Hong Kong has agreed to lead a HK$39 billion ($5 billion) recapitalization effort for flag carrier Cathay Pacific, marking the latest case of a government taking an equity stake in a private airline to help keep it afloat during the Covid-19 pandemic. In a Tuesday filing with the Hong Kong Stock Exchange, Cathay said the government would provide a HK$27.3 billion package consisting of a HK$7.8 billion bridge loan and HK$19.5 billion in preferred share repurchases.
The Coronavirus impact on the aviation Industry
Jun 9, 2020 - 5:13 AM
The French government on Tuesday announced a €15 billion ($17 billion) aid program to support the country’s aviation industry. The package includes €7 billion already committed to support flag carrier Air France and to bring forward orders for Airbus tanker aircraft for France’s military forces.
Jun 8, 2020 - 12:31 PM
Flexjet had planned to announce a “significant expansion” in Europe two weeks ago at what would have been EBACE 2020, but the Covid-19 pandemic has caused the company to postpone the announcement until next spring, company CEO Mike Silvestro said last week during a Jefferies Equity Research webinar.
Jun 8, 2020 - 12:21 PM
Business aircraft arrivals into the UK spiked in recent days as travelers rushed to re-enter the country before being required to be quarantined at a fixed address for 14 days under rules that came into force just after midnight today. Data from industry analyst WingX showed 80 arrivals yesterday, which was more than double the meager 38 arrivals seen on May 17.
Jun 5, 2020 - 1:40 PM
The U.S. Department of Transportation will allow Chinese carriers to operate two round trips a week to the U.S. under a modification to a June 3 order that originally barred their operation into the country. The order revision comes a day after China modified its own prohibition on U.S. carriers to allow them to operate the same number of weekly round trips.
Jun 5, 2020 - 12:38 PM
Global business aviation activity in May and the first few days of June are trailing the same period last year by 51 percent, according to data released yesterday by WingX Advance. North America continues to be the most robust region in the post-Covid recovery, with year-over-year activity now down 49 percent—an improvement over the 75 percent decrease seen in April.
Jun 5, 2020 - 12:20 PM
A June 3 U.S. Department of Transportation final order allowing airlines to proceed with cuts in scheduled air service at smaller commercial airports presents an opportunity for general aviation to fill in those gaps, according to National Air Transportation Association president and CEO Tim Obitts.
Jun 5, 2020 - 10:53 AM
Reopening our economy post-Covid-19 is a grand science experiment, and we should have a strong sense of its success in the next four weeks. The reopening will either create a new virus spike or our economy will find a safe balance that will allow for a confidence to come back to us even if there are some new realities such as lighter capacity for restaurants and other gatherings.
I believe that if we can create confidence around getting out and about, many if not most segments of our wonderful business aviation industry will rebound. Once air charter begins to really come back and operators start to use their aviation assets again, fuel sales will come back. Taking to the skies in private jets and commercial airplanes will spur spending again. This’s what we need.
I have confidence about the return of our industry. As we gain our confidence back from this responsible reopening, the increased calls our office has been getting in the last two weeks will begin to be about actual offers for aircraft.
The talk of not wanting to travel on public transportation will turn into real action on the part of perspective business aircraft buyers. Not just whole aircraft ownership but also the collateral solutions like fractional and charter will rebound.
Jun 5, 2020 - 10:28 AM
With business jet deliveries anticipated to be down approximately 30 percent industry-wide this year as a result of the Covid-19 pandemic, Bombardier Aviation announced this morning that it will permanently cut its workforce by more than 10 percent.
The Montreal-based airframer explained that due to the “current market conditions reflecting the extraordinary industry interruptions and challenges caused by Covid-19,” it will be forced to reduce its staffing by approximately 2,500 employees.
Jun 5, 2020 - 10:17 AM
British Airways (BA) on Friday threatened to take legal action against the UK government’s imposition of 14-day quarantine requirements from June 8. In a letter to members of the British parliament, Willie Walsh, CEO of BA’s parent group IAG, said that the quarantine has “torpedoed” any chance of the airline sector recovering as the summer season starts.
