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flee

Covid-19: Airlines seek emergency aid as coronavirus brings industry to near-halt

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With financially sound airlines like SIA needing govt. aid, what about financial basket cases like MAG? 

Should the Malaysian govt. save it or let it go? Several months ago, MAVCOM concluded that we have overcapacity in the Malaysian market. Surely, it would be foolish for the govt. to help all the airlines without some very strict and painful terms and conditions. There is no point helping them if all they do is burn the money competing against one another. How can the govt. solve this conundrum?

Interesting to see what MoT/MoF/MITI intends to recommend and what the cabinet decides...

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45 minutes ago, flee said:

With financially sound airlines like SIA needing govt. aid, what about financial basket cases like MAG? 

Should the Malaysian govt. save it or let it go? Several months ago, MAVCOM concluded that we have overcapacity in the Malaysian market. Surely, it would be foolish for the govt. to help all the airlines without some very strict and painful terms and conditions. There is no point helping them if all they do is burn the money competing against one another. How can the govt. solve this conundrum?

Interesting to see what MoT/MoF/MITI intends to recommend and what the cabinet decides...

As MAS has no chance to recover in next few years, believe the country could make do wth AK and OD. If these two airlines become duopoly and expensive, gomen could always issue new AOC.

 

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Not sure if MH KUL-LHR flight will skyrocket soon but I do expect it to happen anytime from now.

British tourists in Malaysia ordered to return home

KUALA LUMPUR: All British nationals currently in Malaysia for holiday have been advised to return to the United Kingdom following an increased nationwide effort to curb the spread of Covid-19.

British High Commissioner to Malaysia Charles Hay, in a Facebook video post today, said the holidaying British nationals should do so as soon as possible.

“We strongly recommend that all British Nationals visiting Malaysia should return to the UK now, while commercial routes are still available.

https://www.nst.com.my/news/nation/2020/03/577839/british-tourists-malaysia-ordered-return-home

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Movement restriction order extended to april 14. 

Edited by jahur

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No extra help for airlines, chancellor says

The UK chancellor has told airlines to find other forms of funding and not turn first to the government for help getting through the coronavirus crisis.

Demand for tickets has collapsed forcing companies to ground aircraft.

Aviation bosses have been lobbying the government for a targeted aid package to stop firms going under as a result of the slump in demand.

But in a letter on Tuesday Rishi Sunak said the government would only step in as "a last resort".

Mr Sunak instead urged airlines to try and raise money from shareholders.

https://www.bbc.com/news/business-52027342

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I think that the UK chancellor is operating on sound business principles.

Can't always be profit kept by owners and cronies, losses borne by taxpayers (via government bailouts).

If they have not got enough finance, they should downsize or close shop!

 

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16 hours ago, flee said:

I think that the UK chancellor is operating on sound business principles.

Can't always be profit kept by owners and cronies, losses borne by taxpayers (via government bailouts).

If they have not got enough finance, they should downsize or close shop!

 

Folks get retrenched. Peoples flight get screwed hurr durrr and you wonder why UK has not impose a proper movement or lockdown restriction. People still cramping in trains and people going to work. My cousin working in a private chiropractic which should not be essential services is now asked to work as usual. People heading out without knowing if their job is essential or not cause the gov wont pay a nickle to keep them at home and their high tax rate meant nothing all these while.

For the airline industry even private, low cost and flag carriers in usa and china and Me3 are now getting rescued now with gov injections. If all airlines are closed how are they going keep people moving around and the economy running and you have a legion of workers ranging from engineering, itc, frontline, hospitality servicing all from multiple ecosystem now without jobs.

You're recommending them to change profession and leave their passion job? 

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Virgin Australia has grounded 80% of their Group flight, and stood down 8,000 staff. Out of these 1000 includes Tigerair Australia's 220 pilots. At the same time, it would increase domestic capacity reductions from 50 to 90 per cent.

 It was intending to permanently close its New Zealand cabin crew and pilot base, and its Tigerair Melbourne pilot base.

https://australianaviation.com.au/2020/03/1000-stood-down-virgin-staff-likely-to-be-made-redundant/

An emotional farewell by New Zealand-based cabin supervisor Cassy during her last flight yesterday:

https://australianaviation.com.au/2020/03/watch-virgin-cabin-crew-cassys-emotional-farewell-speech/

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4 hours ago, jahur said:

Folks get retrenched. Peoples flight get screwed hurr durrr and you wonder why UK has not impose a proper movement or lockdown restriction. People still cramping in trains and people going to work. My cousin working in a private chiropractic which should not be essential services is now asked to work as usual. People heading out without knowing if their job is essential or not cause the gov wont pay a nickle to keep them at home and their high tax rate meant nothing all these while.

