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NOVEMBER 2020

Week 47

Daily Digest

Orient Aviation Daily Digest: Asia’s first air travel bubble suffers setback as COVID-19 spikes in Hong Kong

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November 23rd 2020

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November 23, 2020

  • On Saturday, the governments of Singapore and Hong Kong postponed the proposed air travel bubble (ATB) between the Hong Kong Special Administrative Region (HKSAR) and Singapore after a sudden jump in coronavirus cases in Hong Kong. Read More » The ATB was to start yesterday. The two governments said they would review a revised launch date in the next two weeks.

    The ATB, announced earlier in November to much fanfare, required flights to be suspended if the latest seven-day moving average of the daily number of unlinked local cases was more than five either in Singapore or Hong Kong.

    Singapore minister for transport, Ong Ye Kung, said it was a "sober reminder" COVID-19 was still in the community. "I can fully understand the disappointment and frustration of travellers who have planned their trips," Ong said on his Facebook page. "But we think it is better to defer from a public health standpoint. The airlines will be contacting the travellers individually."

    HKSAR secretary for commerce and economic development, Edward Yau, hoped to make an announcement about the formal launch of the scheme in December. "In the interest of making a good start and also avoiding any confusion for passengers, we have decided to put this back for two weeks," Yau said. "Doing this is necessary to avoid any inconvenience caused by the abrupt changes of the scheme to passengers, particularly those who need to return to Hong Kong in a short time."

    While the ATB has been postponed, flights continued between Singapore and Hong Kong. Singapore Airlines (SIA) said its SQ890/891 flights from November 22 to December 6 would operate as non-ATB services, meaning passengers would need to meet certain entry conditions to be eligible to travel and be subject to quarantine on arrival at their destination. Those not wishing to travel as a result of the ATB postponement would be eligible for a full refund, SIA said in a statement. Cathay Pacific also is offering free rebooking and refunds.
     
  • AirAsia X (AAX) said in a regulatory filing to the Bursa Malaysia on Friday a U.K court had ordered it to pay lessor, BOC Aviation, US$23,376,779.02 plus court costs of £75,000 (US$100,000), related to a breach of contract. The claim was filed in August. AAX said the board was reviewing the decision and seeking legal advice in relation to the court order. AAX, through a subsidiary, had four aircraft leased from BOC Aviation.

    Separately, AAX said in another regulatory filing that two subsidiaries – AAX Mauritius One Ltd and AAX Leasing Four Ltd – have been ordered to pay International Lease Finance Corporation (ILFC) £6,581,868.05 (US$8.8 million) by a U.K. court. The AAX statement said ILFC was the trustee of two aircraft leased by AAX Leasing Four. "The board of AAX is reviewing the documentations received in respect of the judgement and will be seeking legal advice in relation to the judgement in view of the proposed debt restructuring exercise of the company," AAX said.
     
  • Malaysia Airlines Group (MAB) was seeking financial support from its owner, the country's sovereign wealth fund, Khazanah Nasional, local media reported over the weekend. The airline group was seeking as much as US$500 million in funding, The Edge weekly reported, citing unnamed sources. Any potential funding from Khazanah would depend on the outcome of MAB's talks with creditors about restructuring its debts, it was reported.
     
  • Vistara chief commercial officer, Vinod Kannan, told the Reuters news agency the airline was evaluating flying nonstop to the U.S. "There is definitely an opportunity to fly direct to the U.S. and it is an opportunity we are looking at," Kannan said. Vistara, a joint venture between Singapore Airlines and Tata Group, operates long-haul to London. It also operates medium-haul to Dhaka, Doha and Dubai under bilateral air travel bubble arrangements.
     
  • Qantas Group CEO, Alan Joyce, today described the reopening of the border between the Australian states of New South Wales and Victoria as a great day for the airline's staff, many of whom have been stood down for months due to the COVID-19 pandemic. "They have been so professional through all this. We are thrilled to see more of them coming back to work," Joyce said. The end of travel restrictions between the two states has led to a sharp increase in capacity, with Qantas and its LCC, Jetstar, operating a combined 17 return Melbourne-Sydney flights today, compared with one a day at the peak of the coronavirus pandemic.
     
  • Airbus chief commercial officer, Christian Scherer, was in Singapore late last week to open the company's 51,000 square metre integrated campus at Seletar Aerospace Park. “The new campus in Singapore reflects our ongoing commitment to our presence in key regions," Scherer said in a statement. "From Singapore, we can connect more easily with customers and other stakeholders across Asia and the Pacific, acting swiftly to meet their needs. This is especially important during these challenging times.” Alongside Scherer for the official opening was Singapore minister for trade and industry, Chan Chun Sing, and Airbus president for Asia Pacific Anand Stanley.

 

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