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[Homerun]

1 hour ago, Specs said:

Calin did say "eventually"

Agreed.  And he I think he said “might” as well.  But a whole bunch of websites and people have interpreted this, incorrectly imo, as a near term “will”.

[Guest]

Air Canada Completes Financing Transactions Raising Additional $1.23 Billion

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NEWS PROVIDED BY

Air Canada 

Jun 22, 2020, 16:18 ET

 

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• $840 million Second Lien Secured Notes financing with proceeds of $823 million
• US$315 million Class C Pass Through Certificates, Series 2020-1 with proceeds of US$300 million ($405 million)
• A total of $5.5 billion of liquidity raised since March 13, 2020

MONTREAL, June 22, 2020 /CNW Telbec/ - Air Canada today announced that it recently closed two additional financing transactions for net proceeds of $1.23 billion. Since the start of the COVID-19 pandemic in the first quarter of 2020, Air Canada has raised $5.5 billion of liquidity. 

On June 22, 2020, Air Canada completed a private offering of $840 million aggregate principal amount of 9.00% Second Lien Secured Notes due 2024 (the "2024 Notes"), which were sold at 98% of par. The 2024 Notes are secured obligations of Air Canada, secured on a second lien basis by certain real estate interests, ground service equipment, certain airport slots and gate leaseholds, and certain routes and the airport slots and gate leaseholds utilized in connection with those routes.

Earlier in June, Air Canada completed a private offering of one tranche of Class C EETCs with a combined aggregate face amount of approximately US$315 million, which were sold at 95.002% of par. The Class C tranche ranks junior to the previously issued Series 2015-1, Series 2015-2, and Series 2017-1 EETCs, and is secured by liens on the 27 aircraft financed under the Series 2015-1, Series 2015-2, and Series 2017-1 EETCs. The Class C EETCs have an interest rate of 10.500% per annum, and a final expected distribution date of July 15, 2026.

"The fact Air Canada was able to add $1.23 billion to its liquidity with these last two transactions without utilizing any of its previously disclosed unencumbered assets leaves the airline in an excellent position to access additional funds should the need arise. Complementing these efforts have been ongoing initiatives to reduce cash burn through such measures as workforce reductions, a $1.1 billion Cost Transformation Program and capacity and network rationalization," said Pierre Houle, Managing Director and Treasurer of Air Canada.

In addition to these more recent financings, Air Canada also concluded the following financing transactions in 2020:

• In March 2020, Air Canada drew down its US$600 million and $200 million revolving credit facilities for aggregate proceeds of $1.03 billion.
• In April 2020, Air Canada concluded a 364-day term loan in the amount of US$600 million, secured by aircraft and spare engines, for proceeds of $829 million.
• In late April 2020, Air Canada concluded a bridge financing of $788 million for 18 Airbus A220 aircraft which Air Canada expects to replace with longer-term secured financing arrangements later in 2020.
• In June 2020, Air Canada concluded an underwritten marketed public offering of 35,420,000 Class A Variable Voting Shares and/or Class B Voting Shares of the Company at a price to the public of $16.25 per share, for aggregate proceeds of $575.6 million, and a concurrent marketed private placement of convertible senior unsecured notes due 2025 for aggregate proceeds of US$747.5 million ($1.01 billion).

"We entered 2020 on the doorstep of investment grade with a very strong balance sheet, low net leverage and significant liquidity, before the COVID-19 pandemic and government-imposed quarantines and border restrictions destroyed demand and depleted cash. Air Canada's strong relative position has allowed us to navigate through this crisis and we have full confidence that we will be successful in maintaining liquidity at levels more than sufficient to meet the challenges and take advantage of the opportunities ahead. With these latest transactions Air Canada has now raised approximately $5.5 billion in 2020 and expects to end the second quarter of 2020 with at least $9 billion in liquidity," concluded Mr. Houle. 

Air Canada is utilizing the net proceeds from these transactions to supplement its working capital and for other general corporate purposes. The net proceeds from the financings will serve to increase Air Canada's cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVID-19 pandemic.

Air Canada's unencumbered asset pool (excluding the value of Aeroplan and Air Canada Vacations) amounts to approximately $2.5 billion at current exchange rates. Air Canada will continue to explore financing arrangements should additional liquidity be required or to refinance existing debt to push out maturities.

[Guest]

CANADIAN AVIATION NEWS

CANADIAN AIRLINE AND INDUSTRY NEWS

Air Canada, WestJet to drop on-board physical distancing policies

26 June 2020Canadian Aviation News

From City News 1130 – link to story

BY CHRISTOPHER REYNOLDS, THE CANADIAN PRESS | Posted Jun 26, 2020

FILE – An Air Canada flight departing for Kelowna takes off at Vancouver International Airport, in Richmond, B.C., on March 20, 2020. THE CANADIAN PRESS/Darryl DyckSUMMARY

• Air Canada, WestJet have blocked the sale of adjacent seats in economy class to help stop spread of COVID-19
• Transport Canada listed physical distancing among the ‘key points’ in preventing the spread of the virus as part of a
• Canadians are beginning to brave air travel again as confinement measures lift

MONTREAL — The country’s two largest airlines are ending their on-board seat distancing policies starting on Canada Day, raising health concerns amid a pandemic that has devastated the travel industry.

