PRNewswire/ — Volaris (NYSE: VLRS), the ultra-low-cost airline serving Mexico, the United States and Central America, announces that pursuant to a decree published in the Official Gazette of the Federation, the Government of the United Mexican States, acting through the General Health Council (Consejo de Salubridad General (“GHC”)) declared a health emergency due to force majeure, as a result of the disease epidemic caused by the virus SARS-CoV-2 (COVID-19), known as Coronavirus, which will be in effect until April 30, 2002 (the “Declaration of Emergency”)
The Declaration of Emergency and the health security measures announced by the GHC, such as the suspension of non-essential activities in the public, private and social sector, as well as the call to the population to comply with stay at home, will impact the demand for passenger air transportation whilst the Declaration of Emergency is in effect.
As a result, from the date hereof, Volaris will make an additional capacity reduction to that which was advised on March 24, 2020. Capacity measured by available seat miles (ASMs) for the month of April, 2020 will reduce to approximately 80% of total operation versus the schedule originally published.
Volaris will continue to provide relevant market updates should further capacity, governmental travel restrictions or other liquidity preserving measures need to be implemented.
(Reuters) – Air New Zealand <AIR.NZ> said on Tuesday nearly a third of its employees, about 3,500, will be laid off in the coming months, as it grapples with severe global travel curbs due to the coronavirus that has forced it to cancel nearly all flights.
The national carrier, which employs 12,500 people, said the announced number of layoffs was a “conservative” assumption, and that it could rise if the domestic lockdown and border restrictions were extended.
Large scale layoffs of its global staff will start this week, the company said.
“Unfortunately, COVID-19 has seen us go from having revenue of NZ$5.8 billion to what is shaping up to be less than NZ$500 million annually based on the current booking patterns we are seeing,” Chief Executive Officer Greg Foran said in an email to staff and customers.
“This has the potential to be catastrophic for our business unless we take some decisive action.”
Air New Zealand is an example of the dire situation facing airlines across the world due to curbs on travel to control the spread of the virus.
“We have had to cut more than 95 percent of our flights here in New Zealand and around the world. The only flights remaining are in place to keep supply lines open and transport options for essential services personnel,” Foran added.
Earlier in March, the New Zealand government offered the airline a NZ$900 million ($540.99 million) lifeline to keep it in the air.
The company also noted that “every dollar we use from this loan facility comes with interest (more than double current interest rates for a household mortgage) and must be re-paid.”
“Burdening our airline with massive debt would significantly lessen our ability to compete with airlines emerging from COVID-19,” said Foran.
He also said that in a year’s time he expects staffing levels to be 30% smaller than it is currently.
($1 = 1.6636 New Zealand dollars)
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Shinjini Ganguli)
FILE PHOTO: An Air New Zealand Airbus A320 plane takes off from Kingsford Smith International Airport in Sydney
LONDON, March 31 (Reuters) – British Airways said it is temporarily suspending flights from Gatwick Airport in southern England, Britain’s second busiest airport, due to the coronavirus.
BA’s boss warned earlier in March that the airline was in a battle for survival and would have to cut jobs and park planes.
“Due to the considerable restrictions and challenging market environment, like many other airlines, we will temporarily suspend our flying schedule at Gatwick,” a BA spokesman said.
BA said it will contact affected customers. The airline continues to operate some flights from its main hub at Heathrow.
Parent company IAG said flying capacity would be down 75% in April and May.
Rival airline easyJet said on Monday that it had grounded its entire fleet.
Gatwick Airport said last week it would shut one of its two terminals on Wednesday.
The Qantas Group has completed a new round of debt funding, securing $1.05 billion in additional liquidity to strengthen its position as it manages through the Coronavirus outbreak.
This debt has been secured against part of the Group’s fleet of unencumbered aircraft, which were bought with cash in recent years. The loan has a tenure of up to 10 years at an interest rate of 2.75 per cent.
