19 started.

Like the vast majority of its industry peers, the airline is also pursuing a range of mitigations in response to the swift decline of demand. These include the deferral of non-urgent capital spend and non-critical business activity across operational and corporate functions.

Chief Executive Officer Greg Foran has voluntarily offered to reduce his base pay of $1.65 million by approximately 15% ($250,000) with the support of the Board, and Air New Zealand’s Executive team will extend their salary freeze that has been in place since May 2019. On top of this, the airline has implemented a hiring freeze for all roles that are non-critical and will offer operational staff the option to take unpaid leave in addition to managing annual leave balances.

“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry. While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19,” says Mr Foran.

Summary of Air New Zealand’s response since the Covid-19 outbreak

  • Overall capacity reductions of approximately 10% across the network, including:
    – Asia capacity reduction of 26% through June, including extension of Shanghai route suspension through April 
    – Tasman capacity reductions of 7% through June 
    – Pacific Islands capacity reductions of 6% through June 
    – Reductions across the Domestic network of approximately 4%, with a 10% to 15% reduction in March and April
  • Various labour initiatives including a voluntary reduction in CEO pay, a hiring freeze for all non-critical roles and voluntary unpaid leave for operational staff
  • Deferral of non-urgent capital spend and any non-critical business activity

Delta Reduces Japan Flight Schedule Due To COVID-19

  • Customers with affected travel plans can go to the My Trips section of delta.com to help them understand their options.

Delta will reduce its weekly flying schedule to Japan through April 30 and suspend summer seasonal service between Seattle and Osaka for 2020 in response to reduced demand due to COVID-19 (coronavirus).

The health and safety of customers and employees is Delta’s top priority. The airline maintains an ongoing relationship with the Centers for Disease Control and Prevention and the World Health Organization, the world’s foremost experts on communicable diseases, to ensure training, policies, procedures, and cabin cleaning and disinfection measures meet and exceed guidelines. The latest information about Delta’s response to COVID-19 is here: news.delta.com/coronavirus

Flight schedule changes

Beginning March 7 for U.S. departures to Japan and March 8 for Japan departures to the U.S., the airline will operate the following schedule:

MarketPeak FrequencyFrequency March 7-April 30
Tokyo-DetroitDailyDaily
Tokyo-Los AngelesDailyDaily
Tokyo-HonoluluDailyDaily
Tokyo-SeattleDailyDaily
Tokyo-PortlandDaily3x weekly
Tokyo-AtlantaDaily5x weekly
Tokyo-MinneapolisDaily5x weekly
Nagoya-DetroitDaily3x weekly
Nagoya-HNLDaily3x weekly
Osaka-SeattleDailySuspended
Osaka-HonoluluDaily3x weekly
Tokyo-ManilaDailyDaily*

*ends March 27

Delta’s planned consolidation of Tokyo flights at Haneda Airport beginning March 28 will happen as planned. Flights between Seattle, Detroit, Atlanta, Honolulu and Portland will transition from Narita to Haneda beginning March 28 for departures from the U.S. to Tokyo, and March 29 for departures from Tokyo to the U.S. Delta’s Tokyo-bound flights from Minneapolis and Los Angeles already fly into Haneda and will continue to do so.

Delta’s service between Narita and Manila will continue to operate daily until March 27, after which the flight will be suspended as part of the carrier’s previously-announced consolidation at Haneda.  The airline’s new service from Incheon to Manila, previously scheduled to begin March 29, will now start on May 1.

The airline’s seasonal summer service between Seattle and Osaka will be suspended for the summer of 2020, with a planned return in summer 2021. Delta will continue to serve Osaka from Honolulu.

Full schedules will be available on delta.com beginning March 7. The airline will continue to monitor the situation closely and may make additional adjustments as the situation continues to evolve.

Alstom to Supply 17 Additional Citadis Trams to Strasbourg

Alstom will supply 17 additional Citadis trams to the Strasbourg Transport Company (CTS) and the Eurometropole of Strasbourg for the sum of €52 million. This order will complete the fleet of 63 trams delivered by Alstom between 2003 and 2019, and confirms a partnership of almost 20 years between Alstom and CTS. The last option exercise, signed in March 2016, was for 10 Citadis trams for the extensions of lines A and D. 