Air Canada has blocked the sale of adjacent seats in economy class, and WestJet has done the same throughout the entire plane, to help prevent the spread of COVID-19.

The carriers said Friday they will revert to health recommendations from the United Nation’s aviation agency and the International International Air Transport Association (IATA) trade group.

American Airlines also announced Friday that it will start booking flights to full capacity starting next Wednesday.

IATA called last month for an end to in-flight physical distancing rules, proposing a range of measures including some that run counter to federal government policies.

Transport Canada listed physical distancing among the “key points” in preventing the spread of the virus as part of a guide issued to the aviation industry in April.

“Operators should develop guidance for spacing passengers aboard aircraft when possible to optimize social distancing,” the document states.

‘Highlighted risks’

Some health experts have highlighted the risks of spreading COVID in crowded airports and packed cabins.

“Once it’s in the cabin, it’s difficult to stop air moving around,” said Tim Sly, an epidemiologist and professor emeritus at Ryerson University’s School of Public Health.

However Joseph Allen, director of the Harvard public health school’s Healthy Buildings program, said the HEPA air filters used on most planes effectively control airborne bacteria and viruses.

In line with federal directives, Air Canada and WestJet conduct pre-boarding temperature checks and require masks on board. They have also implemented enhanced aircraft cleaning and scaled back their in-flight service in late March, cutting out hot drinks, hot meals, and fresh food.

“The new measures will continue to build on the recommendations of ICAO [the UN’s International Civil Aviation Organization] and others that a multi-layered strategy to COVID-19 safety is most effective,” Air Canada spokesman Peter Fitzpatrick said in an email.

‘Normal online booking’

WestJet said its online booking will return to normal on Wednesday.

“Moving forward, our cabin crew are able to assist should there be space to accommodate and we encourage guests to discuss seating arrangements with them once onboard,” said spokeswoman Morgan Bell.

Canadians are beginning to brave air travel again as confinement measures lift, though Manitoba and the Maritimes still have strong restrictions on interprovincial travel in place while other provinces discourage it.

Swoop, a budget airline owned by WestJet, added eight weekly flights in June with 12 more coming in July after the carrier cut capacity to a single line of flight per day _ Halifax-Hamilton-Edmonton-Abbotsford and back.

“We’re in this minus 95 per cent mode right now,” Swoop president Charles Duncan said in an interview. “It doesn’t get much worse than this.”

Hope is on the horizon, however.

“At the height of it, it was common to have under 20 people on a plane. But from Vancouver just now I brought in 65. Earlier in the day from Edmonton to Vancouver we had over 100,” said WestJet flight attendant Chris Rauenbusch, president of CUPE Local 4070.

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[Guest]

Air Canada Further Refines Industry-Leading Bio-Safety Measures, Re-Introduces Select Services Onboard Flights

29 June 2020Canadian Aviation News

From Air Canada

Air Canada Airbus 220-300

• Flexible rebooking options for Economy Class customers booked on flights near capacity
• Touchless airport services including TouchFree Bag Check and virtual queuing at select counters
• Meals designed by Air Canada culinary panel to resume

Videos explaining measures that are part of the multi-layered Air Canada CleanCare+ bio-safety program are available online here.

MONTREAL, June 29, 2020 /CNW Telbec/ – Air Canada today announced it is advancing its industry-leading bio-safety measures by offering flexible rebooking options to Economy Class customers on flights that are close to capacity, introducing additional touchless processes at airports, and enhancing inflight service and amenities.

“As we rebuild our schedule, we are continually increasing the range of products and services available to safely and efficiently enhance our customers’ travel experience. As of July 1, we will be transparent about flights booked close to capacity in Economy Class and will provide rebooking options for customers booked on such flights.  In addition, we are introducing industry-leading, streamlined, touchless airport processes such as TouchFree Bag Check and virtual queuing, and will be resuming meals designed by our Canadian chef culinary panel. We continue to assess new bio-safety initiatives to further build on the multi-layered, bio-safety approach our best-in-class Air Canada CleanCare+ Program features to give customers confidence in a safe, secure, and enhanced travel experience with Air Canada,” said Andrew Yiu, Vice-President – Product at Air Canada.

Options for customers when Economy Class is booked close to capacity

Starting July 1, Air Canada will replace its policy of guaranteeing adjacent seats in Economy Class are empty with a new transparent process offering flexible rebooking options for customers. On flights where Economy Class is booked close to capacity, notification emails will be sent to Economy Class customers in advance of check-in and announcements will be made at the departure gate. Customers will have the option to change to another flight operating within three days or to the next available flight without additional fees.

Airports: Touchless services

Air Canada has implemented TouchFree Bag Check, an industry-leading process for all domestic flights from Toronto, Montreal, Vancouver and Calgary airports, and is now expanding this process to other select Canadian airports, as well as for customers departing on international flights. Watch a demonstration here.  

