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flee

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  1. Delta posts huge second-quarter loss as pandemic takes toll Delta Air Lines posted an adjusted pre-tax loss of $3.9 billion for the second quarter, even before fleet restructuring costs and investment write-downs widened its overall coronavirus crisis losses incurred for the period. The adjusted loss figures excludes a further $3.2 billion of items directly related to the impact of Covid-19 and the company’s response, including fleet-related restructuring charges, write-downs relating some of Delta’s equity investments, and the benefit of the CARES Act grant recognised in the quarter. Total adjusted revenue, excluding refinery sales, plummeted 91% to $1.2 billion for the three months ending 30 June. That was based on capacity cuy by 85% during the quarter. Operating costs at an adjusted level were cut 53% to $5.5 billion for the period. https://www.flightglobal.com/strategy/delta-posts-huge-second-quarter-loss-as-pandemic-takes-toll/139280.article
  2. F-WWCX MSN1966 and F-WWCS MSN1972 are the two A339 NTUs that were originally for Airasia X. F-WWCX A339 1966 AirAsia X tail cls, white fuselage by Dan Raistrick, on Flickr
  3. Air Traffic Rights Applications Decreased by 74.3 Per Cent in First Half of 2020 KUALA LUMPUR, 13 July 2020 – The Malaysian Aviation Commission (MAVCOM) recently released its half-year Air Traffic Rights (ATR) report, encapsulating MAVCOM’s ATR allocations for the Malaysian civil aviation sector for the period of 1 January to 30 June 2020. ATR applications in the first half of the year saw a 74.3 per cent reduction from the second half of 2019, as well as a 27 per cent reduction compared with the corresponding period of the previous year. During the period under review, the Commission approved 27 ATR applications, equivalent to 87.1 per cent of the applications received. Two ATR allocations were for domestic destinations while the remaining 25 were for international destinations. Approvals for international routes comprise of seven for destinations in China, one for Amsterdam, one for Auckland and the remaining 16 for other Asian destinations. In terms of allocations by airports, 20 ATRs were issued for flights originating from KL International Airport (KUL), two from Sultan Abdul Aziz Shah Airport (SZB), and five from other Malaysian airports. Of the 27 ATR approvals for the first half of the year, Malaysia Airlines Berhad (MAB) and Malindo Airways Sdn. Bhd. (Malindo Air) received the highest number of approvals, totalling 14 ATRs, while AirAsia Berhad, AirAsia X Berhad, Raya Airways and My Jet Xpress followed with allocations of six, five, one and one respectively. In addition, there were 39 ATRs that were approved prior to the first half of 2020 but were not utilised by the airlines. These ATRs were subsequently returned to MAVCOM during the first half of the year. The highest number of unutilised ATRs was from AirAsia Group Berhad (17). This was followed by Malindo Air (15), MAB (five), Fly Firefly Sdn. Bhd. (Firefly) (one) and Raya Airways Sdn. Bhd. (one). To ease airlines’ administrative challenges during the current pandemic, the Commission had removed the condition which automatically revokes ATRs which are not utilised within six months from the date of the grant of the approval to airlines, effective 5 June 2020. This in effect, allows Malaysian scheduled carriers to keep their current portfolio of ATRs for an indefinite period until further notice. This removal will not apply to ATRs that have already been deemed expired and automatically revoked, as well as for routes in which airlines have wilfully terminated on their own accord. The Air Traffic Rights Report is released on a bi-annual basis and more information can be found on MAVCOM’s website at www.mavcom.my.
  4. What is happening now is virtually unprecedented - the whole world has ground to a halt at the same time. You can bet Airasia's auditors won't be the only ones flagging companies with signficant and material concerns about the viability of the businesses. We now see public health and economic crises running simultaneously. Armed conflict would add a third dimension. Lets hope that common sense prevails and the current madman at the White House is replaced by someone who is actually able to run the country properly!
