ARC NEWS
Virgin Australia defers most short-haul international service
May 13, 2021
Virgin Australia Group is postponing most short-haul international flying, including flights to Fiji’s Nadi and Bali in Indonesia, until at least December amid shifting projections around international border restrictions. The Australian group cites the recent federal budget predictions for the aviation sector, including for international travel, where "visitation is expected to remain low until at least mid-2022". However, "continued efforts" by Australia's state and federal governments to refine trans-Tasman travel arrangements will allow the carrier to operate Boeing 737 services between Sydney-Queenstown and Brisbane-Queenstown, as planned from 18 September, and Melbourne-Queenstown services from 7 December, the airline notes. It adds that “while the international travel outlook remains uncertain, domestic travel continues to improve and the airline is continuing to review its domestic network to ensure it is responding to growth opportunities here in Australia". On the other hand, flights into Auckland, Wellington and Christchurch are deferred from sale for the time being alongside services to Port Villa in Vanuatu, Apia in Samoa and Honiara in the Solomon Islands. “Although we’ve seen positive developments with the trans-Tasman travel bubble and governments working exceptionally well to manage outbreaks, current demand for travel to New Zealand remains subdued, except for Queenstown, where customers are looking to travel over the September school holidays and the upcoming summer," states Virgin Australia chief strategy and transformation officer Alistair Hartley. "All other New Zealand services will be deferred for the time being." He adds: “Doing the right thing for our customers remains at the heart of our decision making, and while the impact is relatively low due to ongoing border uncertainty, we are working to provide affected customers with alternative options as quickly as possible."


Boeing's orders inch higher in April on fewer cancellations
May 12, 2021
Boeing’s aircraft orders outnumbered cancellations again in April, marking the third consecutive month of order expansion for the US airframer.

During April, Boeing logged orders for 25 jets and took cancellations for 17, leaving it with eight net new orders for the month, the company reported on 11 May.

The 25 new orders include five 777 Freighters for Azerbaijani cargo carrier Silk Way West Airlines, 14 737 Max jets for lessor Dubai Aerospace Enterprise, three Max jets for lessor Air Lease and three Max jets for an unidentified customer.

The 17 cancellations were all for the Max.

They include eight cancelled by SMBC Aviation Capital, three by Air Lease, three by lessor Timaero Ltd, one by GE Capital Aviation Services and two by South African airline Comair.

The Air Lease activity – three Max orders and three Max cancellations – reflects “re-contracts for earlier delivery positions”, Boeing says.

The 17 cancellations logged in April compare with 16 in March. The number of jets in Boeing’s ASC-606 accounting bucket – which includes orders that Boeing suspects might not actually close – remained unchanged in April. Though the aerospace market recovery remains “uneven”, Boeing is “seeing airlines purchase equipment for replacement and potential growth,” it says. “In some cases, leasing companies are seeing operators reactivating orders.” Boeing delivered 17 aircraft last month. Notably, those included nine 787s, including eight 787-9s – three to Air Lease, two to Japan Airlines, one to United Airlines, one to ANA and one to Atlantis Aviation – and one 787-8 delivered to American Airlines. Boeing had halted 787 deliveries in November 2020, until March, due to a production issue involving what the company calls fuselage “skin flatness”. Boeing aims, by year-end, to deliver the majority of roughly 100 completed but not delivered 787s in its inventory, executives said in late April. Boeing’s April deliveries also included one 767F for FedEx, one 767-based KC-46 military tanker, two 777Fs for DHL, one Max for Air Lease and three Max jets or Southwest Airlines. The number of Max deliveries declined in April due to an electrical-grounding issue that forced the company to pause Max deliveries and led airlines to ground about 100 Max jets. The fix will take several days per aircraft, Boeing says. Boeing says 170 of 195 global aviation regulators have opened their airspace to the Max. April’s changes brought the company’s backlog at the end of the month to 4,045 jets, including 3,239 737's. In the first four months of 2021, Boeing logged cancellations of 230 jets and orders for 307 aircraft, leaving it with 77 net orders.


Qantas's international restart plans pushed back to end-2021
May 12, 2021
Qantas Group now expects to restart international flights from late December, versus end-October previously, following a revision to the anticipated timeline for Australia's vaccine rollout. Trans-Tasman flights are unaffected, the airline says in a statement today. "We will keep reviewing these plans as we move towards December and circumstances evolve," it says. The revised schedule is a direct response to the Australian government's revised anticipated timeline for completing its vaccination rollout and a significant reopening of international borders, to end-2021 and mid-2022, respectively. Qantas states: "We remain optimistic that additional bubbles will open once Australia’s vaccine rollout is complete to countries who, by then, are in a similar position, but it’s difficult to predict which ones at this stage." Qantas states that the planning assumption will allow the group and Australia to take advantage of pockets of tourism and trade opportunity as they emerge in a post-Covid-19 world. In the meantime, the group continues to provide critical repatriation and freight flights overseas, it says, and support the recovery of domestic travel. "The resurgence of domestic travel remains the most important element of the group's recovery," says Qantas.


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