Virgin Atlantic confirms restructuring plan to keep it flying.

The UK based airline Virgin Atlantic that's partly owned by U.S. carrier has released more details of a special major refinancing plan that will keep it flying in the wake of the global COVID-19 crisis. 

On Tuesday the airline published details for the private-only solvent recapitalisation of the airline after talks with the UK government over a bailout failed to achieve the £500+ million it had asked for. 

This new solvent recapitalisation plan for the airline and holiday business will see the company through the worst of the crisis and enable to carry on flying, albeit with a smaller fleet and less staff.  The bulk of the plan isn't exactly new money,  it is more of deferring debt owed to creditors (£450 million) deferring payments to shareholders - Delta & Virgin Group mainly (£400 million).  New investment from Virgin Group (£200 million - partly proceeds from a sale of stock in Virgin Galactic). New investment from Davidson Kempner Capital Management LP - an investment management firm (£170 million) 

RAF Typhoons scrambled after bomb threat note found on Ryanair flight

Photo RAF /Crown copyright

Two RAF Typhoon jets from RAF Coningsby in Lincolnshire had to be scrambled on Monday to intercept and escort a Ryanair 737 after a note was found in one of the aircraft's toilets claiming there was a bomb on board.

The major security incident occurred around 18.40 on Monday evening when the flight from Krakow to Dublin was forced to divert to London Stansted Airport because of the note warning of explosives on the jet.

A spokesperson for Essex Police confirmed the incident and said "Following investigations on the plane, we have been able to establish there is nothing suspicious on board. The aircraft has been handed back to Stansted Airport and the operator. 

"Two men – aged 47 and 26 – have been arrested on suspicion of making threats to endanger an aircraft and are currently in custody."

Ryanair advised that a note was found in one of the aircraft's toilets claiming that there were explosives on the plane and said its crew followed normal procedures. 

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June performance and COVID-19 update from Delta Air Lines

The US Mega-carrier Delta Air Lines has released details of its June 2020 performance as well and detailing its continued response to the COVID-19 global pandemic. The airline racked up over $7 billion of losses during the month that saw a number of flights reinstated after a long period of grounding because of the lack of demand and travel restrictions.  “A $3.9 billion adjusted pre-tax loss for the June quarter on a more than $11 billion decline in revenue over last year, illustrates the truly staggering impact of the COVID-19 pandemic on our business. In the face of this challenge, our people have acted quickly and decisively to protect our customers and our company, reducing our average daily cash burn by more than 70 percent since late March to $27 million in the month of June,” said Ed Bastian, Delta’s chief executive officer. “Given the combined effects of the pandemic and associated financial impact on the global economy, we continue to believe that it will be more than two years before we see a sustainable recovery. In this difficult environment, the strengths that are core to Delta’s business – our people, our brand, our network and our operational reliability – guide every decision we make, differentiating Delta with our customers and positioning us to succeed when demand returns.” June Quarter Financial Results  Adjusted pre-tax loss of $3.9 billion excludes $3.2 billion of items directly related to the impact of COVID-19 and the company’s response, including fleet-related restructuring charges, write-downs related to certain of Delta’s equity investments, and the benefit of the CARES Act grant recognized in the quarter Total adjusted revenue of $1.2 billion, which excludes refinery sales, declined 91 percent versus prior year on system capacity reduction of 85 percent compared to the prior year Total operating expense decreased $4.1 billion over prior year. Total adjusted operating expense decreased $5.5 billion or 53 percent in the June quarter compared to the prior year, driven by lower capacity- and revenue-related expenses and strong cost management throughout the business At the end of the June quarter, the company had $15.7 billion in liquidity

First NATO exercise for RAF Poseidon

The RAF’s newest anti-submarine aircraft has participated in a multi-national training exercise for the first time since arriving in the UK in February.

NATO exercise Dynamic Mongoose has seen personnel from CXX Squadron join ships, submarines and aircraft from six nations to hone anti-submarine warfare (ASW) and anti-surface warfare skills with the new Poseidon MRA1 aircraft in the challenging North Atlantic.

Vice Admiral Keith Blount, Commander of NATO’s Allied Maritime Command said: “Exercises today seize opportunities for NATO and Allied nations to sharpen war-fighting skills by focussing on high-end capabilities. Dynamic Mongoose will ensure we remain prepared for operations in peace, crisis and conflict.”

Officer Commanding 120 Squadron, Wing Commander James Hanson said:  “Participation in Dynamic Mongoose offers the trained crews of CXX Squadron a chance to hone their skills cooperating with ships, submarines and aircraft from a number of NATO partner nations, as well as the Royal Navy.”

“The exercise offers my crews a great opportunity to be tested against highly professional opposition in the exercise environment, and I know that the crews have relished the chance to show what they can do with our extremely capable aircraft.”

KLM to offer new service to Cork

KLM expands its European network with Cork (Ireland). As of 3 August, the second-largest city of Ireland will be connected to Schiphol every day by KLM. Flights will be operated with the Embraer 175, with a capacity of 88 passengers.