  5. Tony Fernandes says he remains optimistic AirAsia will pull through Covid-19 aviation crisis and recover by next year https://www.malaymail.com/news/malaysia/2020/07/09/tony-fernandes-says-he-remains-optimistic-airasia-will-pull-through-covid-1/1883047
  6. AirAsia says it aims to raise RM2.4 billion via debts and equity https://www.theedgemarkets.com/article/airasia-says-it-aims-raise-rm24-billion-debts-and-equity
  7. United Airlines to furlough up to 36,000 staff United Airlines says up to 36,000 of its workers could be furloughed due to the coronavirus pandemic. That amounts to almost half of the company's total US-based frontline workforce. “Throughout this crisis, we have been honest and direct with you about our need to right-size our workforce to match travel demand,” it said. The carrier said it expects capacity for this month to be down 75% compared to July last year. https://www.bbc.com/news/business-53344547
  8. Unqualified Audit Report with Emphasis of Matter clarification & Latest Business Updates SEPANG, 9 July 2020 - AirAsia Group Berhad (“AirAsia” or the “Company”) wishes to draw attention to our latest update where AirAsia’s external auditors, Messrs Ernst & Young PLT issued an unqualified audit opinion with an emphasis of matter on material uncertainty relating to going concern in respect of the Company’s audited financial statements for the financial year ended 31 December 2019. The unqualified audit opinion states that the financial statements of AirAsia for the financial year ended 31 December 2019 are true and fair and in compliance with financial reporting standards and statutory requirements, in all material aspects. The emphasis of matter highlights that there are significant uncertainties with respect to the Company’s ability to continue as a going concern as a result of the unprecedented Covid-19 pandemic. Nevertheless, it is important to note that the financial statements have been prepared on a going concern basis, as the Board of Directors is confident of the successful continuation of the business, in conjunction with the actions undertaken by the governments of the operating entities, outcome of ongoing discussions with financial institutions and investors to obtain required funding and implementation of management’s action plans, in response to the conditions above. In this regard, the auditors’ report should be read in full and can be found in the annual audited accounts that is available on the Company’s Investor Relations website. Domestic rebound demand is strong; Optimistic of re-opening of international travel AirAsia Group Berhad CEO, Tan Sri Tony Fernandes said “The first half of 2020 has been extremely challenging. However, in recent weeks, countries around the world have resumed domestic travel and are gradually reopening international borders in recognition that air transport provides the connectivity that is essential for the resumption of economic activities. The formation and discussion of “travel bubbles” and “green lanes” with key economic partners with a low infection rate and proven pandemic curbing systems, is a step in the right direction. “As domestic travel is now allowed in Malaysia, Thailand, Indonesia, India and the Philippines, we have been resuming our flights on a staggered yet steady basis since late May. In support of governments’ efforts to revive domestic tourism and ultimately stimulate economic recovery, AirAsia has aggressively launched large-scale promotions and sales campaigns. I am encouraged by the higher-than-anticipated sales this has generated. On 7 July, we registered our highest post-hibernation sale with 75,000 seats sold in a single day, reflecting pent-up demand and signalling green shoots of recovery. We also sold over 200,000 AirAsia Unlimited Passes since its recent launch for domestic Malaysia, domestic Thailand and AirAsia X. “Positive trends in our flight bookings and load factors are additional signals of a better second half of the year. In June, our group-wide load factor was 60% with AirAsia Malaysia’s load factor reaching 65%. For July, we expect to achieve a higher load factor of 70% despite tripling our capacity month-on-month to cater to the increased demand. “Teleport, the profitable technology-meets-logistics venture of AirAsia, accelerated it's regional growth despite a challenging environment, growing 49% year-on-year in the first quarter of 2020. This growth was supported by a strong emphasis on transporting medical aid and critical supplies at a time of need. In addition, despite the complete hibernation of the airline group, Teleport pivoted from delivering cross-border e-commerce to last mile deliveries, delivering more parcels, restaurant orders, and fresh produce during the movement control period than in the previous 12 months collectively. With the launch of Freightchain, the world's first digital