This funding increases the Group’s available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.
The Group’s net debt position remains at the low end of its target range, at $5.1 billion, with no major debt maturities until June 2021. In line with the rest of the Qantas debt book, the new funding contains no financial covenants.
With a further $3.5 billion in unencumbered assets, the Qantas Group retains flexibility to increase its cash balance as a prudent measure in the current climate. As previously announced, various steps have been taken to significantly reduce activity levels and costs given the dramatic revenue impact of the Coronavirus pandemic and the related travel restrictions on Jetstar and Qantas passenger services.
Qantas Group CEO Alan Joyce said: “Over the past few years we’ve significantly strengthened our balance sheet and we’re now able to draw on that strength under what are exceptional circumstances. Everything we’re doing at the moment is focused on guaranteeing the long term future of the national carrier, including making sure our people have jobs to return to when we have work for them again.”
Seven of the Group’s 11 wholly-owned Boeing 787-9’s have been securitised against this funding.
Since the COVID-19 outbreak began, Emirates and dnata have been adapting operations in line with regulatory directives as well as travel demand.
The airline has aimed to maintain passenger flights for as long as feasible to help travellers return home amidst an increasing number of travel bans, restrictions, and country lockdowns across the world. It continues to maintain vital international air cargo links for economies and communities, deploying its fleet of 777 freighters for the transport of essential goods including medical supplies across the world.
With many of its airline customers dramatically reducing flights or ceasing services altogether, dnata has also significantly reduced its operations, including temporarily shutting some offices across its international network.
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive of Emirates Group said: “The world has literally gone into quarantine due to the COVID-19 outbreak. This is an unprecedented crisis situation in terms of breadth and scale: geographically, as well as from a health, social, and economic standpoint. Until January 2020, the Emirates Group was doing well against our current financial year targets. But COVID-19 has brought all that to a sudden and painful halt over the past 6 weeks.
“As a global network airline, we find ourselves in a situation where we cannot viably operate passenger services until countries re-open their borders, and travel confidence returns. By Wednesday 25 March, although we will still operate cargo flights which remain busy, Emirates will have temporarily suspended most of its passenger operations. We continue to watch the situation closely, and as soon as things allow, we will reinstate our services.”
Having received requests from governments and customers to support the repatriation of travellers, Emirates will continue to operate passenger and cargo flights to the following countries and territories until further notice, as long as borders remain open, and there is demand: the UK, Switzerland, Hong Kong, Thailand, Malaysia, Philippines, Japan, Singapore, South Korea, Australia, South Africa, USA, and Canada. The situation remains dynamic, and travellers can check flight status on emirates.com.
Sheikh Ahmed added: “Emirates Group has a strong balance sheet, and substantial cash liquidity, and we can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules, so that we are adequately prepared for the return to normality.”
Cost reduction measures
The Emirates Group has undertaken a series of measures to contain costs, as the outlook for travel demand remains weak across markets in the short to medium term. This includes:
Postponing or cancelling discretionary expenditure
A freeze on all non-essential recruitment and consultancy work
Working with suppliers to find cost savings and efficiency
Encouraging employees to take paid or unpaid leave in light of reduced flying capacity
A temporary reduction of basic salary for the majority of Emirates Group employees for three months, ranging from 25% to 50%. Employees will continue to be paid their other allowances during this time. Junior level employees will be exempt from basic salary reduction
Presidents of Emirates and dnata – Sir Tim Clark and Gary Chapman – will take a 100% basic salary cut for three months
The Emirates Group has strong liquidity, with a healthy cash position but it is prudent that it take steps to reduce costs at this time. Emirates remains committed to serving its markets and looks forward to resuming a normal flight schedule as soon as that is permitted by the relevant authorities.
Safeguarding customers, employees, and communities
Emirates Group closely monitors the situation and keeps in regular contact with all relevant authorities, so that it can implement the latest guidance to keep travellers and its employees safe and healthy.
