Thousands of flights worldwide scrapped as Omicron hits Christmas weekend travel

More than 6,000 flights have been cancelled worldwide over the long Christmas weekend and thousands more were delayed, a tracking website reported Saturday, as the highly infectious Omicron variant brings holiday hurt to millions. 

Compounding the travel chaos in the United States, severe weather in the country's west is due to wreak havoc on roadways and other routes there although it may well bring a white Christmas weekend to northwest cities Seattle and Portland.

According to Flightaware.com, nearly 2,800 flights were scrubbed around the globe on Saturday, including more than 970 originating from or headed to US airports, with over 8,000 delays as of 0130 GMT.

On Friday, there were around 2,400 cancellations and 11,000 delays, while Sunday cancellations have already surpassed 1,100.

Pilots, flight attendants and other employees have been calling in sick or having to quarantine after exposure to Covid, forcing Lufthansa, Delta, United Airlines, JetBlue, Alaska Airlines and many other short-staffed carriers to cancel flights during one of the year's peak travel periods.

"Help @united flight cancelled again. I want to get home for Christmas," one exasperated traveler from the US state of Vermont tweeted to the airline early Saturday.

Flightaware data showed United cancelled around 200 flights on Friday and nearly 250 Saturday -- about 10 percent of those that were scheduled.

A scramble to reroute pilots and planes and reassign employees was underway, but Omicron's surge has upended business.

"The nationwide spike in Omicron cases this week has had a direct impact on our flight crews and the people who run our operation," United said in a statement Friday.

"As a result, we've unfortunately had to cancel some flights and are notifying impacted customers in advance of them coming to the airport," the airline said.

Similarly, Delta scrapped 310 flights Saturday and was already cancelling several dozen more Sunday, saying it has "exhausted all options and resources -- including rerouting and substitutions of aircraft and crews to cover scheduled flying."

"We apologize to our customers for the delay in their holiday travel plans," the company said.

The cancellations added to the pandemic frustration for many people eager to reunite with their families over the holidays, after last year's Christmas was severely curtailed.

Chinese airlines accounted for the highest number of cancellations, with China Eastern scrapping more than 1,000 flights, over 20 percent of its flight plan, on Friday and Saturday and Air China also grounding about 20 percent of its scheduled departures over the period.

- 'Treacherous' snow conditions -

According to estimates from the American Automobile Association, more than 109 million Americans were scheduled to travel by plane, train or automobile between December 23 and January 2, a 34 percent increase over last year.

But most of those plans were made before the outbreak of Omicron, which has become the dominant strain in the United States, overwhelming some hospitals and healthcare workers.

The state of New York announced Friday that it recorded 44,431 new daily positive Covid tests, a record, while new cases surged nationwide as well.

On the weather front, while unseasonably warm temperatures were bathing eastern states, the National Weather Service announced winter storm warnings including a deep freeze for significant parts of the west. 

"Anomalously cold conditions and a barrage of Pacific moisture results in prolonged periods of mountain snow and coastal/valley rain, some of which may fall heavy at times," the NWS said in an advisory.

An eye-popping two to four feet (61 to 122 centimeters) of snow was forecast to fall this weekend, with higher accumulation in some spots, in the northern and central Sierra mountains of California and Oregon.

Travel will be "treacherous to at times impossible" from the Sierras to the central Rocky Mountains at the weekend due to whiteout snow conditions, the NWS added.

Agence France-Presse

From Hollywood to Detroit, pandemic-weary companies cautious on Omicron

Pandemic-weary corporations struggled to assess the impact of the new Omicron variant of the coronavirus on Monday, with industries from Hollywood movie studios to airlines and autos awaiting more details to help determine how it might affect their operations and profits.

The World Health Organization warned on Monday the Omicron variant carries a very high global risk of infection surges. Spooked investors wiped roughly $2 trillion off global stocks on Friday, but markets regained some ground on Monday.

Countries have swiftly imposed bans on travel from southern Africa, where the variant was first uncovered. Japan and Israel went even further, announcing bans on all foreign visitors.

Some airlines said they were not heavily changing schedules, but industry sources said big carriers moved swiftly to protect their hubs by curbing passenger travel from southern Africa.

Ryanair Chief Executive Michael O'Leary saw no reason to cancel flights although he was worried about some countries potentially shutting air travel. Lufthansa, Germany's flagship airline, said its flights were still well booked.

US President Joe Biden met with chief executives of major retailers and other companies on Monday to discuss how to move goods to shelves as the US holiday shopping season begins in the shadow of Omicron.

Before the meeting, Walmart CEO Doug McMillon cited improvement in the supply chain, noting the retailer had seen a 26% increase in shipping containers going through U.S. ports over the past four weeks.

US Commerce Secretary Gina Raimondo said on Monday it was too soon to tell if Omicron will have any impact on global supply chains.

The prospect of a fast-spreading variant has raised fears of a return of the sort of restrictions that shut down a swathe of industries in 2020.

In Hollywood, where production on film and television shows returned to pre-pandemic levels this summer thanks to stringent health and safety precautions, the studios were waiting to learn more about this latest mutation of the coronavirus.

"With COVID, it keeps shape shifting. It's like mercury -- we can't get our hands around it," said Dr. Neal Baer, a physician who was a longtime producer of "Law & Order: Special Victims Unit."

"It's going to take a couple of weeks for us to know, one, how well vaccinations protect us, two, whether you need a booster and whether a booster helps or three, whether the vaccine needs to be modified to make it effective against this mutation."

Movie theater attendance has been returning in fits and starts since the summer, but a spokesman for the National Association of Theatre Owners said variants remain a concern -- especially after the pullback in attendance that accompanied the Delta variant.

