Airline Industry

IATA’s de Juniac resigns; former IAG boss Walsh named successor

Willie Wash, former British Airways CEO on right, image of an airplane tail from behind on right of split image. Breaking News: Walsh to take over IATA

The International Air Transport Association on Monday surprised the aviation world with the announcement that former International Airlines Group (LN: IAG) CEO Willie Walsh, one of the airline industry’s highest-profile executives, will succeed Alexandre de Juniac as director general, effective March 31.

IATA said de Juniac notified its board of governors several months ago of his intention to resign, but the news came as a shock to people in the organization and the airline industry.

Walsh, 59,...

https://www.freightwaves.com/news/breaking-iatas-de-juniac-resigns-former-iag-boss-walsh-named-successor

Korean Air takeover of Asiana to create single national carrier

An Asiana jumbo jet with white fuselage and multicolored tail lifts off from runway.

Korean Air agreed Monday to acquire a majority stake in indebted rival Asiana Airlines as part of a South Korean government effort to stabilize the nation’s aviation industry from the devastating effects of the coronavirus pandemic.

The industry consolidation is designed to increase the competitiveness of both carriers at a time of limited travel demand by streamlining route operations, lowering costs and increasing the chance to acquire more takeoff and landing slots at Incheon International...

https://www.freightwaves.com/news/korean-air-takeover-of-asiana-to-create-single-national-carrier

Atlas Air refuses to repay US bailout funds

A white jumbo jet with Atlas Air name and blue tail painted on it. on sunny day rolls down airport roadway.

Atlas Air Worldwide Holdings (NASDQ: AAWW) last week reported an eightfold increase in adjusted net income and 25% more revenue in the third quarter compared to last year, but will not return $406 million in emergency coronavirus aid the U.S. government intended for financially battered airlines to retain workers.

The all-cargo carrier and aircraft lessor fully qualified for the federal funds because there was no guarantee the airfreight market would flourish at the time, the program wasn’t...

https://s29755.pcdn.co/news/atlas-air-refuses-to-repay-us-bailout-funds

Airline group issues distress call as projected losses reach $128B

A white jet takes off with other planes sitting in the foreground and buildings from downtown Houston in the background.

The International Air Transport Association on Tuesday warned that airlines are on track to lose nearly $130 billion this year — significantly more than the group’s June estimate of $84 billion — because of the coronavirus crisis, and that the aviation and travel sectors will be crippled for a long time unless governments increase financial aid.

The trade association said member carriers will burn through $77 billion in cash during the second half of 2020, almost $13 billion per month, despite...

https://s29755.pcdn.co/news/airline-group-issues-distress-call-as-projected-losses-reach-128b

IATA cargo chief Hughes takes buyout amid downsizing

IATA cargo chief Glyn Hughes holds microphone during panel discussion at transportation conference. He is leaving IATA with a separation package.

The top cargo official at the International Air Transport Association (IATA) will exit early next year as part of a restructuring to reduce costs amid a global pandemic that has wrecked the finances of member airlines.

IATA confirmed that Glyn Hughes, the global head of cargo, and Gordon Wright, in charge of cargo border management, have accepted voluntary separation packages and will depart at the end of January.

“During this time there will be no change in the support, advice and services IATA...

https://s29755.pcdn.co/news/iata-cargo-chief-hughes-takes-buyout-amid-downsizing

Analysis: US airlines eliminate change fees — and thousands of jobs

A white United Airlines jet and silver American Airlines jet on adjacent taxiways. Airlines face a financial crisis because of COVID.

Delta Air Lines, American Airlines and Alaska Airlines (NYSE: ALK) followed United Airlines’ (NASDAQ: UAL) lead on Sunday in permanently eliminating unpopular fees for changing reservations on all but the cheapest tickets. The moves are the latest survival tactic by airlines, which are planning to involuntarily furlough tens of thousands of workers next month without further government aid.

Domestic leisure bookings marginally improved in the past week, down 52% from a year ago compared to 55%...

https://s29755.pcdn.co/news/airlines

Exclusive: Largest airline trade association to reduce workforce 20%

A big gray plane getting loaded with cargo pallets from side door with hydraulic lift on a sunny day.

Reflecting the financial distress of its airline members in the midst of the coronavirus pandemic, the International Air Transport Association is planning to reduce its worldwide staff by a fifth, a source at the trade association said.

IATA represents nearly 300 airlines operating scheduled and non-scheduled air service.

Airlines around the world are expected to lose $84 billion in 2020 and are slashing hundreds of thousands of people from payrolls. Airlines have made radical cuts to...

https://s29755.pcdn.co/news/exclusive-largest-airline-trade-association-to-reduce-workforce-20

Cathay Pacific sending planes to Australia for storage during pandemic

Staring straight ahead at a big white jet. from the front. Cathay Pacific is storing planes in sunny climates.

Cathay Pacific Airways (OTCUS: CPCAY) is sending part of its fleet overseas to ride out the coronavirus pandemic in drier locations where weather conditions are more forgiving than in humid Hong Kong.

About one-third of Cathay Pacific and Cathay Dragon aircraft will be sent to locations with drier conditions in the coming months to help keep them in optimal condition, Ronald Lam, chief customer and commercial officer, said in the August edition of the company’s cargo newsletter.

Cathay Dragon is...

https://s29755.pcdn.co/news/cathay-pacific-sending-planes-to-australia-for-storage-during-pandemic

United Airlines: Least worst is best

Two white United jets pointed nose-to-nose at each other. United Airlines is being cautious about adding aircraft to its schedule while the economy is still depressed.

When it comes to airline economics, being the least worst of the bunch is a plus. 

United Airlines (NASDAQ: UAL) executives on Wednesday took pride that the company’s record-setting second-quarter net loss was only $1.6 billion. They said the airline is outperforming big domestic competitors during the COVID crisis by better managing capacity and that stanching financial losses now is a harbinger for strong results when the economy improves. 

Last week, Delta Air Lines (NYSE: DAL) reported a $5.7...

https://www.freightwaves.com/news/united-airlines-least-worst-is-best

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