November 10, 2020

More articles from the category

November 10, 2020

Austrian Airlines is further reducing the route network

Following Ryanair, Wizzair and other airlines, Austrian Airlines must also further reduce its services. Last week, the company, which had to apply for state aid after the first lockdown, confirmed that production would be reduced to around ten percent of the previous year's level. This means that further destinations will have to be closed - at least temporarily. Two long-haul destinations, Bangkok and Chicago, are also on the chopping block. On short and medium-haul routes, Klagenfurt, Cologne/Bonn, Kosice, Podgorica, Bologna, Yerevan and Nice will be eliminated. According to a spokesperson, the measure will last at least until mid-December 2020. The route network will therefore shrink to around 40 destinations. According to reports, several other destinations are in jeopardy. Due to the course of the pandemic, no statement can be made about the exact duration of the reduction. However, it can be assumed that Austrian Airlines, Wizzair and Ryanair will not be able to increase their production in December 2020, as demand will still be low then. It is currently not possible to predict whether and when antigen tests will facilitate entry.

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Boeing 737-Max is said to be about to be re-admitted

The US Civil Aviation Authority could lift the flight ban on the Boeing 737-Max on November 18, 2020. This is reported by Reuters, citing three different sources. FAA chief Steve Dickson said that they are in the final phase and that this will be completed in the next few days. It is also expected that other authorities, such as the EASA, could grant re-approval in the next few weeks. The agency expressed confidence in this regard a few days ago. According to the FAA, the process will then be as follows: After the green light has been given, the airlines must install the software updates and conduct training with their pilots. This process will take at least 30 days, so it is not expected that the model will be able to be used commercially immediately after re-approval. Southwest Airlines, currently the largest operator of the Boeing 737-Max, told Reuters that the process will take several months. Therefore, they are not planning to use this model before the second quarter of 2021. Other airlines also assume that it could take some time.

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No government aid: Norwegian fires 1.600 employees

If Norwegian Air Shuttle does not succeed in getting fresh capital into the company, the carrier is threatened with closure. According to the carrier, this could be the case as early as the first quarter of 2021. The Norwegian government is refusing to grant further state aid, pointing out that the low-cost airline was already heavily in debt and deep in the red before the corona pandemic. Norwegian therefore has to raise money in another way, which is no easy undertaking given the overall circumstances. In the third quarter of 2020, the net loss was around 92 million euros. Liquid funds are decreasing day by day and have halved since around July 2020. Since the Norwegian government turned down the five billion kroner state aid application, company boss Jacob Schram acted immediately: The active fleet will be reduced to six aircraft and will be used primarily within Norway. A further 1.600 employees will also lose their jobs. But domestically, Wizzair is a financially strong competitor. The airline is planning to launch a frontal attack on the struggling Norwegian. At the moment, it is hoped that the carrier can be kept in a much smaller form. Michael O'Leary, CEO of the Ryanair Group, looked into his famous "crystal ball" last week and claimed that Norwegian will only survive as a small regional airline "if at all".

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Lufthansa raises 600 million euros

The Lufthansa Group, which has been hit hard by the Corona crisis and supported with nine billion euros, is raising a further 600 million euros on the capital market in the form of a convertible bond. This is only open to institutional investors. The carrier wants to use the money for "general business purposes". The ad hoc announcement states that two to 2,25 percent interest per year is to be paid. The Lufthansa Group's executive board is increasingly under pressure, as major shareholder Heinz-Hermann Thiele, for example, recently called for radical staff cuts. A government member told Der Spiegel that personnel costs were literally eating up the group. The shareholder also demands that Lufthansa should sell holdings. The Der Spiegel report cites Air Plus and Austrian Airlines as examples. One sentence earlier, however, there is talk of "silverware", which was true for Swiss before the pandemic, but not for AUA. There are many indications at the moment that the state aid granted by Austria, Germany, Belgium and Switzerland could be used up in the foreseeable future. The company says it loses a lot of money every month and is trying to limit the outflow to 350 million euros per month. Despite short-time work, the government apparently only sees potential for savings in the personnel area, according to the Spiegel report. Considerable resistance from the unions is therefore to be expected.

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Onur Air is moving two A321neo to Holiday Europe

The Bulgarian holiday airline Holiday Europe recently took over two Airbus A321neo aircraft. These were previously operated by the parent company Onur Air in the colors of the subsidiary. The two jets have now been re-registered to the Bulgarian AOC and, according to CH-Aviation.com, have the registrations LZ-HEH and LZ-HEI. Incidentally, these are the only two A321neos that Onur Air had in its fleet. Holiday Europe was founded to give the Turkish company better access to the EU market. The Bulgarian carrier also flies on behalf of various German tour operators, including FTI.