In the United States, auto plants were closed for two months last year. Even after automakers restarted operations, they have curtailed production schedules due to semiconductor chip shortages and other supply-chain constraints. Automakers said it was too soon to predict the impact of Omicron.

"This is new," Nissan Motor Co's US spokeswoman Lloryn love-Carter said. "We're monitoring of course, but we still have a lot of pretty strict COVID protocols in place."

General Motors Co, the largest US automaker, said it was watching closely and its COVID-19 safety protocols remain in place at its plants.

"We continue to strongly encourage our employees to get vaccinated given the broad availability of safe and highly efficacious vaccines," GM spokeswoman Maria Raynal said in an email. "We will continue to review and adjust our protocols as new information regarding this variant becomes available."

Toyota Motor Corp said its US management team will meet on Tuesday to discuss the Omicron variant.

"Right now we're in the 'gathering info' mode," Toyota's U.S. spokesman Scott Vazin said. "Since most of our employees are based in plants, we've never stopped COVID protocols such as social distancing, health screenings, masking up." 

(Reporting by Ben Klayman in Detroit, additional reporting by Dawn Chmielewski in Los Angeles, Tim Hepher in Paris and Alex Alper in Washington; Editing by Peter Graff, Bill Berkrot and Sandra Maler)

-reuters-  

Emirates Airline says must cut jobs over virus crisis

DUBAI - Emirates Airline said Sunday it would have to cut jobs after being forced to ground its fleet during the coronavirus crisis, but did not specify the extent of the layoffs.

The Dubai carrier, the largest in the Middle East, announced in March temporary cuts of between 25 percent and 50 percent in basic salaries for most employees after halting its operations.

It employs a workforce that is around 100,000-strong, with a fleet of 270 wide-bodied aircraft.

"We reviewed all possible scenarios in order to sustain our business operations, but we have come to the conclusion that we unfortunately have to say goodbye to a few of the wonderful people that worked with us," the airline said in a statement.

"We continuously are reassessing the situation and will have to adapt to this transitional period," it said.

"We do not view this lightly, and the company is doing everything possible to protect jobs wherever we can."


Emirates said on May 10 that it would take at least 18 months for travel demand to return to "a semblance of normality", even after reporting bumper pre-pandemic profits.

The carrier had suspended flights on March 22 before resuming some services two weeks later.

Last week, it began partial regular service to a number of mostly Western airports.

The International Air Transport Association forecast in April that air traffic in the Middle East and North Africa was set to tumble this year by more than a half.

IATA said that MENA airlines' revenues in 2020 will be slashed by $24.5 billion compared to last year, and warned the region's aviation shutdown threatened some 1.2 million jobs. 

State-owned Kuwait Airways recently said it was laying off 1,500 expatriate employees, who make up a quarter of foreign staff.

Even before the coronavirus pandemic paralyzed the aviation industry, Emirates, which transported 56 million passengers last year, had slimmed its orders from both Airbus and Boeing, cutting tens of billions of dollars worth of aircraft.

The airline industry plays a key role in making Dubai a global hub for tourism and transport. 

Dubai government said in April it would inject fresh capital into Emirates to help it cope with the impact of coronavirus.

Agence France-Presse

Major US airlines endorse temperature checks for passengers

WASHINGTON - A major US airline trade group on Saturday said it backed the US Transportation Security Administration (TSA) checking the temperatures of passengers and customer-facing employees during the coronavirus pandemic.

Airlines for America, which represents the largest US airlines including American Airlines, United Airlines , Delta Air Lines and Southwest Airlines, said the checks "will add an extra layer of protection for passengers as well as airline and airport employees. Temperature checks also will provide additional public confidence that is critical to relaunching air travel and our nation’s economy."

A US official said Saturday no decision has been made on whether to mandate the checks, but said the issue is the subject of extensive talks among government agencies and with US airlines and added a decision could potentially be made as early as next week.

One possible route would be for a pilot project or to initially begin temperature checks at the largest US airports. Questions remain about what the government would do if someone had a high temperature and was turned away from a flight.

US officials said the temperature checks would not eliminate the risk of coronavirus cases but could act as a deterrent to prevent people who were not feeling well from traveling.

TSA Administrator David Pekoske told employees during a town hall meeting Wednesday that no decision had been made regarding possible temperature checks of passengers at airports and that questions remained about where such checks might take place and which agency might perform them.

"It’s been a discussion that’s been ongoing for several weeks now," he said.

A TSA spokesman did not immediately comment Saturday.

Frontier Airlines said on Thursday it would begin temperature screenings for all passengers and crew members on June 1 and bar anyone with a temperature at or exceeding 100.4 degrees Fahrenheit (38 C).

The move, the first among major US airlines, followed the industry mandating facial coverings for all passengers and heightened cleaning procedures to address coronavirus concerns.

The airline group said having temperature checks performed by the TSA "will ensure that procedures are standardized."

The endorsement comes amid signs of a modest travel rebound from historic lows. On Friday, TSA screened 215,444 people at airport checkpoints, the first time the number topped 200,000 since March 26. But that is still a fraction of the 2.6 million screened on the equivalent day last year. 

-reuters-

Airline industry braces for prolonged recovery from coronavirus crisis

SYDNEY - A full airline industry recovery from the coronavirus looks prolonged at best, analysts said, as new data showed international seat capacity had fallen to 23 percent of last year's levels and around half the world's airplane fleet is in storage.

Carriers including United Airlines Holdings Inc and Air New Zealand Ltd have warned they are likely to emerge from the crisis smaller, and there are fears others may not survive.

