Airline/Airport News + More

News + More

Updated May 23, 2020

Headlines and updates from the airline, airport and aviation industry, plus news from other industries connected to travel.

Impact on Air Service

Airlines will continue to monitor and reduce capacity as needed in response to the decrease in demand that they see. Airline schedules can be changed at a moment’s notice and everything is very fluid right now as the industry attempts to deal with the worst demand shock it has seen since the Great Recession.

Airline News

Airport News

Other Airline Industry Considerations

  1. Funding:
    1. The Italian government is giving Alitalia €600m in additional funding; Qantas has secured $1.05b in additional liquidity; Singapore Airlines secured up to $13b of funding; American Airlines would be eligible for up to $12b of government aid
    2. IATA expects the global airline industry to need $150-200 billion in various forms of government financial assistance to survive the current COVID-19 crisis, the association’s director general and CEO Alexandre de Juniac said Mar. 17
  2. In-Flight Services: Airlines are discontinuing inflight food/beverage service to minimize interactions; Southwest is discontinuing all service and others like AA/DL are significantly reducing based on the length of the trip
  3. Lounges: United is closing all of its Polaris lounges and select club lounges; American Express Centurion Lounges will be closing on 21Mar; Delta will be closing most of their Sky Clubs/Lounges as well; American is closing their Flagship Lounges and some Admirals Clubs
  4. ATC Charges:  Eurocontrol’s member states have agreed to let airlines defer the payment of up to €1.1 billion ($1.2 billion) in air traffic control fees in the coming months
  5. Production: Boeing to suspend temporarily production operations in Puget Sound and Moses Lake in response to COVID-19 for 14 days through 8Apr; Boeing will now be shut indefinitely.   Boeing will keep their WA plants closed indefinitely and also suspend all 787 operations in SC.  Airbus decided April 6 to suspend production and aircraft at some of its facilities, most importantly the A220 and A320 final assembly line in Mobile, Alabama; activities in Bremen will be paused from April 6 until April 27, while Stade will be on hold from April 5-11; Airbus will reduce its production by 1/3; Boeing plans to cut 787 Dreamliner output, jobs April 23, 2020; Boeing-Embraer Deal Collapses April 25, 2020 – Boeing has abandoned a deal to buy 80% of Embraer’s commercial aircraft business for $4.2 billion, stating Saturday morning that the Brazilian company didn’t satisfy necessary conditions of the agreement
  6. Shutdowns: Trans States Airlines will shut down on 1Apr instead of end of year due to “demand fall-out;” they have 43 ERJ-145s; RAVN has filed for Chapter 11 and has suspended flying; Virgin Australia, Air Mauritious are in voluntary administration; JetSuite has suspended operations indefinitely
  7. Slot Restrictions: JFK/LGA/DCA Slot rules are being waived through 31May so airlines are not forced to fly to keep their slots and the EU slot restrictions are being waved until 1June; EU slot restrictions are now being waived until 24Oct
  8. Staffing: Airlines are implementing hiring freezes, postponing bonuses, CEOs are forgoing salaries, cancelling investor days and employee conferences and other measures to control costs as they see their revenue substantially impacted; WestJet has laid off 50% of its staff or 6,900/14,000 employees (some are short term, some permanent but all were voluntary)

Other Industries

  1. Amusement Parks: Disneyland, Walt Disney World, Disneyland Paris, Universal Studios Hollywood and Orlando, SeaWorld, LegoLand, and Six Flags will be closed through the end of the month; Universal will extend its closure through 19Apr
  2. Casinos: Las Vegas Casinos have started to close including MGM resorts (Bellagio, MGM Grand, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, & Park MGM) & Wynn until further notice
  3. Cruise Lines: Viking Cruise Lines (70 ships) will suspend all cruises through 30Apr and Princess Cruise Lines (18 ships) will suspend all cruises through 11May; Carnival Cruises, Royal Caribbean, Costa Cruises, MSC Cruises, Celebrity, Disney Cruises, Celestyal, Avalon Waterways, Windstar & AMA waterways also have suspended operations for 30 days; Norwegian, Regent Seven Seas, Oceania are suspended through 11Apr; Canada will not allow cruise ships over 500 passengers to dock until 1Jul; Royal Caribbean, Celebrity, Azamara extended their suspensions through 11May; Avalon Waterways through the end of June, Crystal and AMA Waterways through mid-May; CDC extends ‘no sail’ order for cruise ships as industry ravaged by the coronavirus
  4. Ski Resorts: Closed indefinitely
  5. Sports:
    1. Professional sports in the US will be suspended:  NBA & NHL suspended their season indefinitely; MLB has suspended spring training and will delay the start date of the season; MLS suspended games for 30 days, NHL.
    2. The NCAA tournament is still scheduled to happen but with no crowds
    3. The 2020 Summer Olympics will be postponed until Summer 2021