ARC NEWS
Comair delists to access government-backed financing
April 08, 2021
South African carrier Comair is delisting from the Johannesburg stock exchange in a move which will allow it to access government-backed financial support. In an update, the airline's administrators say it can now apply for funding in the sum of R100 million ($6.9 million) under a Covid-19 loan guarantee scheme put in place by the South African Reserve Bank and private commercial banks. Such funding is a "fundamental element" of its debt restructuring, say the administrators. Comair is seeking to put in place a total of R600 million of new debt under its business plan published in September 2020. It had entered restructuring in May. A consortium comprised of seven individuals plus an investment vehicle, Luthier Capital, is seeking to take full control of the airline, which resumed flights in December 2020.


​IATA's new director general 'optimistic' on summer recovery
April 08, 2021
The rollout of vaccines means that international passenger traffic numbers should improve significantly by the northern hemisphere's peak travel season in the second half, according to IATA's new director general Willie Walsh. During his first press briefing in his new role, the former IAG chief executive cited mounting evidence of pent-up demand, including healthy passenger numbers in reopened domestic markets such as Australia, or Russia, where traffic has reached pre-pandemic levels. Economic growth has also rebounded strongly, while last year's summer jump in European passenger numbers shows that the continent's travellers are keen to return to the skies as soon as they are able. "We should remain optimistic about a summer holiday season for those in Europe," says Walsh. "I'm definitely going to take one as soon as I can." Although forward bookings show that ticket sales are far below normal for this point in the year, Walsh notes that passengers are purchasing tickets closer to the date of departure. "It's still early," he says. "It's only April." Referencing data from IATA which shows weak load factors and international travel down by 89% in February compared with two years earlier, Walsh cautions that, even accounting for the expected rebound, "the industry is not ready to stand on its own feet at the moment." He is urging governments to extend the periods before airlines are required to start repaying debt, to recognise the fact that "this has gone on longer than anyone anticipated". Walsh adds: "It will take some time for airline to be able to repay the debt that they have taken on and get back to remunerating shareholders as they were before the crisis." Framing how he intends to lead IATA going forward, Walsh sounds a warning that some parts of the aviation ecosystem may seek to recoup lost earnings through higher charges for airlines, especially those in monopoly positions. He suggests that London Heathrow airport, with which he frequently clashed while at IAG, may enact higher charges, and complains that air traffic providers are, in some cases, using their positions as "monopoly suppliers" to increase fees. IATA will be "very strong and aggressive" in opposing such moves, he vows. He also states his expectation that regulators will take a "tough" stance. Walsh argues that once the threat of Covid-19 recedes, all associated travel restrictions should be removed, allowing people to travel exactly as they did before the pandemic. He indicates that while he may break from his predecessor's habit of holding weekly press briefings through the crisis, he will communicate regularly to the press "when we have something to say", adding: "At the moment, there is plenty to say."


Qatar Airways operates flight with all aboard Covid-vaccinated
April 07, 2021
Qatar Airways has operated what it describes as the first flight carrying only crew and passengers vaccinated against Covid-19. The special flight, QR6421 operated with an Airbus A350-1000, took off from Doha on 6 April and returned to the city's Hamad International airport after a 3h sortie. Qatar Airways says the check-in staff were also fully vaccinated. "Today's special flight demonstrates the next stage in the recovery of international travel is not far away," states Qatar Airways group chief executive Akbar Al Baker. Some airlines have been racing to vaccinate their staff as the pandemic rages. Singapore Airlines and Etihad in February became the first major carriers to operate flights with vaccinated crew. Countries are currently debating the use of vaccination passports as they seek ways to open up air travel safely. Iceland, for example, has said that it will welcome travellers who can show proof of vaccination or proof of recovery from an infection.


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