The company has strongly discouraged its employees from non-essential travel, implemented work from home policies for all employees where operationally feasible, enhanced cleaning and disinfection protocols at its facilities, introduced temperature screening at its key office entry points, and launched internal educational campaigns on hand hygiene and health practices to reduce risk of COVID-19.
Over the past weeks, the airline has also implemented enhanced cleaning and disinfecting measures on all of its aircraft departing Dubai as a precaution, and worked closely with airports to implement screening measures as required by the local authorities.
Frontline employees such as crew and airport teams have also been provided with support to stay safe while on duty, including providing hand sanitizers and masks where required.
The Emirates Group fully supports all initiatives to safeguard the health of communities in every market where it operates, including the UAE’s national COVID-19 response.
Due to the COVID-19 outbreak, many countries have implemented travel restrictions. Here we have collected information on various travel restrictions to destinations that we fly to. Please be advised that the following is subject to change on short notice. We will attempt to update you as promptly as possible.
If you do not have a flight in the next 72 hours we kindly ask you to consider contacting us in a few days. Due to high volumes for incoming calls and requests, we apologize for the delay in our responses. We will do our best to post any updates on our website and social media as soon as the latest information is available.
If you have a ticket with Icelandair and are affected by these restrictions, please read our FAQ.
70% corresponds to a 90% reduction in international flights and 40% in domestic operations. All customers with affected international and national flights from today can reschedule their journeys until December 31, 2020, at no additional cost
Following new border closures of various countries and the subsequent drop in demand, LATAM Airlines Group S.A. and its subsidiaries will reduce their capacity by 70%, equivalent to a 90% decrease in international operations and 40% in national flights.
“We made this difficult decision following border closures that have made operating to a large part of our network impossible. If these unprecedented travel restrictions are extended over the next few days, we cannot rule out further reductions to our operation,” said Roberto Alvo, Chief Commercial Officer and CEO-elect of LATAM Airlines Group.
All passengers with affected national or international flights from today (March 16, 2020), will be able to reschedule their flights until December 31, 2020, at no additional cost.
LATAM’s customer service channels are currently receiving high numbers of enquiries, impeding the ability to attend customers. To be able to focus on passengers with the most pressing requirements, LATAM requests that customers do not call more than 72 hours prior to their flight.
Following self-quarantine restrictions issued by the Australian government, Delta is temporarily suspending service from Los Angeles to Sydney beginning March 18 through April 11.
The last flight from L.A. to Sydney will depart Tuesday, March 17. The last flight from Sydney to L.A. will depart Thursday, March 19.
See here for a list of all current schedule changes.
CHANGING YOUR FLIGHT
Delta has waived change fees for customers traveling to, from or through Australia through May 31. Additional details are available on delta.com.
To help address customers with immediate travel needs, Delta is asking those who do not have travel in the next 72 hours to wait and contact the airline closer to their trip. Customers can also change or cancel a flight anytime before their travel date using My Trips on Delta.com.
To provide even more flexibility, any Delta ticket expiring in March or April is being extended to enable rebooking and travel until Dec. 31, 2020. If you’re not able to adjust your plans in time and don’t make your flight, your ticket number automatically becomes an unused eCredit within 24 hours that can be used to rebook a flight in My Trips or with Delta Reservations.
CAPPED FARES
To ensure customers can travel with financial peace of mind, Delta will cap fares to and from all destinations Delta serves throughout the U.S. and Canada through March 31. These fare caps are in place in all cabins, from Delta One to Main Cabin.
PROVIDING A SAFE AND CLEAN ENVIRONMENT
Delta’s highest priority is to ensure the health and safety of customers and employees. The airline is regularly disinfecting check-in kiosks, ticket counters, gate areas, jet bridges, and more multiple times a day. More information on our cleaning procedures can be found here.
Since the outbreak of the Coronavirus COVID-19, our teams have been doing everything possible to guarantee the safety and health of our passengers and cabin crew.
