Qantas and Virgin Australia will operate additional routes within Australia after the federal government agreed to underwrite a minimal domestic service during the coronavirus pandemic. The support, for an initial eight-week period and worth up to A$165 million ($105 million), was announced on 16 April by deputy prime minister and transport minister Michael McCormack. The assistance covers routes including all state and territory capital cities and major regional centres. It comes on top of relief packages for the country’s aviation industry that have already been announced, worth over A$1 billion in total. "We know that a strong domestic aviation network is critical to Australia’s success and today’s announcement demonstrates our commitment, yet again, to maintaining connectivity during this pandemic," McCormack said in a statement. Qantas and subsidiary Jetstar will therefore increase the number of passenger flights operated from 105 to 164 flights a week. The mainline carrier is currently operating only a small number of international passenger and freight flights. The new flights start on 17 April. The airline says, "While travel restrictions mean most passenger flights are not commercially viable at the moment, there remains a need for some essential travel – particularly given the distances between most Australian cities." It adds, "These flights will also provide critical freight capacity, which has fallen significantly as commercial air networks have shrunk. Much of the bellyspace on these flights will be used for mail and other urgent shipments, including medical equipment." Distancing measures will be in place on flights and crew will wear personal protective equipment, Qantas says. Compatriot Virgin Australia had halted all flying except for a Sydney-Melbourne route, plus some repatriation and charter flights. It says it will now open up 64 return services each week, with services starting on 17 April. “The minimal domestic schedule will enable Virgin Australia to reinstate some of its stood down flight, cabin and ground crew, along with other operational team members,” it adds. Virgin Australia’s shares are currently suspended from trading while it discusses financing and restructuring options. It has requested a A$1.4 billion bailout from the government.

Source: Cirium

Sydney airport will temporarily close its east-west runway and use the space to park planes grounded during the coronavirus pandemic. The move, effective 22 April, was approved by the federal government today. "This doubles the number of aircraft that can be parked at Sydney Airport, with the east-west runway able to accommodate up to 50 aircraft,” deputy prime minister Michael McCormack says in a statement. Airports across the world have turned into parking lots for the global fleet grounded by travel restrictions around Covid-19 outbreak, which have decimated air travel. Brisbane airport has also decommissioned a runway early to use as parking space for planes, as part of measures to provide free parking for up to 100 planes. Using runways as parking areas leaves stands at the terminal areas free for other flights, such as those carrying freight, medical equipment or essential workers. McCormack says Sydney airport is monitoring the situation closely and aims to return the east-west runway to normal operations as soon as all aircraft can be accommodated on normal parking bays. Sydney Airport's chief executive Geoff Culbert, “Sydney Airport appreciates the deputy prime minister’s support and flexibility. This measure will ensure we can continue to help our airline partners with aircraft parking whilst keeping the airport operational for vital cargo flights and the movement of essential workers.” Sydney's main runway, the north-south 16R/34L, and the parallel 16L/34R remain open.

Source: Cirium

While the coronavirus pandemic has had a wide-ranging impact across African carriers, the timing of the crisis has been particularly calamitous for South Africa’s struggling airline sector. The country’s carriers, notably its two state-held operators, were already in the mire even before the coronavirus pandemic prompted the halting of passenger services and vital revenues. Now it appears long-struggling national carrier South African Airways could be approaching an endgame after wide-ranging reports suggest the government has told administrators running the airline that it is not able to give it any more funds towards its rescue. Debt-ridden SAA was put into formal restructuring last December shortly after a crippling strike added to the carrier’s woes. Business-rescue practitioners have since embarked on major restructuring and cash-saving measures, including streamlining its network and, in March, launching a consultation on potential job cuts. The restructuring was already proving complex – with government officials outlining opposition to some of the network cuts – and finalisation of SAA’s restructuring plan had already been pushed back from the end of February to the close of March. But in the interim, SAA – in line with the implementation of travel restrictions implemented by South Africa to counter the spread of coronavirus – ultimately halted scheduled passenger flights as of 24 March. Media reports in South Africa cite a 14 April letter from SAA’s business-rescue practitioners Les Matuson and Siviwe Dongwana to affected parties, saying they received a response from government that it “is unable to provide additional funding to sustain the business rescue process”. “Neither will lending guarantees be provided in respect of the business rescue process,” the letter is cited as saying, noting the administrators are still assessing the impact of the development on the business rescue process. South African media also report that a copy of finance minister Tito Mboweni’s speaking notes, circulated by the National Treasury during a briefing yesterday, said part of the government’s fiscal response to the coronavirus crisis included closing SAA. South Africa’s public enterprise ministry is quoted as saying it is still exploring options for SAA. Struggling SAA has required a series of state bailouts over the years, as it has battled with its historical debt burden. The airline has also struggled for boardroom continuity, and acting chief executive Zuks Ramasia retired on 14 April, less than a year after assuming the position. Last October, South Africa’s public enterprises minister informed the country’s parliament that SAA and state-held regional operation SA Express are not going concerns, in a letter explaining delays in the carriers’ annual report submission. SA Express too was forced into formal restructuring in February – a ruling the airline initially challenged. On 18 March the regional carrier suspended operations until further notice. While it mentioned the impact of the coronavirus outbreak, SA Express indicated this was only one consideration behind its decision, attributing the suspension to “adverse recent developments”. South African media, citing court papers, report that business-rescue practitioners have complained that the department of public enterprises has withheld required funding and have applied for the liquidation of SA Express. But the ministry said allegations that the government “deliberately withheld financial support to the rescuers, and that the department’s approach to the process was unconstructive, are baseless”. The interim chief executive of SA Express, Siza Mzimela, left the carrier at the end of March. Former SA Express boss Mzimela had returned as part of a state intervention team initially tasked with helping the carrier through operational difficulties, which had resulted in its being grounded in May 2018. While South Africa’s cash-strapped state-owned carriers are feeling the brunt of the crisis, conditions in the country – including tough economic conditions – were also causing problems for private operators. Privately owned South African carrier Comair earlier in April called off its planned acquisition of aircraft leasing specialist Star Air Cargo and Star Air Maintenance as it battles mounting challenges. While no reason was specified for the purchase being abandoned, the airline had been dealing with the impact of the coronavirus crisis on top of a series of existing challenges, including a difficult economic environment, the grounding of the Boeing 737 Max, and additional costs while it transitions to a new maintenance provider. “Despite our efforts over the last few months to preserve cash, maintain liquidity; divestment from non-performing acquisitions; aggressive cost reduction across the group; taking back control of the fleet; and unlocking further operational efficiencies, more remains to be done,” said Comair chief executive Wrenelle Stander in a trading update on 23 March. Comair has initiated a formal labour restructuring process as part of further efforts to reduce its costs.


Source: Cirum