Thai AirAsia further suspends domestic flights until end of August
August 04, 2021
Thai AirAsia has further extended its suspension of all scheduled domestic flight operations to end August and put all employees on no-pay leave. The low-cost carrier had initially suspended domestic flights from 12 to 31 July, and later extended it to 8 August, to comply with the Thai government's Covid-19 movement restrictions. The Civil Aviation Authority of Thailand has from 21 July suspended all flights to and from "dark red zones", which was expanded on 1 August to include Bangkok and 28 other provinces. "Despite our best efforts at mitigating these short-term effects, the situation has taken a turn for the worse and became more severe than we initially expected," Thai AirAsia says. The airline is putting all staff on leave without pay in August. Payment of July salaries will be deferred, in part or whole, to September. Thai AirAsia says it is "closely monitoring the situation and expects it will improve by September". "Salary payment to all employees shall be regularised once the funds become available and our operations reinstated," it adds. The airline says that Thailand's worsening Covid-19 pandemic situation has led to more stringent measures and restrictions on travel, which have "directly affected the airline business operations, especially in terms of liquidity and capital management of the company". "The company has been trying its level best to manage the situation, including by finding various sources of funds to improve liquidity." In July, the airline, together with six other Thai airlines, said they had petitioned the Thai government for Bt5 billion ($152 million) in low-interest loans, the latest in multiple attempts since April 2020, when they sought about Bt24 billion.
ExpressJet aims to resume flights during third quarter
August 03, 2021
ExpressJet Airlines plans to re-launch services using its own brand after an 11-month hiatus after being given regulatory clearance. The regional carrier says it plans to resume flights during the third quarter following approval on 30 July by the US Department of Transportation (DOT) for it to restart commercial operations amid the recovery of US domestic travel. The Atlanta-based carrier states that it "expects to resume service within the quarter with a focus on cities, markets, and customers that have seen diminished air service as a result of airline consolidation and an industry trend towards larger aircraft". ExpressJet shuttered operations in September 2020 after making its final flight on behalf of United Airlines. The regional carrier flew Embraer ERJ 145 aircraft for United until that mainline carrier consolidated all operations with that type through CommutAir, which is partially owned by United. ExpressJet is 100% owned by ManaAir, of which United owns 49.9%. ExpressJet has said that its strategy for relaunching as its own brand would be to service cities that have lost air travel connections during the Covid-19 pandemic while avoiding "needless overlap" with other airlines. It would target routes to "small and midsize communities, initially on routes with an average stage length of approximately 540 miles", according to its filing to the DOT published on 16 April. The US Federal Aviation Administration still recognises ExpressJet as a scheduled air carrier, and it is licensed to operate Embraer regional jets, along with Bombardier-built CRJ aircraft in the 200, 700 and 900 series. The initial focus of the independent ExpressJet will be the 50-seat Embraer ERJ145 aircraft. The airline has one ERJ145 in storage, Cirium fleets data shows. It aims to expand its fleet to 10 ERJ145s during 2022, according to its proposal to the DOT. During its first 12 months after restarting operations as an independent carrier, ExpressJet forecasts it would spend $360,000 in aircraft deposit expenditures for 10 ERJ 145's, as part of a total $60.4 million for its first full year of operations. ExpressJet aims to rebuild its staff to 261 employees during the first year after restarting, a far cry from the 3,000 employees it had in 2019 prior to the start of the pandemic. It aims to operate 1,500 flights monthly by April 2022.
Qantas Group furloughs 2,500 frontline employees
August 03, 2021
Australia’s Qantas Group will stand down around 2,500 frontline Qantas and Jetstar employees for an estimated two months in response to ongoing domestic border closures. The stand down is a temporary measure to deal with a significant drop in flying caused by Covid restrictions in Greater Sydney in particular and the knock-on border closures in all other states and territories, the group says in a statement today. No job losses are expected. Qantas says the decision will directly impact domestic pilots, cabin crew and airport workers, mostly in New South Wales but also in other states given the nature of airline networks. It adds that employees will be given two weeks’ notice before the stand down takes effect, with pay continuing until mid-August. Chief executive Alan Joyce says the difficult decision to trigger stand downs reflects the reality confronting many businesses operating in New South Wales. “Qantas and Jetstar have gone from operating almost 100% of their usual domestic flying [based on financial year 2019's capacity levels] in May to less than 40% in July because of lockdowns in three states. “Hopefully, once other states open back up to South Australia and Victoria in the next week or so, and the current outbreak in Brisbane is brought under control, our domestic flying will come back to around 50-60% of normal levels." He adds: “Based on current case numbers, it’s reasonable to assume that Sydney’s borders will be closed for at least another two months. We know it will take a few weeks once the outbreak is under control before other states open to New South Wales and normal travel can resume.” Joyce is hopeful that Australia's vaccine rollout will alleviate the situation in the domestic network and eventually bring back international travel. He says: "Higher vaccinations rates are also key to being able to fly overseas again, and finally getting all our people back to work."