Middle Eastern carrier Emirates is suspending most of its passenger operations from 25 March, but intends to continue freight services. Emirates has the world’s largest Airbus A380 and Boeing 777 fleets, and has been trying to maintain passenger flights for as long as it could, in order to ease passengers’ efforts to return home. But increasing restrictions – including the 19 March suspension of all entry visas to the United Arab Emirates – have forced the carrier to cut back its operation substantially. “We find ourselves in a situation where we cannot viably operate [certain] passenger services until countries reopen their borders and travel confidence returns,” says Emirates Group chief executive Sheikh Ahmed bin Saeed Al Maktoum. It will continue to operate passenger flights to a limited number of countries as long as borders remain open and demand continues. Cargo services, however, remain “busy”, says Al Maktoum. The carrier’s SkyCargo fleet of 777 freighters will continue operating to ensure transport of essential goods. Emirates Airline president Tim Clark and the head of ground-handling firm Dnata, Gary Chapman, will take no basic salary for the next three months. The majority of employees will also have a temporary salary reduction of 25-50% over the same period, while junior employees will be exempt. Dnata has cut back its operations, shutting some of its international offices, as flight activity falls. Emirates Group’s measures to cut costs have echoed those of several other operators affected by the coronavirus outbreak, including postponing discretionary expenditure, freezing recruitment, and negotiating with suppliers. Al Maktoum says Emirates Group had been “doing well” against its financial year targets, but that the outbreak “has brought all that to a sudden and painful halt over the past six weeks”. He stresses, however, that the company has a strong balance sheet and “substantial” cash liquidity. “We can, and will, with appropriate and timely action, survive through a prolonged period of reduced flight schedules,” he states.

Source: Cirium

Airbus has been deploying an A330-800 test aircraft to assist with coronavirus protection measures, using it to transport some 2 million masks from Tianjin in China to Europe, where they will be distributed to French and Spanish authorities.
The airframer disclosed the measure as it prepares to restart – at least partially – production and assembly work in both countries on 23 March. Airbus had temporarily halted the work while it conducted health and hygiene checks to ensure compliance with efforts to combat the coronavirus outbreak. It says it has donated “thousands” of masks to hospitals and other institutions in Europe and has started using test aircraft to transport larger quantities from Chinese suppliers. “We try to live up to our values, humbled by the complexity of the situation, and contribute as much as we can to society in these very difficult times,” says chief executive Guillaume Faury. The A330-800 (F-WTTO) flew to Tianjin from Toulouse on 21 March and departed for the return service the next day. “Additional flights are planned to take place in the coming days,” says the airframer. It states that it has been conducting “extensive work” in co-operation with social partners to address health and safety criteria, and implementing them demanded a four-day suspension of production at the French and Spanish plants for four days. “Work stations will only re-open if they comply with the new health and safety measures in terms of hygiene, cleaning and self-distancing, while improving the efficiency of operations under new working conditions,” says the manufacturer. “The same measures are being deployed across all other sites without full interruption.” Airbus had temporarily halted work at the Chinese final assembly line in Tianjin in February, as the coronavirus crisis emerged, before restarting.

Source: Cirium

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