Later in July, virtual queuing will also be introduced at primary Canadian airports to more efficiently manage wait times at select counters. Customers requiring service from an airport agent can simply scan their boarding card to enter a virtual queue and they will be notified via their smartphone to proceed to the counter for assistance.

Maple Leaf Lounges are expected to begin re-opening later this summer.

Air Canada is continuing to evaluate and assess additional touchless and new bio-safety initiatives in airports to further advance efficient, safe and secure travel.

On-board: Meals developed by Canadian panel of culinary talent to resume

Beginning late July, Air Canada will resume meal service planned by its panel of celebrated Canadian chefs in Air Canada Signature Class, and for the first time, will introduce chef-designed meals in Business Class – North America. Customers travelling on international flights in Economy Class will enjoy an enhanced meal service.

Limited inflight food options in Economy Class onboard North American flights greater than two hours will be re-introduced on a pre-order basis. 

Customers will also be offered an expanded selection of alcoholic and non-alcoholic drinks adapted by cabin and route.

In addition to Air Canada CleanCare+ customer care kits containing hand sanitizer, a mask, antibacterial wipes, hand sanitizer, gloves, water bottle, headphones and a snack, additional antibacterial wipes will be available as part of each meal service and in lavatories.  Pillows and blankets will be offered again on all international flights and presented to customers wrapped and sealed.

Air Canada’s summer schedule includes nearly 100 destinations across Canada, the US and worldwide. Learn more about Air Canada’s CleanCare+ biosafety program that embed industry-leading safe practices in all stages of the airline’s operations.

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[dagger]

https://www.newswire.ca/news-releases/air-canada-discontinues-service-on-30-domestic-regional-routes-and-closes-eight-stations-in-canada-826282841.html

 

This is going to hurt - I expect a lot of communities will be voicing their concerns.

 

Air Canada Discontinues Service on 30 Domestic Regional Routes and Closes Eight Stations in Canada

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Jun 30, 2020, 11:00 ET

 

Regional flying rationalized due to COVID-19 and government travel restrictions, part of airline's Cost Reduction Program to reduce cash burn

MONTREAL, June 30, 2020  /CNW Telbec/ - Air Canada said today that it is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports in Canada.  

These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery. 

As the company has previously reported, Air Canada expects the industry's recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.

A full list of route suspensions and station closures is below.

As a result of COVID-19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of $688 million. The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which today's announced service suspensions form part. Other measures include:

• A workforce reduction of approximately 20,000 employees, representing more than 50 per cent of its staff, achieved through layoffs, severances, early retirements and special leaves; 
• A company-wide Cost Reduction and Capital Deferral Program, that has to date identified around $1.1 billion in savings; 
• A reduction of its system-wide capacity by approximately 85 per cent in the second quarter compared to last year's second quarter and an expected third quarter capacity reduction of at least 75% from the third quarter of 2019; 
• The permanent removal of 79 aircraft from its mainline and Rouge fleets; 
• And raising approximatively $5.5 billion in liquidity since March 13, 2020, through a series of debt, aircraft and equity financings.

Further initiatives are being considered.

Route Suspensions 

The following routes will be suspended indefinitely as per applicable regulatory notice requirements. Affected customers will be contacted by Air Canada and offered options, including alternative routings where available.

Maritimes/Newfoundland and Labrador: 

• Deer Lake-Goose Bay; 
• Deer Lake-St. John's; 
• Fredericton-Halifax; 
• Fredericton-Ottawa; 
• Moncton-Halifax; 
• Saint John-Halifax; 
• Charlottetown-Halifax; 
• Moncton-Ottawa; 
• Gander-Goose Bay; 
• Gander-St. John's; 
• Bathurst-Montreal; 
• Wabush-Goose Bay; 
• Wabush-Sept-Iles; 
• Goose Bay-St. John's.

Quebec/Ontario: 

• Baie Comeau-Montreal; 
• Baie Comeau-Mont Joli; 
• Gaspé-Iles de la Madeleine; 
• Gaspé-Quebec City; 
• Sept-Iles-Quebec City; 
• Val d'Or-Montreal; 
• Mont Joli-Montreal; 
• Rouyn-Noranda-Val d'Or; 
• Kingston-Toronto; 
• London-Ottawa; 
• North Bay-Toronto
• Windsor-Montreal

Western Canada: 

• Regina-Winnipeg; 
• Regina-Saskatoon; 
• Regina-Ottawa; 
• Saskatoon-Ottawa.

Station Closures

The following are the Regional Airports where Air Canada is closing its stations:

• Bathurst (New Brunswick) 
• Wabush (Newfoundland and Labrador) 
• Gaspé (Quebec) 
• Baie Comeau (Quebec) 
• Mont Joli (Quebec) 
• Val d'Or (Quebec) 
• Kingston (Ontario) 
• North Bay (Ontario)

 

 

 

Edited June 30, 2020 by dagger

[Guest]

14 minutes ago, dagger said:

https://www.newswire.ca/news-releases/air-canada-discontinues-service-on-30-domestic-regional-routes-and-closes-eight-stations-in-canada-826282841.html

 

This is going to hurt - I expect a lot of communities will be voicing their concerns.