cargo platform built on blockchain, the re-launch of OURSHOP as an e-commerce marketplace to support the local businesses we love, and rollout of OURFOOD a fuss-free platform to bring all types of food businesses online, Teleport has emerged with even stronger growth prospects for the second half of 2020. “As a great believer in Asean, we remain confident in the growth potential of the region. In IMF’s latest World Economic Outlook, Asean-5’s GDP growth is expected to rebound strongly to 6.2% in 2021, one of the highest growth rates in the world. We’re confident that AirAsia will not only benefit from this growth upturn but also contribute to the region’s recovery given the significant role that air connectivity plays in Asean’s trade and investment landscape.” On funding... “We understand the importance of shoring up our liquidity to ensure sufficient cash flow. We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favourable outcome for the group. We have received indications from certain financial institutions to support our request for funding, amounting to more than RM1.0 billion. Of this debt funding, a certain portion would be eligible for the government guarantee loan under the Danajamin PRIHATIN Guarantee Scheme in Malaysia. Other than Malaysia, our Philippine and Indonesia entities are currently in various stages of bank loan applications. In the Philippines, we have applied for the government guaranteed loan under the Philippine Economic Stimulus Act (PESA), with an expected positive outcome.” On working capital management,... “During the hibernation period, we have taken significant measures internally as a group while also reaching out externally for assistance to ensure our working capital remains intact. “Internally, we have embarked on headcount rationalisation for leaner operations, given the current demand for air travel and expectations on recovery. Internal cost-cutting efforts include a group-wide temporary salary reduction of between 15% - 75%. “We have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70% of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure. “All in all, we expect at least 50% reduction in our cash expenses in 2020. “In conclusion, the impact of Covid-19 pandemic on the Company is never taken lightly, as does the trust and support put into us. The management has been working tirelessly to ensure the sustainability of our business operations. With the confidence of our stakeholders and business partners, we are determined to move forward in this new normal. We are positive that the proactive mitigating actions we have implemented as well as our consistency in transforming the Company would aid us in recovering and overcoming this operating environment. “In times of difficulties lies opportunities. We have weathered many crisis and emerged stronger. We won’t waste this crisis and we will come out stronger.” Source: https://newsroom.airasia.com/news/unqualified-audit-report-with-emphasis-of-matter-clarification-amp-latest-business-updates Audited financial statements for the financial year ended 31 December 2019: https://ir.airasia.com/misc/AA_2019_Annual_Audited_Accounts.pdf
  9. AirAsia shares in biggest daily fall as auditor flags ‘going concern’ doubts https://www.malaymail.com/news/money/2020/07/08/airasia-shares-in-biggest-daily-fall-as-auditor-flags-going-concern-doubts/1882706
  10. Coronavirus: Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  11. Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  12. Air France to shed over 7,000 jobs as part of €7 billion bail-out Air France will shed almost 7,600 jobs over the next three years in an accelerated restructuring implemented in parallel with €7 billion ($7.9 billion) worth of government-backed loans. The airline does not expect a full recovery in demand until 2024. The French flag carrier says its activity and revenue has fallen by 95% over the last three months in the wake of European-wide travel restrictions introduced to counter the coronavirus pandemic. More: https://www.flightglobal.com/strategy/air-france-to-shed-over-7000-jobs-as-part-of-7-billion-bail-out/139153.article
  13. The only way MAG can make it work is to use the same kind of model that IAG uses, i.e. keeping the airline groups separate. A merger of the two airlines into a single entity will probably end in failure. I am not sure how the new Chairman can change things - his position is non-executive. So unless the board redesignates him as executive Chairman, he is just a figurehead.
  14. Shareholders awaiting Malaysia Airlines’ strategic plan, says Khazanah https://www.malaymail.com/news/malaysia/2020/07/07/shareholders-awaiting-malaysia-airlines-strategic-plan-says-khazanah/1882331
  15. Airasia Group Investors' presentation: https://ir.airasia.com/misc/1Q20-presentation-airasia.pdf
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