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21 minutes ago, FA@AC said:

Huh?  Things are nowhere near under control in the Western Hemisphere other than in Canada and several Caribbean nations.  Mexico, Brazil and Bolivia are being particularly hard hit.

Israel is a mess, as are India, South Africa and Iran.  Some countries in Europe are believed to be at the beginning of a second wave.

I do agree that Canadian quarantine requirements should be modified.

Admittedly, it's been awhile since I looked at any covid numbers, last time most places had flattened or declining. Looking at it now, and yeah, still a mess in a lot of places.  I guess what I should be alluding to is similar to the European approach, in allowing unrestricted travel to safe(r) countries.

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What troubles me with this government is I think they'd happily let AC, WJ and everyone else die so they can take green credit for it. I've never been so nauseated in my whole life with these cro

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 fast

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4 minutes ago, 330Heavy said:

I guess what I should be alluding to is similar to the European approach, in allowing unrestricted travel to safe(r) countries.

That's what AC is lobbying for.  The execs who spoke at the online town hall this morning gave no indication that our government was inclined to move in that direction at the moment, unfortunately.

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On 7/31/2020 at 8:40 PM, FA@AC said:

That's what AC is lobbying for.  The execs who spoke at the online town hall this morning gave no indication that our government was inclined to move in that direction at the moment, unfortunately.

I'm not sure it's a good idea myself because I have little faith in the premiers of three of our four largest provinces making the rapid adjustments necessary. Look at Australia for how to react to a spike The state of Victoria has just moved into a lockdown far more severe than what we experienced in Quebec, Ontario and Alberta where it's more important to open bars than schools. And enforcement in Australia is severe enough to cause those people who want to throw huge parties that ignore all the rules to think twice. I'm also not confident the Europeans can hold the dike much longer. And the US is a total sh-show and getting worse.

https://twitter.com/meridithmcgraw/status/1289911092001611777

If I were the feds, I'd bite there bullet now - offer the airlines interest free loans to pay off all of the vouchers (that assuages the public) and offer the airlines a rebate of excise fuel taxes in exchange for part of the soon to be massive tax loss carry forwards. That would do two things - future bookings would be entirely in cash , because the voucher overhang is eliminated, and the airline will be paying income tax sooner because of the excise tax rebate, but they only pay, of course, when profitable. The excise tax rebate swap was used decades ago - I think we have to go back 30 years or so - maybe Fido has a recollection of how that worked. I believe the airlines had the opportunity to repay the fuel tax and reclaim their tax loss carry forwards. 

My view is that governments screw up as soon as new case counts drop - people start bending or ignoring the rules, letting their guard down, and government don't clamp down to keep the virus in check - rather, they give in, opening things up more and more - bars, indoor dining - sending the wrong message and failing to enforced even the reopening guidelines they expect us to follow. Yes, it's not the way I'd do it. 

https://apnews.com/d175ea6f7cb41468cd19d5255908d3a7

Edited by dagger
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3 hours ago, dagger said:

I'm not sure it's a good idea myself because I have little faith in the premiers of three of our four largest provinces making the rapid adjustments necessary. Look at Australia for how to react to a spike The state of Victoria has just moved into a lockdown far more severe than what we experienced in Quebec, Ontario and Alberta where it's more important to open bars than schools. And enforcement in Australia is severe enough to cause those people who want to throw huge parties that ignore all the rules to think twice. I'm also not confident the Europeans can hold the dike much longer. And the US is a total sh-show and getting worse.

I think we're all happy to keep the curtain to the US closed for now.  The situation in Europe is certainly concerning, but I do wonder if there's an approach in between doing away with Covid-related border restrictions entirely as some EU nations have done and retaining a 14 day quarantine requirement for everyone regardless of travel history and health status.  Iceland has been testing arriving travellers at the airport and releasing them from quarantine when a negative test result is received.  I think that's the kind of approach the industry here is suggesting.

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3 hours ago, dagger said:

I'm not sure it's a good idea myself because I have little faith in the premiers of three of our four largest provinces making the rapid adjustments necessary. Look at Australia for how to react to a spike The state of Victoria has just moved into a lockdown far more severe than what we experienced in Quebec, Ontario and Alberta where it's more important to open bars than schools.