"It is likely that when we get across to the other side of the pandemic, things won't return to the vibrant market conditions we had at the start of the year," said Olivier Ponti, vice president at data firm ForwardKeys.

"It's also possible that a number of airlines will have gone bust and uneconomic discounts will be necessary to attract demand back," he said in a statement.


ForwardKeys said the number of international airline seats had fallen to 10 million in the week of March 30 to April 5, down from 44.2 million a year ago.

Data firm OAG said several years of industry growth had been lost and it could take until 2022 or 2023 before the volume of flyers returns to the levels that had been expected for 2020.

Cirium, another aviation data provider, said around half of the world's airplane fleet was now in storage.

"While many of these will be temporary storage, many of these aircraft will never resume service," Cowen analyst Helane Becker said in a note to clients. "We believe the airline industry will look very different when we get to the other side of this."

Planemakers are looking at drastic cuts in wide-body production amid a slump in demand for the industry's largest jetliners, manufacturing and supplier sources said.

Deliveries of long-range jets like the Boeing Co 777 or 787 and Airbus SE A350 or A330 have been particularly badly hit as airlines seek deferrals and many withhold progress payments.

British Airways said on Thursday it has struck a deal with its unions to suspend more than 30,000 cabin crew and ground staff in one of the airline industry's most dramatic moves yet to survive the coronavirus pandemic.

With global travel in turmoil as the virus takes hold around the world, BA's owner, IAG, said it would also cut capacity by 90 percent in April and May, and scrap its dividend, in a desperate bid to survive the worst crisis in its history. Southwest Airlines Co said on Thursday it intends to apply for US government aid to help it ride out the sharp drop in travel demand.

"We still don't know the severity of this situation. We still don't know how long it will last," Southwest Chief Executive Gary Kelly said in a video message.

Vietnam Airlines will lose 50 trillion dong ($2.12 billion) in revenue this year as most of its 106-strong fleet have been grounded due to the coronavirus, state media reported on Thursday.

Up to 10,000 employees, or half the company's staff, will have to stop working while others' salaries have been cut, Tuoi Tre newspaper cited the Chief Executive Officer Duong Chi Thanh as saying.

-Reuters

Airlines facing what official calls 'deepest crisis ever'

LONDON - As the novel coronavirus continues to spread, commercial flights have all but stopped. The situation is so dire that the head of the trade group representing the world's airlines called the last few months "its deepest crisis ever."

A Reuters analysis of data from FlightAware, which tracks air traffic in real-time, reveals a series of sequential and precipitous declines in flights in four key regions as officials sought to contain the outbreak.
From March 24 to March 30, FlightAware tracked about 280,000 flights, down almost 500,000 from the same week a year earlier.

In late March, the International Air Transport Association estimated lost revenue from the coronavirus will exceed $250 billion in 2020 and urged governments to offer immediate financial support to the industry.

The transport association said today's crisis is far worse and more widespread than after 9/11, when US airlines lost approximately $19.6 billion in revenue in 2001-2002. After the terrorist attacks, the US government provided $15 billion to airlines in compensation and loan guarantees.

"Airlines are desperately trying to survive in the most difficult times imaginable," said Alexandre de Juniac, head of the IATA. "We have the people and the experience to see this through. But, to be perfectly frank, we don’t have the money."

Congress voted on March 27 to give the US aviation industry $58 billion in a coronavirus rescue package, and Singapore Airlines lined up a $13 billion funding package led by state investor and majority stakeholder Temasek.

AIRLINES LIMIT FLIGHTS

Because of travel restrictions enacted by governments around the world, the number of airlines grounding most or all of their fleets has grown rapidly over the past few weeks.

To account for day-to-day changes in the number of flights on weekends versus weekdays, Reuters measured change in air travel based on the same day a year prior.

In the Middle East, major carriers including Emirates, Flydubai and Saudia, Saudi Arabia's state airline, suspended all passenger flights. Israel's El Al slashed its flight schedule, and Turkish Airlines suspended all international flights on March 27.

In Asia, Singapore Airlines grounded most of its fleet on March 23 after the city-state banned all short-term visitors, and Qantas suspended international flights until at least May after the Australian government banned the arrival of non-citizens and non-residents.

In Europe, passenger data from the region's Airports Council International reveals an even deeper industry crisis than air traffic statistics indicate. As of March 22, the number of passengers traveling into and out of European airports had declined by 88%, or 5.2 million fewer daily travelers compared to a year earlier.

In Italy, containment efforts to staunch the spread of the virus triggered a rapid drop. There, data shows a 98% decline in passenger travel, or 440,000 fewer daily passengers compared to the same time last year.

Budget airlines Ryanair and easyJet grounded most of their fleets in late March.

U.K. CLOSES WINDOW

The number of passengers arriving to and departing from British airports has also declined, though at a slower pace than elsewhere in Europe. As of March 22, data shows passenger traffic down 82% from the same time last year.

One reason for the difference: The UK was originally exempt from the US travel ban on foreign nationals who had recently visited China, Iran and a group of 14 European countries, said Michael Stanton-Geddes, head of economics at ACI-Europe.

The exemption "temporarily protected a lot of transatlantic traffic," he said. "People getting from Europe to the US had to go through London."

As of mid-March, some vacationers were still leaving the UK for European destinations. On March 14, Jet2 turned around flights bound for Spain after the airline canceled all flights to the mainland.

In China, air traffic is starting to pick back up after two months of severe travel restrictions. The country saw a half million fewer flights during the same two-month period compared to the same period a year ago.

A TURBULENT TIME

The drop in flights in the United States following the Trump administration's travel restrictions mirrors the drop in air traffic around the world.

