Airlines around the world are in desperate need of government liquidity support which in many cases is taking too long to reach them, IATA has warned. Describing the coronavirus shutdown as "the biggest crisis we have ever had", IATA director general Alexandre de Juniac stresses that although many governments have been "very supportive" of the aviation industry, their support must arrive imminently if carriers are to be saved from bankruptcy. "We desperately need these packages to be implemented," he said during IATA's latest weekly crisis briefing, on 7 April. Assistance could come in the form of loans, loan guarantees, tax relief or other forms, he notes, but "whatever it is, we need it now". The calls are backed up by data from the association showing a 70% reduction in global flights compared with this time last year. The figure for Europe, Africa and Latin America is 90%. As most airlines have just two months of cash reserves and a host of fixed costs, they are now running out of financial legroom. Refunds totalling around $35 billion are due in the second quarter alone, IATA says. It expects total cash burn of around $60 billion in the period. Many airlines have begun issuing vouchers instead of cash refunds to customers, a practice de Juniac says is a simple "matter of survival" as the industry looks to conserve meagre cash supplies. Even with these measures, further bankruptcies are "inevitable", he says, as the sector’s improved profitability over recent years has been confined to just a few carriers. IATA also warns that a three-month industry shutdown threatens up to 25 million jobs, out of a wider pool of 65 million people who rely on the aviation industry, directly or indirectly, for work. Pouring cold water on the suggestion that passenger growth is resurgent in China, de Juniac highlights that around half of flights are still not flying, and that load factors have not risen above around 50%. He says there has been a "slight increase" in passenger numbers, but one that is "not very significant at this stage". He adds that the country's key leisure travel market remains essentially non-existent.

Source: Cirium

Airbus’s A330-800 has secured European approval for extended twin-engined operations (ETOPS) running beyond 180min. The clearance was granted on 2 April according to a certificate revision from the European Union Aviation Safety Agency. EASA certified the A330-800 – the smaller member of the A330neo family – in mid-February. The aircraft is powered by Rolls-Royce Trent 7000 engines. It was granted ETOPS approval up to 180min at the time. No A330-800s have yet been delivered, although an initial aircraft for Kuwait Airways has been painted. Fourteen of the variant are on firm order including eight for the Kuwaiti flag-carrier. EASA approved the larger A330-900 for beyond-180min ETOPS in January last year.

Source: Cirium

Singapore’s Changi airport is closing Terminal 2 (T2) for 18 months from May 1 due to the dramatic fall in traffic as a result of the coronavirus crisis. Transport minister Khaw Boon Wan told parliament on 6 April that the impact on Changi was “severe”, describing the airport, which has four terminals, as “deserted”. “Right now one terminal is enough to handle the current volume of demand. We can close down one or two terminals. But we must think about post-pandemic recovery.” The move will allow the airport operator, retail tenants, airlines and ground handlers to save on running costs, he added. Other airports worldwide have also moved to close terminals, scale back operations and defer non-essential spending to battle the crisis. The minister says Singapore Airlines (SIA) will consolidate its operations at Terminal 3, adding that other airlines will also be affected. Operator Changi Airport Group (CAG) said on 6 April that details of other airlines’ relocations will be published nearer 1 May. The closure will allow planned upgrades for T2 to be sped up and these could be completed by up to a year in advance. The project was set to increase overall handling capacity by 5 million to 90 million passengers per annum by 2024. CAG adds that the closure of Terminal 4 (T4) could also be on the cards. At present, there are only a small number of flights there and operations there have been scaled down. “If the remaining airlines at T4 choose to suspend or adjust their flight schedule, CAG will also consider suspending operations at T4 temporarily but with the objective of restarting operations quickly when airlines confirm the resumption of flights,” the company stated. Khaw says full recovery this year is unlikely but partial recovery is probable in 2021. He adds, “We will ensure sufficient capacity for all airlines to grow when passenger traffic recovers." The Singapore government has moved early to protect the country's aviation industry, having announced stimulus packages for the economy. Separately, SIA raised additional liquidity with the backing of shareholder Temasek, a government-owned investment company. Khaw says if SIA were to collapse, it would undermine Singapore’s ability to recover from the crisis, adding that Changi supports many jobs. “That is why we took swift action to support the air hub, prevent the loss of strategic capabilities and our hard-earned position as a reliable air hub." However, he says the crisis could affect the timeline and planning for Changi’s Terminal 5 (T5), due to come online in 2030 with an initial capacity to handle 50 million passengers per annum. Khaw says: “I strongly believe air travel growth will return, though a quick rebound is unlikely. Fortunately T5 was designed to be modular, so that its construction can be scaled up or down as necessary."

Source: Cirium