Category Archives: Aviation

Boutique advisory and analytics firm VIDEC has launched a Global Travel Staffing Barometer, an online resource to monitor the impact of COVID-19 coronavirus on the travel, tourism and hospitality industry. The free-to-use tracker offers industry insights on the state of terminations, furloughs and pay-cuts, across industry categories and countries, collated from various sources and updated on daily basis. Virendra Jain, Cofounder and CEO, VIDEC, says, “The travel industry is crumbling before our eyes with more than half a million lay-offs in less than a month. Amid the global spread of the pandemic, companies of all shapes and sizes – from the billion-dollar valued to start-ups – are trimming costs, disbanding, and letting go off their most precious asset, the workforce. The Global Travel Staffing Barometer quantifies the discharged staff and aims to become the central hub for tracking the loss of human resources, and in time offer the first glimpses for the road to recovery for the travel industry.” According to this tracker, more than 500,000 workers in the travel, tourism and hospitality industries have been furloughed in the last three weeks.

Struggling Air Mauritius has entered voluntary administration after the board resolved that with the coronavirus grounding it would not be able to meet its financial obligations in the foreseeable future. Air Mauritius had already embarked on a transformation programme in January this year under which it was reviewing its business model in a bid to secure sustainability. Air Mauritius has become the second airline to enter administration proceedings in as many days voluntarily. Yesterday Australian carrier Virgin Australia also entered voluntary administration caused by the current crisis. In a company statement the airline’s board of directors state that while “substantial progress” was made in developing its action plan, the closure of borders and halting of air services because of the coronavirus has led to a “complete erosion of the company’s revenue base”. Air Mauritius was forced to suspend flights at the start of April because of the coronavirus restrictions. The airline’s board came to a decision following “a complete erosion of the company’s revenue base.”  In its letter, the airline stated that its entire revenue base had been eroded. The erosion has been caused by a decrease in demand tied to many different travel bans enacted by separate national governments. The airline believes that demand will not begin to return until the end of 2020. “There is uncertainty as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020,” the airline says.    

As initiated and facilitated by the Government of Srilanka, SriLankan Airlines, brought back 829 Sri Lankans who were stranded in India. They have been arriving in the country, as Sri Lanka was going into 48-hour quarantine curfew, since Friday , March 20,to Sunday 22nd 2020. The Airline wishes to state that these passengers had travelled to India on other airlines and were stranded there as the carriers concerned stopped operations to Colombo due to travel restrictions. The National Carrier took every measure to bring them home swiftly and safely, given that these passengers mainly consisted of senior citizens, an age group that has been advised to take extra precautions to be safe from the virus. Ever since the global outbreak, SriLankan Airlines has been playing a pivotal role in facilitating passage home to many Sri Lankans, which includes the mercy flight that was operated to Wuhan. The Airlines’ operational areas have been fully functional despite the government declared holidays and ‘work-from-home’ , and the staff members have been attending to their work dedicatedly and diligently, understanding fully the role that they are expected to play during these difficult times. SriLankan Airlines, going above and beyond the call of duty and not aiming at any commercial fulfillment despite the irretrievable impact this has made on business, has continued to step in and fulfil what is expected of the National Carrier, thus playing its part of staying united as a country in this crucial hour. Our Global Contact Center(0197331979), including Airport ticket office offering 24×7 service to our valuable customers for their ticket related services.

Singapore has recently announced massive financial support for specific sectors that have been badly hit by the COVID-19 outbreak, including the aviation, tourism, land transport and arts and culture industries under its Resilience Budget. This was revealed by GB Srithar, Regional Director (India, Middle East and South Asia), Singapore Tourism Board, during the first-ever TravTalk Digital Conclave. Singapore’s Deputy Prime Minister Heng Swee Keat announced more than SG$ 48 billion (approx. US$ 33.7 billion) in different areas related to tourism. The aviation sector alone will get SG$ 350 million of additional support. Sridhar was part of the second session that focussed on present circumstances and possible future for tourism. About SG$ 90 million has been set aside to help the tourism industry rebound. A separate SG$ 55 million support package has been allocated to sustain and revive the arts and culture sector. The fund will also include Point-to-Point Support Package for taxi and private hire car drivers, who will receive the Special Relief Fund payments of SG$ 300 per vehicle per month until the end of September 2020. The government will also offer one-year road tax rebate and six-month waiver of parking charges at government-managed parking facilities for private bus owners.  

