Short Takes
July 31st 2020
Nok Air said in a regulatory filing to the Stock Exchange of Thailand (SET) this week it had applied to Thailand's Central Bankruptcy Court to undergo a business rehabilitation plan. Read More »
The low-cost carrier (LCC) said the current environment during COVID-19 represented "an opportune time for the company to undertake rehabilitation", adding that the process was most likely going to be a short one. "The company intends to complete its rehabilitation process in time to return to full service post the COVID-19 pandemic," Nok Air said.
Further, Nok Air had "no intention to terminate or liquidate its business" and resolved to continue operations and return to profitability. "It must be noted that the on-going situation of COVID-19 pandemic and adverse operating environment has been the key drivers leading to the decision to undergo restructuring to enable the company to be a viable entity in the long run and not as a result of mismanagement," Nok Air CEO, Wutthiphum Jurangkool, said.
The initial rehabilitation plan would cover debt restructuring "by considering fair treatment of all the company’s stakeholders in line with the company’s financial situation", as well as an adjustment of its fleet, route network and commercial strategies to generate higher levels of income, organisational restructuring, cost optimisation and greater efficiency in human resource management.
South Korea’s Jin Air has signed a deal with Singapore-based LAMINAAR Aviation Infotech for software products covering flight planning and dispatch functions such as flight operations, crew management and load and trim calculations, among other features. The LCC also will roll out tablet-based components for electronic flight bag and electronic flight folder components products for flight crew, LAMINAAR said in a statement this week. The 15-month project was in coordination with Collins Aerospace Systems, the exclusive global reseller LAMINAAR’s proprietary ARMS® applications software.
GE's aviation unit reported orders worth US$3.7 billion for the three months to June 30, a 56% decline from US$8.6 billion 12 months ago. Revenue was 44% lower, at US$4.4 billion. GE Aviation posted a loss of US$680 million for the quarter, compared with a US$1.4 billion profit a year earlier. This was "primarily due to COVID-19 related charges of US$608 million in commercial services, lower volume on commercial spare part and commercial spare engine shipments, and decreased volume of shop visits", GE said in a statement this week. GE chairman and CEO, Lawrence Culp, said the company was planning for a "prolonged return to prior levels of activity" in commercial aviation.
AerCap said this week it had reached an agreement with Boeing to cancel orders for 15 737 MAXs. The cancellation, disclosed in the aircraft leasing company's second quarter financial results, leaves AerCap with 80 737 MAX family aircraft on order. The lessor company reported a net profit of US$246 million for the three months to June 30, down 26% from US$331 million a year ago. "With US$27 billion of unencumbered assets, a record low leverage ratio of 2.5 to 1 and an unrivalled operating platform, we are well positioned to weather an extended period of turbulence and support the recovery of the airline industry in the future.” AerCap CEO, Aengus Kelly, said in a statement.
The union representing FedEx pilots, the Air Line Pilots Association (ALPA), has called on the freight operator to suspend flights to Hong Kong due to "unacceptable risks" related to the rules in the Special Administrative Region covering arriving air crew. Captain Dave Chase, the FedEx ALPA master executive council chairman, said in a statement three COVID-19 positive asymptomatic FedEx pilots were recently forced into mandated hospital facilities for up to 10 days in Hong Kong, while a number of pilots who had tested negative but had been within close contact with a positive COVID-19 person were "forced into mandated hospital facilities” or "government camps under extremely difficult conditions". "Not only do these situations pose unacceptable risks to our pilots’ safety and wellbeing, they also create added stress and distraction for flight operations," Captain Chase said.
ANNOUNCEMENT
Production of Orient Aviation's Week in the Asia-Pacific and COVID-19 daily briefs will pause over the month of August. The daily, which will be expanded to wider Asia-Pacific commercial aviation coverage in the final quarter of the year, and the weekly will return to your inboxes in the first week of September.
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The Orient Aviation Media Group team.
