AMSTERDAM (Reuters) – Air France-KLM <AF.PA> might not survive its current crisis if the airline group cannot lower its costs, Dutch Finance minister Wopke Hoekstra said on Sunday.
“The survival of Air France-KLM is not a given,” Hoekstra said in an interview on Dutch public television.
“They will have to address their cost base even as things stand now. And suppose this situation lasts until the end of next year, then they will have to cut even deeper.”
Air France-KLM’s immediate future was secured by the French and Dutch governments in July, as they provided a total of 10.4 billion euros ($12.3 billion) in bailout loans and guarantees to help the group survive the disastrous effects of the COVID-19 pandemic on air travel.
In return for the support, Dutch arm KLM has said it would cut another 1,500 jobs, reducing its staff by 20%, while a pay hike agreed for 2020 was frozen by the company.
French arm Air France plans to cut 6,500 jobs, or 16% of its workforce, through 2022.
So far, however, KLM has failed to reach an agreement with unions on the cuts needed to meet the requirements set by the Dutch government.
Hoekstra indicated a thorough restructuring would be necessary for governments to contemplate further support.
“KLM will always be very important for the Dutch economy. But the question is whether that will be enough”, he said.
Air France-KLM said last month that it was losing 10 million euros per day due to the coronavirus crisis.
(Reporting by Bart Meijer; Editing by Susan Fenton)
BRUSSELS (Reuters) – The European Union’s competition watchdog on Monday approved French state aid worth 7 billion euros ($7.66 billion) for Air France <AF.PA>, saying the support would provide cash to soften the economic shock of the coronavirus pandemic.
Airlines across Europe have sought state rescues as coronavirus lockdowns have forced them to ground their fleets for more than a month, with no end in sight.
“This 7 billion euro French guarantee and shareholder loan will provide Air France with the liquidity that it urgently needs to withstand the impact of the coronavirus outbreak,” the EU’s top competition official Margrethe Vestager said in a statement.
The European Commission noted the importance of Air France, with more than 300 planes, to the French economy and the role it has played in repatriating stranded citizens and transporting medical supplies.
The Commission said in its statement that the support will take the form of a state guarantee on loans and a subordinated shareholder loan to the company by the French state.
The French and Dutch governments each hold close to 14% of the Air France-KLM group, which was created by the 2004 merger between the two national carriers.
(Reporting by Gabriela Baczynska and Robin Emmott, editing by Ed Osmond and Barbara Lewis)
FILE PHOTO: Air France airplanes on the tarmac at Paris Charles de Gaulle airport in Roissy-en-France
New service to Dallas/Fort Worth and Columbus, Ohio, on fuel-efficient Airbus A220s.
Expanded service to 12 U.S. cities.
Delta will operate daily service to London-Heathrow, Europe’s top international market, in 2021.
70% of flights on larger, mainline aircraft, enhancing customer comfort and experience with seat-back entertainment and WiFi.
Upgraded, next-generation aircraft in top business and leisure markets.
Delta is committed to offering Seattle customers more options for summer travel than ever before with the launch of new, three-times daily service to Dallas/Fort Worth, new nonstop service to Columbus, Ohio, and expanded service to 12 popular destinations: Anchorage; Atlanta; Austin; Boise, Idaho; Boston; Bozeman, Mont.; Kansas City; Las Vegas; Orlando; Spokane, Wash.; Tampa; and Washington-Dulles.
These additions mean Delta will offer 190 daily departures to 56 destinations this summer from Seattle-Tacoma International Airport. Dallas/Fort Worth marks Delta’s second Texas destination from Sea-Tac, building on the Austin service launched in 2017.
As Seattle’s global carrier, Delta plans to launch nonstop service to London-Heathrow in 2021. The route expands the airline’s lead of offering the most global destinations from Seattle than any other airline, with London joining Delta’s existing nine international markets. The service also complements partner Virgin Atlantic’s twice-daily service and offers customers the choice of three daily flights.
“Our customers’ demand for new destinations, award-winning service, commitment to seat-back entertainment and superior reliability are what drives Delta’s continued growth in Seattle,” said Tony Gonchar, Delta’s Vice President — Seattle. “With our extensive partner service from Seattle on Virgin Atlantic, Air France, Korean Air and Aeromexico, customers can expect a seamless journey across the globe.”
New summer destinations and expanded service for Seattleites
Delta’s overall domestic summer service from Seattle includes top leisure and business destinations.