 

Air Canada Discontinues Service on 30 Domestic Regional Routes and Closes Eight Stations in Canada

---

 

Jun 30, 2020, 11:00 ET

 

Regional flying rationalized due to COVID-19 and government travel restrictions, part of airline's Cost Reduction Program to reduce cash burn

MONTREAL, June 30, 2020  /CNW Telbec/ - Air Canada said today that it is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports in Canada.  

These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery. 

As the company has previously reported, Air Canada expects the industry's recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.

A full list of route suspensions and station closures is below.

As a result of COVID-19, Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net cash-burn in March of $688 million. The carrier has undertaken a range of structural changes including significant cost savings and liquidity measures, of which today's announced service suspensions form part. Other measures include:

• A workforce reduction of approximately 20,000 employees, representing more than 50 per cent of its staff, achieved through layoffs, severances, early retirements and special leaves; 
• A company-wide Cost Reduction and Capital Deferral Program, that has to date identified around $1.1 billion in savings; 
• A reduction of its system-wide capacity by approximately 85 per cent in the second quarter compared to last year's second quarter and an expected third quarter capacity reduction of at least 75% from the third quarter of 2019; 
• The permanent removal of 79 aircraft from its mainline and Rouge fleets; 
• And raising approximatively $5.5 billion in liquidity since March 13, 2020, through a series of debt, aircraft and equity financings.

Further initiatives are being considered.

Route Suspensions 

The following routes will be suspended indefinitely as per applicable regulatory notice requirements. Affected customers will be contacted by Air Canada and offered options, including alternative routings where available.

Maritimes/Newfoundland and Labrador: 

• Deer Lake-Goose Bay; 
• Deer Lake-St. John's; 
• Fredericton-Halifax; 
• Fredericton-Ottawa; 
• Moncton-Halifax; 
• Saint John-Halifax; 
• Charlottetown-Halifax; 
• Moncton-Ottawa; 
• Gander-Goose Bay; 
• Gander-St. John's; 
• Bathurst-Montreal; 
• Wabush-Goose Bay; 
• Wabush-Sept-Iles; 
• Goose Bay-St. John's.

Quebec/Ontario: 

• Baie Comeau-Montreal; 
• Baie Comeau-Mont Joli; 
• Gaspé-Iles de la Madeleine; 
• Gaspé-Quebec City; 
• Sept-Iles-Quebec City; 
• Val d'Or-Montreal; 
• Mont Joli-Montreal; 
• Rouyn-Noranda-Val d'Or; 
• Kingston-Toronto; 
• London-Ottawa; 
• North Bay-Toronto
• Windsor-Montreal

Western Canada: 

• Regina-Winnipeg; 
• Regina-Saskatoon; 
• Regina-Ottawa; 
• Saskatoon-Ottawa.

Station Closures

The following are the Regional Airports where Air Canada is closing its stations:

• Bathurst (New Brunswick) 
• Wabush (Newfoundland and Labrador) 
• Gaspé (Quebec) 
• Baie Comeau (Quebec) 
• Mont Joli (Quebec) 
• Val d'Or (Quebec) 
• Kingston (Ontario) 
• North Bay (Ontario)

 

 

 

Perhaps an opportunity for smaller carriers including WestJet? 

[Turbofan]

I think the message is clear.

Air Canada is not a charity.  Although they want to support their country, they can’t operate at the expense of it either. I’m pretty sure Westjet and Porter are the same.

If the Canadian government wants service that can not be profitably provided they need to step in.  Otherwise expect business to respond to losses responsibly.

Despite what Trudeau thinks, budgets don’t balance themselves.

In this environment shed the route.  Take a look at it again sometime in the future when the business case makes sense.

If government truly believes these routes are important they will act.  If they don’t?  Clearly it isn’t that important.  If it isn’t that important why is Air Canada wasting shareholder money operating it at a loss when it is bleeding cash and diluting shareholder value?

 

 

[rudder]

YOW has done ZERO for the passenger aviation industry.

Nobody should be surprised but I’ll bet JT was. La Belle Province losing network service to smaller communities. Perhaps some smaller local operators will fill the void.

[Turbofan]

Not hard to read between these lines.  Pretty sure that is for JT’s benefit.

First paragraph is why.  Second what to expect next.

These structural changes to Air Canada's domestic regional network are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 and provincial and federal government-imposed travel restrictions and border closures, which are diminishing prospects for a near-to-mid-term recovery. 

As the company has previously reported, Air Canada expects the industry's recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.

[J.O.]

Nothing the government does at this point is going to change the lack of demand - certainly not overnight. And as far as the effect their restrictions have had on the industry, yes it's very tough but I'll take our results over the disaster we're seeing south of the border right now. If I have a choice between paying more out of pocket or paying with thousands more lives and decimating our healthcare system, that's an easy one.

[dagger]

10 minutes ago, J.O. said:

Nothing the government does at this point is going to change the lack of demand - certainly not overnight. And as far as the effect their restrictions have had on the industry, yes it's very tough but I'll take our results over the disaster we're seeing south of the border right now. If I have a choice between paying more out of pocket or paying with thousands more lives and decimating our healthcare system, that's an easy one.

