December 1st 2021

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June

Strict quarantine rules imposed by the Hong Kong Special Administrative Region (HKSAR) government led to Cathay Pacific Group’s introduction of a vaccine mandate for all locally-based pilots and cabin crew. Read More » Air crew not vaccinated by August 31 faced losing their jobs. At the start of the month, about 90% of Cathay pilots and 64% of cabin crew based in Hong Kong had been immunised against COVID-19 or were booked to receive the jab.

Hong Kong, along with many other Asia-Pacific jurisdictions, remained essentially closed off to international travel for the month. Thailand was an exception when it set a goal of being “fully open” to foreign visitors by mid-October. The popular tourist destination of Phuket was scheduled to welcome tourists fully vaccinated against COVID-19 from July 1, albeit with strings attached to the process.

The financial strain on Garuda Indonesia from COVID-19 was in sharp focus when it announced the deferral of distributions of its US$500 million Sukuk, or Islamic bonds, due in 2023. The airline appointed PT Mandiri Sekuritas, Cleary Gottlieb Steen and Hamilton LLP and Assegaf Hamzah and Partners to assist in evaluating “strategic alternatives” as the decline in air traffic due to COVID-19 continued to pressure the flag carrier’s operations and liquidity. Later in the month, the SkyTeam alliance member added Guggenheim Securities to its list of advisors and deferred distributions for a second time.

Another flag carrier attempting to restructure, Thai Airways International (THAI), received some good news when the country’s Central Bankruptcy Court approved the airline group’s business rehabilitation plan.

In response to strong demand and an expected slower recovery of international travel across the region, LCC Jetstar said three A320s from its Singapore-based Jetstar Asia would be redeployed to its Australian business. Jetstar’s parent, Qantas Group, said Australian domestic capacity was expected to reach 120% of pre-COVID-19 levels in the 2021-2022 financial year.

Those forecasts were plunged into disarray late in the month when stay-at-home orders were introduced in Sydney after a COVID-19 outbreak. The new rules led to domestic borders being closed for travel from Australia’s largest city.

Air travel demand also took a hit in China as a fresh outbreak of COVID-19 that began in May crimped air travel demand. China’s three largest carriers – Air China, China Eastern Airlines and China Southern Airlines – reported 22.6 million domestic passengers in June, below a pre-COVID-19 figure of 26.5 million in June 2019. The “Big Three” were above pre-pandemic levels in May.