Data from FlightAware shows just 866 international flights arrived in or departed from the United States on March 30, a drop of 83% compared to the same day a year ago. Flights involving private business jets and turboprop planes were also down 67% in the US and 64% worldwide, the data shows.

The number of domestic flights has been less affected than international flights, however. Daily flights within the United States were down 51% on Monday compared to a year prior, according to FlightAware data.

But many of those flights have far fewer passengers. Planes are only 10-20% full, industry lobby Airlines for America said in late March.

CARGO SUPPLANTS PASSENGERS

So far, the number of cargo flights has remained largely unaffected by the travel restrictions.

Data from FlightAware shows flights by freight and package carriers such as Atlas, Polar, FedEx and UPS arriving in and departing from the United States initially declined during the first week of February 2020. The drop, which correlated to the Hubei Province lockdown, "shows how important China is to the world of international commerce," said Andrew Charlton, an industry analyst.

Shortly thereafter, however, US cargo flights rebounded to previous levels, the data shows.

Because passenger jets transport about half of all air cargo carried worldwide, the grounding of those planes has increased demand for freighters. In response, some commercial airlines such as American, Delta and Virgin Atlantic are using passenger jets solely for shipping cargo.

(Reporting by Reade Levinson in London. Additional reporting by Tracy Rucinski in Chicago, Laurence Frost in Paris and Jamie Freed in Sydney. Edited by Blake Morrison and Janet Roberts.)

source: news.abs-cbn.com

Airlines double estimated hit from coronavirus to $250 billion

LONDON/PARIS - Global airlines urged governments on Tuesday to speed up bailouts to rescue the air transport industry as they doubled their estimate of 2020 revenue losses from the coronavirus crisis to more than $250 billion.

"We clearly need massive action very quickly and urgently," Alexandre de Juniac, director general of the International Air Transport Association (IATA), told reporters on a conference call.

Airlines worldwide have grounded the majority of their fleets to preserve cash amid mounting travel restrictions designed to slow the spread of the epidemic.

The result has been huge pressure on the liquidity of airlines, up to half of which face possible bankruptcy in coming weeks if nothing is done to support the industry, IATA said.

"We have a liquidity crisis coming at full speed - no revenues and costs still on our (books), so we desperately need some cash," de Juniac said.

His warning came after Ryanair, Europe's largest budget airline, told customers it had effectively written off the next two months, while European air traffic management body Eurocontrol said volumes on Monday were down more than 75% from the same day last year.

De Juniac, a former Air France-KLM boss, brushed aside a growing debate about whether relief for airlines should come with strings attached, such as new commitments on climate goals.

But he said the airline industry would continue efforts already under way to curb emissions once the crisis recedes.

"We are in an emergency situation. It's no time for requirements. I'm sorry for that. We need a full speed massive rescue package now," de Juniac said.

With airlines at the front of bailout queues, green advocates fear climate action may lose momentum.

In the United States, Republicans have opposed providing bailouts to passenger and cargo carriers, proposing help in the form of $58 billion in loans and saying the government could demand stock, options or other equity in return.

IATA, which groups some 280 airlines including most of the world's largest network carriers, said signs of a deep recession could delay a recovery in airline travel - in contrast with the fast rebound seen after previous epidemics.

That could mean "more of a U-shaped than V-shaped recovery," Chief Economist Brian Pearce said, referring in the latter instance to the shape of the graph of air travel indicators seen after the SARS outbreak in 2003.

IATA says 2.7 million jobs are supported by the airline industry, with tens of thousands already being furloughed.

"There are a very large number of airlines that are more or less breaking even and ... facing losses. Those airlines are very fragile," Pearce said. (Reporting by Sarah Young, Laurence Frost; writing by Costas Pitas, Tim Hepher; Editing by Paul Sandle, Mark Potter)

source: news.abs-cbn.com

Airline stocks nosedive as US travel ban hits EU travel sector

PARIS - Europe's travel sector reacted with dismay Thursday to a US-imposed trans-Atlantic travel ban that sent the share price of major airlines into free fall.

The International Air Transport Association (IATA) warned that airlines needed "emergency measures" after President Donald Trump imposed the ban to stem the spread of coronavirus.

Air France stock lost almost 18 percent at the Paris opening bell, before recovering to trade five percent lower in mid-afternoon exchanges.

Lufthansa shares, quoted in Frankfurt, were off by almost nine percent.

The US is not banning passengers from Britain, but shares in British Airways' parent company IAG still slumped more than 10 percent, while EasyJet lost over nine percent.

'KICKNG A MAN'

"Trump is simply kicking a man when he's down," according to an EU diplomat in Brussels who called the ban "erratic."

Trump said the US would not allow travelers from the EU's Schengen border-free zone into the country for 30 days, calling the move an "aggressive" effort to contain the spread of COVID-19, the disease caused by the new coronavirus.

The decision does not affect visitors from Britain and Ireland, or US citizens returning from Europe.

Key US companies were hit even harder than their European counterparts, with the sector suffering its worst downturn since the September 11, 2001 attacks.

Boeing, already reeling from problems with the 737 MAX jet, lost 14 percent by the time trading was suspended Thursday, which added to its 18 percent drop a day earlier.

Shares in United Airlines shed nearly 15 percent on Wall Street before trading was suspended after the S&P 500 index lost seven percent.

Global markets have lost a combined $11.3 trillion in value since a peak on February 19, and $4.5 trillion this week alone.

American Airlines and Delta plunged by double-digit percentages.

'HAMMER BLOW'

"The travel ban is another hammer blow for the airlines" that "were getting crucified by the reduction in tourism and business travel in the last month," said economist Charlie Robertson at Renaissance Capital in London.