I think that's reasonable. I'm a supporter of the industry, but I don't think throwing massive subsidies at airlines is the way to go. The government could drop the excise tax on jet fuel, but aside from that, the chips should probably be allowed to fall where they do... even if that means higher fares, no social distancing in aircraft, routes suspended, etc. I just don't want to hear any complaints about airline prices or practices right now.

[FA@AC]

22 minutes ago, J.O. said:

Nothing the government does at this point is going to change the lack of demand - certainly not overnight. And as far as the effect their restrictions have had on the industry, yes it's very tough 

Those statements contradict each other.

[J.O.]

No they don’t. The actions already taken were necessary - and they hurt, no question. Even if they opened up travel restrictions completely, people are not going to engage in discretionary travel until there’s a treatment or a vaccine. That has nothing to do with government actions - past or future.

[Specs]

26 minutes ago, J.O. said:

Nothing the government does at this point is going to change the lack of demand - certainly not overnight. And as far as the effect their restrictions have had on the industry, yes it's very tough but I'll take our results over the disaster we're seeing south of the border right now. If I have a choice between paying more out of pocket or paying with thousands more lives and decimating our healthcare system, that's an easy one.

I remember JTs first speech to the nation on the issue and he put the fear of god in everybody by pretty much proclaiming you would probably die if you got an airplane.  He had no justification for that and I was effin furious at him and his ministers who repeated the same lines.  They could at least try to undo some of the damage they caused.  What if there is no Vaccine and life has to continue with the presence of COVID?

 

Quote

people are not going to engage in discretionary travel until there’s a treatment or a vaccine

Right now there is quite a bit the government could do to kick start the industry without bailing it completely.  Why should people have to quarantine for 14 days when they arrive in Canada when they could simply do a test upon arrival and be on their way safely.  Hire some private lab companies to test arriving passengers and split the cost between the Airline, the government and the passenger.  

 

 

[Turbofan]

12 minutes ago, dagger said:

I think that's reasonable. I'm a supporter of the industry, but I don't think throwing massive subsidies at airlines is the way to go. The government could drop the excise tax on jet fuel, but aside from that, the chips should probably be allowed to fall where they do... even if that means higher fares, no social distancing in aircraft, routes suspended, etc. I just don't want to hear any complaints about airline prices or practices right now.

In other words accept the consequences of the choices being made.  I would agree if I thought it was realistic.

One of the consequences of no support for the industry is that it forces them to shrink rapidly to stem cash burn.  When this does end, and it will, demand will almost certainly surpass supply.  From a flight operations training perspective alone it will take years to catch back up.  So three years from now politicians and the public will remember why they are paying more?  Why prices are higher than in countries that supported their industry like Europe and the US?
 

I doubt it. Instead there will be calls to bestow punishment on the industry.

[FA@AC]

10 minutes ago, J.O. said:

Even if they opened up travel restrictions completely, people are not going to engage in discretionary travel until there’s a treatment or a vaccine.

Spokespeople for the travel industry very much disagree with you.

Demand will likely remain low until there's a treatment or a vaccine, but countries that have lowered restrictions to travel are seeing tourism again.  

[Turbofan]

45 minutes ago, J.O. said:

No they don’t. The actions already taken were necessary - and they hurt, no question. Even if they opened up travel restrictions completely, people are not going to engage in discretionary travel until there’s a treatment or a vaccine. That has nothing to do with government actions - past or future.

We must remember.  We have never developed a vaccine for a cold virus.  If we do it now it will be a first.  Even if we do manage a vaccine it won’t be a cure all like Measles.  Cold virus mutate faster than flu viruses.  Just look at how good we are at keeping up with the flu. The same mutation problems impact realistic heard immunity theories.

I have two MD’s in the family.  Both are sceptical of the vaccine and herd immunity talk.
 

The good news is that a cold virus generally become less virulent as it mutates.  Assuming of course that Covid follows the usual path of a corona virus, it will run itself out.  Like SARS, H1N1, MEARS.  They are still circulating but they just don’t have the virulence to kill anymore. They are watched by researchers for any unwanted turns. That by the way is the big assumption.  Will Covid follow the path of a normal corona virus?

In the interim what is the best solution for safe normalization.  I think the EU is way out in front on this.  Doctors are not economists and can not see how economics and life expectancy are so tightly intertwined.  In fact Doctors are known to be some of the worst when it comes to finances.  Just ask a banker.  So many get themselves in trouble because they get thrown into a small business situation when they set up practice.  Something they have no training for or really even desire to be in.  The business side is an after thought.
 

There needs to be a SAFE balance.  You won’t get it from an MD.  

[Turbofan]

18 minutes ago, FA@AC said:

Spokespeople for the travel industry very much disagree with you.

Demand will likely remain low until there's a treatment or a vaccine, but countries that have lowered restrictions to travel are seeing tourism again.  

Agreed. I have seen a resurgence out west domestically in passenger loads since going to phase 3 in BC and Alberta. Even a couple of oversold flights albeit with the middle seat blocked.