For the airline industry even private, low cost and flag carriers in usa and china and Me3 are now getting rescued now with gov injections. If all airlines are closed how are they going keep people moving around and the economy running and you have a legion of workers ranging from engineering, itc, frontline, hospitality servicing all from multiple ecosystem now without jobs.

You're recommending them to change profession and leave their passion job? 

Many people are also criticising Boeing for asking the US govt. to bail them out. In good times, they are only pleasing the directors/shareholders and screwing suppliers and customers. Now, in bad times they are asking taxpayers to bail them out?

I think that there must be a balance - the aviation industry isn't the only one that is hurting. Everywhere else, we see the same thing happening. Governments are having to choose what bailouts that need to be given.

In the UK, the NHS is the critical one and the govt needs to pump in funds to keep them moving. Other people will just need to get in line and wait! I don't think that aviation is a big priority in the UK for bailouts as there are more critical places for taxpayers to pump their money in. Flybe has been allowed to collapse - so I am sceptical if any other UK airline is any different from Flybe in terms of deserving taxpayers' money.

 

Edited by flee

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1 hour ago, flee said:

Many people are also criticising Boeing for asking the US govt. to bail them out. In good times, they are only pleasing the directors/shareholders and screwing suppliers and customers. Now, in bad times they are asking taxpayers to bail them out?

I think that there must be a balance - the aviation industry isn't the only one that is hurting. Everywhere else, we see the same thing happening. Governments are having to choose what bailouts that need to be given.

Again you are calling out on big corporations. How about employees and production workers wellbeing? Might as well callout to China for cashing out ACR Hna group and CRH when state funds could be diverted into important needs no? I think China made more sense than to dispose off 50k worth of workers. Free market my ass. 

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Singapore mini Budget measures:

Quote

❖ Aviation    Sector    
• Enhanced    Jobs    Support    Scheme    for    businesses    whose    
activities    are    based    principally    in    the    aviation    sector,    with    
a    total    of    75%    wage    offset,    capped    at    a    monthly    wage    of    
$4,600    
• $350m    Enhanced    Aviation    Support    Package    to    provide    
cost    relief    for    airlines,    ground    handlers    and    the    cargo    
industry,    as    well    as    to    maintain    a    minimum    level    of    
connectivity    
❖ Tourism    Sector    
• Enhanced    Jobs    Support    Scheme    for    hotels,    travel    
agencies,    tourist    attractions,    cruise    terminals    and    
operators,    and    Meetings,    Incentives,    Conferences,    
Exhibitions    (MICE)    venue    operators,    with    a    total    of    75%    
wage    offset,    capped    at    a    monthly    wage    of    $4,600    
• $90m    for    tourism    recovery    efforts    to    help    the    sector    
rebound    strongly    when    the    time    is    right    

 

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2 hours ago, jahur said:

Again you are calling out on big corporations. How about employees and production workers wellbeing? Might as well callout to China for cashing out ACR Hna group and CRH when state funds could be diverted into important needs no? I think China made more sense than to dispose off 50k worth of workers. Free market my ass. 

I was just talking about the industry and using some companies as illustrations/examples. Aviation is both a capital and labour intensive industry. It is highly regulated. It is not something that private enterprise alone can handle. Companies like Boeing cannot just tell the govt. to piss off in good times and come begging for bailouts in bad times.

As for employees, they will know that they are working in a world that is cyclical and there will be good times and bad times. So good personal financial management should be practiced. Most of us know that the cycle of boom and bust takes place approximately every 10-15 years. So it would be good financial planning to spend according to your means, not over borrow, and set aside something for a rainy day.

China is different because their business models are different and have different objectives to fulfill - so they will make decisions based on their agenda.

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AirAsia grounds most of its fleet due to Covid-19 (VIDEO)

KUALA LUMPUR, March 26 — Low-cost carrier AirAsia Group has announced it is temporarily ‘hibernating’ most of its 255-strong fleet across its network, in light of the ongoing Covid-19 pandemic worldwide.

The ‘hibernation’ is also applicable to long-haul budget carrier AirAsia X, and all affected guests have been immediately notified via email and SMS.

https://www.malaymail.com/news/malaysia/2020/03/26/airasia-grounds-most-of-its-fleet-due-to-covid-19-video/1850526

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