AirAsia X said yesterday it was working to restructure its debt and revise its business plan ahead of a planned equity raising to overcome "severe liquidity constraints" amid the coronavirus pandemic.Read More » The LCC warned "an imminent default of contractual commitments will precipitate a potential liquidation of the airline". AirAsia X said board member, Lim Kian Onn, was its new deputy chairman who would lead the restructuring effort.
AirAsia X CEO, Benyamin Ismail, said the airline had grounded all scheduled flights, reduced wages and cut staff numbers in response to the global crisis. "We remain committed to our guests, Allstars, business partners and shareholders to ensure we build a viable and sustainable airline for the long haul. For the survival of this airline, the proposed restructuring plan is our only option," Ismail said. AirAsia X hoped to execute the proposed restructuring plan in the next few months.
Air New Zealand (Air NZ) said today it carried 332,000 passengers on its domestic network in August, down 52% from 689,000 in July. Passenger load factor fell 21.2 percentage points, to 61.6% in August, from 82.8% in July. The airline's monthly traffic report noted there were social distancing requirements in place during part of August and heavy restrictions on travel into and out of New Zealand's most populous city Auckland, due to a fresh outbreak of COVID-19. Excluding the impact of social distancing, the domestic passenger load factor was 77.5% in August, Air NZ said.
Japan and South Korea yesterday confirmed plans to resume business travel between the two countries that was halted due to the pandemic. "The Republic of Korea and Japan have agreed to start implementing 'a special entry procedure for Korean and Japanese business people' on October 8," South Korea's Ministry of Foreign Affairs said in a statement. Under the scheme, those travelling for short-term business trips would not be required to spend 14 days in quarantine but they must submit their itineraries and test negative for COVID-19 to qualify for the absence of undergoing quarantine.
The International Air Transport Association (IATA) has estimated airlines will burn through about US$77 billion in cash during the second half of calendar 2020 – about US$300,000 per minute – as the impact of the coronavirus pandemic continues to hit aviation hard. "We are burning through cash because we cannot cut costs fast enough to make up for the impact of not being able to do business," IATA director general and CEO, Alexandre de Juniac, said.
Japan Airlines (JAL) said yesterday it would introduce flights from Tokyo Narita to North America and add services to Bangkok, Ho Chi Minh City, Jakarta and Manila to provide convenient connections on Southeast Asia-North America routes. The oneworld alliance member plans to operate 18% of its pre-COVID-19 international flight schedule next month with the figure rising to 22% in both December 2020 and January 2021. "The carrier will continue to review travel restrictions within each destination and update its international network plan, while asking for our customer's understanding during this unprecedented time," JAL said in a statement.
Boeing's 2020 market outlook published overnight said airlines were expected to need 43,110 new aircraft in the next two decades, down 2.1% from 44,040 new aircraft forecast in Boeing's 2019-2038 market outlook. "While this year has been unprecedented in its disruption to our industry, we believe aerospace and defense will overcome these near-term challenges, return to stability and emerge with strength," Boeing chief strategy officer, Marc Allen, said in a statement.
The Australian government has extended its International Freight Assistance Mechanism (IAFM) – a network of 16 airlines and freight companies established in April to provide cargo links to major export markets in response to the coronavirus pandemic – until mid-2021. The Australian federal budget, handed down in Canberra last night, showed US$226.1 million had been allocated to keep the IAFM going.
The U.S. Federal Aviation Administration (FAA) has released the draft Flight Standardization Board (FSB) report on the proposed pilot training for the 737 MAX. The release of the report was another step in the FAA's work to re-certify the grounded aircraft, with the public comment period for the draft FSB open until November 2. "While this is an important step, several key milestones remain," the FAA said overnight.