For example frequencies between YVR and YYC have gone from 2/day in May. To 4/day in June. To 6/day in July.  Just looked at a few loads as well.  The limited amount I looked at were good in early July.  Surprisingly so. No wonder AC and WJ don’t want the middle seats blocked anymore.

[moeman]

41 minutes ago, FA@AC said:

Spokespeople for the travel industry very much disagree with you.

Demand will likely remain low until there's a treatment or a vaccine, but countries that have lowered restrictions to travel are seeing tourism again.  

https://hotelandtourismonline.com/2020/06/30/50-of-lufthansa-fleet-takes-back-to-the-air/

50% OF LUFTHANSA FLEET TAKES BACK TO THE AIR

30/06/2020 0 Comments

Lufthansa Group airlines have published flight schedules through the end of October, with 380 aircraft to be back in service by October.

The group’s new summer timetable was implemented in booking systems on 29 June, valid until 24 October, the end of the normal summer season, amounting to over 40% of their originally planned flight programme. By the end of October, over 90% of all originally planned short- and medium-haul destinations and over 70% of the Group’s long-haul destinations will be served again.

“Little by little, the borders open again. Demand is increasing, in the short term but also in the long term. We are therefore consistently expanding our flight schedule and our global network and pushing ahead with our restart. I am pleased that we can now offer our guests even more connections to all parts of the world with all Lufthansa Group Airlines via all hubs,” said Harry Hohmeister, Member of the Executive Board of Deutsche Lufthansa AG.

The core brand, Lufthansa, will be flying 150 frequencies on the American continent each week in summer/autumn via the hubs Frankfurt and Munich. Around 90 flights a week are planned to Asia, over 45 to the Middle East and over 40 to Africa. Flights will be resumed by October from Frankfurt to destinations including Miami, New York (JFK), Washington, San Francisco, Orlando, Seattle, Detroit, Las Vegas, Philadelphia, Dallas, Singapore, Seoul, Cancún, Windhoek and Mauritius. The service will be resumed by October from Munich: New York/Newark, Denver, Charlotte, Tokyo Haneda and Osaka.

Following the successful restart, the ramp-up of Austrian Airlines flight operations continues to proceed according to plan. From July onwards, Austria’s home carrier will fly to over 50 destinations.

SWISS will continue to extend its services from Zurich and Geneva over the coming weeks and months, adding further new destinations to its network in addition to its existing routes. SWISS will add 12 new European routes from Zurich in July. SWISS will offer 24 new European destinations from Geneva. SWISS will serve a total of 11 long-haul destinations from Zurich in July and 17 in October.

Eurowings is also significantly increasing its flight schedules for both business and leisure travellers, intending to return to 80% of its network during the course of the summer. Following the lifting of the travel warnings and restrictions, interest in holiday destinations such as Italy, Spain, Greece and Croatia in particular is growing rapidly. This is why Eurowings will be flying 30 to 40% of its flight capacity in July.

In the light of Covid-19, all procedures throughout the entire travel chain have been and will continue to be reviewed in order to guarantee the safety of passengers and crew. These are based on the latest findings and hygiene standards of experts. For the measures on the ground, Lufthansa Group airlines are working closely with airports at the home hubs and in the destination countries to ensure physical distancing and other hygiene measures. The obligation to wear a protective mask from boarding through the flight to disembarkation is a central element of the Lufthansa Group’s hygiene concept. The service on board has been redesigned taking into account the duration of the flight in order to minimise the interaction between guests and crew and to reduce the risk of infection on board.

In addition, Lufthansa is now offering its customers a convenient option at the airports in Frankfurt and Munich to have themselves tested for corona at short notice for flights abroad or a stay in Germany in order to avoid quarantine. These test centers are operated by partner companies.

To give their customers maximum flexibility in the corona crisis, the airlines of the Lufthansa Group continue to offer numerous rebooking options. All Lufthansa, SWISS and as well Austrian Airlines fares can be rebooked – including the Economy Light fare with hand baggage only. Passengers wishing to change the travel date of their existing flight can make a one-off rebooking free of charge for the same route and the same travel class. This rule applies to tickets booked up to and including 31 August 2020 with a confirmed travel date up to and including 30 April 2021. The rebooking must be made before the originally planned date of travel.

The Lufthansa Group network airlines also offer all their passengers a basic return flight guarantee on all European routes, regardless of the fare booked, thus providing additional security. In other words, they will be brought back to Germany, Austria or Switzerland with Lufthansa, Swiss and Austrian Airlines – if necessary also by special flight. Depending on the fare, an “all-round carefree package” is included in the price, covering the costs of a quarantine or medical return transport, among other things. In the “Bring me Home NOW” tariff, customers can be transported on the next bookable Lufthansa Group flight if desired.

When planning their trip, customers should take the current entry and quarantine regulations of the respective destinations into account.

 

Edited June 30, 2020 by moeman

[Turbofan]

https://www.cbc.ca/news/politics/travel-ban-extended-july-1.5632625
 

Looks like this is probably the catalyst for the AC news today.  The government’s decision  just crushed Q3.  I’m wondering how many airlines this will be the final nail for considering no aid.  I expect Transat will push its restart to the Winter season now.

