ARC NEWS
Berlin airport requests partial debt relief to overcome crisis
March 15, 2021
Berlin's airport operator Flughafen Berlin Brandenburg plans to ask its state owners to provide €1.9 billion ($2.3 billion) for partial debt relief and additional liquidity in an effort to return the company to financial stability. Under a business plan approved by its supervisory board on 12 March, the operator has proposed that its shareholders – the regional states of Berlin and Brandenburg, and federal republic – will provide €1.1 billion for debt relief and €800 million in liquidity support from 2022 until 2026, FBB says. It adds that the restructuring proposal is based on an assumption that previously approved government financial aid to support the airport for Covid-related losses in 2020 and 2021 will be "entirely converted" into grants. FBB cites similar measures for other heavily affected sectors as the basis for that assumption. After the pandemic's onset in 2020, FBB received €300 million as part of a government fund to support businesses amid the coronavirus crisis. Later in November, the operator said that it would require more than €550 million in additional funding for 2021 if air traffic does not rise significantly above 2020's level. The troubled airport, which finally opened in October after years of delay, predicts "significant revenue losses" over coming years because of the traffic decline, and does not foresee traffic recovering to pre-crisis level before 2025. For the current year, the operator predicts 10.7 million passengers – 30% of the total number handled by the German capital's former Tegel and Schonefeld airports in 2019. FBB says that it will clarify questions surrounding the state aid proposal with the European Union, while efforts to minimise airport operating costs will be "intensified" and only "absolutely necessary" investments will be made. Supervisory board chairman Rainer Bretschneider describes the proposal as a "good orientation" to gradually lead the airport out of the crisis. "Like all companies that are as badly affected by corona as we are, we have to think in long lines," he states.


Singapore and Australia plan travel bubble
March 15, 2021
Singapore is looking to re-establish air connectivity with Australia, and this includes plans for a quarantine-free air travel bubble. "Singapore is currently in discussions with Australia on the mutual recognition of vaccination certificates and resumption of travel with priority for students and business travellers," Singapore's Ministry of Foreign Affairs (MFA) said in a 14 March statement that addresses a same-day Sydney Morning Herald report on the matter. "We are also discussing the possibility of an air travel bubble which will allow residents of Singapore and Australia to travel between both countries without the need for quarantine." MFA's statement indicates that Australia is a key partner of Singapore in the region and thus far, both nations have been able to handle the Covid-19 situation. The ministry did not set any timeframe for the discussions and responded to suggestions in the article about the broader implications of Singapore and Australia's arrangement, if it materialises. The ministry states: "We are not in discussion on the concept of a quarantine centre or vaccination hub. Australian nationals can transit via Singapore without quarantining to return home if they travel on approved transit routes and if they comply with our public health protocols while in transit." The Sydney Morning Herald article cited by MFA states: "New Zealand could also be involved in what would become a three-way travel bubble that [Australia's] federal government sources are hopeful will be up and running by July or August – well before a mooted broader opening of [Australia's] international borders from October." The article also states: "It could also be possible for people from third countries to enter Australia via Singapore after completing two weeks’ quarantine in the city-state."


ATR shipments plunged to just 10 aircraft in 2020
March 12, 2021
Deliveries of ATR turboprops barely reached double figures last year as the joint-venture manufacturer saw demand slump due to the pandemic. In all, the airframer shipped just 10 aircraft in 2020 – with nine of those handed over in the final quarter. That marks a sharp decline on the 68 units it delivered in 2019. The total is revealed in the full-year accounts of Leonardo, a 50% shareholder in ATR alongside Airbus. Leonardo builds fuselages for the ATR 42-600 and ATR 72-600 at plants in the south of Italy, shipping them to Toulouse in France for final assembly. Just 26 fuselages were delivered to the joint venture in 2020, down from 68 a year earlier. Leonardo does not expect a significant improvement in ATR’s performance this year either: deliveries will be “far below” pre-Covid levels, it says. Production cuts at Airbus and, more significantly, Boeing, combined to hammer the company’s aerostructures unit. Leonardo is responsible for two composite fuselage barrels and the horizontal stabiliser on the latter’s 787: last year it shipped 105 fuselage sections and 72 stabilisers against 164 fuselages and 92 stabilisers in 2019. Revenues in the division fell to €820 million ($976 million) from €1.1 billion a year earlier. EBITA losses widened to €86 million from €11 million in 2019. As a result of forecast lower medium-term demand for civil aircraft, Leonardo is taking action to address the impact on its aerostructures business, including the “early retirement” of around 500 employees in the division.


LOG ON

CONTACT
SGS Aviation Compliance
ARC Administrator
SGS South Africa (Pty) Ltd
54 Maxwell Drive
Woodmead North Office Park
Woodmead
2191
South Africa

Office:   +27 11 100 9100
Direct:   +27 11 100 9108
Email Us

OFFICE DIRECTORY
Find SGS offices and labs around the world.
The ARC is a mobile friendly website.