AirAsia Group has sought to calm investor jitters that stemmed from its auditors, Ernst & Young, stating in the low-cost carrier (LCC) group's recently published audited financial statements for the calendar 2019 financial year that there were "material uncertainties that may cast significant doubt on the group's and the company's ability to continue as a going concern” as a result of the unprecedented COVID-19 pandemic.Read More » The airline company said in a statement today it was important to note the financial statements had been prepared on a going concern basis, with the board "confident of the successful continuation of the business". AirAsia Group shares, which fell by 17% yesterday on the Bursa Malaysia, were trading higher after the statement's release this afternoon.
AirAsia Group CEO, Tony Fernandes, said the company had emerged stronger from previous crises and was confident it would do so on this occasion. "We are positive the proactive mitigating actions we have implemented as well as our consistency in transforming the company will aid us in recovering and overcoming this operating environment," Fernandes said in the statement.
U.S. carriers, American Airlines (AA) and United Airlines (UA), have halted flights to Hong Kong in response to changes in arrangements for arriving cabin crew and pilots. UA said its nonstop San Francisco-Hong Kong service would be suspended until July 10 in both directions due to "recent changes in testing protocol" for COVID-19. The airline said it was assessing how the change impacted future flights, having announced earlier this week plans to resume Chicago-Hong Kong flights in September.
A letter dated July 7 from the Hong Kong Centre for Health Protection to Hong Kong International Airport said all arriving crew members, including pilots, would be subject to mandatory COVID-19 testing through the collection of deep throat saliva specimens. Failure to comply with the testing requirement was an offence punishable by a fine and imprisonment, the letter said. The correspondence was posted on the United States Allied Pilots Association (APA) website, the union representing American pilots. APA vice president, Patrick O’Rourke, said on the APA Facebook page AA had suspended all flying to Hong Kong until August 5.
The Australian government will consider slowing down the rate of international passenger arrivals to ensure quarantine facilities can cope with citizens and permanent residents returning to the country. Australian prime minister, Scott Morrison, told reporters in Canberra yesterday the issue would be discussed at a meeting of state and federal leaders tomorrow. "The issue is what the overall level of returning Australians are and that's why I'll be bringing a proposal on Friday to reduce that load," Morrison said. "At this time, we don't want to put any more pressure on the system than is absolutely necessary."
Philippines low-cost carrier (LCC), Cebu Pacific Air, plans to make 800 staff redundant, representing about 25% of its workforce, by August following a review of its planned operations amid the coronavirus pandemic, local media reported. The LCC said in a statement to The Inquirer newspaper the airline was "too big for the operational requirements and expected new norms in the industry”, and noted it was operating 10% of its pre-pandemic network. The carrier said affected staff would receive a redundancy package above government minimums.
Garuda Indonesia president and CEO, Irfan Setiaputra, told lawmakers the airline was working with tourism bodies and government departments on a plan to add new long-haul flights to Denpasar (Bali) from countries such as France, India and the (U.S.) local media reported. “Garuda and the Tourism Ministry have agreed the only way to boost foreign tourist visits is by introducing direct flights to Denpasar. Hopefully, we can make it through this crisis and start direct flights from countries that have large spending capabilities,” Irfan told a parliamentary committee this week, reported The Jakarta Post newspaper.
