New Roundup: Emirates, Delta ends 777, ElAl, Russia, Tui, Airbus, Gol, MAX

Emirates

Emirates is to resume flights to nine international primary destinations from 21 May.  London Heathrow, Frankfurt, Paris, Milan, Madrid, Chicago, Toronto, Sydney and Melbourne (although that requires Australian Government approval). The airline will also offer connections in Dubai for customers travelling between the UK and Australia.

Its likely to use only 773ER’s on the routes initially.


Delta

Delta Airlines announced it will retire its entire 777 fleet by the end of 2020, transferring all long haul operations to the A350’s.

Delta operates 18 777-200’s including 10 of the LR version. Only 9 are operational with the rest in storage.

The A350-900 burns 21% less fuel than the 772’s, whose accelerated departure has been spurred on by the current crisis. The nine in use have been used on cargo operations.

Delta will retire the last of its MD-88 & -90 aircraft on June 2nd.


ElAl

The Israeli flag carrier made a loss (pre-covid) of nearly $60m, worse even than last year despite less competition and management changes.

The airline owes over $1 billion but has assets of under $490m, and is waiting for government supported loans of $400m to keep it going.

The airline’s auditor, Deloitte, has stressed the financial situation of the airline is verging on untenable.


Russia subsidises its airlines

Cash strapped Russia, suffering from its oil price war with Saudi Arabia that has depressed state income to record lows, has given $317m in subsidies to the Federations’ airlines.

Aeroflot is especially hit from the nearly $1 billion it gets each year from the fees other airlines pay Russia to fly over its territory – those flights have dropped off by 97%.

Russia’s air travel overall has fallen 93%, even on domestic routes and fear runs wide over the governments relatively tight lipped admissions on Covid cases and deaths. They’re not being Trump-Bolsonaro like in their deny science approach, just not being open about how bad things are. Putin’s popularity is at an all time low, and people are simply refusing to fly.

The Russian Government has told airlines they must maintain employment at 90% of their January 1st 2020 levels with the money.


Tui

European travel and leisure operator Tui is to make 8,000 staff redundant across a broad spectrum of its operations, from airline to cruise lines and hotels.

Its seen as a relatively light level of redundancies bearing in mind the scale of the business, but forward bookings for late year and into 2021 are 121% of normal. Brits especially don’t like being told they can’t go on holiday, and with countries like Greece saying they’re welcome without quarantines, its now down to the UK Foreign Office to lift the recommendation nobody travels outside the UK. Until they do travel insurance isn’t available, though no doubt some will be prepared to risk it. The airline plans to restart on June 12th. Maybe.


GOL, Boeing and MAX..

GOL has apparently agreed some $412m in settlements with Boeing over the loss of revenue and delays in the 737MAX programme.

The money will almost certainly not be in cash, but in discounts, training and maintenance credits.


Airbus

Airbus is to shed 10,000 jobs across its various sites in Germany, France, Spain and the UK, a painful loss for all concerned.

High tech well paying aerospace jobs are hard to loose from any economy and its often difficult for specialised assemblers and industrial fabrication employees to find alternate work.

So far, industry wide, over 110,000 jobs have been lost, and that’s expected to double once pay support programmes and subsidies end later this year.

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