Kapil Talking on revival plan for airlines, Kapil Kaul, CEO & Director, CAPA South Asia during the TravTalk Digital Conclave said that every airline right now is waiting for a government bailout. “Airlines need government support in terms of a bailout package at the earliest. Airlines almost have no cash flow or no excess cash reserves. The revival of airlines posts COVID-19 crisis must be conditional based on international best practices. They need to have the cash for 2-3 months to function efficiently,” he said. Kaul further said, “If the crisis continues for a longer duration, we will have a smaller, shrinking industry. Possibly some exits possible as well. We might see consolidation in the market and possibly the repair would begin from thereafter.”

All Nippon Airways (ANA) is offering its customers with applicable tickets a full refund with no cancellation fees. The airline has announced temporary change of services on select international routes due to the Coronavirus. This includes its flights to Delhi, Mumbai and Chennai from Tokyo that stand suspended as from April 25 to May 31, 2020. The total number of affected flights to these three India routes will be 180 flights. Requests for refunds can be made up to one year and 30 days from the travel start date (or issuance date if prior to travel). The total number of affected flights by ANA during the summer schedule (March 29 to April 24) is currently at 4,071 serving 72 different routes. An official statement by the airline states, “This is further to our earlier notice of temporary flight reductions/suspensions from India to Tokyo until 24th April 2020. Due to rapidly increasing COVID-19 cases globally, we will be extending the period of flight disruptions from 25th April until 31st May, 2020. For already issued tickets, we will allow special handling, i.e change at NO-ADC or full refund on pre-set conditions. In case of reissue, tickets can be reissued for travel on/before December 31st, 2020 and it will done from Airline side.” It also mentions that a special procedure is available, if all of the following conditions are met: For itinerary from/to Japan (Except WUH/HKG/MFM and Mainland China) 1) Applicable Ticket is 205 plate. 2) Date of Issue Ticket is On/before April 8th, 2020 3) Date of Original Departure is From February 26,2020 to May 31, 2020 4) Applicable Sector is an itinerary that includes flights from/to Japan on unused sectors.  

The Egyptian cabinet has approved a six-month deferral plan on utility payments for tourist establishments and private airlines. The payments will start from October. Also part of this is the postponement of real estate tax on tourism facilities for three months, which can be paid in instalments as well.

All airlines will be relocated to the airport’s other terminals and all operations at Singapore Airlines will be consolidated in Terminal 3. The airport is aiming to use this move to speed up on-going construction and upgrading work at T2 and shorten the project time by up to a year.

According to the latest update by CAPA on the state of the Indian aviation industry, Indian carriers will require a domestic fleet of around 300-325 aircraft from Oct-2020 onwards, and an international fleet of 100-125 aircraft. The total fleet size of 400-450 aircraft would still mean that the current fleet of 650 represents a surplus of 200-250 aircraft for a period of 6-12 months. While a gradual path towards normality could be expected during Q3 and Q4, the Indian aviation sector is likely to shrink significantly, even if some of the vulnerable airlines manage to survive. This estimate may still be conservative and assumes that Q1 FY2021 will be almost written-off, with traffic limping back during the weak second quarter, followed by a gradual trajectory towards normality during the second half of the financial year.

The travel trade community has received a reprieve as a result of urgent meetings initiated by travel trade associations on behalf of their members with Pradeep Kharola, Secretary, Ministry of Civil Aviation, in terms of refunds on air tickets. The respite however due to this intervention is only from two international airlines – Singapore Airlines and Lufthansa Airlines. Both airlines have updated their offer and will now give full refunds as well, in case the customer wants, but there could be a delay due to backlog. Singapore Airlines however has further offered bonus to people who wish to claim their refunds as credits rather than take cash refunds (over and above the value of ticket).