Canada extends ban on most foreign travellers to at least July 31

Order requiring travellers to quarantine for 14 days on arrival also extended to end of August

 

 

 

[FA@AC]

1 hour ago, Turbofan said:

https://www.cbc.ca/news/politics/travel-ban-extended-july-1.5632625
 

I’m wondering how many airlines this will be the final nail for considering no aid.  I expect Transat will push its restart to the Winter season now.

 

 

I guess we'll find out in the coming days.  Transat's July 23 restart might still work for them since some of their pax would have booked their returns to Canada for August anyway.  Maybe it'll depend on whether their management are willing to gamble on the Canadian border closure and quarantine requirement to be allowed to expire at the end of July.

[Guest]

Chorus Aviation Comments on Air Canada’s Discontinuation of Service to Certain Regional Markets

30 June 2020Canadian Aviation News

From Chorus Aviation Inc

HALIFAX, NS, June 30, 2020 /CNW/ – Chorus Aviation Inc. (TSX: CHR) (‘Chorus’) provides the following comment on Air Canada’s announcement earlier today regarding the discontinuation of service to certain regional markets.

Air Canada has announced the discontinuation of 30 regional routes, 21 of which are operated by Jazz Aviation LP (‘Jazz’), and the closure of eight stations at regional airports, all of which are managed by Jazz. Details of the route suspensions and station closures are provided in Air Canada’s news release.

“The COVID-19 crisis and provincial and federal government-imposed travel restrictions and border closures are having a significant negative effect on passenger demand for Canadian air travel,” commented Joe Randell, President and Chief Executive Officer, Chorus.  “I am saddened by the impact today’s announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make.”

Jazz and Air Canada are parties to a capacity purchase agreement (the ‘CPA’) with a term extending through the end of 2035. Under the CPA, Air Canada purchases substantially all of Jazz’s fleet capacity and pays certain fixed margin fees, performance incentives and compensation for operating costs (including aircraft lease rents) and makes all decisions with respect to marketing that capacity. Jazz’s compensation does not vary with flight activity and remains unchanged with this announcement.

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[Guest]

Air Canada cancellations have long-term implications, says Atlantic business leader

2 July 2020Canadian Aviation News

News from CBC News – link to story

No Charlottetown-Halifax flights had been operating since April COVID-19 slowdown

Kevin Yarr · CBC News · Posted: Jul 02, 2020

With demand down in the pandemic, Air Canada has suspended 30 routes indefinitely. (Darryl Dyck/Canadian Press)

Atlantic Canada could be feeling an extended impact from Air Canada’s decision to suspend some key flights in the region, says the CEO of the Atlantic Chamber of Commerce.

Earlier this week, the airline announced it was “indefinitely suspending” 30 flight routes, including trips from Charlottetown to Halifax and vice versa. In 2019, 35,000 people flew on that route, but planes have not flown the route since early April, when restrictions related to the COVID-19 pandemic set in.

Air Canada said decreased demand due to the pandemic’s lingering impact does not support bringing the four daily round trips between Charlottetown and Halifax back in September, as the airline had originally planned.

Air connections are important for businesses in particular, says Sheri Somerville, CEO of the Atlantic Chamber of Commerce — “not just economic recovery out of COVID, but also our recovery and growth for the future of Atlantic Canada.”

The Atlantic Chamber of Commerce is hoping to work with government to find ways to help the economy in the region.

In a news release announcing the changes, Canada’s biggest airline said: “Air Canada expects the industry’s recovery will take a minimum of three years. As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate.”

With files from Lauren Toffan

 

Labrador hit hard by Air Canada cuts, as leaders question airline motives

2 July 2020Canadian Aviation News

News from CBC News – link to story

Air Canada cut 7 routes in N.L. Tuesday

CBC News · Posted: Jul 02, 2020

Wally Andersen, left, and Jordan Brown both see the loss of Air Canada as having major implications for travel to and from Labrador. (CBC)

Political leaders in the Big Land are unhappy with Air Canada’s slashing of routes to the region, saying flights will now be scarcer and more expensive, and questioning the company’s motives.

The airline announced on Tuesday it was pulling out of Wabush Airport, as well as dropping its flights from Happy Valley-Goose Bay and the island, as part of a 30-route cutback across Canada.

Air Canada’s only service to Labrador is now its flight between Goose Bay and Halifax.

“To have the mat pulled underneath our feet from Air Canada here, it’s devastating,” said Wally Andersen, the mayor of Happy Valley-Goose Bay, noting the impacts ripple out to Labrador’s north and south coasts, where people rely on travel through Goose Bay to get to medical appointments on the island.

The MHA for Labrador West echoed those concerns, with Jordan Brown calling the move “a big blow to the region.”

“We get so busy here in Lab West, especially when the mines are having any rebuilds or anything like that. So this is going to create a massive bottleneck in the availability to travel out of the region,” he said.

