Concerns about a lack of air cargo capacity for the global distribution of Covid-19 vaccines – even those requiring the maintenance of extremely low temperatures during transit – are unfounded, in the view of Cargolux chief executive Richard Forson. The biggest logistical challenge will instead be around the “final mile” distribution of vaccines that require sub-zero storage – something that is out of airlines’ hands, Forson stated during a UK Aviation Club event on 12 November.Recalling IATA’s claim in September that “just providing a single dose to 7.8 billion people would fill 8,000 747 cargo aircraft”, Forson observes that “you’re not going to transport 6 billion doses at one time”. Rather, “there’s going to be a maximum amount of vaccines that can be produced by the pharmaceutical company or companies”. Forson believes, therefore, that “the blockage is not going to be the number of aircraft that is required, because I can tell you all of the passenger aircraft in the world will then be mobilised in order to transport these vaccines”, alongside services offered by dedicated freight operators such as Cargolux. Of new-generation vaccines such as Pfizer-BioNTech’s – which may need to be stored at around -70°C to -80°C until they are within hours of use – Forson notes that transport boxes proposed by the manufacturers will ”ensure that temperatures are not compromised”, while also protecting the aircraft from the effects of ultra-low temperatures. Without those boxes, “I can tell you that there’s no aircraft that can ever get to -80°C”, Forson says. “If it does, it will fall out of the sky.” In addition to new-generation vaccines, “there are also other drug companies that work on the older generation where you don’t have to get to these extreme temperatures, but you get to something like -20°C, which we do on a regular basis”, Forson explains. “So there’s no issue about how we’re going to transport it.” Speaking in September, IATA director general Alexandre de Juniac warned that the airline industry’s ability to play a key role in the distribution of vaccines might be compromised by an air freight capacity crunch. “Safely delivering Covid-19 vaccines will be the mission of the century for the global air cargo industry,” de Juniac stated. “But it won’t happen without careful advance planning.” European carrier Cargolux is one of the largest dedicated freight operators in the world, with 30 Boeing 747 aircraft in its fleet.

Source: Cirium

Croatia Airlines is to hold an extraordinary general assembly to approve a recapitalisation scheme which involves raising Kn350 million ($54.7 million) through a share issue. Under the proposal, to be discussed at the 14 December assembly, the share capital of the airline would increase from Kn277.8 million to Kn627.8 million. Croatia Airlines would issue 35 million new shares, with a nominal value of Kn10. “The purpose of the share capital increase is to return the company’s capital and reserves to pre-crisis levels,” says the carrier. It says the increase in share capital shall be carried out through an investment agreement concluded between the airline and the Croatian state. Shareholders other than the government will be excluded from participating in the offer. Croatia’s transport ministry, on 13 November, put forward a proposal to inject Kn88.5 million into the company to compensate for damage inflicted by the pandemic from 11 March to 30 June. The ministry’s proposal says the payment of these funds must be made by 31 December at the latest. Croatia Airlines, it states, is “no exception” to the “devastating” effects on the aviation industry arising from the pandemic.“As a state-owned carrier, it has a strategic role in Croatia’s transport infrastructure, which has proved particularly crucial in this crisis period,” it adds. But it states that the carrier experienced “no significant financial shift” in the crucial summer months, when it would typically generate the largest inflow of funds under normal circumstances. Croatia Airlines’ latest financial disclosure shows it turned in an operating loss of Kn222 million and a net loss of Kn243 million for the nine months to 30 September. Passenger income fell by two-thirds to Kn393 million. Over the seven months of the crisis from March to September the airline cancelled 12,800 flights. It says revenues from tourism account for an “extremely large share” of the country’s GDP, and that both the pre-season and main tourism season have faced a substantial impact. Croatia Airlines had a fleet of 12 aircraft at the end of September, comprising six Airbus A320-family jets and six Bombardier Q400s. The airline cancelled plans to lease additional Bombardier CRJ and Q400 capacity for the peak season. “Given the circumstances and reduced demand, greater emphasis was placed on the use of the Q400 fleet, whose aircraft have a smaller capacity than the Airbus fleet,” it states. Croatia Airlines says the most significant risk affecting its operation is maintaining liquidity, particularly since the duration of the crisis is uncertain. The airline is not expecting a substantial improvement in performance as it heads into the low winter season. It says it has had to develop “several versions” of its crisis business plan, with the current one involving a reduction of flights since August owing to the “deterioration” of the epidemiological situation in Europe.

Source: Cirium

American Airlines expects to defer up to 18 Boeing 737 Max deliveries in the coming years but still anticipates acquiring 18 new Max from Boeing this year. The company is also deferring delivery of some Airbus A321s, American president Robert Isom says on 12 November. American currently has 24 737 Max in its fleet – all in storage due to the type’s grounding. Additionally, Boeing has in its inventory another 16 737 Max that it produced for American but, due to the grounding, has not yet delivered, says American. American intends to take delivery of those aircraft, plus another two it has on order, starting when the Federal Aviation Administration lifts the type’s grounding. Boeing predicts that will happen before year end. “Those 18 aircraft – we want them to come in,” Isom says, speaking during a transportation conference hosted by financial services company Baird. American reached a settlement with Boeing related to the delayed delivery of those jets, he adds. The Fort Worth-based airline is also scheduled to receive another 18 737 Max between 2021 and 2022. But American holds rights with Boeing to defer those deliveries. Market conditions would have to “get much, much better” for American to take those jets as scheduled, Isom says. “Assumptions are, over time, that they will be deferred.” The carrier has also deferred delivery of “four to five” A321s it had been scheduled to receive in 2021, he adds. The deferrals come as American has otherwise overhauled its fleet by retiring some 150 jets, including 757s, 767s, Embraer 190s and A330s. The retirements help streamline American’s pilot-training requirements and mean the carrier needs fewer pilots, Isom says. American aims to strip $1 billion from its 2020 costs through fleet changes and other cost-cutting measures. This year the carrier cut its workforce by about 40,000 staff, or roughly 30% of its 133,700-strong workforce at the end of 2019.

Source: Cirium