China Southern gets $156 million loan from parent company
June 08, 2021
China Southern Airlines has received a three-year, CNY1 billion ($156 million) entrusted loan from its parent company.
The funds bear 3.85% interest, reflective of China's loan prime rate, and may be redeemed early, in part or in full, China Southern Airlines says in a Shanghai Stock Exchange disclosure dated 4 June. The loan is extended by China Southern Airlines Group Finance Company, a subsidiary of China Southern Air Holding, and requires no guarantee. The airline states: "The funds will support the [airline's] efforts to develop a Beijing Daxing [International airport] hub, help to diversify the company's funding sources, and increase its overall competitiveness." The loan has been disclosed as a related transaction. China Southern Airlines Group Finance Company currently has no outstanding loans to China Southern Airlines.
Pandemic shaves $10 billion off African airlines' revenue: AFRAA
June 08, 2021
African carriers lost $10.2 billion in passenger revenues last year as a result of the Covid-19 pandemic, and will continue to lose money in 2021, according to a report published by airline association AFRAA. The association estimates that carriers in Africa will lose another $8.35 billion in passenger revenues this year. While the crisis has had a "devastating impact" on airlines around the world, for African carriers – which were already in a "precarious" financial position – the impact has been "even greater", says AFRAA. The number of passengers carried by Africa's airlines is estimated to have dropped 63.7% to 34.7 million in 2020, compared with 2019. Domestic flights accounted for 43% of passengers in Africa last year, followed by intercontinental at 38%, and intra-African services at 19%, says AFRAA. Northern Africa was the leading region in terms of passenger numbers last year, accounting for 36.6% of the continent's traffic. The pandemic led to a 61% reduction in traffic from this region, says AFRAA. In southern Africa, traffic in 2020 fell 63.6%, compared with the previous year. Johannesburg and Cairo were the busiest airports in Africa during 2020, according to the report. Intra-African connectivity remains low, and AFRAA recommends that African airlines "take the opportunity" to expand these networks.
France eases restrictions on US travellers
June 07, 2021
France has assigned a new orange colour classification to the USA, enabling vaccinated Americans to fly to the European country without having to quarantine upon arrival. "Orange" countries have "active circulation of the virus in controlled proportions, without dissemination of worrying variants", the French government states. The UK is also classified as an orange country. "Green" countries have "no active circulation of the virus, no worrying variants identified", and include EU countries, Australia, South Korea, Israel, Japan, Lebanon, New Zealand and Singapore. “Red” countries have "active circulation of the virus and the presence of worrying variants". Among the red countries are Argentina, Bahrain, Bangladesh, Bolivia, Brazil, Chile, Colombia, Costa Rica, India, Nepal, Pakistan, Sri Lanka, Suriname, Turkey, Uruguay and South Africa. Beginning on 9 June US travellers to France can bypass quarantine requirements if they can provide proof that they are fully vaccinated with a European Medicines Agency-approved vaccine and can present negative results of a Covid-19 test. "United Airlines applauds France following its decision to reopen to US tourists who are vaccinated and show a negative Covid-19 test," the Chicago-based carrier's vice-president of international network and alliances Patrick Quayle states. "United is adding more flights to Paris this summer, resuming flights from Washington DC in July and increasing Chicago flights to daily in August. United flies to more European destinations than any other US carrier, and looks forward to welcoming back customers on more than 30 daily flights to 16 destinations in Europe this summer." Delta Air Lines stated on 4 June that together with its partner Air France, it "will offer nine times more flights between the US and France in July than the next largest carriers". The US State department still lists France as Level 4 travel destination, warning travellers to "not travel to France due to Covid-19", and recommending that they "exercise increased caution in France due to terrorism and civil unrest".