Global aviation industry news

[salsa]

Boeing fires CEO Muilenburg as 737 MAX crisis deepens

Business News
December 23, 2019

Boeing fires CEO Muilenburg to restore confidence amid 737 crisis

Boeing Co has fired Chief Executive Dennis Muilenburg after repeatedly failing to contain the fallout from a pair of fatal crashes that halted output of its best-selling jetliner and tarnished its reputation with airlines and regulators.

www.reuters.com

I’m sure he‘s getting a big fat paycheque on the way out. He’ll be fine.

 

[AlbertC]

Boeing puts cost of 737 Max crashes at $19bn as it slumps to annual loss

Company lost $636m last year after two deadly crashes forced new airliner to be grounded

Dominic Rushe and Associated Press
Wed 29 Jan 2020 14.22 GMT

Boeing puts cost of 737 Max crashes at $19bn as it slumps to annual loss

Company lost $636m last year after two deadly crashes forced new airliner to be grounded

www.theguardian.com

 

[AlvinofDiaspar]

Boeing puts cost of 737 Max crashes at $19bn as it slumps to annual loss

Company lost $636m last year after two deadly crashes forced new airliner to be grounded

Dominic Rushe and Associated Press
Wed 29 Jan 2020 14.22 GMT

Boeing puts cost of 737 Max crashes at $19bn as it slumps to annual loss

Company lost $636m last year after two deadly crashes forced new airliner to be grounded

www.theguardian.com

Couldn't happen to a bunch of nicer folks. Too bad no one is going to jail for this one.

AoD

 

[AlbertC]

World’s Best Airline Stock Now Worst as Virus Stymies Travel

Divya Balji Bloomberg
February 26, 2020

(Bloomberg) -- Two months ago, it was the world’s hottest airline stock. Now, investors are shunning it.

Air Canada lost C$3.9 billion ($3 billion) in market capitalization from its January peak, making it the worst-performing airline on the Bloomberg World Airlines Index this year. Its shares have slumped 28% on deepening fears that the spread of the coronavirus will hinder travel.

World’s Best Airline Stock Now Worst as Virus Stymies Travel

(Bloomberg) -- Two months ago, it was the world’s hottest airline stock. Now, investors are shunning it.Air Canada lost C$3.9 billion ($3 billion) in market capitalization from its January peak, making it the worst-performing airline on the Bloomberg World Airlines Index this year. Its shares...

ca.finance.yahoo.com

 

[Johnny Au]

Boeing has plans to have the 737-MAX fly again:

 

[AlbertC]

Airlines will fail in weeks if governments do not intervene, IATA warns

March 24, 2020

Airlines around the world may collapse and fail if governments do not intervene soon, an industry group is warning.

Alexandre de Juniac, the chief executive of the International Air Transport Association (IATA) told reporters on a conference call Tuesday morning that many airlines do not have strong enough balance sheets to survive the crisis prompted by the coronavirus outbreak. Airlines everywhere are grappling with a severe decline in traffic as passengers stay home and governments impose strict travel restrictions.

“We need governments to act fast with financial relief to avoid a liquidity crisis, where (airlines) run out cash and almost half of the companies die in the coming weeks,” IATA CEO Alexandre de Juniac said from Geneva.

“We are now working hard to survive. We need government help.”

The warning from IATA, an industry group that represents 290 airlines from around the world, comes as WestJet Airlines becomeese the latest Canadian carrier to slash its workforce.

WestJet announced Tuesday that 6,900 workers – almost half of its employees – will leave the company. The Calgary-based airline said that 90 per cent of the employees are leaving voluntarily, through early retirements, buyouts and voluntary leaves.

Airlines will fail in weeks if governments do not intervene, IATA warns

Airlines around the world may collapse and fail if governments do not intervene soon, an industry group is warning.

ca.finance.yahoo.com

 

[Johnny Au]

Another video from Wendover Productions:

 

[ticky]

Airlines around the world may collapse and fail if governments do not intervene soon, an industry group is warning.

No one is going to feel pity for airlines who've been gouging customers for decades. They can take out loans like any other business has to.

 

[AlbertC]

Air Canada to temporarily lay off 16,500 staff due to COVID-19 fallout

The Canadian Press March 30, 2020

MONTREAL — Air Canada will temporarily lay off 16,500 employees starting this week as the airline struggles with fallout from the COVID-19 pandemic.

Effective this Friday, the layoffs of 15,200 unionized workers and 1,300 managers will last through April and May amid drastically reduced flight capacity from the Montreal-based airline.

"To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while," chief executive Calin Rovinescu said in a statement.

The carrier has halted most of its international and U.S. routes in response to the global shutdown.

Air Canada to temporarily lay off 16,500 staff due to COVID-19 fallout

MONTREAL — Air Canada will temporarily lay off 16,500 employees starting this week as the airline struggles with fallout from the COVID-19 pandemic.Effective this Friday, the layoffs of 15,200 unionized workers and 1,300 managers will last through April and May amid drastically reduced flight...

ca.finance.yahoo.com

 

[AlbertC]

Air Canada turns to wage subsidy program to rehire, keep employees

Alicja Siekierska
Yahoo Finance Canada April 8, 2020

Air Canada, which had cut approximately 16,500 jobs due to the COVID-19 pandemic, said it plans to rehire and keep employees on the payroll by using the federal government’s wage subsidy program.

Canada’s largest airline announced Wednesday that it will apply for the federal government’s Canada Emergency Wage Subsidy program and use it towards its workforce of 36,000 employees.

