3 February 2021
AstraZeneca vaccine is shown to drastically cut transmission of the virus
The vaccine developed by the University of Oxford and AstraZeneca not only protects people from serious illness and death but also substantially slows the transmission of the virus, according to a new study — a finding that underscores the importance of mass vaccination as a path out of the pandemic. The study by researchers at the University of Oxford is the first to document evidence that any coronavirus vaccine can reduce transmission of the virus. —New York Times MORE
Global business travel to grow 21% in 2021, trade group forecasts
Business travel spending is forecast to grow 21% this year worldwide, helped by the rollout of COVID-19 vaccines, but will not recover to pre-pandemic levels until the middle of the decade, a business travel association said on Tuesday. Spending on business travel is projected to rise to $842b in 2021, according to the Global Business Travel Association’s BTI Outlook, after dropping 52% in 2020 to $694b due to the pandemic. “The continued rollout of the vaccine will be central to recovery globally, as will decisions the new Biden Administration makes regarding global trade and border and quarantine policies,” said Dave Hilfman, GBTA’s interim executive director.
—Reuters MORE
Airlines flying blind into summer capacity sweepstake
European airlines buffeted by successive lockdowns have little idea what kind of summer to expect. But they must place their bets anyway. Time is short to commit to flight schedules for the main holiday season, whose profits usually tide the industry through the winter, but whose outlook has never been so uncertain. Cash-strapped carriers must decide when to trigger the costly process of returning parked planes and furloughed staff, or even rehiring. —Reuters MORE
UAE vaccine rollout to ‘boost demand’ on vital Dubai-India routes
The vaccine rollout in the Gulf is increasing confidence among passengers and is expected to boost demand on routes between the UAE and India in the coming weeks, according to an Indian airline boss. Demand for travel between India and the UAE has remained relatively strong during the COVID pandemic thanks to a ‘bubble agreement’ between the two countries. But Indian routes are even more important to the likes of Emirates and Etihad now that key markets like the UK have been all but cut off. —Aviation Business Middle East MORE
Asia’s fragile aviation recovery snuffed out by resurgent virus
A fragile recovery in Asian aviation is being snuffed out by a resurgence of Covid-19 in the region, pushing back forecasts for when air travel will get back to pre-virus levels and weighing on jet fuel margins. Chinese seat capacity on domestic and international flights has fallen more than 20% from the end of September, when it almost got back to January 2020 levels, according to OAG Aviation. —Bloomberg MORE
Slow vaccination campaigns bad news for airlines: AAPA chief
The lethargic rollout of coronavirus vaccines will delay any recovery for the airline sector, according to Association of Asia Pacific Airlines director general Subhas Menon. Menon notes that while great hopes are pinned on vaccines, the timespans involved in production and distribution suggest 2021 will continue to be an extremely challenging year for airlines in the region. —FlightGlobal MORE
Singapore approves Moderna's COVID-19 vaccine in Asia first
Singapore has become the first country in Asia to grant approval for Moderna’s COVID-19 vaccine and the city-state said it expects the first shipment to arrive around March. The Moderna COVID-19 vaccine is the second to be authorised for pandemic use in Singapore, after the Pfizer-BioNTech vaccine, which is already being rolled out in the city-state.—Reuters MORE
Rome airport seeks to extend COVID-tested flights to more destinations
Aeroporti di Roma (AdR) aims to extend COVID-tested flights to more international destinations, including Japan and North America, its CEO said Tuesday, in an expansion of a trial scheme that has been running since December. —Reuters MORE
Ryanair ordered to remove misleading ‘jab and go’ advert
Ryanair has been ordered to remove its “jab and go” advert after watchdog officials ruled it depicted misleading claims about coronavirus vaccinations. The budget airline encouraged potential holiday-makers to book Easter and summer breaks with the airline by appearing to imply Brits would be immunised by then. —The Independent MORE
South Korea readies for COVID-19 vaccine with airport transport drill
South Korea’s President Moon Jae-in called on Wednesday for seamless preparations for coronavirus vaccinations, as a refrigerated van drove in convoy with several military and police escort cars in a drill at the capital’s airport. Wednesday’s preparedness drill at the Incheon international airport mobilised special freezers and ran through scenarios such as a terror attack, theft and transport faults, military and police officials said. —Reuters MORE
Sunwing taps government program for $375m loan
