Daily News 10JUL2020
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Air Cairo (Egypt) will resume its scheduled year-round service between Hurghada and Belgrade on 19 July 2020.
Alitalia (Italy) will increase number of flights in August 2020, when the airline will operate a total of over 1,600 flights per week, 24% more than in July and more than double compared to those operated in June 2020.
Allegiant (US) reports June 2020 passengers down 45.6% to 867,207, with RPMs down 45.0%, ASMs down 17.5%, and LF down 28.6 points to 57.3%.
Aviation Capital Group (US) announced the closing of its sale of US$1 billion aggregate principal amount of 5.500% senior unsecured notes due 2024.
Citilink (Indonesia) reports May 2020 passengers down 99.6% to 2797, PLF down 59.3 points to 1.9%, RPKS down 99.6%, and ASKs down 86.1%.
Emirates (UAE) has announced it will resume flights to Geneva, Los Angeles Dar es Salaam, Prague, Sao Paulo, and Boston, taking the network to 58 cities by mid-August 2020.
Emirates (UAE) laid off more pilots and cabin crew this week in another round of job cuts as the Gulf airline shrinks its workforce due to the pandemic.
Emirates (UAE) says the B777X jet is likely to miss its planned debut in 2021, as the carrier doesn’t expect to receive any planes before 2022. The carrier may swap some of the 115 on order to B787s.
Eurowings (Germany) to add seasonal Salzburg – Karpathos route from 04 August 2020 with A319.
Fitch Ratings (US) sector outlook for aircraft lessors remains negative, as further deterioration of airline credit metrics could lead to a second round of deferral requests, additional insolvencies, aircraft repossessions and impairments.
Float Shuttle (US) is set to take over the DHC8s and two of the “Part 121” federal operating certificates operated by RavnAir Group (US), which declared bankruptcy amid the pandemic.
Fuji Dream Airlines (Japan) has appointed Shunichi Kusunose as president.
Globalia (Spain), parent to Air Europa, is seeking financial aid from the government to reinforce its liquidity in the face of the pandemic. The state may only bailout one of the Groups units.
Grupo Aeromexico reports June 2020 ASKs down 74.5%, RPKs down 90.1%, LF down 21.0 points to 64.0%, and passengers down 86.1% to 243,000.
HiSky (Moldova) delayed planned service launch again and now intends to commence service on 01 August 2020.
Hong Kong Airlines notified bondholders that it will defer US$24.3 million in semi-annual interest payments for a perceptual bond due on 26 July 2020. The deferral raises doubts about Hong Kong Airlines’ ability to pay mounting debt over the longer term
Iberia Express (Spain) took delivery of its second or four A321neo on order, serial 9571.
Interjet (Mexico) filed a commercial lawsuit to avoid the cancellation of its insurance policies.
Jeju Air (South Korea) will now only receive a US$3.3 million paid-in capital increase from the Jeju government, a 50% drop from its original planned investment.
Jet Air (India) creditors extend deadline for bids to 21 July 2020.
Jet Airways (India) creditors are likely to send a recommendation letter to the Securities and Exchange Board of India to remove the 5% circuit limit on the airline’s stock trading, as it’s impacting the fluidity of the stock trading and thereby impacting the valuation.
JetBlue (US) announced it will make Los Angeles International Airport its primary base of operations in greater Los Angeles. The airline will move service currently operated at Long Beach Airport to LAX, along with its Long Beach crew and maintenance bases, beginning in October 2020.
KfW IPEX-Bank (Germany), and two other banks, closed the first disbursement under a term loan facility amounting to US$272 million for Eurocontrol (Belgium) on 30 June 2020.
KLM (Netherlands) unions made a formal complaint to the European Commission over the conditions imposed by the Dutch government on the state aid to the carrier.
LATAM Airlines Group (Chile) reports June 2020 RPKs down 95.2%, ASKs down 93.6%, LF down 21.6 points to 61.4%, and passengers down 95.1% to 273,000.
Lauda (Austria) to close its Stuttgart base on 10 July 2020 and all employees terminated.
Malaysia Airlines and Japan Airlines are set to launch a joint business partnership on 25 July 2020, where the two carriers will cooperate commercially on flights between Malaysia and Japan.
MEA Middle East Airlines (Lebanon) took delivery of its first A321neo, serial 9427.
Overland Airways (Nigeria) has announced the resumption of its flight services with effect from 15 July 2020, following the lifting of the federal government’s suspension of flight operations in the country.
Pakistan International Airlines loses US permissions to conduct charter flights to the United States, due to FAA concerns over Pakistani pilot certifications.
Red Wings (Russia) has postponed the delivery of six A321s to 2021, while six SSJ100s still due in 2020. The 60 SSJ100s due to be leased by 2024 are likely to be accelerated as the carrier moves toward a mainly Russian fleet.
SAS (Sweden) had cancelled noteholders’ meetings on proposed bond conversions and new hybrid notes, part of a recently announced recapitalization plan, as it did not expect the proposals to be approved. The main owners’ cash injections are conditional on the conversion, and SAS says it will seek to find a solution with noteholders.
Saudia Cargo to dispose of two B747-8Fs, serials 37562 and 37563, as drop in demand keeps half of the carrier’s freighter fleet inactive.
Tata Sons (India) is in talks to buy out AirAsia Group (Malaysia) stake in their airline joint venture in India at a steep discount. Tata will likely tie up with other financiers to acquire AirAsia’s 49% stake in the venture.
Thai Airways International forms a so-called “Survival Team” to work out a business plan to support the debt rehabilitation of the carrier.
Virgin Australia Holding bondholders plan to propose to creditors a debt-to-equity swap as an alternative deal to the purchase by Bain Capital (US) agreed by the company’s administrator.
Volga-Dnepr Group (Russia) has appointed Konstantin Vekshin as Chief Commercial Officer.
VTB Leasing (Russia) gave Utair (Russia) a deferment until the end of the 2020 for aircraft lease payments of US$2.8 million. It affects three aircraft.
China’s aviation industry sank further into the red, losing US$4.89 billion in 2Q 2020, only slightly narrower than in the first quarter, underlining the colossal financial impact from the pandemic.
Mexico’s government ruled out a financial rescue of the country’s airlines, which have been hammered by a sharp drop in global demand for travel and restrictions imposed due to the pandemic. The state is exploring options to help them but said there would be no offers of a financial rescue.
Qatar government has place a VIP B747-8, serial 37075, for sale.