Curious though why you left BC out of your rant re bars?  B.C. and Alberta are reopening bars and restaurants very soon —  https://www.thestar.com/business/2020/05/11/some-provinces-will-soon-allow-restaurants-and-bars-to-reopen-but-some-business-owners-say-theyd-rather-wait.html

 

https://nowtoronto.com/news/coronavirus-which-provinces-reopening-canada

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It is reported that the highest rate of transmission is found in enclosed spaces where people both eat and drink....bars; restaurants; wedding venues etc. Once infected, of course, those individuals become potential carriers to others not engaging in such activities but insufficiently vigilant.

Commercial carriers are unfortunately driven ( understandably) by the search for revenue. No one is flying in AC "J" because the premium for the seat without service is too high. Solution? Resume service in  "J" and hope for the best. Bottom line, when that asymptomatic infected individual lowers his/her mask to sip on that glass of wine, the neighbouring pax doing the same is exposed.

 

How can that be a good thing?

If air travel is necessary intended to get from A to B safely and quickly....masks ALL the time at the very least and to hell with service. Lower the fares!

Dagger wouldn't rely on Premiers to do the " right thing". I wouldn't rely on almost any private commercial enterprise to do the " right thing".

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12 minutes ago, UpperDeck said:

 I wouldn't rely on almost any private commercial enterprise to do the " right thing".

Dito.

Letting the IATA and/or airline industry lead on this issue would be a conflict of interest. Commercial interests shouldn't trump science or the recommendations of the professionals counseling the government.

Cases are up again in Spain and France, in South America cases are exploding...

In the US, they even have a summer camp where 260 kids are infected (the group that seemed immune previously).

https://www.ctvnews.ca/health/coronavirus/coronavirus-infected-260-children-and-staff-at-georgia-sleep-away-camp-cdc-says-1.5048666

 

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On 7/31/2020 at 8:40 PM, FA@AC said:

That's what AC is lobbying for.  The execs who spoke at the online town hall this morning gave no indication that our government was inclined to move in that direction at the moment, unfortunately.

Politically speaking, anything less than keeping up a full quarantine will bring the minority government down.   If it were a majority government I'm almost certain we be easing travel restrictions. 

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1 hour ago, Specs said:

Politically speaking, anything less than keeping up a full quarantine will bring the minority government down.   If it were a majority government I'm almost certain we be easing travel restrictions. 

Not sure that would bring the minority gov. down as long as they keep dishing out deficit cash.  There are not enough united voters in the airline industry to influence the other parties to vote against our present government. As far as the general public, putting off vacation flights is not exactly their major concern at this time. The only possible reason for a early election is the Liberals saying good by to Justin, and calling a snap election with the hope of hanging onto power because the opposition is so divided that there is no way that the Liberals would not gain a majority.  Of course I have been very wrong before.   And this time around, I surely hope I am. 😄

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On 8/2/2020 at 12:35 PM, dagger said:

I'm not sure it's a good idea myself because I have little faith in the premiers of three of our four largest provinces making the rapid adjustments necessary. Look at Australia for how to react to a spike The state of Victoria has just moved into a lockdown far more severe than what we experienced in Quebec, Ontario and Alberta where it's more important to open bars than schools. And enforcement in Australia is severe enough to cause those people who want to throw huge parties that ignore all the rules to think twice. I'm also not confident the Europeans can hold the dike much longer. And the US is a total sh-show and getting worse.

https://twitter.com/meridithmcgraw/status/1289911092001611777

If I were the feds, I'd bite there bullet now - offer the airlines interest free loans to pay off all of the vouchers (that assuages the public) and offer the airlines a rebate of excise fuel taxes in exchange for part of the soon to be massive tax loss carry forwards. That would do two things - future bookings would be entirely in cash , because the voucher overhang is eliminated, and the airline will be paying income tax sooner because of the excise tax rebate, but they only pay, of course, when profitable. The excise tax rebate swap was used decades ago - I think we have to go back 30 years or so - maybe Fido has a recollection of how that worked. I believe the airlines had the opportunity to repay the fuel tax and reclaim their tax loss carry forwards. 

My view is that governments screw up as soon as new case counts drop - people start bending or ignoring the rules, letting their guard down, and government don't clamp down to keep the virus in check - rather, they give in, opening things up more and more - bars, indoor dining - sending the wrong message and failing to enforced even the reopening guidelines they expect us to follow. Yes, it's not the way I'd do it. 

https://apnews.com/d175ea6f7cb41468cd19d5255908d3a7

If we had a crystal ball and it said we will be dealing with Covid for years.

Then what?

