ARC NEWS
Garuda Indonesia still focused on restructuring
October 21, 2021
Garuda Indonesia has confirmed it remains focused on a comprehensive restructuring programme and has not received official information on other options like bankruptcy, as reported by local media. The airline says it is in discussions with the Ministry of State Owned Enterprises regarding its restructuring plan, in a 19 October filing to the Indonesia stock exchange, offering clarification to its queries stemming from local media reports. Garuda goes on to say that the restructuring will be implemented in line with its ongoing Penundaan Kewajiban Pembayaran Utang (PKPU) process with the aim of accelerating its recovery and improving financial performance. The airline is awaiting the verdict reading of its PKPU process on 21 October, after an Indonesian court postponed it by one week. The airline also adds that negotiations with creditors are ongoing to achieve the "best settlement and optimal restructuring" to improve its performance. Previously, Garuda was queried by the exchange in September on its outstanding obligations to creditors. Garuda faces debts of at least Rp70 trillion ($4.9 billion). It said in June that it aims to complete its restructuring within the year but did not commit to any timeline for the process or further steps to pay off debts.


​KLM restores pre-Covid network
October 21, 2021
KLM has restarted flights to almost its entire pre-Covid network, with only one destination excepted. The Dutch carrier says intercontinental flights will operate at around 75% of capacity this winter compared to 2019. Plus it is launching services to four entirely new destinations – Mombasa, Cancun, Port of Spain, and Bridgetown. Starting 2 November, the carrier will run five weekly flights to Mexico's Cancun, while scheduled service to Kenya's Mombasa will commence in early December. The first combined flight to Port of Spain in Trinidad & Tobago and Bridgetown in Barbados began on 16 October, and will eventually be operated at three times weekly. The airline is also expanding capacity to various USA destinations, including Atlanta and New York JFK. It will serve Las Vegas and Miami this winter plus Minneapolis, which was reinstated during the summer. These routes will be operated at thrice-weekly frequency. KLM "began noticing a sharp rise in demand for travel to the Caribbean part of the Kingdom of the Netherlands this summer", it adds. "That is why the airline is also expanding capacity to the Caribbean and will double the number of flights to Curaçao to 14 a week." In addition the carrier extend its network to South America, with its longest scheduled service - non-stop from Amsterdam to Santiago de Chile - continuing through the winter with three weekly flights. It will operate four flights a week to San José and Liberia in Costa Rica, up from two in last year, and a daily service to Panama City. In Europe, new destinations Zagreb and Poznan, which were launched in summer, will also continue in winter. KLM’s Asian network is still hampered by travel restrictions, the airline says, adding that demand for cargo transport demand remains high. KLM’s new winter schedule goes into effect on 31 October and is valid until 26 March 2022.


EU and Qatar sign air transport agreement
October 20, 2021
The European Union and Qatar have signed a comprehensive air transport agreement, upgrading rules and standards for flights between Qatar and the EU. The agreement sets a new global benchmark by committing both sides to fair competition, and by including social and environmental protection, the European Commission says in an 18 October release. Under the agreement, all EU airlines will be able to operate direct flights from any airport in the EU to Qatar and vice versa for Qatari airlines. EU airports in Germany, France, Italy, Belgium and the Netherlands will be subject to a gradual build-up of capacity until 2024. Moreover, the parties recognised the importance of social matters, agreed to cooperate on these and to improve their respective social and labour laws and policies as per their international commitments. The agreement will provide a single set of rules, high standards and a platform for future cooperation on a wide range of aviation issues, it says. Commissioner for mobility and transport, Adina Valean states: "This agreement, the first one between the EU and the Gulf region, is a global benchmark for forward-looking aviation agreements. It is testimony to our shared commitment to economically, socially and environmentally sustainable aviation, based on a modern framework covering fair competition and closer cooperation on social and environmental matters. “This agreement will bring new opportunities, more choice and higher standards for passengers, industry and aviation workers."


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