South Africa’s government is urgently trying to extend the period of operations for South African Airways after the carrier’s business-rescue practitioners warned that 8 May would amount to a “drop dead” day when all flights would cease. The country’s public enterprises minister, Pravin Gordhan, outlined to a parliamentary committee on 6 May that a new airline was in the planning stage – although he gave few details – but indicated friction between the government and unions on one side and the practitioners on the other. “We need to find some quick answers,” said Gordhan, referring particularly to a need to extend SAA’s operations. He told the committee that meetings over finances were due to take place in an effort to “give continuity” beyond 8 May. “We also want to indicate there should be no fire-sale of important assets of SAA or a move towards liquidation,” he added. If the practitioners pursue a wind-down process, said Gordhan, it would not achieve the original objective set by the government for a business rescue. This is a “matter of contention” between the government and the practitioners, he told the committee, adding that the government is also concerned about other issues with the rescue process, including access to consultants’ information and the size of fees. The Labour Court of South Africa in Johannesburg is due to hear a case brought by two unions – NUMSA and SACCA – that are attempting to have personnel retrenchment notices declared unlawful, and to suspend consultative processes until a business-rescue plan has been presented. SAA’s business-rescue practitioners state that they are intending to oppose the application. The case is set to be heard on 7 May. Gordhan told the committee that the department of public enterprises wants to engage constructively with the practitioners to see whether an “alternative transition” is possible, to discuss a “more consensual” approach to the retrenchment process, and explore the shape of a new airline “SAA has the potential to be restructured into something new, which is what the government wants,” he said, adding that a successor carrier would be viable and competitive, Free of the treasury, and open to appropriate strategic equity partners – while saving as many jobs as possible. “We’re receiving all sorts of offers [from possible partners],” he stated. “But some are suspect, some are vacuous, and some may be of substance.” Gordhan added: “I can’t tell you whether I’m optimistic or not. But I can certainly say every effort will be put in to make sure we move in the right kind of direction.”

Source: Cirium

Qatar Airways has unveiled plans to gradually increase its network with a view to serving 80 destinations by the end of June. The Oneworld carrier says it will initially focus on connecting its Doha base with the global hubs of partner airlines, including London Heathrow, Chicago O'Hare, Dallas Fort Worth and Hong Kong. Business and leisure destinations such as Madrid and Mumbai will also be reopened. Qatar Airways says it has maintained flights to "at least 30 destinations" throughout the coronavirus crisis. It aims to increase this to 50 destinations by the end of May – with the resumption of services to cities such as Amman, Manila and Nairobi – and to 80 by the end of June, subject to regulatory approvals. This would represent about half of the airline's pre-pandemic network. Qatar Airways normally operates to 165 destinations with a fleet of 246 aircraft. The Middle Eastern airline plans to operate flights to 23 European cities, four destinations in the Americas, 20 in the Middle East and Africa, and 33 in the Asia-Pacific region by late June. It says many of the routes will be served with "daily or more" frequencies. "With entry restrictions constantly evolving, accurately predicting future travel is challenging," states Qatar Airways chief executive Akbar Al Baker. "However, while the expectation is that short-haul travel will rebound first, business between large global cities will pick up more gradually and there will be a move towards visiting family and friends following months of lockdowns." The airline's announcement comes on the heels of revealing that it plans to make a "substantial number" of job cuts amid what Al Baker describes as a "grim" outlook for the global aviation industry.

Source: Cirium

Mitsubishi Heavy Industries (MHI) intends to close its $500 million purchase of Bombardier’s CRJ aircraft programme on 1 June. The Japanese industrial company, parent of Mitsubishi Aircraft, confirms the pending closing date, quelling speculation that the deal might fall through amid the coronavirus pandemic. The companies “agreed that all closing conditions have been met and the transaction… will close on June 1, 2020,” says MHI. The deal calls for MHI to buy the CRJ’s maintenance, support, refurbishment, marketing and sales activities, including support and service assets in Mirabel, Toronto, Bridgeport (West Virginia) and Tucson (Arizona). MHI is not acquiring CRJ production, which the companies have said will conclude when Bombardier produces all remaining CRJs on order. It still holds orders for 18 CRJ900s, according to data. Analysts have said the acquisition will give Mitsubishi Aircraft the global support network it needs to secure major sales. In selling the CRJ, Bombardier will divest its only remaining commercial aircraft programme, leaving the company with its business aviation unit and train business. After closing, a newly created Mitsubishi entity called MHI RJ Aviation Group will operate the CRJ programme. That company “will provide a holistic servicing and support solution for the global aircraft industry, including the CRJ series aircraft, and eventually for the Mitsubishi SpaceJet family of next-generation regional jets,” MHI says.

Source: Cirium