ARC NEWS
Delta and American follow United in abolishing change fees
September 01, 2020
A day after United Airlines killed the long-hated change fee, Delta Air Lines and American Airlines have matched the Chicago-based carrier’s move, also pledging to “permanently” eliminate all change fees for domestic and some international travel. Atlanta-headquartered Delta and Fort Worth-based American both say on 31 August that the idea behind the policy change is to allow customers more flexibility with their travel plans during what is forecast to be a choppy post-coronavirus rebound. But an airline financial analyst wonders if the moves, which come shortly before a government financial aid programme expires, will indeed be permanent. “Management said this is permanent. We are choosing to take them at their word and assume permanent means permanent until traffic growth accelerates past 2019 levels, at which time we expect this may be re-evaluated,” says Helane Becker, senior research analyst for aviation at Cowen Securities. “In addition, if a lot of people move flights around and make it more difficult for airlines to plan for reasonably full and profitable flights, we expect the airline may reconsider,” she adds. In announcing the change, Delta chief executive Ed Bastian says his airline must “approach flexibility differently than this industry has in the past”. “Today’s announcement builds on that promise to ensure we’re offering industry-leading flexibility, space and care to our customers,” Bastian adds. American’s announcement came within minutes, with a similar explanation. “In a world that’s constantly changing, American is resolute to our purpose of caring for customers at all points of their travel journey,” says Vasu Raja, American’s chief revenue officer. “American is offering more flexibility and ease than ever before, should travel plans change.” Cowen’s Becker says that while eliminating change fees will please travellers, airlines will suffer minimal financial impact. Having suspended change fees due to the coronavirus earlier this year, “no one is making money in this area anyway”. She estimates those fees made up less than 2% of revenue prior to the global health crisis. The big three major US carriers are also offering free same-day standby on earlier flights to the same destination as well as better access to upgrades and fares. The policy at United and Delta applies to destinations in the US, Puerto Rico and the US Virgin Islands. American offers the policy to destinations in those regions as well as to Canada, Mexico and the Caribbean. All fares and classes are included except so-called “basic economy” fares. In one month, the US government’s payroll support for airlines will end, leaving carriers to fend for themselves and setting the stage for mass layoffs. According to unions, about 100,000 jobs could be lost when employee protections enshrined in the act expire – unless lawmakers pass an extension. For years, consumer-advocacy groups have criticised airlines for change fees, calling them unfair to travellers. Airlines had, until this year, resisted eliminating or reducing the fees, with the exception being Southwest Airlines, which did not charge fees to begin with. But the coronavirus downturn has shifted the industry, forcing carriers to broadly overhaul their businesses in response to a drastic collapse in demand. American Airlines, Delta Air Lines and United had already waived the fees temporarily due to the global pandemic.

Source: Cirium


El Al 737 arrives in Abu Dhabi after landmark flight
September 01, 2020
El Al’s landmark United Arab Emirates service from Tel Aviv has arrived at Abu Dhabi, having conducted the flight through Saudi Arabian airspace. The Boeing 737-900ER touched down on Abu Dhabi’s runway 13R at about 15:38, having departed Tel Aviv at about 11:22 – a flight time of some 3h 15min. El Al carried out the 31 August service following the political agreement reached with the UAE centred on normalising diplomatic relations. It closely followed the route revealed by Israeli airline pilot association Isralpa, entering Saudi airspace shortly before 11:50 and exiting into UAE airspace just after 14:00. Isralpa says three pilots were on board the aircraft.

Source: Cirium


Berlin Brandenburg prepares for 31 October opening
August 31, 2020
Flughafen Berlin Brandenburg (FBB), the operator of the long-delayed Berlin Brandenburg International airport, is getting set for a 31 October opening, revealed details about festivities and the first arriving jets. FBB says on 28 August that events celebrating the new airport’s initiation will last two weeks as traffic shifts from Berlin Tegel International airport, which has been the city’s primary airport since it opened in 1948. The highlight will be on 31 October,” FBB says. “On this day, Terminal 1 will begin operations. One aircraft each from EasyJet and Lufthansa will land simultaneously on parallel runways. On 8 November the airport in Tegel will receive an appropriate send off.” Tegel, located northwest of Berlin, has been the primary airfield for commercial passenger service to the German city for more than 70 years. During the country’s division between 1961 and the fall of the Berlin Wall in 1989, Tegel along with Berlin-Tempelhof, in the city’s centre, serviced the western part of the divided city. Berlin-Schoenefeld airport, southeast of Berlin and the location of the new airport facility, had been the main field for former East Germany during the 29 years that the two Germanies were separate countries. After unification, most passengers travelling to Berlin passed through Tegel, while Schoenefeld continued to be used for connections to eastern Europe, charter flights as well as for general aviation and pilot training. Berlin Brandenburg airport will carry the ICAO code BER, and the renovated Schoenefeld terminal will be renamed “BER Terminal 5” on 25 October, FBB says. The final flight from Tegel will leave two weeks later. Berlin Brandenburg International airport has a long and troubled history. In 1996, the governments of Berlin and Brandenburg committed the site on the southeastern edge of the city as the location of the new capital’s airfield. Years of financial issues including a failed privatisation followed, and the cost of construction along with accompanying measures such as soundproofing nearby homes, skyrocketed. Design and building flaws as well as numerous management changes slowed completion, and just a few weeks before its planned commissioning in June 2012, a series of safety inspection failures prompted authorities to abruptly halt the airport’s opening. In early 2020, eight years after its proposed completion, the coronavirus pandemic threatened to derail the opening yet again. But FBB says its preparations are close to complete, and public testing of the facility is currently in full gear. Volunteers play the role of passengers in testing processes critical to the facility’s successful operation. Still, the sharp decline in passengers as a result of the global health emergency will leave a mark on the new airport. “Unfortunately we can’t reliably prognosticate the development of traffic in the coming years,” says FBB chief executive Engelbert Lutke Daldrup on 28 August, adding that additional financial challenges will require further subsidies “for years”. The airport’s “assumed additional financing” for 2020 of €300 million ($357 million) was slashed to €250 million ”due to drastic savings measures such as reduced working hours, a hiring freeze and budget cuts”, FBB says.

Source: Cirium


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