I don't think we have our heads wrapped around how long this will be.  That a vaccine for a cold virus has never been successful.  Even if we are successful the vaccines effectivity will likely be limited as Corona viruses mutate faster than the flu.  Much faster.

So how would we handle this if we knew it would be years?  That is what we should be doing.

 

Who warns of no silver Bullet.

 

https://www.google.com/amp/s/www.bbc.com/news/amp/world-53643455

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There is no scenario for managing this situation that doesn’t lead to economic hardship. Opening things up causes massive strain on health care systems and as more people get sick, the desire to travel and intermingle with our fellow citizens will wane anyways. Maintaining a tighter rein on things keeps more people alive but still causes economic hardship.
 

If you were deciding, would you want to be considered responsible for more deaths, or fewer? Ask Trump how that’s going. Whether he’s truly responsible for it or not is irrelevant, the captain carries the can for the success or failure of the mission. He’s the Francesco Schettino of coronavirus leadership. 

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1 hour ago, J.O. said:

There is no scenario for managing this situation that doesn’t lead to economic hardship. Opening things up causes massive strain on health care systems and as more people get sick, the desire to travel and intermingle with our fellow citizens will wane anyways. 

No one is suggesting we follow Trump.

This is the question I asked.  How would you handle this if you knew it would be years?
 

You pointed out one example.

The Health Care system is a choke point and a key problem.  If Health Care is over run the death toll jumps rapidly.  One of the WHO’s recommendations is increased resources for health care.  Planning is based on a historical percentage of the population that needs hospitalization at any given time.  That historical average is not going to serve us adequately during a Pandemic. If you create more room at the choke point, the death toll remains low even if more people get sick.  Of course this takes time and money.  But less money than a shutdown.

Heard anyone take the WHO’s suggestion to heart that we need to plan for a hospitalization rate higher than current?  That we shouldn’t probably have used a historical average in the first place? This problem is particularly acute in the states because of their system.

 

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https://www.bnnbloomberg.ca/sweden-unveils-promising-covid-19-data-as-new-cases-plunge-1.1471871
 

Sweden is interesting.  Highly criticized for not implementing a lockdown and having a higher death rate as a result.  Defenders of the position was to get Covid over and done with.  Death rates would equalize with other countries over the long run,  as those countries experienced more waves.
 

We may find our fortunes in Canada reversed in the not too distant future.  A successful lock down may leave our population susceptible to infection as the US reaches higher immunity levels faster.  I am not talking about herd immunity.  Herd immunity takes much higher percentages. If 25% of a population has antibodies then the strain on health care drops by 25%.  All the countries that have been hit hard on the first go around with Covid will have an advantage moving forward.

In Canada exposure is thought to be around 1%.  We may be like the three little pigs, very happy with ourselves that we saw the wolf, way off in the distance early.  Problem is the wolf is now just sitting outside.  Waiting for us to emerge.
 

This is a marathon.  Long range thinking needs to be used.  Long range outcomes optimized.   The most successful outcomes could very well be in those countries that manage the spread just below their Health care systems capacity.  Those that get overwhelmed will be hit hard.  Those Countries that play it too safe may be simply kicking the risk down the road, not eliminating it.  Worse they could be adding other collateral damage in the delay.

Of course we will only truly know in hindsight.

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I guess the elephant in the room is..... what level of travel in Canada is essential to the prosperity of Canada and the supply of services and then what is also necessary vs nice re other air travel? Are overseas travel necessary or nice, is vacation travel outside of Canada, necessary or nice. (Cancun or Kelowna,  Rome or Quebec city) ...   I guess we will find out.

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10 hours ago, Turbofan said:

https://www.bnnbloomberg.ca/sweden-unveils-promising-covid-19-data-as-new-cases-plunge-1.1471871
 

Sweden is interesting.  Highly criticized for not implementing a lockdown and having a higher death rate as a result.  Defenders of the position was to get Covid over and done with.  Death rates would equalize with other countries over the long run,  as those countries experienced more waves.
 

We may find our fortunes in Canada reversed in the not too distant future.  A successful lock down may leave our population susceptible to infection as the US reaches higher immunity levels faster.  I am not talking about herd immunity.  Herd immunity takes much higher percentages. If 25% of a population has antibodies then the strain on health care drops by 25%.  All the countries that have been hit hard on the first go around with Covid will have an advantage moving forward.