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Estonia is supporting Nordica with 22 million euros

The Estonian government intends to support Nordica and its operating subsidiary Xfly (formerly Regional Jet) with 22 million euros. The capital grant will be in the form of new shares. The funds must be used to pay off current debts and leasing and maintenance costs. Nordica was founded as the successor to the insolvent Estonian Air. It does not have its own AOC because operations were initially carried out by Adria Airways. Later, the subsidiary Regional Jet (now Xfly) received its own certificates. The new cooperation partner was the Polish LOT, because all flights were marketed under these flight numbers. Last year, the connections under the Nordica brand were discontinued. However, shareholder LOT continues some connections. Xfly acts as an ACMI partner for various airlines. For example, it flies on behalf of SAS and LOT. The Polish company holds 49 percent of the Nordic Aviation Group. The majority is owned by the state of Estonia. Recently, there have been efforts in local politics to buy out the Polish partner and for Nordica to become active again under its own brand in Estonia.

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HiSky Europe announces Iasi-Frankfurt

The startup HiSky Europe announced that an Airbus A320 aircraft will be stationed in Iasi. This aircraft will be used to fly to Frankfurt am Main, London-Stansted and Dublin. The company is trying to obtain an AOC in Moldova as HiSky and at the same time in Romania with its subsidiary HiSky Europe. An exact date for the launch has not yet been announced. In any case, the company is facing tough competition in Iasi from Wizzair, Blue Air and Tarom. The two low-cost airlines already operate various routes from this airport, including London-Luton. Wizzair recently announced the addition of additional routes from Iasi.

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Milan: Iberia moves from Malpensa to Linate

In future, IAG Group member Iberia will no longer fly from Madrid to Milan-Malpensa, but to Milan-Linate. Effective December 1, 2020, the carrier is shifting its service to the airport near the city center. Linate is - as mentioned - very close to the city center, which is why slots at this airport are extremely sought after. Alitalia is the top dog. The much larger Malpensa airport, like Bergamo, is around an hour's drive away. Iberia intends to offer up to 12 weekly rotations between Madrid and Linate. Further information on Malpensa, Linate and Bergamo airports can be found at this link.

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Ocean could be at the expense of Eurowings Europe

The Lufthansa subsidiary Ocean GmbH is to fly medium- and long-haul routes with its own AOC and operating license from the end of 2021 at the latest. It will primarily serve tourist routes. The aircraft required for this will be transferred from the group's sister companies Eurowings and Brussels Airlines. According to Airliners.de, the launch in Frankfurt am Main will take place in the current winter flight schedule period, with the three aircraft used being operated by Brussels Airlines under the Eurowings brand. According to CEO Carsten Spohr, seven wide-body jets will be used on long-haul tourist routes in summer 2020. In the medium term, the plan is for the medium- and long-haul leisure routes, which are currently operated by Lufthansa, Cityline and Brussels Airlines, to be transferred to Ocean GmbH. The final decision has not yet been made as to which airport they will take off from. What is certain, however, is that the activities in this segment will be bundled at the new subsidiary. The project may also have an impact on the Austrian Eurowings Europe, as the transfer of eight Airbus A320 aircraft to Ocean GmbH is currently being examined. These will then serve various destinations in the Mediterranean region from Frankfurt and Munich. It has not yet been decided whether the Austrian Eurowings Europe will act as an ACMI partner or could even become obsolete. The Ocean project of CEO Carsten Spohr is a thorn in the side of the unions. They accuse the airline of "fare evasion". But it is definitely an admission that the previous Eurowings strategy has failed spectacularly. The Lufthansa board is trying to put the tourism division, which has been severely neglected since the sale of the Condor shares, back on its feet.

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Vienna: Wizzair moves to Ciampino in Rome

The Hungarian low-cost airline Wizzair will no longer fly from Vienna to Rome-Fiumicino, but will switch to Rome-Ciampino. The route to the Italian capital is currently on hold. The change is to be completed when flights resume on December 18, 2020. Currently, no other airline flies from Vienna to the smaller of Rome's two airports, Ciampino. This is mainly used by the low-cost airlines Ryanair and Wizzair. However, Ryanair does flies from Vienna to Fiumicino. Rome-Ciampino Airport is located around 15 kilometers southeast of the city center. The airport was opened in 1916. The transport connections are mainly by bus. Rome-Fiumicino is located around 29 kilometers southwest of the city center and is connected by trains and buses. Both airports are operated by Aeroporti di Roma, a subsidiary of the Benetton family's Atlantia Group.

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