The US Senate has drafted a bill that would provide $58 billion in aid to help US airlines manage through the coronavirus pandemic, which has forced many to reduce schedules, ground aircraft and furlough staff. The Coronavirus Aid, Relief, and Economic Security Act of 2020, released by the US Senate on 19 March, offers $208 billion in collateralised loans and loan guarantees to US businesses, with $50 billion reserved for passenger air carriers and $8 billion for cargo carriers. In addition, it suspends excise taxes on transportation and kerosene for commercial aviation until the end of the year. As written, the bill would not provide assistance in the form of direct grants or unsecured loans, as the airline industry has requested. Airline trade group Airlines for America (A4A) could not immediately be reached for comment. Before becoming law, the bill would need approval by the House of Representatives, and President Donald Trump’s signature. “American businesses didn’t cause this crisis, and aggressive action is warranted to ensure they have the liquidity necessary to weather its direct impacts,” says Richard Shelby, chairman of the US Senate Committee on Commerce, Science and Transportation. “We are not bailing out the airlines or other industries – period. Instead, we are allowing the Treasury Secretary to make or guarantee collateralised loans to industries whose operations the coronavirus outbreak has jeopardised. In my judgement, this approach strikes an appropriate balance between providing assistance and protecting taxpayers,” Shelby says. In recent days, airlines have faced some public criticism for allegedly failing to save sufficient cash during recent boom years. Earlier this week, A4A put forward an aid request for government grants totalling $29 billion, including $25 billion to passenger airlines and $4 billion to cargo carriers. A4A also requested unsecured, zero-interest loans worth another $29 billion. The grants, requested of the US Department of the Treasury, would “compensate for reduced liquidity… attributable to the novel coronavirus”, said the group. The Senate agrees the industry needs help, but attached strings to the package. “Nothing in this act shall be construed to allow the President or [Treasury] Secretary to provide relief to eligible entities except in the form of sufficiently collateralised loans and loan guarantees,” the Senate bill notes.

Source: Cirium

Due to lack of demand for passenger transportation, American Airlines plans to start flying scheduled cargo-only flights.
The first cargo-only flight is to depart from Dallas/Fort Worth International airport on 20 March and will land at Frankfurt International airport the next morning, says the company on 19 March. The Boeing 777-300ERs will operate two round trips between the airports over the course of four days. The trips represent the first scheduled cargo-only fights since 1984 when American retired the last of its Boeing 747 freighters, says the Fort Worth-based airline. “Challenging times call for creative solutions, and a team of people across the airline has been working nonstop to arrange cargo-only flight options for our customers,” says Rick Elieson, president of cargo and vice-president of international operations. American also points out that airlines are “deemed a critical infrastructure industry by the Centers for Disease Control and Prevention.” On Thursday, the US Senate drafted a bill that would provide passenger and cargo carriers $58 billion in collateralised loans and loan guarantees, including $8 billion reserved for cargo carriers. Industry lobby groups had earlier requested a mix of grants, loans and tax breaks to alleviate the financial pain inflicted by the traffic fallout from the coronavirus.American has cut more than 75% of its international capacity in recent days. The 777-300ER has 14 cargo positions for large pallets and can carry more than 45,400kg (100,000lb). The four scheduled flights this weekend are expected to be booked to capacity, says American. Domestically, American plans to continue carrying cargo on all of its planes.

Source: Cirium

Swiss is parking short-haul aircraft at Dubendorf air base and evaluating additional storage locations as the Lufthansa subsidiary reduces operations in response to the coronavirus crisis. The carrier says 24 Airbus A320s will be ferried to Dubendorf, which is close to Swiss's main hub, Zurich airport, at which long-haul aircraft will be parked. Consultations with the Swiss government and air force are ongoing as the airline scouts for additional storage locations. Swiss has a base at the nation's second-largest airport, Geneva, but none the the third, Basel. There are several regional airports and air bases in the country. The airline disclosed on 13 March a plan to park half of its fleet. Cirium fleets data shows Swiss has around 90 aircraft.

Source: Cirium