ARC NEWS
El Al signals intention to restart limited number of flights
September 18, 2020
Israeli carrier El Al is aiming to start restoring flights this month, beginning with a gradual resumption of cargo services on its aircraft. It says the cargo flights will resume starting on 21 September El Al is intending to follow these flights with a restoration of passenger operations from 1 October. The scheduled services will cover a “limited number” of destinations in the USA and Europe. The carrier suspended its passenger operations in March and has since been immersed in an efficiency drive and effort to obtain vital funding. “It should be noted that the volume of flights planned at this stage is not material,” says the airline, which had originally expected its flights to remain grounded at least to the end of September. El Al adds that the total number of services will be determined by demand. “Flights will be operated in accordance with the guidelines of the health ministry,” it adds. El Al also points out that, at present, entry into Israel is only possible for passengers holding Israeli passports. Some 5,940 personnel of the company are on unpaid leave, which will be extended at least to 31 October. While El Al expects a gradual return of some workers to operate the planned services, the figure will initially be relatively small.

Source: Cirium


Vietnam reopens borders to six countries
September 18, 2020
Vietnam will resume commercial passenger operations on six international routes this month, after suspending international flights from 23 March. These are to Tokyo, Japan; Seoul, South Korea; Guangzhou, China; Vientiane, Laos; Taipei, Taiwan; and Phnom Penh, Cambodia. It appears to be for two-way travel, according to a diagram by the Airports Corporation of Vietnam in a 17 September statement. There will be no more than two flights per week for each destination. The flights are only open to Vietnamese nationals and to foreigners on official and business trips, as well as skilled workers, investors and international students, among others. Passengers will need to submit documentation to show that they have tested negative for Covid-19 prior to boarding. VietJet Air announced on 17 September that it plans to resume regular service to Japan, South Korea and Taiwan, starting 29 September. Vietnam Airlines has also been planning several one-way flights to Japan and intends to seek approval for return flights. It is also working on resuming flights to South Korea, mainland China, Laos, and Cambodia.

Source: Cirium


​BA to abandon 'fire and rehire' strategy
September 17, 2020
British Airways is likely to jettison its 'fire and rehire' labour plans because it has reached agreements in principle with its unions. 'I am pleased that we have reached a point at which it appears we may have a solution that does not require the need to issue new contracts," BA chief executive Alex Cruz has told members of the UK parliament's transport committee which is investigating labour relations at the airline. "We have reached agreements in principle with most unions," adds Cruz. "Some areas we have already balloted and some are in the process of balloting." IAG-owned BA has come under significant pressure from the press and politicians over its plans to force employees onto new contracts at lower pay. Cruz says the carrier will now look instead at amending employees' current contracts. The carrier plans to cut a total of 10,000 jobs because of the coronavirus crisis. Some 7,200 people have already left the business. Cruz says the pandemic has resulted in a "fundamentally different" aviation market that has left BA "fighting for our survival". He warns: "We do not see a short-term coming back of our passengers." Last week, he notes, the carrier flew around 187,000 customers, compared with just under a million a year previously, "so we are running between 25-30% of the normal schedule … Fewer flights means fewer people required to service them." Cruz observes that passengers remain afraid of travelling, and complains that a return to normality is hindered by frequent changes to the travel-corridor safe list. Not only does this disrupt passengers' plans, but it requires the carrier to change crews and aircraft at short notice and high cost, he says. BA is advocating a more regional approach to quarantines that would avoid the need to remove entire countries from the safe list. Echoing statements by the chef executives of EasyJet and Air France-KLM on 15 September, Cruz bemoans the lack of airport testing which could give customers more confidence: "We need some testing regime that will minimise the quarantine process." BA has proposed that a testing trail between New York and London could provide the data and experience for a more widespread testing regime. In response to questions about the carrier's financial position, Cruz says: "It would be inaccurate to say we are in a healthy position... If you had looked at the situation at the end of 2019 we could have asserted that, but that's no longer the case." At the end of June, BA had £2.1 billion ($2.7 billion) of cash, but the airline has been burning through roughly £20 million per day. It has accessed government support and raised around £600 million against its aircraft, while parent group IAG is in the process of raising a further €2.75 billion ($3.26 billion) that will "give us a little bit more room to weather what will be a long, protracted period of time". Cruz points out that all BA managers have taken wage cuts of 5-20%; his personal salary has declined by a third. His total salary plus benefits in 2019 was £805,000 with no bonus, although he did receive equivalent of 164,000 shares relating to 2017. None of the airline's managers received a bonus in 2019, and given the crisis in the industry, Cruz says there will be "no bonus for many years to come, I imagine".

Source: Cirium


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