Virgin Australia is seeking A$1.4 billion ($865 million) in financial support from the Australian government to battle the downturn caused by the coronavirus crisis. “It is a preliminary proposal and remains subject to approval by the Virgin Australia Holdings Board and the Australian government and may or may not include conversion to equity in certain circumstances,” it said today in a stock-exchange disclosure. The carrier paused trading from today but posted a response to media reports. Many airlines, now burning through cash reserves as the coronavirus crisis grounds their fleets, have called on governments to provide financial support and help pay wages. The Australian government announced on 18 March an aviation relief scheme worth A$715 million, comprising the waiver of certain fees and charges. A separate package for regional air travel, worth an initial A$198 million, was unveiled over the weekend. Justifying its call for support, Virgin Australia, which has suspended most of its domestic and international flying, said it, like other companies, is already taking a range of measures. “However, support will be necessary for the industry if this crisis continues indefinitely, to protect jobs and ensure Australia retains a strong, competitive aviation and tourism sector once this crisis is over,” it states. Other carriers have boosted liquidity by extending loans or raising equity. Virgin Australia’s local rival Qantas said on March 25 that it has secured A$1.05 billion ($625 million) against seven of its Boeing 787-9s. IAG, which owns British Airways, Iberia, Aer Lingus and Vueling, announced on 30 March that it extended its $1.38 billion credit revolver by one year. Singapore Airlines plans to issue S$5.3 billion ($3.7 billion) in equity and S$3.5 billion in 10-year mandatory convertible bonds to help see it through the crisis. Air New Zealand secured standby funding of up to NZ$900 million ($540 million) from the government to keep it supported.

Source: Cirium

Qantas long-haul pilots have voted in favour of a deal on pay and conditions for Project Sunrise flights. The deal means existing Qantas long-haul pilots will fly Airbus A350s if an order is made for the ultra-long-haul project, Australia’s biggest airline says in a statement. Project Sunrise is the airline's initiative to open nonstop services to the Australian east coast from New York and London from around 2022-23. The carrier had threatened to bypass unions in February, saying that it would negotiate directly with individual pilots or create a "new employment entity", if it could not come to an agreement with the Australian and International Pilots Association (AIPA). Qantas said today that over 1,400 pilots voted on the deal, with 85% in favour. “The vote came at a difficult time but it’s also important to keep looking ahead,” Qantas chief pilot Dick Tobiano states. Qantas has placed tentative orders for up to a dozen A350-1000s for Project Sunrise. Airbus has also agreed to extend the deadline for a decision on the order so both parties can cope with the coronavirus crisis, Tobiano says. “But when this period has passed, and it will, we will refocus our attention on Project Sunrise and the A350 order,” he promises.

Source: Cirium

Australia's Regional Express says it will be able to maintain routes and jobs, thanks to a financial assistance package unveiled by the government over the weekend. Rex is the country's largest independent regional carrier and operates a fleet of 60 Saab 340 aircraft. It said today that it had been preparing to shut down its entire network and lay off 90% of staff but will now be able to continue operations in "almost its entire current network of 59 destinations". It will establish a revised schedule in the next two days. Deputy prime minister Michael McCormack announced on 28 March a A$198 million ($120 million) regional airline assistance package, underwriting airlines’ operating costs on selected routes. An additional A$100 million is also available as direct financial support for smaller regional airlines. “This package guarantees core routes for domestic air freight will remain open and essential workers remain employed, while providing vital financial support for airlines servicing regional and remote locations,” McCormack said in a statement. That comes on top of an A$715 million aviation relief scheme announced on March 18, which comprises the waiver of certain fees and charges. Rex welcomes the new regional package, saying it comes during “the worst operating conditions the industry has ever seen.”

Source: Cirium