We regularly consult all relevant international authorities to make sure that we follow – and even surpass – their instructions on health precautions related to the effort to prevent the spread of the Coronavirus.
Aircraft cleaning procedures, which were already of the highest standard given our all-business class offer, have been reinforced to guarantee a safe and relaxing experience for our passengers. Our brand-new A321neo also features a state-of-the-art air circulation system that renews cabin air every 3 minutes.
COMMERCIAL POLICY
In light of President Trump’s recent restrictions on travel between Europe and the U.S., effective March 13th at midnight for a period of 30 days, we have been forced to reassess our flight schedule for the upcoming months.
We must suspend all scheduled flights from March 18th to April 12th, 2020,resuming with one daily flight between Paris and New York from April 13th once the restrictions are lifted.
The launch of the seasonal route from New York to Nice is pushed back to June 1st, 2020.
In the unlikely event that your flight has been cancelled by La Compagnie in light of the Covid-19 situation, you will be notified directly via the contact details provided in your booking and will be offered solutions to modify, postpone or cancel your flights.
Any passengers with a flight scheduled between now and May 31st, 2020 who would like to postpone their departure may do so, regardless of fare conditions and at no charge, or receive a non-refundable but transferrable voucher (valid for 12 months).
American Airlines Group Inc. (NASDAQ: AAL) will implement a phased suspension of additional long-haul international flights from the U.S. starting on March 16. This suspension will last through May 6. This change is in response to decreased demand and changes to U.S. government travel restrictions due to coronavirus (COVID-19). The airline will:
Reduce international capacity by 75% year over year — from March 16 to May 6
Continue to operate one flight daily from Dallas-Fort Worth (DFW) to London (LHR), one flight daily from Miami (MIA) to LHR and three flights per week from DFW to Tokyo (NRT)
Continue short-haul international flying, which includes flights to Canada, Mexico, Caribbean, Central America and certain markets in the northern part of South America, as scheduled
In addition to the international changes, the airline anticipates its domestic capacity in April will be reduced by 20% compared to last year and May’s domestic capacity will be reduced by 30% on a year over year basis.
International Route Changes
By region, the new schedule changes include the following:
Asia, effective March 16
American will suspend all remaining flights to Asia, except for three flights per week from DFW to NRT
Australia and New Zealand, effective March 16
Suspending service from Los Angeles (LAX) to Auckland (AKL) effective March 16, which was slated to end seasonal flying on March 28
Suspending service from LAX to Sydney (SYD) effective March 16
Europe, phased suspension
American will continue to operate one flight daily from DFW to LHR and MIA to LHR
Suspending flights from New York (JFK), Boston (BOS), Chicago (ORD), and LAX to LHR gradually over the next seven days to reaccommodate passengers and crew
LHR, Dublin (DUB) and Manchester (MAN) flights from Charlotte (CLT), Philadelphia (PHL) and Phoenix (PHX) will be suspended faster, as these airports are not approved gateways by the U.S. Department of Homeland Security. Final eastbound flights from CLT, PHL and PHX will be on March 15; final westbound flights returning from LHR, DUB and MAN will depart March 16
Continued suspensions in other parts of Europe, as previously announced, including the delayed start of some seasonal routes as well as flights to and from Amsterdam (AMS), Barcelona (BCN), Frankfurt (FRA), Madrid (MAD) and Munich (MUC) Paris (CDG) and Zurich (ZRH) through early May, or later, based on guidance from the U.S. government and customer demand
South America, effective March 16
Suspending service from JFK and MIA to Rio de Janeiro (GIG) and Georgetown, Guyana (GEO)
Suspending service from DFW, JFK and MIA to São Paulo (GRU)
These capacity reductions assume no slot waivers are in place other than those previously granted. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the decrease in demand related to COVID-19, American has requested temporary relief from this usage requirement — otherwise known as requesting a slot waiver — to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.