Peter Elbers, chief executive of the Dutch carrier KLM, told public television NOS: "It is undeniable that the consequences are extremely heavy."

Fears that other countries might follow the US example "are paralyzing the market," said Timo Emden of Emden Research.

French Finance Minister Bruno Le Maire told a news conference: "Trump's announcement is bad news for all airlines."

Le Maire "regretted" a decision "which will have a very strong impact on tourism and a very strong impact on companies in general."

INEFFECTIVE?

European leaders argue that travel restrictions are ineffective because the virus has now spread almost worldwide, and lament that Trump had not consulted them first.

After speaking with Air France chief executive Benjamin Smith, Le Maire said they would look for ways to "ensure Air France comes through this difficult moment... in the best possible conditions."

Airlines are especially vulnerable to a sharp drop in tourism and business travel.

Italy, the worst hit country in Europe so far, has quarantined its entire population of 60 million, the US has advised citizens against all foreign travel, and tourist magnets like Paris are bracing for hard times.

Service sector businesses have been pummelled and industrial supply lines are also under pressure, further dampening economic activity.

The ban "will create enormous cash-flow pressures for airlines," IATA head Alexandre de Juniac said. "Airlines will need emergency measures to get through this crisis."

On March 5, IATA estimated that the crisis could wipe out some $113 billion in airline industry, but the organization stressed that that estimate did not include the severe measures the US and other governments, including Israel, Kuwait and Spain, have since put in place.

Amsterdam-Schiphol Airport, one of Europe's biggest hubs, reported Thursday a 20-percent drop in passengers in the first week in March and prepared to work at reduced capacity.

"If all flights to and from the United States were canceled, this percentage would rise to 30 percent," the airport statement said.

Agence France-Presse

Foreign pilots at Chinese airlines return home on unpaid leave as demand plummets

BEIJING/SYDNEY - Foreign pilots at some Chinese airlines have returned to their home countries and are considering other jobs after being placed on unpaid leave as demand falls because of the coronavirus, affected flight crew told Reuters.

Meanwhile, Chinese pilots with greater job security said their income has been sharply reduced because most of their pay is based on flying hours.

Data firm OAG estimates about 80 percent of scheduled airline capacity to, from and within China has been cut this week because of SARS-CoV-2, the virus that has killed more than 2,000 people. Chinese airlines have been the hardest hit.

Major employers of foreign pilots, including China Southern Airlines Co Ltd and HNA Group's Hainan Airlines Holding Co Ltd, have acted swiftly to cut their losses, according to pilots and industry experts.

China Southern did not respond immediately to a request for comment, and HNA declined to comment.

"All the foreign pilots are on leave until the virus situation gets better," said an expatriate captain at China Southern who, like all of those who spoke to Reuters, requested anonymity because he was not authorized to speak with media. "For the moment we are all in our home countries."

Expats are typically paid more than local staff and work on contracts, which means they are more expendable in a downturn, industry experts said.

"We have seen pilots heading back to Australia in January and February due to the stand down and seeking new roles," said Kirsty Ferguson, the head of Sydney-based airline interview coaching firm Pinstripe Solutions.

As China's airline sector ballooned, it imported foreign experience: the number of foreign pilots flying with Chinese airlines more than doubled to over 1,500 between 2010 and 2019, according the Civil Aviation Administration of China.

China will need another 124,000 pilots in the next 20 years, according to Boeing, as an expanding middle class drives demand for air travel. But foreign pilots said being put on leave without pay makes it less likely they'll return when demand recovers.

A foreign captain at Fuzhou Airlines, part of HNA Group, said he was placed on unpaid leave when the virus hit and was concerned it would be permanent.

"They hope people will find other jobs as none can go without pay forever," he said. "This way they 'save their face,' and secondly they don't feel obliged to dismiss you properly according to the contract."

The pilot said that he was looking for jobs closer to home, but that so far those options paid less than in China. Foreign pilots can make more than $300,000 a year there, making it one of the best-paying markets in the world.

A pilot at Tianjin Airlines, also part of HNA Group, said he was told it would be at least three to four months before the carrier starts recalling expatriate captains. He has found work with another foreign airline, he said.

HNA declined to comment.

A local pilot at China Southern said he was barely flying and as a result was receiving only his base salary, roughly 1/6 to 1/8 of his normal pay.

"What we can do now is keep a good mentality and enjoy the company of our family at home," he said. "Eat well, sleep well and exercise well and keep learning. Build up the energy so that we'll be well prepared for whatever comes later."

source: news.abs-cbn.com

Virus could mean $5 billion in airline losses: UN agency

MONTREAL, Canada - The new coronavirus outbreak could mean a reduction of $4 to 5 billion in worldwide airline revenue, the International Civil Aviation Organization (ICAO) said Thursday. 

The UN agency reported that 70 airlines have canceled all international flights in and out of China and 50 others have reduced their operations. 

Preliminary estimates show this has meant a reduction of nearly 20 million passengers compared to expectations for the first quarter of 2020. 

That figure equates to potential lost revenue of up to $5 billion, the agency said.

The virus has killed 1,483 people in China and infected more than 64,600 there. Overseas, nearly 600 cases have emerged in around 30 locations

"Prior to the outbreak, airlines had planned to increase capacity by 9 percent on international routes to/from China for the first quarter of 2020 compared to 2019," ICAO said in a statement.

The reality has been a reduction in foreign airline traveler capacity of 80 percent. 

Japan looks to be hardest-hit from a reduction in Chinese air travelers in the first quarter, ICAO said. The country could lose $1.29 billion in tourism revenue, with Thailand not far behind at a $1.15 billion loss potential. 

