ARC NEWS
​JetBlue axes 1,300 flights amid Omicron surge
January 02, 2022
JetBlue Airways has cancelled close to 1,300 flights through to mid-January in response to a "surge" in the number of employees calling in sick with the Omicron variant of Covid-19. The US-based carrier says it expects Covid-19 cases in the northeast of the country – where most of its crewmembers are based – to continue rising for the next couple of weeks. It has therefore "proactively removed" 1,280 flights from its schedule between 30 December and 13 January. "Like many businesses and organisations, we have seen a surge in the number of sick calls from Omicron," says JetBlue. "To give our customers as much notice as possible to make alternate plans and re-accommodate them on other flights, we are proactively reducing our schedule through January 13." Other US carriers have also been cancelling flights because of Omicron-related staffing issues. Delta Air Lines says it expects to cancel between 200 and 300 flights a day this weekend, "as teams across our system continue to do all possible to mitigate constraints from increasing winter weather and the Omicron variant". The Atlanta-based airline cancelled about 250 of its 4,179 scheduled flights on 30 December. The US Centers for Disease Control and Prevention (CDC) on 27 December updated its guidance on self-isolation for people who have tested positive for, or been exposed to, Covid-19. The required self-isolation period for those who have tested positive for the virus has now been halved to five days, "if they are asymptomatic or their symptoms are resolving", says the CDC. People who have been exposed to the virus are advised to self-isolate for five days if they are unvaccinated, or it has been more than six months since their second Covid-19 vaccination. Those who have received a booster shot do not need to quarantine following an exposure. Delta Air Lines chief executive Ed Bastion had written to CDC director Rochelle Walensky earlier this month, urging public health officials to halve the self-isolation period for fully-vaccinated individuals with breakthrough Covid-19 infections. JetBlue has welcomed the changed guidance, but still expects Omicron-related disruption in the first half of January. "While the new CDC guidelines should help get crewmembers back to work sooner, and our schedule reduction and other efforts will further ease day-of cancellations, we expect the number of Covid cases in the northeast – where most of our crewmembers are based – to continue to surge for the next week or two," says the carrier. "This means there is a high likelihood of additional cancellations until case counts start to come down."


Thai Airways details progress of business rehabilitation
December 31, 2021
Thai Airways International as of 15 November reached an agreement with lessors for 12 aircraft on operating or finance leases and remains in negotiations for another 45 aircraft. This was disclosed in the airline's quarterly update of its business rehabilitation process, released on 30 December for the period of 15 September to 14 December. Thailand's Central Bankruptcy Court approved Thai Airways for business rehabilitation on 14 September 2020. The negotiation – with 'Class 35 Creditors', to which the airline is bound by aircraft operating or finance leases – relates to the portion of debt payable which Thai Airways' plan administrator considers as debt incurred after this date. Thai Airways' business rehabilitation plan, approved by the court on 15 June 2021, stated that it owed Class 35 Creditors Bt191.5 billion ($5.7 billion) in outstanding rent under aircraft operating or finance lease agreements, and other debt payable upon the termination of these lease agreements. The same document stated that Thai Airways takes the view that such debts will incur only after 14 September 2020, and creditors may enter into amended agreements with the airline. If the parties fail to come to an agreement, this group of creditors will receive 17% of the final order for debt repayment imposed on the airline, with any outstanding debt written off. Thai Airways says in today's update that it has continued to repay all its creditors. As of 15 November, repayment of outstanding principal and interest stood at nearly Bt130 billion and no default of any clauses under its rehabilitation plan has occurred. The airline also provided an update of the sale of four groups of non-core assets, as approved by the court on 3 December 2020. It has sold and received full payment for the sale of three of the assets, it says, namely shares in Bangkok Aviation Fuel Services, shares in Nok Air, as well as land and buildings at its Laksi training center. The fourth group of assets is five CFM International CFM56-3C1 engines for Boeing 737-400 aircraft, which are no longer in use. Thai Airways further detailed the sale of three other groups of non-core assets, which its plan administrator is authorised to sell, lease or seek benefit from. The airline raised Bt957 million from the sale of land and buildings at its Lan Luang office, Bt179 million from land and buildings at its Phuket office, and Bt105 million from land in Chiangmai. Each transaction was completed between September and October this year.


​SAA suspends all flights to Mauritius until 31 January 2022
December 31, 2021
South African Airways (SAA) has suspended all flights from Johannesburg to Mauritius until 31 January 2022, after the Mauritian government implemented a travel ban on all commercial flights from South Africa. The extension of the travel ban by Mauritius is effective immediately, the flag carrier notes, and comes as a result of the Omicron variant. The airline says it will continue to monitor the situation closely.


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