In Canada exposure is thought to be around 1%.  We may be like the three little pigs, very happy with ourselves that we saw the wolf, way off in the distance early.  Problem is the wolf is now just sitting outside.  Waiting for us to emerge.
 

This is a marathon.  Long range thinking needs to be used.  Long range outcomes optimized.   The most successful outcomes could very well be in those countries that manage the spread just below their Health care systems capacity.  Those that get overwhelmed will be hit hard.  Those Countries that play it too safe may be simply kicking the risk down the road, not eliminating it.  Worse they could be adding other collateral damage in the delay.

Of course we will only truly know in hindsight.

The jury is still out on whether or not having had Covid19 will prevent further infections. Herd immunity requires that infected people become immune for that to be the case... Until that is determined, who knows what is the best strategy...

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Why worry, Russia already has a vaccine...

 

NIZHNY NOVGOROD, August 1. /TASS/. Clinical trials of a coronavirus vaccine developed by the Gamaleya Scientific Research Institute of Epidemiology and Microbiology are over, Russian Health Minister Mikhail Murashko told reporters on Saturday.

"Clinical trials of a coronavirus vaccine developed by the Gamaleya center are over, paperwork is underway for the vaccine’s registration," he pointed out.

The health minister added that another vaccine, developed by the State Research Center of Virology and Biotechnology Vector, was going through clinical trials. In addition, the Health Ministry expects that developers of two more vaccines will request permission to start clinical trials on volunte

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I don't imagine many tourists will take advantage of these flights due to Canada's status as Medium Risk, I see even if you pass the test, you will be subject to "Limited Travel" whatever that means..  Perhaps passengers will mostly be people taking advantage of being able to visit relatives.

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Airlines Resume Routes as Caribbean Borders Reopen

AIRLINES & AIRPORTS  BRIAN MAJOR  AUGUST 05, 2020

 
 

Near Crater Lake in Grenada PHOTO: Air Canada this week resumed flights to Grenada. (photo by Brian Major).

Caribbean air service is expanding as destinations slowly re-open their borders to international visitors and regional carriers launch new intra-Caribbean service.

Grenada Tourism Authority officials this week announced Air Canada will resume service to the tri-island nation beginning August 10. Weekly flights will depart Mondays from Toronto Pearson International Airport at 9:00 a.m. and arrive at Grenada’s Maurice Bishop International Airport at 2:05 p.m.

 

Return flights will depart Grenada at 3:00 p.m. and arrive in Toronto at 8:25 p.m. The scheduled flights will utilize Air Canada’s core aircraft as opposed to the Rouge subsidiary jets used in past service to the destination.

 
 

Canada is included among Grenada’s “medium risk” countries due to “active but manageable” COVID-19 transmission. Visitors traveling from such destinations are nevertheless required to “agree to and observe” mandatory protocols prior to booking and on arrival to the island, said GTA officials.

Grenada began a phased re-opening on July 15, and categorizes visitors as low, medium or high-risk, for the purposes of entry. The Ministry of Tourism and Civil Aviation has detailed the protocols for travelers into Grenada in an official comprehensive document for each of the three categories.

“This is a huge step for Pure Grenada, as we continue to observe a measured approach to reopening the destination to international travelers,” said Patricia Maher, GTA’s CEO. “As one of our key source markets, we are pleased to know that we will be able to welcome back visitors from Canada,” she said.

“While we are happy to have visitors explore our vibrant culture and immersive activities, we encourage all travelers to be mindful and ensure they adhere to the current advisories,” Maher added.

Meanwhile, Turks & Caicos-based interCaribbean [cq] Airways on Tuesday launched new regional flights from Barbados' Grantley Adams International Airport to Grenada, St. Lucia, St. Vincent and the Grenadines and Dominica.

The carrier’s expanded Eastern Caribbean routes will “give connective travel to the existing 22 cities served by interCaribbean across its Pan-Caribbean network,” said company officials in a statement.

Barbados is fortunate that interCaribbean has been chosen as its southern hub with a view to expansion and the establishment of headquarters in the future,” said Mia Mottely, Barbados’ prime minister. Barbados officials recently met with “with a number of airlines who have expressed interest in operating in the eastern and southern Caribbean,” Mottley said, prior to this week’s announcement.

Trinidad-based Caribbean Airlines recently launched service to the Eastern Caribbean from Barbados. The carrier is currently operating between Barbados to St. Vincent and the Grenadines and Grenada. Other destinations will be added once regulatory approvals are received, said company officials.