ICAO said the effects of the COVID-19 virus outbreak on the airline industry are expected to be larger than the 2002-2003 SARS epidemic because flight cancellations are more widespread this time. 

In addition, China's international air traffic has doubled and its domestic air traffic increased 5-fold in the last 17 years. 

Chinese authorities have locked down Hubei province, the virus epicenter, and have restricted movements in several cities as part of an unprecedented effort to contain the virus.

Britain, Germany, the US, Japan and others have advised against travel to China. 

source: news.abs-cbn.com

Emirates close to buying 30 Boeing 787 as it reviews fleet: sources

DUBAI -- Emirates and Boeing were poised on Wednesday to seal a compromise deal that would see the Dubai carrier order around 30 787 Dreamliners, paving the way for a reduced order for delayed 777X jets, people familiar with the matter said.

Emirates tentatively ordered 40 Dreamliners in 2017 but "tough" last-minute talks to finalize the order this week have hinged on negotiations over the fate of a massive separate order for 150 777X after the latter ran into delays, they said.

A restructuring of the 777X order may, however, not be highlighted officially at the Dubai Airshow, where Emirates plans an announcement for 0700 GMT on Wednesday (3 p.m. in Manila).

Emirates and Boeing declined to comment.

Sources cautioned talks were still going on in Dubai and the number of aircraft ordered could be subject to last-minute adjustments, but said it was unlikely Emirates would take all 40 787 jets announced at the largest Middle East air show in 2017.

One source said the order could involve as many as 35 787s.

Emirates has been looking at reducing part of its 777X order, which the airline's president Tim Clark said on Tuesday could be influenced by the delays and in turn determine whether it went ahead with a 787 deal.

Emirates says it no longer knows when it will receive its first 777X, which was supposed to be delivered next year. Boeing has said the 777X will be delivered in 2021.

Easing an eight-month-old crisis over the grounding of its smaller 737 MAX, Boeing had earlier at the Nov 17-21 show won tentative or firm orders for 60 of the grounded MAX jets.

But industry sources had warned that Boeing had risked leaving Dubai without resolving the critical set of interlocking deals with Emirates, the industry's largest customer for wide-body jets and the backbone for the 777X program.

A high-profile order announcement on Wednesday would also effectively deliver a message of support from Dubai for the troubled US planemaker, whose ongoing MAX crisis has harmed Emirates sister carrier flydubai, analysts said.

The United Arab Emirates, which includes Dubai, is a close ally of the United States, which has poured support into the region amid tensions between Iran and Gulf Arab states that provided a tense backdrop to the Middle East industry event. 

source: news.abs-cbn.com

Delta buys 20 percent stake in Latam Airlines for $1.9 billion

NEW YORK - Delta will acquire a 20 percent stake in South American carrier Latam Airlines Group for $1.9 billion, the companies announced Thursday.

The venture, described as a "strategic partnership," will add to the networks of both companies, which include Delta's existing partnership with AeroMexico, the companies said in a joint press release.

Under the transaction, Delta will invest $350 million in the partnership, acquire four of Latam's Airbus A350 aircraft and assume the South American company's commitment to purchase 10 more of the planes.

Delta will also have board representation at Latam, the companies said.

"This transformative partnership with Latam will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas," said Delta Chief Executive Ed Bastian.

"This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks," said Enrique Cueto Plaza, chief executive at Latam.

New York-listed shares of Latam Airlines Group shot up 22.6 percent to $11.05 in after-hours trading, while Delta was flat.

source: news.abs-cbn.com

Airbus to offer sleeping berths down in cargo hold

PARIS, France - Soon when you fly in an Airbus jet and you fancy a bit of shut-eye, all you will need do is make your way down to the cargo hold.

European aircraft giant Airbus announced on Tuesday that it is teaming up with Zodiac Aerospace to develop and market lower deck sleeping facilities for passengers that could be operational in A330 wide-body jets from 2020.

The sleeper compartments "would fit inside the aircraft's cargo compartments," Airbus said in a joint statement with Zodiac, a subsidiary of the French aerospace company Safran.

The modules "will be easily interchangeable with regular cargo containers,"the statement said. 

"Airlines will initially be able to choose from a catalog of certified solutions by 2020 on A330," for the sleeper pods, with the possibility of fitting them into A350 XWB airliners also being studied.

Airbus and Zodiac said the sleeping berths would not only improve passenger comfort, but also enable airlines to add value for their commercial operations.

"This approach to commercial air travel is a step change towards passenger comfort," said Geoff Pinner, head of Airbus' cabin and cargo program.

"We have already received very positive feedback from several airlines on our first mock-ups." 

Christophe Bernardini, head of Zodiac's aerospace cabin division, said the project "reaffirms our expertise in lower-deck solutions. An improved passenger experience is today a key element of differentiation for airlines." 

In November 2016, the Air France-KLM had put forward the idea of sleeping berths for passengers in the economy class, either down in the hold or above the cabin in aircraft of the group's new low-cost subsidiary, Joon.

source: news.abs-cbn.com

US Customs says airlines can board all visa-holders after judge's ruling

US Customs and Border Protection (CBP) has informed US airlines that they can once again board travelers who had been barred by an executive order last week, after it was blocked nationwide on Friday by a federal judge in Seattle, an airline official told Reuters.

In a conference call at around 9 p.m. EST (10 a.m. Saturday in Manila), the US agency told airlines to operate just as they had before the order, which temporarily had stopped refugees and nationals from seven Muslim-majority countries from entering the United States.

Individuals from those states who have proper visas can now board US-bound flights, and airlines are working to update their websites to reflect the change, said the official, who was not authorized to speak publicly.

