Lufthansa Group has outlined plans to cut the equivalent of 22,000 full-time jobs, half of which will be in Germany, and operate 100 fewer aircraft as it recovers from the effects of the Covid-19 crisis. The airlines met with representatives of three of its trade unions on 10 June and has set a goal of reaching agreement on the proposed job cuts by 22 June. The airline says its aim is to "avoid dismissals as far as possible by means of short-time work and crisis agreements". "Without a significant reduction in personnel costs during the crisis, we will miss the opportunity of a better restart and risk Lufthansa Group [emerging] considerably weakened after it," states Lufthansa labour director Michael Niggemann. He adds that "personnel overhang is likely to become even larger", in which case "implementing unilateral measures" would become inevitable. "We want to avoid this scenario. That is why we are doing everything we can to achieve concrete results with our collective bargaining partners by 22 June," says Niggemann. Lufthansa Group chief Carsten Spohr has asked for "flexibility" from unions and said earlier this month that he wanted to negotiate labour concessions before an extraordinary general meeting on 25 June. During that meeting, shareholders will make a decision on the €9 billion ($10.2 billion) financial support package Lufthansa agreed with the German government in May.

Source: Cirium

Transat AT, the parent company of Canadian holiday specialist Air Transat, says its merger with Air Canada is still on track and now due to close in the fourth quarter of 2020. Montreal-based Transat says on 11 June that it is “firmly committed to completing the transaction”. But, it adds that factors “beyond its control” and related to the global coronavirus pandemic have delayed the tie-up, which received overwhelming approval by shareholders last year. Originally, the merger with fellow Montreal-headquartered Air Canada had been scheduled to close in the second quarter. “The market conditions of the global industry have been completely transformed. Among other things, the vast majority of North American, European and international air carriers have announced reductions in capacity and requested financial assistance measures,” Transat writes on 11 June. “This could impact the possibility of reaching an agreement with regulatory authorities regarding an appropriate package of remedies aimed at obtaining the necessary approvals.” The merger has been under scrutiny for quite some time from various regulatory agencies. The European Commission announced on 25 May that it will undertake an in-depth investigation that will not be complete until at least October. In March, Canada’s competition watchdog, the Competition Bureau of the government of Canada, also said it was taking a closer look at the transaction after expressing “competition concerns”. “If the required approvals are obtained and the conditions are met, it is now expected that the arrangement will be completed during the fourth quarter of the 2020 calendar year,” Transat says. “Under the arrangement agreement, the deadline for obtaining the regulatory approvals cannot be extended beyond December 27, 2020.” Last August, Transat’s shareholders approved Air Canada’s C$720 million ($530 million) takeover bid for the company. That calculates out to C$18 per share. The transaction, if approved, would merge the number one and number three airlines in the Canadian market. Calgary-based WestJet, Canada’s second-largest airline, said earlier this year it was watching the transaction closely, fearing the merger would skew competition to overseas destinations. Earlier this month, reports emerged in French-Canadian media that Air Canada was looking to exit the deal due to liquidity issues following the sharp decline in demand as the coronavirus brought air travel to a near-standstill in April. These reports were not confirmed. Transat also says on 11 June that it expects to resume flights and tour operator activities on 23 July, pending the easing of travel restrictions in the countries to which it flies. It suspended operations on 1 April. The airline anticipates it will fly a reduced schedule until the end of October, service 20 destinations, including 13 in Europe, five in the United States, Mexico and Caribbean, as well as some domestic connections. It will then expand its schedule with additional frequencies and destinations “based on border openings and de-confinement measures in place”.

Source: Cirium

South Africa’s shadow public enterprises minister is insisting that the government ease air transport pressures by allowing other operators to conduct repatriation services. Ghaleb Cachalia, from the opposition Democratic Alliance party, argues that South African Airways – which has been mired in a drawn-out business rescue process – does not have sufficient cash to carry out the task properly. The party says the government, particularly its international relations department, should “facilitate” flights to and from South Africa. It has sought clarification from the government as to whether SAA is being given preferential treatment at the expense of other carriers. “SAA has no cash in its coffers,” says Cachalia, describing the airline as a government “vanity project”. “In the absence of shouldering its responsibility to South African citizens, the very least that can be done is for the international relations department to facilitate other international carriers that are willing to step into the breach.” SAA’s repatriation efforts had been threatened by its financial predicament, with the carrier’s business rescue practitioners having previously declared that it did not have sufficient funding to maintain such flights beyond early May.
Although the government started easing the lockdown on 1 June, South Africa’s air transport system remains in poor shape, with three major carriers under various levels of financial pressure. Transport minister Fikile Mbalula, during an inspection visit to Johannesburg airport on 3 June, stated that the government’s gradual release of lockdown measures would mean a phased introduction of domestic services at the country’s airports. Johannesburg, Cape Town, Durban and Lanseria would be covered in the first phase. This will extend subsequently to Bloemfontein, Kruger and Polokwane airports, before a third phase brought in Kimberley, East London, Port Elizabeth, Upington and Umtata. Mbalula also stated that only passengers would be allowed inside terminal buildings, which would be fitted with temperature-screening systems, and passengers would need to follow measures including social-distancing and wearing of face masks. Aircraft will be boarded in sections – aft first – to minimise contact. No catering or magazines will be provided, while the last row of seating will be reserved for isolation of suspected coronavirus cases.

Source: Cirium