Earlier this year, Caribbean Airlines acquired additional aircraft and resources to broaden its Eastern Caribbean routes, said Garvin Medera, the airline’s CEO.

“Regionally and internationally, there is a lot to restart, and subject to regulatory approvals Caribbean Airlines is resuming our 2020 plans to expand routes in the Eastern Caribbean,” Medera said.

Meanwhile, major carriers are also adding flights to destinations across the Caribbean as borders re-open. American Airlines resumed eight routes from Miami in early July, including service to Santo Domingo, Santiago, Punta Cana and Puerto Plata in the Dominican Republic and Port-au-Prince, Haiti. American also resumed flights to Eleuthera, Georgetown, Exuma and Nassau in The Bahamas.

The carrier will re-launch service to Saint Lucia, Aruba, St Vincent, St Maarten and Providenciales in Turks and Caicos in the coming weeks, according to a Caribbean Journal report.

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The new Aeroplan loyalty program has been revealed, and it’s a complete overhaul


Tue Augt 11, 2020 - The Globe and Mail
by Barry Choi

When Air Canada announced it was launching its own loyalty program, many travellers were worried about a devaluation coming to existing points in the current Aeroplan program, but the changes coming should get you excited to fly again. After a slight delay due to the global pandemic, the new loyalty program has been revealed, and it’s a complete overhaul. Here’s what you can expect from Air Canada’s Aeroplan, which soft launches on Nov. 8 with a full rollout in 2021.

Say goodbye to Aeroplan.com
While the name Aeroplan isn’t changing, the website will eventually be taken offline. All reservations will ultimately be done on Aircanada.com or through the Air Canada app. This will be convenient for users because they can search for redemptions and see the cash fare simultaneously. Going forward, you’ll earn and redeem Aeroplan points instead of Aeroplan miles.

When searching for routes, you'll now be presented with more than 100 options so you can find what's ideal for you, and there will be filters available, such as preferred airline, cost, points required, length, etc., to make searching and selecting easier.

Every seat is now available on Air Canada flights
Under the old Aeroplan program, there was a limited number of seats available for award redemptions. When using the fixed reward chart, this forced people to choose less than ideal flights and/or times. Now, points can be redeemed for any seat that's available on Air Canada, including business and premium economy.

Aeroplan partner airlines will continue to have a limited number of seats available for redemption, but they'll have a fixed price for reward seats regardless of the time of the year or popularity of the route.

Dynamic pricing for Air Canada flights
While most of the changes with the new Aeroplan are positive, there's one thing that will likely annoy people. When booking a reward flight on Air Canada, dynamic pricing will apply. That means popular routes or dates will cost more points. On the flip side, travelling during off-peak times will cost fewer.

To help you plan, Aeroplan has a points prediction tool that will estimate the range of points needed to redeem a flight. Dynamic pricing is something many airline rewards programs have been moving towards, so it's no surprise that this has been introduced.

No more carrier surcharges
One of the biggest complaints under the old Aeroplan was that Air Canada and many of its partners charged hefty carrier surcharges. For example, if you wanted to redeem your miles for a flight to Germany on Air Canada, you would be hit with more than $900 in fees. Paying for an economy seat ticket was often similar in price, but you wouldn’t have to use your miles.No more carrier surcharges

In a surprising move, Air Canada has removed this fee for all carriers (though taxes and third-party fees still apply), but there is a C$39 fee when booking with partner airlines. There’s now no need to find routing with a partner airline that gave you a less than ideal itinerary just to save cash. Although it may cost you more points to redeem a flight, the savings you get from not paying surcharges make it a pretty good trade-off.

A new redemption chart
Forget what you know about the old Aeroplan flight reward chart – everything has been revamped. There are now four zones: North America, South America, Atlantic (includes Europe, Africa, and the Middle East), and Pacific. Each zone has different distance bands based on miles travelled, so the number of points for a free flight now depends on which zone you’re flying to, how far the distance is in miles, and which carrier you’re using.

This new chart creates some sweet spots that can be beneficial for travellers. For example, flying one way to Tokyo from Vancouver or Calgary in business class will cost you as little as 55,000 points. Under the old plan, it would have required 75,000 miles. Alternatively, a return flight to New York from Toronto will now cost you as little as 12,000 points. That’s 3,000 fewer miles than before.