Both see all sorts of traffic affected, from leisure tourism to medical appointments, to construction workers commuting to jobs. With the current push for summer staycations in the province, Andersen said the Air Canada move means any extra boost of visitors to Labrador is “going to be almost impossible.”

“We went through COVID-19 and were all looking forward to opening up a little bit. But to have your travel limited, it’s not something we were looking forward to,” he said.

The Goose Bay Airport has lost all its Air Canada flights except to Halifax. (goosebayairport.com)

COVID a convenient excuse?

They also predict the price of remaining flights to and from the Big Land, already costly and in short supply, are set to skyrocket.

A regular return ticket from Goose Bay to St. John’s easily tops $1,000, with last minute flights far more than that, and Andersen is left wondering about Air Canada’s rationale for the move.

“For them to say they weren’t making money, when their planes were basically full … I question the reason why they’re pulling out of Goose Bay,” he said.

I think they used this COVID as an excuse to just cut ties altogether with the region.- Jordan Brown

Air Canada has stated the cutbacks are an attempt to staunch the financial bleeding its experienced since the start of the pandemic, as plane travel has nosedived. The carrier had a net loss of more than $1 billion in the first quarter of 2020 alone and trimmed its workforce by 20,000.

Brown shares Andersen’s skepticism, noting that Air Canada has “slowly deteriorated” the quality of its Wabush service for years, downsizing from jets to an 18-seater Beechcraft.

“I think they used this COVID as an excuse to just cut ties altogether with the region,” he said.

Wabush Mayor Ron Barron took things a step further Tuesday, telling CBC News he sees the loss as a potential ploy for Air Canada to angle for a federal bailout.

Air Canada lost more than $1 billion in the first quarter of 2020 alone. (Jonathan Dupaul/CBC)

Other airlines

Barron said he had spoken to PAL Airlines about possibly taking up some of Air Canada’s slack. PAL declined an interview with CBC, instead pointing to a statement it made on social media that did not address any future expansions.

On Facebook, PAL stated its operations “will not be affected by Air Canada’s announcement.”

Brown said he had no commitments as of yet from other carriers to step in and fill the Air Canada void in Wabush, while Andersen said regional leaders would be coming together to reach out to other airlines and advocate for more service.

Wabush Airport is still served by PAL, as well as Pascan Aviation and a few other small regional carriers. Goose Bay remains served by PAL and its subsidiary Air Borealis.

With files from Labrador Morning

[rudder]

Dear Maritime cities/towns,

Air Canada is NOT a Crown Corporation.

Suggest you contact smaller local and Provincial third tier carriers to see if specific city-city service would be financially viable.

Or contact WJ/Porter.

 

[Guest]

3 hours ago, rudder said:

Dear Maritime cities/towns,

Air Canada is NOT a Crown Corporation.

Suggest you contact smaller local and Provincial third tier carriers to see if specific city-city service would be financially viable.

Or contact WJ/Porter.

 

PAL Airlines Reaffirms Commitment to Atlantic Canadian and Quebec Markets

2 July 2020Canadian Aviation News

From PAL Airlines

ST. JOHN’S, NL, July 2, 2020 /CNW/ – PAL Airlines is reaffirming the company’s commitment of continued service to destinations in Atlantic Canada and Quebec.

“PAL Airlines knows firsthand the uncertainty COVID-19 has created in Canadian commercial aviation,” said Calvin Ash, President of PAL Airlines.  “Given recent events, we believe it is important to restate our commitment to serving our network in Atlantic Canada and Quebec and to assure our passengers that they can continue to book future travel with confidence in our airline.”

PAL Airlines maintains an extensive presence throughout Atlantic Canada and Quebec with scheduled passenger and cargo services to a variety of destinations primarily operating De Havilland Dash 8 series aircraft. 

At this pivotal time for the aviation industry, PAL Airlines is proudly delivering essential air services throughout the region and responsibly increasing capacity to meet market demand.   The airline will continue to monitor events in the market and progressively enhance scheduled services to meet community requirements.

“Throughout our history, PAL Airlines’ strength has been our ability to offer a range of services that meet the diverse needs of our customers and businesses we serve,” said Jake Trainor, CEO of the PAL Group of Companies.  “By following those principles through COVID-19, we have been able to keep flying safely at a time when our communities have needed us most.”

 

Interline Partners

PAL Airlines is pleased to offer an extensive route network throughout Eastern Canada as well as offering many great destinations beyond our network through our interline partner WestJet.

The Interline agreement between PAL Airlines and WestJet facilitates domestic travel for passengers who require flights with more than one airline to reach their final destination. It will allow passengers to travel across the domestic networks of both carriers with the convenience of a single reservation and the confidence that their itinerary includes appropriate connection times.

Please be sure to check in with the airline that is operating your flight; or if you have connecting flights, the airline that is operating the first portion of your flight as the baggage policies of the other carrier may apply. Be sure to familiarize yourself with the fees and policies of the airline that is operating your flight.

For information on WestJet baggage policies, please click here.

Please note that interline bookings between PAL Airlines and WestJet can only be made through Travel Agents and are not available for bookings through either operators website or call centre. To book your next interline flight, please contact your preferred local Travel Agent.