These 17 new trams will reinforce the existing lines, including line D, which serves the city centre of Kehl in Germany. The Citadis tramway is the first to cross a border in France and is approved according to the BOStrab, the German federal decree on the construction and operation of trams in Germany.

“With this new order, CTS is the French customer that will own one of the largest Citadis tram fleets with a total of 80 trainsets ordered. We are very proud to be continuing this partnership initiated in 2003, proving that the Citadis range meets the evolving needs of our customers,” says Jean-Baptiste Eyméoud, Managing Director of Alstom in France. 

The Citadis trams for Strasbourg are 45 metres long and have a capacity of 288 passengers. They are fitted with LED lighting and all-glass doors to enhance comfort and safety for passengers. Complying with the latest standards, the trams are equipped with double doors accessible to PRMs (People with Reduced Mobility), wider seats and areas reserved for wheelchair and stroller users. 

These trams will be designed and manufactured mainly in France: La Rochelle (design and assembly of the trainsets), Le Creusot (bogies for the intermediate modules), Tarbes (components of the traction chain), Villeurbanne (electronic equipment) and Saint-Ouen (design). The bogies situated under the driver cabins will be manufactured at Alstom’s site in Salzgitter, Germany. 

In total, more than 2,600 Citadis trams have been sold to more than 50 cities in 20 countries.

Amtrak Announces Updated Fares for Increased Savings

On March 1, 2020, Amtrak is launching a series of updates to provide customers more options for savings. Amtrak is offering deeply discounted tickets and reduced fares. Keep an eye out for a variety of new, ultra-low Saver Fares in cities including Orlando, Tampa and South Florida —making travel a breeze in the Sunshine State. Discounted Coach fares start at just $9 – a savings of up to 50% off the base fare. Look for more of these offers on March 2!

To make these lowered fares feasible, Amtrak is implementing a few more restrictions on tickets. In an effort to better fit each customer’s need, Amtrak is revising the following:

  • Saver Fares: Our most discounted fares offered with the most restrictions – including no changes, upgrades or cancelations 24 hours after purchase.         
  • Value Fares: Our standard fare offered with some restrictions – a fee may apply for cancelations or changes made within 14 days of departure.*                     
  • Flexible Fares: Our fare with the most flexibility built-in – including the ability to make no-fee changes and receive a full refund up to the moment of departure.

All fares include an array of amenities that come with Amtrak – including downtown-to-downtown service, no middle seat, ample legroom, the ability to earn Amtrak Guest Rewards points and one of the most generous baggage policies in travel. The change fee will not be applied to multiride, Rail Pass, pass riders, group reservations, sleeping accommodations, Acela First Class/non-Acela Business class, Flexible Fares, Unreserved Coach, corporate, Amtrak Guest Rewards Select Executive members, government fare plans and the first change to a reservation made prior to March 1, 2020. 

*The change fee will not apply to Value fares if the customer is adding to an existing reservation (booked prior to March 1) or upgrading on the same train and day as the original reservation.

United Airlines to Record $90 Million Charge Related to Hong Kong Routes

(Reuters) – United Airlines Holdings Inc <UAL> said on Tuesday it expects a non-cash impairment charge of $90 million in the fourth quarter related to its Hong Kong routes, following anti-government protests in the city.

The Hong Kong protests escalated in June over a now-withdrawn extradition bill, but have since developed into a broader movement.

“Due to a decrease in demand for the Hong Kong market and the resulting decrease in unit revenue, the company determined that the value of its Hong Kong routes had been fully impaired,” the U.S. carrier said.

Several airlines including India’s SpiceJet Ltd <SPJT>, Malaysia’s AirAsia Group Bhd <AIABF>, South Korea’s JejuAir Co Ltd <089590> reduced the number of flights to the city in the fourth quarter as the protests grew increasingly violent, disrupting daily life.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

BOC Aviation Orders 20 More A320neo Aircraft

Singapore-based lessor BOC Aviation Limited has placed a firm order with Airbus for 20 A320neo aircraft. Up to 12 of the newly-ordered aircraft will be leased to Colombia’s Avianca Airlines.