Starting June 8, Delta will launch:
Three daily flights to Dallas/Fort Worth
New daily flight to Columbus, Ohio
A second flight to Austin
A second flight to Orlando
These flights to Dallas, Columbus and Austin will operate on Airbus A220 aircraft; the Orlando service will operate on a Boeing 737-900. The schedules will operate as follows:
Flight
Departs
Arrives
Dallas/Fort Worth-Seattle (new service)
7:15 a.m.
9:30 a.m.
Dallas/Fort Worth-Seattle (new service)
2 p.m.
4:15 p.m.
Dallas/Fort Worth-Seattle (new service)
5:30 p.m.
7:45 p.m.
Seattle-Dallas/Fort Worth (new service)
7:30 a.m.
1:30 p.m.
Seattle-Dallas/Fort Worth (new service)
10:45 a.m.
4:45 p.m.
Seattle-Dallas/Fort Worth (new service)
5:30 p.m.
11:30 p.m.
Columbus-Seattle (new service)
7:15 a.m.
9:25 a.m.
Seattle-Columbus (new service)
10:30 p.m.
6 a.m.
Austin-Seattle (existing flight)
6:30 a.m.
8:57 a.m.
Austin-Seattle (added frequency)
3:20 p.m.
5:45 p.m.
Seattle-Austin (added frequency)
8:30 a.m.
2:40 p.m.
Seattle-Austin (existing flight)
6:20 p.m.
0:24 a.m.
Orlando-Seattle (existing flight)
7 a.m.
10:27 a.m.
Orlando-Seattle (added frequency)
7 p.m.
10:10 p.m.
Seattle-Orlando (existing flight)
9:30 a.m.
5:49 p.m.
Seattle-Orlando (added frequency)
10:30 p.m.
6:55 a.m.
These new offerings join more service expansions previously announced, including:
Tampa service beginning in March
A fourth daily flight to Boston
A second flight to Kansas City and Washington, D.C. (IAD) beginning this summer
Twice daily flights to Bozeman, Mont.
More flights and seats to Anchorage, Atlanta, Boise, Las Vegas, and Spokane, Wash., including a convenient evening service for Atlanta business travelers
WASHINGTON/CHICAGO (Reuters) – Delta Air Lines Inc <DAL> and American Airlines Group Inc <AAL> decided on Friday to temporarily suspend all remaining U.S.-China flights after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.
U.S. officials were due to hold a call with airlines later on Friday to discuss the Chinese flights. Some airline officials worried that if they did not voluntarily halt flights it would prompt the Trump administration to take formal action, potentially complicating any subsequent flight resumption.
The United States told citizens on Thursday not to travel to China due to the epidemic that has infected nearly 10,000 people and been declared a global emergency.
Pilots and flight attendants have been demanding airlines stop flights to the country, with American Airlines’ pilots filing a lawsuit on Thursday seeking an immediate halt.
“The decision to file a lawsuit was made out of concern for the safety of our pilots,” said Dennis Tajer, a spokesman for the Allied Pilots Association which represents American’s pilots.
As of Thursday United Airlines Holdings Inc <UAL> was still planning to operate some flights from San Francisco, even after its pilots union told its members they would be allowed to drop their trip without pay if they were concerned about flying to the country.
Delta and American had both announced lighter schedules to China earlier this week.
On Friday, American said operations to and from China would be halted starting on Friday through March 27. The carrier will continue to fly to Hong Kong.
Delta said its last China-bound flight departing the United States will leave on Monday, Feb. 3, with the last U.S. return flight departing China on Feb. 5.
The Delta suspension is set to last through April 30.
U.S. airline shares have posted heavy losses this week on concerns of the financial impact of the virus.
Other airlines that have stopped their flights to mainland China include Air France KLM SA <AFLYY>, British Airways <ICAGY>, Germany’s Lufthansa <DLAKY> and Virgin Atlantic.
Major Chinese carriers were still operating flights to and from the United States as of Friday.
(Reporting by David Shepardson and Tracy Rucinski; Editing by Nick Zieminski and Tom Brown)
FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.
WASHINGTON/PARIS/SINGAPORE (Reuters) – A pilots union filed a lawsuit on Thursday seeking to immediately halt American Airlines U.S.-China service, as cabin crews worldwide voiced unease about exposure to the rapidly-spreading coronavirus which has killed more than 170 people in China.
