Covid 19 Fall Out - Curt Lewis

 

Ill.: ICAO

 

EasyJet cuts more flights and sells planes after new Covid controls Airline expects to fly no more than 20% of planned capacity for rest of 2020 EasyJet is cutting its flight schedule further after the introduction of new lockdown measures in the UK and mainland Europe, saying it will only run a maximum of 20% of planned flights for the rest of the year. The airline said it was scaling back days after the UK prime minister, Boris Johnson, announced fresh Covid-19 restrictions that ban residents in England from holidaying abroad or within the UK until 2 December. EasyJet said similar lockdown measures in Germany and France were also affecting flight plans. The airline’s financial year begins in October and it said: “EasyJet now expects to fly no more than 20% of planned capacity for the first quarter. “We remain focused on cash generative flying over the winter season in order to minimise losses during the first half and retain the flexibility to ramp capacity back up quickly when we see demand return.” The announcement comes only weeks after easyJet said it would be cutting capacity to 25% for the rest of 2020. The airline has taken more drastic measures than the rival budget airline Ryanair, which recently said it would run about 40% of its planned capacity from November to March. EasyJet also announced it had raised almost £131m through the sale and leaseback of 11 of its A320 planes. After the latest deal, easyJet now owns only 41%, or 141 planes, of its fleet. The airline has been trying to raise extra cash as a second wave of coronavirus cases and resulting lockdowns threaten to put extra strain on its finances. The airline said last month it was likely to report a loss in the range of £815m to £845m for the year to September – its first annual loss in the 25-year history of the airline. “EasyJet will continue to review its liquidity position on a regular basis and will continue to assess further funding options, including those that exist in the robust sale and leaseback market,” the company said. British Airways told staff on Thursday that it would make further cuts to schedules over the next month and furlough more staff. It will suspend operations at Gatwick, and expects to operate a skeleton service to bring back passengers already abroad, for permitted essential travel and for freight. The UK airline industry has called for more assistance since the ban on holidays was announced, although early suggestions from government that it could be given a bespoke rescue package have not come to fruition. A taskforce chaired by the transport secretary, Grant Shapps, was expected to report to the prime minister early this month. Airlines hope it will heed their calls and recommend pre-departure testing and rapid airport testing as a way of reducing or eliminating the quarantine period, which means most international arrivals or returning passengers must self-isolate for 14 days. Surveys by the industry body Iata suggest the quarantine rules are almost as big a deterrent as an outright travel ban. The Department for Transport said Shapps’ taskforce was “working at pace” to find a solution this week.

 

 

Chinese airlines are shunning some deliveries of Airbus aircraft amid pandemic ·     Airbus has pushed Chinese airlines to take delivery of jets now that the domestic market has rebounded to pre-COVID levels. ·     But many airlines are using the pandemic as an excuse to delay deliveries, said one source with direct knowledge of the matter. ·     Airbus deliveries surged in September to a peak since the crisis began but deliveries to China have lagged despite the fact that airlines there are leading a recovery in jet usage. Chinese airlines are shunning some deliveries of Airbus aircraft, citing fears of coronavirus infection for their staff in the latest tussle over efforts to keep delayed deliveries on track despite the pandemic, industry sources said. Airbus has pushed Chinese airlines to take delivery of jets now that the domestic market has rebounded to pre-COVID levels. But many airlines are using the pandemic as an excuse to delay deliveries, said one source with direct knowledge of the matter. “The fact is there is no shortage of aircraft now in the domestic market,” said the source, who declined to be named. Airbus had no immediate comment. Airbus deliveries surged in September to a peak since the crisis began but deliveries to China have lagged despite the fact that airlines there are leading a recovery in jet usage. Airbus delivered 341 jets in the first 9 months including some 39 to China which usually accounts for a quarter of Western deliveries. Airbus was due to update October data on Friday. Most Airbus planes being delivered to Chinese airlines come from an A320 assembly line in Tianjin, but for other aircraft airlines need to send staff to Europe. Air China in August sent staff to France to take an A350 while China Southern, also in August, sent a team to Germany to take an A321neo. Two other industry sources said Chinese airlines were in many cases dragging their heels over sending staff to Europe, noting this comes at a time when demand for jets is thin. Some special arrangements are being made, however. Spring Airlines in September took an A321neo assembled in Germany. Due to COVID-related restrictions on cross-border travel, Airbus arranged to have the plane flown to Tianjin, spokesman Zhang Wuan said, adding this suited both sides. “So our people did not have to travel abroad. Airbus staff headed straight back to Europe after flying the plane here,” said Zhang.