KLM is in the process of slowly and carefully rebuilding its network. The number of destinations is growing rapidly, but the number of flights is still far from the pre-crisis level. KLM has opted to first offer customers as much choice of destinations as possible. After that, we will examine whether the number of flights to a destination can be increased or whether capacity can be increased by using a larger aircraft.

The opening of Cork was initially planned for the end of March. Due to the corona crisis it was postponed.

Flight schedule

Cork is the second destination in Ireland for KLM, next to Dublin. As of 3 August 2020, KLM will operate daily flights between Amsterdam Airport Schiphol and Cork Airport. The Embraer 175 has 20 seats in Business Class, 8 in Economy Comfort and 60 in Economy Class.

The flight schedule is as follows:

- KL1085 departs from Amsterdam daily at 12.05 and arrives in Cork at 12.55.

- KL 1086 departs from Cork daily at 13.25 and arrives in Amsterdam at 16.10.

All times are local.

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Heathrow wants the UK government to rush decisions as it releases its latest figures.

The management of London Heathrow Airport wants the government to rush through decisions to help them protect jobs and the airport's vast profits in the wake of the COVID-19 crisis.

The UK's Government’s quarantine policy for international arrivals impacted load factors, which declined by 7% following its introduction in early June, compared to 2019. The airport says an exit plan is now more critical than ever, as long-haul flights remain grounded and more jobs continue to be put at risk in an industry crucial to rebuilding the UK economy.

 Heathrow urges Government to act faster on establishing Common International Standards that would allow safer travel to critical trading routes. Whilst steps toward travel corridors in July provide some hope for an initial recovery, the pace is too slow for the airports liking. 

Mesa Air Group Signs Five-Year Cargo Contract with DHL Express

Adding two Boeing 737-400F aircraft to fleet

Mesa Air Group, announced plans to begin providing air cargo service for DHL Express with Boeing 737-400F cargo aircraft.

Under the agreement, Mesa will operate two cargo aircraft from DHL Express Americas global hub at Cincinnati/Northern Kentucky International Airport for a five-year term. The company will lease the aircraft from DHL with the first scheduled to be in service this October.

“We are very excited to enter the cargo market and diversify our business. Flying under contract on behalf of DHL is essentially the same business model Mesa has operated under for over 20 years,” said Jonathan Ornstein, Chairman and Chief Executive Officer. “Cargo transport plays a critical role in the health of communities and economies around the world. Mesa is well-suited for this new mission, and this is just the beginning of what we believe will be a long and productive relationship with DHL.”

AirAsia Thailand Introduces 2 Domestic Cross-Region Routes to Hua Hin Fly Direct from Chiang Mai and Udon Thani

AirAsia is introducing 2 domestic cross-region routes: Chiang Mai-Hua Hin and Udon Thani-Hua Hin, to stimulate domestic tourism in Thailand. This would allow getaways to one of Thailand's most popular resort towns up to twice a week, flying every Friday and Sunday.  Book now at a special fare from only THB777 per trip for BIG members or THB820 for general customers to start flying to relaxation starting this 7 August 2020.  

Chief Executive of AirAsia Thailand, Santisuk Klongchaiya, said that “AirAsia is always seeking new opportunities to stimulate domestic tourism as well as offer convenient connections between the nation's regions, noting Hua Hin is a high potential destination that has long been demanded.”

Eastern Airways to launch Southampton - Dublin route

The small boutique style regional UK airline, Eastern Airways has confirmed the start date of its new route from Southampton Airport to Dublin will be Monday 17th August 2020.

By reconnecting the airport with the Irish capital Dublin, which is a former Flybe route, Eastern Airways as the UK’s regional airline is expanding the number of routes it operates from Southampton to seven. Commencing with an initial daily round-trip, the frequency will increase quickly as demand increases following the return to air travel following the reduced Covid-19 travel restrictions and return of business and leisure travel.

As services to Belfast City, Leeds-Bradford, Manchester, Newcastle and Teesside are already offered by Eastern Airways, adding Dublin with further new routes to follow compliments the operators developing Southampton base of 72-seat ATR72-600 aircraft. As Covid-19 travel restrictions reduce, all routes will see increasing frequencies and the addition of weekend services.

Fleetway Travel goes bust.

The UK's Fleetway Travel has ceased trading after being in business for 45 years the firm confirmed today.

Fleetway Travel which operated under several other brand names had been experiencing great cash flow pressures as a direct result of the coronavirus COVID-19 and the subsequent travel restrictions and border closures.  On top of that was the lack of new bookings and the growing pressure to refund customers' money for cancelled trips. 

The firm's management had been looking for other funding opportunities and avenues,  but none was forthcoming and the company put into administrations today. 

It's understood that around 6500 holidays will be affected by the news,  with the majority of those being protected under the ATOL scheme.  Its head, Andy Cohen said: “We understand this will be concerning news for anyone who has booked to travel with the company or has had their booking cancelled. It is a sad day for the industry when a long-established business like Fleetway ceases trading.

