SAA pilots seeking ‘unaffordable’ staff retention: government
July 13, 2020
South African Airways pilots have sought to more than halve the proposed number of employee retrenchments, and instead retain almost 3,100 personnel for the carrier’s relaunch, according to the country’s government. But the proposal has been dismissed by the department of public enterprises, which insists it is “not prepared to accede” to the demands. Pilot union SAAPA has not joined other employee groups in accepting the voluntary severance packages offered as part of the effort to restructure the carrier – a decision which has been criticised by the government. The department of public enterprises claims that pilots would account for half of the R2.2 billion in funding set aside for severance. SAA’s 600 pilots, it says, make up 45% of the payroll expenditure despite only representing 13% of personnel.
Source: Cirium
Struggling Air Namibia cleared to resume flights
July 10, 2020
Under pressure, Air Namibia has been cleared by the Namibian High Court to resume services after its operating licence was suspended amid continued financial concerns. The airline had been blocked from operating scheduled flights after Namibia’s transport commission suspended the carrier’s air services licence, as of midnight, on 8 July. The Namibian, citing a memo issued by the transport commission, said the airline had been given until 22 July to provide evidence it had obtained funding to meet the requirements of the country’s air services act. But in a statement issued today, the carrier says “the suspension of AIr Namibia’s service licences has been upended” by the High Court. “Air Namibia shall continue to fly all domestic flights as per the published schedule,” the airline adds. The carrier’s regional and international services remain suspended amid continued border controls related to tackling the coronavirus pandemic. Last month Namibian president Hage Geingob cast doubt about the future of the loss-making airline by suggesting it may need to be liquidated. “We have a very serious problem with Air Namibia,” he said, answering questions after delivering his state-of-the-nation speech on 4 June. Geingob said the airline has been “bailed out”, but indicated that recommended measures to cut routes – such as the key Frankfurt service – would not be welcomed. “But it must be restructured,” he says. “If liquidation is the thing, we must do that.” Namibian finance minister Iipumbu Shiimi was earlier this month reported to have told parliament that the government was considering several options for the carrier. Air Namibia operates a small fleet including Airbus A330's and A319's, plus Embraer regional jets.
Source: Cirium
Canadian aerospace groups appeal for federal aid
July 10, 2020
The Canadian aerospace industry is appealing for federal aid after the Canadian government released an economic stabilisation plan that makes no mention of the aerospace sector. The plan, released 8 July, reviews the country’s strategy for dealing with the economic fallout of the coronavirus pandemic. The plan notes Canada has committed more than C$212 billion ($156 billion) in direct support to citizens and businesses, and made C$600 billion available to help businesses access credit. But the country’s aerospace sector says the plan falls short and fails to recognize the strategic and economic importance of the sector to the country. The industry is asking for additional, industry-targeted aid, warning that without such support Canada’s aerospace industry could lose its competitive edge. “We are advocating the urgent need for a specific strategy dedicated to our sector that will accelerate the recovery, while emphasising that this cannot be achieved without the help of the federal government,” Aero Montreal president Suzanne Benoit says on 9 July. The government’s economic plan “makes no reference whatsoever to measures that would allow the aerospace industry to emerge from this crisis,” adds Aero Montreal. National trade group Aerospace Industries Association of Canada (AIAC) made a similar plea. “While our major competitor countries have implemented sector specific plans and recovery measures, Canada has resisted,” the group says. “If the government partners with our industry, recognising the strategic importance we bring to the table… we will be in a position to help Canada overcome its massive deficit.” “There are real consequences for Canada’s lack of action,” AIAC adds, noting Canada’s aerospace industry employs more than 215,000 workers and contributes some C$25 billion in annual GDP. Reached for comment, AIAC did not provide details about the specific government aid it seeks. Aero Montreal, which represents the industry in Quebec – home to Bombardier, an Airbus facility and a swath of suppliers – did not respond to a request for details. AIAC cites France and the USA as countries whose governments have recently supported aerospace with financial aid packages.
Source: Cirium