Sunwing has turned to one of the federal government’s pandemic programs, a $375m emergency loan, days after flights to the Caribbean and Mexico were suspended through April 30. The government said Monday that Sunwing Vacations and Sunwing will now have access to $375m in liquidity. The loan is through the government’s Large Employer Emergency Financing Facility (LEEFF), a program aimed at providing large companies that have been affected by the coronavirus pandemic with bridge financing.—Yahoo Finance Canada MORE
Billionaire Lucio Tan’s Philippine Airlines cuts 2,300 jobs
Philippine Airlines, owned by billionaire Lucio Tan, said it will cut 2,300 jobs or about a third of its workforce by mid-March as it continues to take a beating from the pandemic. “This has been an extremely difficult and painful decision,” President Gilbert Santa Maria said Tuesday. The job cuts, first announced in October, include voluntary and involuntary separations, the company said. Demand for air travel is “still far from pre-pandemic levels,” Philippine Air said, adding that it operates less than 30% of pre-pandemic weekly flights. —Bloomberg MORE
Myanmar army rallies supporters, bans flights through April
Supporters of Myanmar’s military rallied in the nation’s largest city as it moved to suspend all flights through April, raising fresh concerns about the army’s crackdown a day after it seized power in a coup and detained senior government officials and activists. The military on Tuesday instructed airlines to suspend all flights until April 30 -- an extension of travel restrictions put in place by the previous government to contain the spread of Covid-19.—BloombergMORE
dnata, Beta Trans team up on cargo at Milan airport
Airport Handling, dnata’s joint venture in Italy, and Beta Trans have inked a strategic partnership to provide a full range of cargo services to customers at Milan Malpensa Airport. The two companies’ joint offering includes high quality and safe ramp and cargo handling, warehousing and road feeder services. The partnership will see Airport Handling and Beta Trans integrate operational processes and functions, offering customers a one-stop shop of ground handling and cargo services at MXP. —TradeArabia MORE
Cargo rescues Moscow Sheremetyevo’s annual performance
Sheremetyevo International Airport, Russia’s largest airfreight hub, handled more than 327,000 tonnes of freight and mail in 2020, increasing the airport’s share in the Moscow air cargo market from 68 to 70%. Freight comprised 299,100 tonnes, whilst mail reached 28,300 tonnes. These results were achieved despite a significant reduction in the route network and a dramatic decline in the number of passenger flights associated with the COVID-19 pandemic. —Air Cargo Eye MORE
Boeing sells $9.8b of bonds to refinance growing debt
Boeing sold $9.825b of bonds Tuesday, looking to refinance an over-levered balance sheet that swelled to keep money flowing in the pandemic. The planemaker is borrowing to repay a portion of the $13.8b loan it drew down at the onset of the coronavirus outbreak, part of a borrowing spree that took its debt balance up to $63.6b by year end. —Bloomberg MORE
Boeing doles out bonuses to most employees despite $12b loss
Boeing has said it will dole out annual performance bonuses next month to most employees despite losing $12b over the last year during the coronavirus pandemic. Most of the plane maker’s employees did not receive annual bonuses last year after it lost $636m in 2019 because of the grounding of its 737 MAX jet by the FAA, The Seattle Times newspaper reported. In response, the company in February changed the structure of its incentive plan, tying its financial goals to the timing of the first delivery of a 737 MAX after the flight ban was lifted. —Associated Press MORE
India’s largest airline expects to reach pre-Covid international capacity by end-2021, CEO says
Indian low-cost carrier IndiGo’s international operations may be struggling, but the division could make a full recovery by the end of the year, the airline’s CE said this week. “We are struggling at only 28% of our pre-Covid capacity,” Ronojoy Dutta of IndiGo said of international flights. However, domestic operations have reached 80% of pre-pandemic levels. “I think we should be at 100% of domestic capacity by April at the latest... International will open slower, but by the end of calendar year 2021, we should be at pre-Covid levels internationally as well.”—CNBC MORE
A380 can return and generate cash: Qantas chief
Qantas is likely to fly its Airbus A380s again, according to its CE Alan Joyce, particularly on routes where tight scheduling is a factor. Speaking Wednesday, Joyce explained that while all 12 of the airline’s A380s “are sitting in the Mojave desert” – a reference to their storage at Victorville airport in California – and will remain grounded for at least three years, “we do think, if you look at the Qantas network, there are going to be opportunities to deploy those aircraft”. —FlightGlobal MORE
Nippon Cargo 747-8 strikes tail during Tokyo go around
A Nippon Cargo Boeing 747F has experienced a harsh tail strike during a go-around at Tokyo’s Narita Airport. The airframe was badly damaged, with approximately three meters of abrasion visible on the underside of the fuselage. The plane landed safely on its second attempt, and all crew were reported safe and well.—Simple Flying MORE