Short Takes
May 22nd 2020
New Japanese carrier low-cost carrier (LCC) ZIPAir said this week it would begin flying on June 3 with four cargo-only flights a week between Tokyo Narita and Bangkok Suvarnabhumi with 787-8s. Read More » In April, the Japan Airlines-owned (JAL) LCC postponed its proposed May 14 launch following the global outbreak of the coronavirus pandemic.
Australian carrier, Regional Express, (Rex) has reassured the Australian Securities Exchange (ASX) it will "err on the side of caution in the future" after being asked to explain media reports the airline was considering the commencement of flights between capital cities. Rex executive chairman, Lim Kim Hai, and deputy chairman, John Sharp, said in a letter to the ASX this week the subject of the reports was not sufficiently definitive to constitute material information and added that based on their observations since the airline was listed 15 years ago "nothing much excites the stock market concerning Rex besides news of exceptional dividends or profits".
UK engine manufacturer, Rolls-Royce, said this week it planned to cut 9,000 jobs from its 52,000 workforce as well as reduce plant and property, capital and other indirect costs in an effort to save US$1.587 billion and "adapt to the new level of demand" it was experiencing from COVID-19. Rolls-Royce CEO, Warren East, said in a statement:
"We must take difficult decisions to see our business through these unprecedented times. We have to do this right, which means we will work closely with our employee and trade union representatives as appropriate, look at any viable alternatives to mitigate the impact, consult with everyone affected and treat our people with dignity and respect.”
Rolls-Royce produces engines for the A350 and the 787 and had built a large customer base in the Asia-Pacific. Its civil aerospace business represented just above half of the company’s annual revenue.
The New Zealand Air Line Pilots’ Association (NZALPA) has supported calls by industry bodies and some airlines to be able to sell all seats on board a flight. NZALPA president, Captain Andrew Ridling, said in a statement the evidence suggested the risk of transmission on an aircraft was extremely low and added the "wearing of face masks for passengers and crew will reduce this already low risk, while avoiding the possibility of dramatic cost increases to air travel with seats going empty".
Australian-based charter and fly-in/fly-out operator, Alliance Aviation Services , said this week it expected profit before tax (PBT) for the 2019/20 year to come in at about A$40 million (US$26.15 million), a projected increase of 22% from A$32.8 million in the prior year. The company said in a trading update to the Australian Securities Exchange (ASX) this week the board viewed the forecast profit as an "exceptional result" that demonstrated the "underlying robustness and diversity" of its business model.