Sri Lankan Airlines staff wear masks at Bandaranaike International Airport after Sri Lanka confirmed the first case of coronavirus in the country, in Katunayake
The Allied Pilots Association, which represents American Airlines pilots, cited “serious, and in many ways still unknown, health threats posed by the coronavirus.”
American, the largest U.S. carrier, did not immediately comment on the suit, filed in a Texas court. The Fort Worth, Texas-based airline announced on Wednesday it would next month suspend flights from Los Angeles to Beijing and Shanghai, but continue flights from Dallas.
The World Health Organization on Thursday declared the coronavirus outbreak in China a global emergency as cases spread to 18 countries.
The lawsuit came as an increasing number of airlines stopped their flights to China. Air France-KLM, for example, suspended its Beijing and Shanghai flights after cabin crews demanded an immediate halt.
Others that have dropped mainland Chinese destinations besides Wuhan, the outbreak’s center, include British Airways and Germany’s Lufthansa. Wuhan is closed to commercial air traffic.
Virgin Atlantic also said on Thursday it would suspend its daily operations to Shanghai from Sunday for two weeks because of the safety of customers and staff and a declining demand for tickets, but would continue flights to Hong Kong.
Other major carriers have kept flying to China, but protective masks and shorter layovers designed to reduce exposure have done little to reassure crews.
Thai Airways is hosing its cabins with disinfectant spray between China flights and allowing crew to wear masks and gloves.
“I don’t think it’s safe at all even with gloves and masks, because you catch it so many ways, like your eyes,” said one flight attendant, who spoke on condition of anonymity.
“My friends also feel unsafe and don’t want to fly,” she said. “When we fly, we don’t sleep a lot.”
Delta Air Lines and United Airlines are operating fewer China flights, with Delta offering food deliveries so crew can stay in their hotels.
Korean Air Lines Co Ltd and Singapore Airlines are sending additional crew to fly each plane straight back, avoiding overnight stays.
The South Korean carrier also said it was loading hazmat suits for flight attendants who might need to take care of suspected coronavirus cases in the air.
The outbreak poses the biggest epidemic threat to the airline industry since the 2003 SARS crisis, which led to a 45% plunge in passenger demand in Asia at its peak in April of that year, analysts said.
(Reporting by Laurence Frost, Aradhana Aravindan, Chayut Setboonsarng, David Shepardson and Tracy Rucinski Additional reporting by Caroline Pailliez in Paris, Josephine Mason in London, John Geddie in Singapore, Panu Wongcha-um in Bangkok, Jamie Freed in Sydney and Joyce Lee in Seoul; Writing by Jamie Freed and Tracy Rucinski; Editing by Marguerita Choy)
FILE PHOTO: An American Airlines Airbus A321 plane takes off from Los Angeles International airport
Delta Air Lines, Inc. (NYSE: DAL) traded down 1.8% Tuesday shortly after its global affiliates announced a bid for an embattled airline.
In an early round of bidding against other international airlines, Air France-KLM proposed to buy a 49% stake in Malaysia Airlines. Its pitch outlined plans for a maintenance hub in the Southeast Asian nation.
The circumstances of the bid are not particularly positive. Malaysia Airlines has struggled to revive booking rates since two disasters in 2014 tanked its public trust. Flight MH370 mysteriously disappeared over the Indian Ocean, and flight MH17 was shot down over Ukraine. The Malaysian government has since sought a strategic partner to restore the airline’s image.
Why It’s Important
With a stake in Malaysian Airlines, Air France-KLM could improve the entity’s public trust issues — or it could be hampered by them. Either way, an affiliation may create risk for Delta.
A Jet Airways vehicle leaves the company’s headquarters in Mumbai
BENGALURU (Reuters) – Bankrupt Indian airline Jet Airways Ltd said it had agreed to sell its assets in Netherlands to Dutch airline KLM.
If the deal is finalised, it will only involve a sale of part of the company’s business and not impact the shareholding pattern, Jet said in a statement dated Jan. 16. It did not detail the assets held in Netherlands.
Once India’s biggest private carrier, Jet stopped flying in April after running out of cash, leaving thousands without jobs and pushing up air fares across the country.
It was admitted to bankruptcy court in June after its lenders, led by State Bank of India SBI.NS, failed to agree on a revival plan.
KLM, a part of Air France KLM, was once codeshare partners with the defunct airline and in the wake of Jet’s collapse had added flights to India.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu and Anil D’Silva)
