ARC NEWS
ANA to retire domestic large aircraft ‘ahead of schedule’
January 26, 2021
All Nippon Airways will retire large aircraft operating domestic flights “ahead of schedule” — and cut their utilisation by half — as it discloses that domestic operations will “make up the core” of its earnings in the coming financial year, which begins on 1 April. Outlining interim flight schedules for the new year, the Star Alliance carrier says it will “temporarily utilise aircraft for international routes on domestic flights”, while its small to medium jets will supplement operations. ANA adds: “Compared to [financial year 2020], the usage rate of large aircraft will be reduced by 50%, while the usage rate of small aircraft will increase by 30%.” While it did not elaborate which aircraft it was referring to, ANA has a sizeable widebody domestic fleet, including Boeing 777-300s which are configured to seat more than 500 passengers. Other densely-configured aircraft include 777-200s which can seat more than 400 passengers, as well as its 787-9, which has 395 seats in a domestic configuration. Some of ANA’s 777 are already on the way out. In October 2020 the carrier said it would retire 22 older 777s following a broader business reorganisation amid the coronavirus pandemic. The move will impact both domestic and international networks, says ANA. For the coming financial year, ANA will double down on adjusting its domestic network, in the hopes of maximising revenue. “In planning operations, ANA will raise profitability by monitoring demand trends and the status of the market more frequently. We will also suspend or reduce flights in response to demand while increasing the frequency for certain routes when there is an increase in demand at peak seasons,” the carrier says of its domestic network. To this end, the carrier has ramped up capacity on flights to Hokkaido and Okinawa in the summer months, in anticipation of increased demand.
On its international operations, ANA says it is still affected by border closures and travel restrictions — aimed at curbing the pandemic’s spread — and will adjust operations accordingly. A series of international flight launches from Tokyo Haneda — such as Stockholm, San Jose and Sydney — have been postponed indefinitely. The airline adds that it will be utilising more 787s on international flights, after the move to retire some 777s. ANA’s latest disclosure follows compatriot Japan Airlines’ announcement of tweaks to its domestic schedules and fleet plans. JAL, which in October said it was speeding up the retirement of its older 777s, will “continue to add more Airbus A350-900 aircraft into its domestic fleet lineup” in the coming financial year. Its regional unit Hokkaido Air System will complete its fleet replacement efforts, which involve taking delivery of ATR 42-600s to replace older Saab 340 turboprops.


US travel industry pushes back on potential quarantine
January 25, 2021
The US air transport and travel industries are pushing back on a potential quarantine requirement for international travellers arriving in the USA, currently being weighed by the administration of President Joe Biden, in order to stem the spread of the coronavirus. Trade groups on 22 January say a mandatory self-isolation rule would be an additional setback to an industry trying to regain its footing following an almost-year-long decline, and it is also likely unenforceable. The idea was floated by President Biden himself in a televised statement on 21 January when he said, “In addition to wearing masks, everyone flying to the United States from other countries will need to test before they get on that plane, before they depart, and quarantine when they arrive in America.” “We believe a mandatory quarantine requirement for international travellers could be extremely difficult to enforce – and unnecessary in light of required testing and the many other protections now in place,” trade group US Travel Association says. Earlier this week, Biden signed an executive order that mandates face coverings on all interstate travel in public transportation by air, sea and land, which includes all flights within and to the USA. The rule supports airlines’ own rules, which they had imposed early in the pandemic to add a layer of protection for crews and passengers. In addition, the US government plans to require a negative coronavirus test result that is less than 72h old as a prerequisite for boarding US-bound aircraft beginning on 26 January. Airlines will be responsible for ensuring customers have the correct documentation in either paper or electronic form. Airline trade group Airlines for America (A4A) views the testing requirement as far more effective than quarantines, and earlier this week asked the Department of Transportation to lead the creation of global testing standards for international travellers. “US airlines have been strong advocates for a national testing standard set by the federal government and appreciate that the executive order moves our country forward on a framework for testing,” A4A says on 22 January. “We remain hopeful that this announcement will be followed by a recognition that testing can be used to safely resume travel without quarantines, which are difficult to enforce and often prove ineffective,” the organisation adds. The US government has said the testing rule will be for international flights only. Airlines and other industry professionals say they do not anticipate the same requirement will be imposed on domestic travellers. “In the domestic environment, where there aren’t defined ports of entry for travellers, mandatory testing and other requirements are also impractical and could divert scarce public health resources away from other priorities,” the US Travel Association adds. United Airlines, which reported fourth-quarter results on 20 January, said that since the announcement of the new testing requirement last week, it had seen a “noticeable” decline in bookings to and from beach destinations in Mexico. Previously, there had been few restrictions on travel to and from the Latin American country. US neighbour Canada has had a national quarantine mandate since March 2020, and added a testing requirement for inbound passengers two weeks ago.


JetBlue complains it is being locked out of London slots
January 25, 2021
JetBlue Airways has complained to the US Department of Transportation (DOT) that it is being locked out of securing slots in London for its planned transatlantic expansion. In a filing with the DOT on 19 January, the New-York-based low-cost carrier accuses the UK government of protecting airlines which currently have slots at the two major international airports in London but are not using them, thus creating a barrier to new market entrants. “JetBlue continues to face slot uncertainty as a result of the United Kingdom’s decision to delay addressing crucial matters affecting slots at London-area airports including both London Heathrow Airport and London Gatwick Airport,” the US carrier writes. ”At [Heathrow], existing slot holders have reduced services at a scale previously unimaginable while new entrants like JetBlue remain locked out.” The airline specifically mentions Virgin Atlantic, which is no longer operating from Gatwick, and Norwegian Air, which last week announced that it was ceasing long-haul transatlantic operations. Both airlines have, however, been permitted to keep their slots at the two London airfields. “At the same time, carriers like JetBlue, poised to enter the transatlantic market and disrupt the status quo and fulfil a crucial need for low-cost carrier transatlantic service, are unable to sufficiently secure [Heathrow] slots or consistently timed [Gatwick] slots because of the fiction that carriers are going to return to the pre-Covid-19 status quo,” the airline says. “They are not, and the UK government needs to address this reality immediately,” JetBlue writes. JetBlue has repeatedly said it aims to begin transatlantic service, reiterating as recently as December that it still planned to launch flights between New York and London in the second half of 2021. Last week the FAA granted slot-waiver relief to UK carriers for the summer 2021 travel season at numerous slot-restricted airports in the US. That means that airlines may keep their allocated slots at capacity-constrained destinations like New York’s John F Kennedy International airport, even if they do not fulfil rules that normally require them to use 80% of the slots to avoid losing them. That requirement was suspended during summer 2020, and in the current winter travel season, due to reduced capacity as a result of the coronavirus pandemic which continues to disrupt travel worldwide. While the relief gives existing carriers freedom to reduce schedules without worry that they may not be able to ramp up service again once customers return, it frustrates those like JetBlue who are looking to enter a particular market for the first time. The carrier also says on 22 January that it is taking additional payroll support from the US government. The airline says in a regulatory filing that it will take $252 million in grants and loans, in addition to the $936 million it took last year under the CARES Act payroll support programme. In December, the US government set aside an additional $15 billion for airlines to help them manage through the depressed demand resulting from the global health crisis. That is in addition to the $58 billion in federal aid the airlines received in March 2020.


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