Share your points with family and friends
One new feature that eliminates a previous pain point is the ability to pool your points with family and friends. You can now essentially combine your points into a single group of up to eight people.

You join the group with your points, which can be used immediately. When making redemptions within the group, points are taken out at a ratio that corresponds to how many points you have.

Let's say you're in a group of two, and one member has 60 per cent of the points while the other has 40 per cent. If you're redeeming 10,000 points, the split would be 6,000/4,000 between the two of you. Group members would also be able to share preferred redemption pricing as long as one of the members has Elite Status or is a primary Aeroplan credit cardholder.

But once you join, you can’t leave for three months. As soon as you’re out, you can’t join another group for six months. Your individually-earned points leave with you.

New Aeroplan credit cards coming
TD, CIBC and American Express will continue to issue different tiers of co-branded Aeroplan credit cards. Although each issuer will be different, the benefits provided will be similar, so look out for free checked bags, preferred redemption rates, lounge access, priority services and more. These new cards are launching in November, and there's expected to be some generous offers to entice people to sign up at that time.

Even more improvements
Other things that are coming include points earned on every flight, micro-redemptions starting as low as 1,000 points, improved elite status, and the ability to use points plus cash to make redemptions. The Aeroplan eStore will also see an improvement with more partners, higher earn rates, new hotels available, and more. For the full details of the new Aeroplan, visit http://www.aircanada.com/aeroplan.

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Chorus Aviation announces second quarter 2020 financial results and market update

August 12th, 2020

 

Recent Highlights

  • Net income of $29.2 million, or $0.18 per basic share; a period-over-period decrease of $9.7 million due to the global economic impact of COVID-19 on its results, partially offset by a change in unrealized foreign exchange of $6.3 million.
  • Adjusted net income1 of $21.6 million, or $0.13 per basic share; a decrease of $2.5 million quarter-over-quarter due to the economic impact of COVID-19 noted above.
  • Adjusted EBITDA1 of $91.0 million; an increase of $5.3 million over second quarter 2019 primarily generated by the growth in aircraft leasing.
  • Liquidity, inclusive of available credit, was $189.0 million as at June 30, 2020.
  • Aircraft transactions completed post the second quarter further increased liquidity by $39.0 million, bringing total liquidity to $228.0 million.
  • Third-party leasing revenue collected in July grew to 38%, up from approximately 28% in June 2020.

HALIFAX, NS, Aug. 12, 2020 /CNW/ – Chorus Aviation Inc. (‘Chorus’) (TSX: CHR) today announced second quarter 2020 financial results and an update on the impact of COVID-19.

"The global aviation industry continues to be significantly challenged by the effects of the COVID-19 epidemic. Our focus remains on ensuring the safety of our employees and passengers and maintaining ample liquidity.  The team has dramatically reduced costs, curtailed capital investment and raised new funding. With $228 million in liquidity, we are well positioned to manage through an extended recovery period and to participate in the growth of the aviation industry in the future," stated Joe Randell, President and Chief Executive Officer, Chorus.

"The COVID-19 crisis, provincial and federal government-imposed travel restrictions and border closures continue to have a devastating effect on passenger demand for Canadian air travel. While these may have been necessary in the beginning, Canada’s federal and interprovincial travel restrictions are now one of the most severe in the world.  The mandatory two-week quarantine requirement in Nova Scotia, as an example, makes doing business very difficult.  The Canadian and provincial governments need to look to other G20 countries that have implemented safe, thoughtful, practical and science-based approaches to strategically easing travel restrictions in order to enable business and economies to restart and succeed within this new normal. Unlike other countries, Canada has not provided sector support to the aviation industry."

"Since the start of this crisis, we’ve had to make very difficult but necessary decisions, including the reduction to our workforce by approximately 65%, or almost 3,200 employees. At the end of the second quarter, Air Canada announced the discontinuation of 21 Air Canada Express regional routes operated by Jazz, and the closure of eight Jazz-managed stations at regional airports.   I am saddened by the impact these service cancellations have on our employees, suppliers and the affected communities many of which have lost their only link to Canada’s domestic and global air service networks.  These are unprecedented times; I respect and understand the tough choice our partner, Air Canada, has had to make. Without regional air service, many businesses, academia and tourism operators will struggle. Action needs to be taken by government to ensure Canada has an efficient and accessible air transportation network across our vast country."