The judge's temporary restraining order represents a major challenge to US President Donald Trump's action, although his administration could still appeal the ruling and have the policy upheld.

Judge James Robart, a George W. Bush appointee, made his ruling effective immediately on Friday, suggesting that travel restrictions could be lifted straight away. He is expected to issue a full written ruling over the weekend.

CBP and Washington-based trade group Airlines for America did not immediately comment.

(Reporting by Jeffrey Dastin in San Francisco; Editing by Sandra Maler)

source: news.abs-cbn.com

US regulator tells air passengers not to turn on Galaxy Note 7 phones

WASHINGTON/SYDNEY - Airline passengers should not turn on or charge their Samsung Electronics Co. Ltd. Galaxy Note 7 smartphones during flights or stow them in checked baggage due to concerns over the phone's fire-prone batteries, the U.S. Federal Aviation Administration said.

The FAA said on Thursday it "strongly advises" passengers to follow its guidance "in light of recent incidents and concerns raised by Samsung about its Galaxy Note 7 devices."

The South Korean manufacturer announced last week it was recalling all Galaxy Note 7 smartphones equipped with batteries it has found to be prone to catch fire.

On Friday, Singapore Airlines Ltd. became the latest carrier to ban use of the phones during flights, following an identical move by three Australian airlines.

"The powering up and charging of Samsung Galaxy Note 7 mobile phones is prohibited on all our flights," Singapore Airlines said in a statement.

On Thursday, Australia's Qantas Airways Ltd., Jetstar Airways and Virgin Australia Holdings Ltd. announced they had banned passengers from using or charging the phones in response to the recall.

Although customers will still be able to bring the phones on flights, the bans extend to the phones being plugged into flight entertainment systems where USB ports are available.

Australia's aviation regulator said on Friday it was working with airlines and foreign aviation safety regulators "to ensure that recalled devices are treated and carried safely."

Delta Air Lines Inc, the No. 2 U.S. airline by passenger traffic, said it is still studying the issue.

"Delta is in constant contact with the FAA and other bodies in its run of business as a global airline. We will comply with any directive and are studying this matter. Safety and security is always Delta's top priority," spokesman Morgan Durrant said in a statement.

United Continental Holdings Inc and American Airlines Group Inc did not immediately respond to requests for comment on the FAA advisory.

Vaughn Jennings, a spokesman for Washington-based trade group Airlines for America, said the organization was "closely monitoring any developments as this issue evolves."

"Each individual carrier makes determinations, in compliance with FAA safety rules and regulations, as to what is permitted to be carried on board and in the cargo hold," Jennings said in a statement.

The FAA statement does not order U.S. airlines to take action.

The International Air Transportation Association said airlines have conducted risk assessments and noted that other phones have been recalled for battery issues.

"Although Samsung is the most recent company advising of faulty devices, others have issued similar recalls and warnings regarding lithium batteries in laptops over the last 12 months, so the industry is familiar with and equipped to manage such situations," the IATA said.

source: www.abs-cbnnews.com

Delta hit by computer outage, flights delayed worldwide

Delta Air Lines Inc said a "major system-wide network outage" on Monday had delayed flights worldwide and technicians were working to resolve the computer problem as soon as possible.

Flights scheduled for departure were not taking off, but those already in the air were operating normally, Delta said in a statement.

Delta operates 5,000 departures a day and is a member of the SkyTeam alliance alongside airlines including Air France-KLM .

It also partners for transatlantic flights with Virgin Atlantic, which said its flights were operating normally but cautioned that passengers should check tickets in case their flight was due to be operated by Delta as part of a code share agreement.

"Delta experienced a computer outage that has impacted flights scheduled for this morning," said Delta, the world's second largest airline measured by revenue passenger kilometres flown.

"Our systems are down everywhere. Hopefully it won't be much longer," the airline said on Twitter.

The outage was affecting flights globally, a London-based spokeswoman for the airline said.

Passengers stuck in check-in queues in airports across the world, or on board planes waiting to depart took to Twitter to share photos and frustration at the delays.

"1 hr.+ lines @HeathrowAirport for @Delta due to system outage," tweeted user @MITJAKE with a picture of passengers waiting to check in.

The glitch follows several high-profile computer problems faced by U.S. airlines in recent months.

Budget carrier Southwest Airlines Co last month had to halt departures after a technical outage, while American Airlines had to suspend flights from three of its hubs last September after technical problems.

Industry consultants say airlines face an increasing risk from computer disruptions as they automate more of their operations, distribute boarding passes on smartphones and outfit their planes with Wifi.

(Reporting by Abinaya Vijayaraghavan in Bengaluru and Victoria Bryan in Berlin; additional reporting by Sarah Young in London; editing by Gopakumar Warrier and Jason Neely)

source: www.abs-cbnnews.com

China Airlines, Tigerair to set up Taiwan budget carrier

SINGAPORE - Singapore budget carrier Tigerair and Taiwan's China Airlines said Monday they would set up a new no-frills airline to tap growing demand for cheap travel in Asia.

Tigerair Taiwan will have a paid-up capital of Tw$2 billion ($67.5 million), with the Singapore-based carrier holding a 10 percent stake, the two airlines said in a statement.

China Airlines, Taiwan's leading airline by fleet size, will hold the remaining 90 percent.

Tigerair said in the statement the new airline will be managed as a standalone entity but will utilise its website as well as sales and distribution platforms.

"The new JV (joint venture) will allow us to extend our presence into the new untapped markets of Taiwan, Japan and Korea," said Koay Peng Yen, group chief executive of Tigerair.

