Garuda to offer early retirement to staff amid traffic slump
May 26, 2021
Garuda Indonesia has confirmed media reports that it is in the early stages of offering an "accelerated pension programme" for eligible staff. In a 24 May disclosure to the Indonesia Stock Exchange, the Indonesian flag carrier provided an explanation pertaining to two 21 May local media reports, from Tempo.co and DetikFinance, that detailed a plan to offer early retirement for employees. Garuda noted that it will need to "take steps to adjust the aspects of supply and demand amid a decline in operating performance and significant reduction in flight traffic". It stressed that the accelerated retirement plan is "voluntarily offered to existing employees who meet the criteria", without detailing those criteria. Also as part of the carrier's restructuring amid the Covid-19 pandemic, the airline intends to retain fewer than 70 aircraft from its current fleet, according to minutes of an internal company meeting cited in the Tempo.co report, although Garuda did not comment on this in its 24 May exchange filing. According to fleets data, Garuda Indonesia has a fleet of 142 aircraft, including 73 Boeing 737-800s, 24 Airbus A330s, three A330neos, 10 777s, 18 Bombardier CRJ1000s, 13 ATR72s and one 737 Max 8.The carrier also has an orderbook of 69 aircraft that comprises 49 737 Max 8s, 15 A330neos and five ATR72s. Garuda only manages 13 aircraft itself: six A330-300s, one 737-800 and six CRJ1000s. The remainder of its fleet is managed by 29 different lessors. Nordic Aviation Capital has the largest exposure by number of aircraft with 25 regional jets on lease to Garuda, Cirium fleets data show.
European departures highest since 1 November
May 26, 2021
The number of passenger flights departing from European airports has hit the highest level in nearly seven months as vaccine rollouts begin to be felt across the continent. Data shows that a seven-day average of 8,573 departing flights took place in the continent on 24 May, the largest amount since 8,618 took place on 1 November 2020. The figure remains less than a third of the 25,719 flights that departed on 24 May 2019, however. By capacity, the data presents a similar story. On 24 May, 1.35 million seats were operated on departing flights across the continent, measured on a seven-day average, the highest since 31 October. On the same date in May 2019 an average of nearly 4.1 million departing flights took place in the continent. However, the data also highlights that the majority of these gains are taking place on domestic services, with passengers on such routes facing fewer travel restrictions. The number of departing seats on international European flights rose from a seven-day average of 587,142 on 10 May to 681,546 two weeks later, a rise of 16%. In the same period, the number of domestic departing seats rose from 560,561 to 670,026, an increase of nearly 20%. Nearly 207 million doses of Covid-19 vaccinations had been administered by EU states by 19 May, according to Our World In Data, or 46.1 per 100 EU citizens. The EU's green pass digital certificate was provisionally approved by EU member states and the European parliament on 20 May, with final approval expected in June for a full rollout by the start of July. It is hoped the project will enable those that have been vaccinated, tested negative for Covid-19 or who can show they have recovered from the virus to travel again, enabling a widescale reopening of Europe's aviation markets.
SIA Group sets 2050 target for carbon neutrality
May 25, 2021
Singapore Airlines Group has committed to achieving net-zero carbon emissions by 2050. Mainline carrier SIA, Scoot, and SIA Cargo will invest in new-generation aircraft, achieve higher operational efficiency, adopt low-carbon technology such as sustainable aviation fuels (SAF), as well as source for high-quality carbon offsets, the group says. "Today, the most effective and direct way for an airline to materially lower carbon emissions is by operating a young fleet of aircraft," chief executive Goh Choon Phong states. SIA Group's fleet is among the youngest globally averaging under six years old, Goh says. The company retired 45 older aircraft in 2020. These will be gradually replaced with new-generation aircraft that are up to 30% more fuel-efficient and will substantially lower emissions in coming years. According to SIA, its fleet has an average age of five years 10 months, while its orderbook includes new-generation models such as Airbus A350-900 and A320neo-family aircraft, as well as Boeing 777-9, 787 family and 737 Max 8. Additionally, the group has looked into improving operational procedures for better fuel efficiency and has, for example, invested in engineering improvement packages for engines and airframes that help to reduce drag and improve engine efficiency. SIA says: "The group's airlines continuously aim to improve fuel productivity through initiatives such as reducing fuel usage through aircraft weight management, and optimisation of flight routes." The group is also looking to partner research institutions with the hope of sparking innovations in technology and data analytics, to pave the way for more significant improvements. SAF is yet another approach and since 2011, SIA has been actively involved with Sustainable Aviation Fuel Users Group (SAFUG). In 2017, SIA launched a series of green package flights from San Francisco to Singapore that incorporated SAF, fuel-efficient aircraft and optimised air traffic management measures. In 2020, it worked with Stockholm's Swedavia airport to uplift SAF on flights departing from the city. The company states: "These activities have helped to improve the group’s understanding of the logistics and procurement of renewable fuels. SIA is actively working with partners and stakeholders to explore opportunities to scale up the adoption of sustainable aviation fuels across our network." Besides reducing direct emissions, SIA believes that carbon offsetting can play an important and complementary role and participates in the International Civil Aviation Organisation's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). "While offsetting is particularly important in the mid-term, it is also expected to remain relevant in the long run to mitigate residual emissions. In order to secure high quality carbon offsets, the group will continue exploring pathways through partnership that will allow us to source high quality carbon offsets." Chief executive Goh states: "We have remained focused on our sustainability goals even as we navigated the Covid-19 pandemic. We know that this is also an increasingly important issue to both our customers and staff." He adds that SIA Group will continue to collaborate with governments, the airline industry, and partners such as aircraft manufacturers, technology providers, and fuel suppliers, both in Singapore and around the world.