Short Takes
October 23rd 2020
Qantas Group CEO, Alan Joyce, told shareholders at the company's annual general meeting (AGM) today the "unexpected closure of several domestic borders" in Australia had resulted in a A$100 million (US$71 million) negative impact on earnings for the first quarter of the financial year, as well as an undisclosed financial impact in the second quarter. Read More » Joyce said he expected Qantas and its LCC Jetstar's combined Australian domestic market share to grow in the wake of competitor Virgin Australia's transition to a hybrid carrier under its new ownership. "Over time, our domestic market share is likely to increase organically from around 60% to around 70%, as our main competitor changes its strategy," Joyce said.
Also at the AGM, held virtually due to the coronavirus pandemic, Qantas Group chairman, Richard Goyder, said the potential for travel bubbles with some countries in Asia could lead to the airline group opening up new markets that were not part of its pre-COVID-19 network. "By early next year, we may find Korea, Taiwan and various islands in the Pacific are top Qantas destinations while we wait for our core international markets like the U.S. and U.K. to re-open," Goyder said in prepared remarks. “We are already doing this domestically – adding destinations that suddenly make sense. It’s the kind of flexibility we need to make the most of any cash positive opportunities in the year ahead.” Qantas was not expected to resume long-haul international flying until the second half of 2021.
Thailand this week welcomed its first visitors to the country under the recently established special tourist visa scheme when 39 travellers from Shanghai landed at Bangkok Suvarnabhumi Airport. The tourists, who will have to spend 14 days in quarantine and commit to staying for at least 30 days under the conditions of the scheme, were Thailand's first international visitors in seven months.
Malaysia Airlines Group (MAG) has offered staff across the company a voluntary separation scheme, the Bernama news agency reported this week. The offer, aimed at Malaysia-based staff, was made as the company continued talks with lessors and other creditors about a restructuring plan for the financially struggling airline group.
Also in Malaysia, The New Straits Times newspaper reported this week AirAsia Group had secured a 300 million ringgit (US$72 million) loan from the Sabah Development Bank. AirAsia Malaysia CEO, Riad Asmat, confirmed the loan in a statement to the newspaper without offering specifics such as the lender and terms.
Airbus said this week the first A220 assembled at its Mobile facility in the U.S. had been delivered. The Mobile plant began producing A220s in August 2019 alongside the final assembly of A320 family aircraft. Delta Air Lines received the first aircraft, an A220-300.
