ARC NEWS
​KLM pulls US flights as Netherlands introduces quarantine rule
September 06, 2021
Travellers arriving in the Netherlands from the USA will be required to quarantine for 10 days from 4 September, regardless of their vaccination status. The Dutch government announced the change on 3 September, designating the USA, Israel, Kosovo, Montenegro and North Macedonia as "very high-risk areas" for Covid-19. From 4 September, travellers from these countries will only be allowed to enter the Netherlands if they are fully vaccinated, or if they are exempt from the European Union's entry ban. Even then, all arrivals must comply with a 10-day quarantine requirement. There is an opportunity to shorten the self-isolation period if a negative Covid-19 test is received on day five. KLM has described the Dutch government's decision as "a big step backwards". The Netherlands-based carrier says the new restrictions have "forced" it to remove planned flights from Amsterdam to Orlando, Miami and Las Vegas from its winter schedule until further notice. "Health and fighting Covid-19 are paramount but the measures taken must be effective and proportionate," says KLM. "It looks like other EU member states, such as Italy, France and Belgium, are not putting a triple lock on the door for travellers from the US." The change in the Netherlands follows Bulgaria's decision to ban travellers from the USA from entering the country after 1 September, regardless of vaccination status, unless they meet certain exemption criteria. On 30 August, the EU removed the USA from its list of countries for which restrictions on non-essential travel had been eased, along with Israel, Kosovo, Lebanon, Montenegro and North Macedonia. EU member states are not obliged to follow this recommendation and it remains to be seen whether other countries in the bloc follow the actions taken by the Netherlands and Bulgaria. IATA director general Willie Walsh described the EU's decision to remove the USA from its 'white list' as "disappointing", adding: "As governments rightly urge their populations to be vaccinated, governments need to be confident in the benefits they bring – including the freedom to travel. At a minimum, those who are fully vaccinated should be free to move without restriction." Most EU travellers are still barred from entering the USA.


​Philippine Airlines files for Chapter 11 in New York
September 06, 2021
Philippine Airlines has filed for a pre-arranged restructuring under the US Chapter 11 process in the Southern District of New York with the view to "emerge as a leaner and better-capitalised airline". Philippine Airlines (PAL) is the only party included in the Chapter 11 filing, while PAL Holdings, which is listed on the Philippine Stock Exchange (PSE), and Air Philippines Corporation, known as PAL Express, are not included in the Chapter 11 filing, according to a 6 September PSE filing. The airline will also complete a parallel filing for recognition in the Philippines under the Financial Insolvency and Rehabilitation Act of 2010. PAL says it has entered into a "series of agreements" with "substantially all" of its lenders, lessors, aircraft and engine suppliers, as well as its majority shareholder to restructure and reorganise its finances. The restructuring plan, which is subject to court approval, provides over $2 billion in permanent balance sheet reductions from existing creditors and allows PAL to consensually contract fleet capacity by 25%, it adds. It also includes $505 million in long-term equity and debt financing from PAL’s majority shareholder and $150 million of additional debt financing from new investors. The debtor-in-possession (DIP) financing is split between a $250 million Tranche A and a $255 million Tranche B. The company will continue to operate flights "in the normal course of business in accordance with safety regulations" and expects to continue to meet its current financial obligations throughout the process to employees, customers, the government, as well as its lessors, lenders, suppliers, and other creditors. “We welcome this major breakthrough, an overall agreement that enables PAL to remain the flag carrier of the Philippines and the premier global airline of the country, one that is better equipped to execute strategic initiatives and sustain the Philippines’ vital global air links to the world," states Lucio Tan, PAL's chairman and chief executive. "We are grateful to our lenders, aviation partners and other creditors for supporting the plan, which empowers PAL to overcome the unprecedented impact of the global pandemic that has significantly disrupted businesses in all sectors, especially aviation, and emerge stronger for the long-term." The Chapter 11 filing is being administered before Shelley Chapman, a federal bankruptcy judge for the Southern District of New York bankruptcy court. PAL's legal advisors are Debevoise & Plimpton, Norton Rose Fulbright US and Angara Abello Concepcion Regala & Cruz. Seabury Securities is its financial advisor and investment banker.


Malaysia overturns 737 Max ban
September 03, 2021
Malaysia has become the latest country to lift its operating ban on the Boeing 737 Max. In a 2 September safety directive, the Civil Aviation Authority of Malaysia (CAAM) said it was revoking with immediate effect a directive issued on 13 March 2019 that prohibited operations of the 737 Max 8 into, within and out of Malaysian airspace. CAAM says it took the decision after reviewing "all applicable FAA and manufacturer publications on the Boeing 737 Max in relation to its return to service". Data shows that Malaysia Airlines has orders for 10 737 Max 10 and 15 Max 8 aircraft. Malaysia's announcement comes days after India cleared the Max to begin operating to and from its airports again. "To date, 176 states have revoked their airspace prohibition on the operations of Boeing 737 Max, of which 17 states reside in the Asian region," says CAAM. Absent from that list is China, which has yet to certificate the Max to fly in its airspace. Boeing chief executive David Calhoun expressed optimism in July that China's aviation regulator would clear the jet by the end of 2021. Chinese operators account for a third of about 290 pre-built Max aircraft awaiting delivery.


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