In order to qualify for the program, companies need to show that revenue declined by at least 30 per cent. Air Canada said seat capacity in the second quarter has declined by between 85 and 90 per cent when compared to the same time last year, resulting in “significant revenue losses.”

Air Canada announced last month that it would cut employees as a result of the coronavirus pandemic, which has led to a severe decline in traffic as governments imposed strict travel restrictions and passengers stay home.

“Any near-term recovery is reliant on the lifting of domestic and international travel restrictions and return of passenger traffic,” the airline said in a statement.

Air Canada turns to wage subsidy program to rehire, keep employees

Air Canada, which had cut approximately 16,500 jobs due to the COVID-19 pandemic, said it plans to rehire and keep employees on the payroll by using the federal government’s wage subsidy program.

ca.finance.yahoo.com

 

[Admiral Beez]

Air Canada turns to wage subsidy program to rehire, keep employees

I imagine a phone call from Gerry Butts or Morneau to the chairman of AC pushed this along. Trudeau needed a marquis big player to show an example of the wage subsidy in action.

What's Air Canada going to do with the flight crews, check-in staff and ground personnel they've brought back if the planes aren't flying? There's only so much busy work and flight crews are usually only paid for hours spent wheels up. I expect the maintenance teams are running full speed getting aircraft upgrades and scheduled adjustments all done.

 

[AlbertC]

I imagine a phone call from Gerry Butts or Morneau to the chairman of AC pushed this along. Trudeau needed a marquis big player to show an example of the wage subsidy in action.

What's Air Canada going to do with the flight crews, check-in staff and ground personnel they've brought back if the planes aren't flying? There's only so much busy work and flight crews are usually only paid for hours spent wheels up. I expect the maintenance teams are running full speed getting aircraft upgrades and scheduled adjustments all done.

I have a friend who works as a customer service agent with Air Canada. She's been recalled and is back on the payroll for around a week or two now. From my understanding, they're just on standby and mostly advised to remain at home until flights pick up again. From the employee POV at least, still better than going on the CERB during this time. But from a productivity of workforce standpoint, no doubt they're running at a loss.

 

[AlbertC]

Coronavirus: Hong Kong’s screening regime for airport arrivals holds lessons for travel industry in post-pandemic world

• City has one of the most comprehensive testing procedures for Covid-19 in place at converted expo site
• Programme is being closely watched as the airline industry’s body prepares to hold a summit with health officials in the coming weeks

A requirement forcing all air passengers arriving at Hong Kong to be tested for the coronavirus will remain in place going forward, a leading city health official said, with experts predicting the practice will become standard at airports around the world as the aviation industry adapts to a new normal once the pandemic recedes.

--------
The monitoring regime would stay in place at least for now, a health official said on Tuesday. “The test that Hong Kong has adopted, I believe it has to stay for a while,” said Dr Wong Ka-hing, controller of the city’s Centre for Health Protection. “I don’t think we can easily do away with the testing in the near future.”

Hong Kong’s programme is being closely watched as the airline industry’s body prepares to meet health, civil aviation and airport authorities in the coming weeks. The International Air Transport Association recognises that such comprehensive screening will become the new normal to ensure the virus does not resurface as global air travel resumes once the pandemic is brought under control.

“It is clear the health control conditions of passengers will be a key element to restart our industry,” association chief Alexandre de Juniac said. “What we are advocating for is having similar measures all over the world, to avoid a patchwork of complex measures in different parts of the world.”

How will we travel after the pandemic? Hong Kong holds clues

City has one of the most comprehensive testing procedures for Covid-19 in place at converted expo site. The programme is being closely watched as the airline industry’s body prepares to hold a summit with health officials in the coming weeks.

www.scmp.com

 

[lenaitch]

Perhaps changing some the protocols at Canadian international airports, particularly Pearson, might have some knock-on benefits. I used to frequent Pearson as part of a job and could never figure out why one or two people flying needed eight or ten to see them off or greet them. Sometimes international arrivals looked like what a rave must look like - a sea of people packed like sardines. Health and safety aside, the traffic is a mess and if they ever had to evacuate . . .

 

[AlbertC]

WestJet sends layoff notices to 1,700 pilots amid dramatic reduction in air travel

CBC April 16, 2020

WestJet has sent layoff notices to 1,700 of its pilots amid an unprecedented reduction in air travel due to the global COVID-19 pandemic.

The Calgary-based airline said the layoffs affect pilots with WestJet, WestJet Encore and Swoop, and will take effect either May 1 or June 1.

In an emailed statement, a spokesperson said the move was a last resort, but noted the pandemic has had a "colossal" impact on the airline industry.

"These notifications are in response to the COVID-19 global crisis that is shutting borders, encouraging only essential travel and forcing a dramatic reduction in flying that has led to the grounding of almost three-quarters of the WestJet fleet," the statement said.

"Issuing layoffs, in response to this crisis, has always been a last resort for WestJet; however, the impact of COVID-19 on the aviation industry is colossal, and WestJet is making difficult but necessary decisions to right-size our airline to weather the crisis. These actions will play a crucial part in WestJet's ability to recover quickly and participate in Canada's economic recovery."

WestJet sends layoff notices to 1,700 pilots amid dramatic reduction in air travel

WestJet has sent layoff notices to 1,700 of its pilots amid an unprecedented reduction in air travel due to the global COVID-19 pandemic.The Calgary-based airline said the layoffs affect pilots with WestJet, WestJet Encore and Swoop, and will take effect either May 1 or June 1. In an emailed...

ca.finance.yahoo.com