Sun Hung-Hsiang, chairman of China Airlines, said: "China Airlines' knowledge of the Taiwan market coupled with Tigerair's expertise in the no-frills sector should stimulate demand in the civil aviation market here."

The formation of the new carrier comes just a month after TransAsia Airways, Taiwan's first private airline, secured government approval to set up a so-far unnamed budget subsidiary.

Demand for discount flying has been rising in Asia. Currently 12 foreign budget airlines, including Malaysia-based AirAsia and Japan's Peach Aviation, offer services to and from Taiwan.

Singapore's Tigerair, which was previously known as Tiger Airways before a rebranding exercise this year, has been looking for expansion opportunities in Asia.

Last year, it bought a 33 percent stake in beleaguered Indonesian carrier PT Mandala Airlines. In March, it raised more than Sg$297 million ($237 million) to fund its Asian expansion plans.

Its shares rose 2.00 percent to Sg$0.51 in mid-day trade Monday after the announcement.

source: www.abs-cbnnews.com

Flights cancelled due to strong rains

Several airlines cancelled flights on Tuesday morning due to strong rains brought by the combined effects of tropical storm "Maring" and the enhanced southwest monsoon (habagat).

The Manila International Airport Authority (MIAA)said 52 flights were cancelled this morning.

MIAA General Manager Angel Honrado said all morning flights of Philippine Airlines and PAL Express were cancelled. An assessment was still being conducted about the status of PAL's afternoon flights.

Tiger Air also cancelled all its Manila outbound flights and corresponding flights, waiving the charges and issuing refunds to affected passengers.

As of 11:30 a.m., Cebu Pacific cancelled the following flights:

5J787/788 Manila-Butuan-Manila

5J385/386 Manila-Cagayan de Oro-Manila

5J857/858 Manila-Zamboanga-Manila

5J339/340 Manila-Kalibo-Manila

5J791/792 Manila-Butuan-Manila

5J965/968 Manila-Davao-Manila

5J506/507 Manila-Tuguegarao-Manila

5J373/374 Manila-Roxas-Manila

5J975/966 Manila-Davao-Manila

5J327/328 Manila-Legazpi-Manila

5J659/660 Manila-Tacloban-Manila

5J995/996 Manila-General Santos-Manila

5J901/902 Manila-Caticlan-Manila

5J899/900 Manila-Caticlan-Manila

5J523/524 Manila-Naga-Manila

Ramp operations suspended

The MIAA said ramp operations at Terminals 3 and 4 have been "temporarily suspended" until further notice.

Earlier, Honrado said the ramps were flooded.

"Yung rampa natin malalim din ang tubig may kalaliman deep. Too deep for safety purposes kaya naghihintay ang mga airlines sa weather, kung itutuloy," he told dzMM.

source: www.abs-cbnnews.com

PAL launches new routes to Australia, China, Middle East

MANILA, Philippines - Flag carrier Philippine Airlines (PAL) on Wednesday revealed an aggressive route expansion to help the firm rake in profits by next year.

PAL President Ramon S. Ang said the airline will be flying to Kuala Lumpur in Malaysia starting May 1; to Brisbane, Darwin and Perth in Australia and to Guangzhou in China on June 1; and to Abu Dhabi in the United Arab Emirates on October 1.

"Australia, Kuala Lumpur and Guangzhou are major destinations for business and leisure. Abu Dhabi, on the other hand, has a large concentration of OFWs, making it a prime destination in the Middle East," Ang noted.

PAL will be flying the Manila-Kuala Lumpur, Manila-Guangzhou, and Manila-Perth routes four times a week, and the Manila-Darwin and Manila-Brisbane routes thrice a week.

The carrier will be flying from Manila to Abu Dhabi and back daily.

Ang said the airline is aiming to cut its losses by half through the acquisition of fuel-efficient aircraft and new long-haul routes.

"By next year, PAL will earn money," Ang said confidently.

The airline's parent firm PAL Holdings Inc. recorded a net loss of P2.74 billion in the first nine months of its fiscal year ending December. The figure is already an improvement in the previous year's net loss of P3.59 billion.

PAL earlier inked a $10-billion deal with Airbus for 64 new aircraft expected to help cut the firm's fuel and maintenance costs.

Moreover, Ang said that if international aviation audit bodies would lift its safety concerns on the Philippine aviation industry, these would also help PAL bring in profits as it can add more international routes.

The country is restricted by the US Federal Aviation Authority, International Civil Aviation Organization and the European Union from expanding flights to the US and Europe pending the Philippine government's compliance to various aviation safety standards.

source: abs-cbnnews.com

Cebu Pacific to fly to Dubai; holds seat sale

Budget carrier Cebu Pacific is set to fly to Dubai, its first long-haul destination, in October.

The Gokongwei-led airline will start its daily flights to Dubai on October 7, 2013.

Cebu Pacific will be holding a seat sale for the Manila to Dubai route for only P888 one-way. The sale will run from today to January 20, and for travel from October 7 to January 15, 2014.

No Philippine carriers are currently plying the Middle East routes. 

Cebu Pacific will be up against Emirates Airlines, which is the only airline with direct flights from Dubai to Manila. Emirates is adding an additional flight from Dubai to Manila in January 2013. It currently flies twice daily non-stop between Manila and Dubai.

Cebu Pacific is planning to lease up to 8 Airbus A330-300 aircraft to serve new markets beyond the range of its current fleet of Airbus A320 aircraft. The A330-300 planes have a range of up to 11 hours, which means the airline can embark on long-haul flights that are within 11 hours of the Philippines. - With report from Kathleen A. Martin, ABS-CBNnews.com

source: abs-cbnnews.com