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US & China to Allow 4 Weekly Flights Each for Airlines

  • Delta to fly next week
FILE PHOTO: Delta Air Lines passenger planes parked in Birmingham

(Reuters) – The United States and China will each allow four weekly flights between the two countries, the U.S. Transportation Department said on Monday, easing a standoff on travel restrictions in the midst of the novel coronavirus pandemic.

The U.S. government still hopes China will agree to restore full U.S. flight rights under their bilateral aviation agreement, the Transportation Department said Monday in its revised order on China flights.

“As the Chinese government allows more flights by U.S. carriers, we will reciprocate,” it said.

The United States had threatened to bar Chinese passenger flights on June 16 due to Beijing’s curbs on U.S. airlines amid simmering tensions between the world’s two largest economies, and has raised concerns about the number of charter flights Chinese carriers want to fly.

Among U.S. airlines, Delta Air Lines and United Airlines had each sought to restart daily passenger flights to China in June but changed their plans in the absence of government approval.

Following China’s agreement to allow four U.S. flights total, Delta said it would operate two flights to Shanghai from Seattle next week and once weekly flights from Seattle and Detroit beginning in July, all via Seoul.

United said it was aiming to re-launch service to China in the weeks ahead.

Chinese authorities have already agreed to some changes on requirements for U.S. carriers, including allowing temperature checks to be done before flights take off for China, rather than mid-flight as previously discussed, a person briefed on the matter said.

(Reporting by David Shepardson and Tracy Rucinski; Editing by Grant McCool and Stephen Coates)

U.S. to Revise Chinese Passenger Airline Ban After Beijing Move

A China Eastern Airlines aircraft is seen at Hongqiao International Airport in Shanghai

WASHINGTON (Reuters) – The U.S. Transportation Department plans to issue a revised order in the coming days that is likely to allow some Chinese passenger airline flights to continue, government and airline officials said.

On Thursday, China said it would ease coronavirus restrictions to allow in more foreign carriers, shortly after Washington said it planned to bar Chinese passenger airlines from flying to the United States by June 16 due to Beijing’s curbs on U.S. carriers.

The change should allow U.S. carriers to resume once-a-week flights into a city of their choice starting on June 8, but that would be still significantly fewer than what the U.S. government says its aviation agreement with China allows.

The Transportation Department did not immediately comment.

The department said on Wednesday Chinese carriers could operate “the same number of scheduled passenger flights as the Chinese government allows ours.” It added the order was to “restore a competitive balance and fair and equal opportunity among U.S. and Chinese air carriers.”

The U.S. order would halt the four weekly U.S. roundtrip flights by Air China <0753.HK>, China Eastern Airlines Corp, China Southern Airlines Co <1055.HK> and Xiamen Airlines Co.

U.S. and airline officials have privately raised concerns about the revised Chinese rules and it is unclear if carriers would agree to fly just once a week to China when they have sought approval for two or three daily flights.

Delta Air Lines <DAL.N> and United Airlines <UAL> asked to resume flights to China this month. Both said they were reviewing the order from the Civil Aviation Administration of China.

American Airlines <AAL> is sticking with its previous plan to resume service to China at the end of October, spokesman Ross Feinstein said.

The CAAC said all airlines can increase the number of international flights involving China to two per week if none of their passengers test positive for COVID-19, the disease caused by the novel coronavirus, for three consecutive weeks.

If five or more passengers on one flight test positive upon arrival, the CAAC will bar the airline for a week. Airlines would be suspended for four weeks if 10 passengers or more test positive.

(Reporting by David Shepardson in Washington; additional reporting by Tracy Rucinski in Chicago; Editing by Chris Reese, Richard Chang and Bernadette Baum)

Air New Zealand Lays Off 3,500 Employees as Virus Halts Travel

(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