Canadian carrier WestJet to expand August schedule

New schedule highlights WestJet's continued service to
39 Canadian cities from coast-to-coast

The Canadian carrier WestJet has released an updated August schedule which features more than 200 daily flights to 48 destinations across Canada, the United States, the Caribbean, Mexico, and Europe.

The schedule features service to 39 domestic airports and further highlights the airline's commitment to ensuring air service and regional connectivity is available to Canadians from coast-to-coast in the wake of main rival Air Canada dropping more than 200 flights from its domestic schedule,  with more on the way as the airline battles to stem losses caused by the coronavirus COVID-19 pandemic.

"With the many safeguards and procedures in place, we are certain Canadians can safely resume travel to destinations across our network," said Arved von zur Muehlen, WestJet Chief Commercial Officer. "We continue to adapt our schedule to meet the needs of our guests and through our continued investment economies can begin to recover with the support of domestic tourism driven by air travel."

Between July 15 to September 4, 2020, WestJet will increase domestic frequencies and offer operations to 48 destinations including 39 in Canada, five in the U.S., two in Europe, one in the Caribbean, one in Mexico.

The airline will reintroduce a non-stop Dreamliner service from Calgary to London (Gatwick) and Paris effective August 20, 2020, and will continue to serve five key transborder destinations including Atlanta, Las Vegas, Los Angeles, New York (LaGuardia) and Orlando. The airline will also offer service to Cancun, Mexico, and will resume operations once-weekly to Montego Bay, Jamaica.

Continued von zur Muehlen, "Despite these headwinds, we are committed to ensuring air travel remains affordable and accessible to Canadians from coast-to-coast during this difficult time. While an increase in flying is a positive sign, we are prudently monitoring our guests' loads to ensure we are managing our airline and the health of our guests and crew responsibly."

The August schedule reflects approximately a 10 % increase in flying from July, but a decrease of 75% less flying from August 2019. It also includes select frequency reductions and temporary domestic route suspensions between stations across Canada due to continued border closures and provincial travel restrictions.  

"The patchwork of domestic travel restrictions and quarantine periods that are currently in place within our own borders are severely limiting Canada's economic recovery and putting hundreds of thousands of jobs in our critical industry at risk," said von zur Muehlen. "We must standardize intra-provincial travel advice to ensure Canadians can move safely and freely across our country."

Air Canada Partners with Cleveland Clinic Canada

Air Canada announced today that Cleveland Clinic, a global healthcare leader, will provide medical advisory services as the airline further develops biosafety measures across its operations. Air Canada will have access to the local expertise of Cleveland Clinic Canada as well as clinical expertise from Cleveland Clinic's worldwide enterprise system.

"As airline travel adapts to a new normal, we are taking another leadership role via our partnership with renowned Cleveland Clinic which enables Air Canada to leverage the strategic insight, advice, resources and recommendations of the world's leading medical community to further develop protocols, guidelines and standards validated with science-based evidence in our ongoing COVID-19 response. We are committed in our ongoing strategy of continually developing multiple layers of measures for our customers and employees alike," said Samuel Elfassy, Vice President, Safety at Air Canada.

Air Canada is pleased to announce it has engaged Spartan Bioscience Inc., an Ottawa-based biotechnology leader in portable DNA testing technology, to assess how best to deploy Spartan's portable COVID-19 testing technology in the aviation sector. "Air Canada's strategy for managing COVID-19 has been to develop and apply multiple layers of biosafety measures for customers and employees. We believe the availability of a rapid, accurate, portable molecular test for COVID-19 will add yet another effective layer. We are excited by the potential and point of care use cases for the Spartan Cube, and look forward to working with the Spartan team in the weeks and months ahead," said Samuel Elfassy, Vice President, Safety at Air Canada. Air Canada has been at the forefront of the airline industry in responding to COVID-19, for example being among the first carriers globally to require face coverings onboard and the first airline in the Americas to take customers' temperatures prior to boarding. In May it introduced a comprehensive program, Air Canada CleanCare+, to apply biosafety measures at each stage of the journey. Air Canada has committed to adding other processes and technologies as they become available, which is why it is pleased to be working with Spartan Bioscience. Spartan is developing a proprietary swab for the collection of DNA samples for its COVID-19 test. Spartan's test cartridge (reagents) and the Spartan Cube (portable DNA analyzer device) remain subject to Health Canada approval. "Spartan is excited to explore how our fast, portable testing technology can help keep Air Canada employees and the travelling public safe as Canada's economy re-opens," said Nick Noreau, Spartan Bioscience's Chief Revenue Officer.

Air Canada is pleased to announce it has engaged Spartan Bioscience Inc., an Ottawa-based biotechnology leader in portable DNA testing technology, to assess how best to deploy Spartan's portable COVID-19 testing technology in the aviation sector.

"Air Canada's strategy for managing COVID-19 has been to develop and apply multiple layers of biosafety measures for customers and employees. We believe the availability of a rapid, accurate, portable molecular test for COVID-19 will add yet another effective layer. We are excited by the potential and point of care use cases for the Spartan Cube, and look forward to working with the Spartan team in the weeks and months ahead," said Samuel Elfassy, Vice President, Safety at Air Canada.