Featuring the widest single-aisle cabin in the sky, the A320neo Family incorporates the latest technologies, including new generation engines and Sharklets, which together deliver 20% reduced fuel burn as well as 50% less noise compared to previous-generation aircraft.

Hokkaido Air Company Takes Delivery of 1st ATR 42-600

  • Japanese regional operator starts fleet replacement with eco-responsible turboprop aircraft

World number one regional aircraft manufacturer ATR today delivered the first of two ATR 42-600 aircraft to Hokkaido Air System Co., Ltd (HAC), a JAL Group Company. This delivery marks the first step in HAC’s replacement of its Saab 340 fleet. The delivery of this aircraft will ensure that essential regional air connectivity in Hokkaido can continue.
 
The ATR 42-600 will offer HAC increased capacity for the same operating costs – generating opportunities for the airline to increase revenues. It will also provide HAC’s passengers with a modern, comfortable cabin featuring latest generation 18”-wide seats as well as more space for luggage in the overhead bins.
 
Tetsu Ohori, Chief Executive Officer of HAC said: “Today is a long-awaited day for us at Hokkaido Air System, and becomes a memorable day, marking a new chapter in our history. We have so many tourists who enjoy the fantastic ‘Mother Nature’ of Hokkaido. In winter, the great nature turns her face with severe cold and heavy snow. Even under such hard conditions, this ATR 42 will perform well and make our new business a success. I’m really looking forward to showing this wonderful aircraft to everyone in Hokkaido as soon as possible.”
 
ATR Chief Executive Officer Stefano Bortoli remarked: “Our aircraft makes perfect sense for the Japanese market. Japanese passengers, who are known to demand the very best in terms of comfort and eco-responsibility, will appreciate both the aircraft’s reduced emissions and modern comfortable cabin. This, plus the unbeatable economics and the need to maintain essential regional connectivity in Japan demonstrates why we are increasing our presence in the country.”
 
ATR’s market estimates forecast that around 900 30-50 seat aircraft will soon need to be replaced as older and inefficient aircraft come to the end of their lives. The ATR 42-600 is part of ATR’s unique family of regional aircraft, including the ATR 72-600, the ATR 42-600S (Short Take-Off and Landing) and the ATR 72-600F, the only brand new regional freighter. Together, they represent the ideal and modern solution to ensure that essential connectivity is maintained for local communities all over the world, while flying sustainably, emitting up to 40% less CO2 compared with regional jets.
 
About Hokkaido Air System Co., Ltd 
Established on 30 September, 1997, Hokkaido Air System began operations on 28 March.1998, with Japan Airlines (57.3%), Hokkaido government (19.5%), Sapporo city (13.5%) as major shareholders. Hokkaido Air System operates three aircraft (SAAB340B-WT) and 26 daily departures on five routes; between Sapporo-Okadama and Rishiri/Kushiro/Hakodate/Misawa, Hakodate and Okushiri, based in Sapporo-Okadama airport.

Boeing Statement Regarding 737 MAX Production

  • Boeing suspends 737 MAX production starting in January due to certification in 2020
  • Reduced production output enables prioritization of stored aircraft delivery
  • No layoffs or furlough expected at this time

Safely returning the 737 MAX to service is our top priority. We know that the process of approving the 737 MAX’s return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates. As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered. 

Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes and there are now approximately 400 airplanes in storage. We have previously stated that we would continually evaluate our production plans should the MAX grounding continue longer than we expected. As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month. 

We believe this decision is least disruptive to maintaining long-term production system and supply chain health. This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft. We will continue to assess our progress towards return to service milestones and make determinations about resuming production and deliveries accordingly.

During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound. As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions. This will include efforts to sustain the gains in production system and supply chain quality and health made over the last many months.

We will provide financial information regarding the production suspension in connection with our 4Q19 earnings release in late January.

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