"While the industry remains challenged and fragile, we are encouraged by some positive signs of a resurgence.  As expected, regional aircraft have been affirmed as fundamentally important to most countries’ domestic transportation networks.  Regional aviation is generally resuming flying earlier and at a quicker pace than long-haul travel.  For example, in the second quarter our Air Canada Express operation flew approximately 9% of the block hours flown in the same period last year; however, we expect this to increase to be between 20% and 30% for the balance of this year compared to 2019. Approximately 50% of our third-party leased fleet is now flying with the number of flight hours up from the low points of this past spring."

"The prolonged uncertainty and instability triggered by the pandemic has caused most aircraft lessors around the world to provide rent deferrals to lessees and to review asset valuations.  Our assessment of the economic impact of COVID-19 on Chorus Aviation Capital’s overall leasing portfolio with a net book value of $1.5 billion, led to a non-cash impairment provision of $9.5 million in the quarter, representing less than 1% of Chorus’ leased aircraft portfolio." 

"Overall, our portfolio of leased aircraft is holding up well.  Approximately 28% of lease revenue was collected in the second quarter and subsequently increased to approximately 38% in July. Although the industry remains under significant stress, we are encouraged by the improving traffic trends and the utilization of regional aircraft when compared with other aircraft types."

"We recognize the revitalization of the regional sector will be protracted, sporadic and will extend well into 2021 and beyond. We are taking all reasonable measures to protect and preserve our company and the value we’ve created for our shareholders. I extend my gratitude to all our employees who have done tremendous work to ensure we weather this crisis.  Their continued commitment, resilience and focus on safety have been critical," concluded Mr. Randell.

Second Quarter Summary

In the second quarter of 2020, Chorus reported adjusted EBITDA of $91.0 million, an increase of $5.3 million over the second quarter of 2019.

The Regional Aircraft Leasing segment’s adjusted EBITDA increased by $8.2 million primarily related to the growth in aircraft earning leasing revenue partially offset by a $1.1 million expected credit loss provision related to management’s assessment of its lessees’ credit risk.

The Regional Aviation Services segment’s adjusted EBITDA decreased by $2.9 million. The second quarter results were impacted by:

  • a reduction in other revenue due to a decrease in third-party maintenance, repair and overhaul (‘MRO’) activity, lower aircraft part sales, and reduced contract flying in Voyageur due to the economic impact of COVID-19;
  • decreased capitalization of major maintenance overhauls on owned aircraft operated under the capacity purchase agreement (‘CPA’) between Jazz and Air Canada of $2.9 million over the previous period; and
  • expected credit loss and inventory provisions of $1.3 million in Voyageur; partially offset by
  • decreased stock-based compensation of $2.6 million due to the change in the Share price inclusive of the change in fair value of the Total Return Swap;
  • increased aircraft leasing under the CPA; and
  • decreased general administrative expenses.

Adjusted net income was $21.6 million for the quarter, a decrease of $2.5 million due to:

  • an increase in depreciation of $5.9 million primarily related to additional aircraft in the Regional Aircraft Leasing segment;
  • an increase in net interest costs of $3.2 million primarily related to the 5.75% Unsecured Debentures, the unsecured revolving credit facility and additional aircraft debt in the Regional Aircraft Leasing segment; and
  • a decrease of $1.8 million due to a loss of $0.4 million versus a gain of $1.4 million on disposal of property and equipment; partially offset by
  • a $5.3 million increase in adjusted EBITDA as previously described;
  • a $2.5 million decrease in income tax expense resulting from a reduction in EBT1 combined with a decrease in certain provincial tax rates and non-deductible expenses of $5.0 million offset by a tax recovery on adjusted items of $2.5 million; and
  • a decrease of $0.6 million in realized foreign exchange and unrealized foreign exchange losses on working capital.

Net income decreased $9.8 million due to the previously noted $2.5 million decrease in adjusted net income, $9.5 million on impairment provisions and $8.0 million on lease repossession costs; offset by the change in net unrealized foreign exchange on long-term debt of $6.3 million, tax recovery on adjusted items of $2.5 million and decreased employee separation program costs of $1.4 million.

Year-to-date Summary

Chorus reported adjusted EBITDA of $179.6 million year-to-date, an increase of $19.2 million over 2019.

The Regional Aircraft Leasing segment’s adjusted EBITDA increased by $24.7 million which was primarily due to the growth in aircraft earning leasing revenue partially offset by a $1.1 million expected credit loss provision related to management’s assessment of its lessees’ credit risk.

The Regional Aviation Services segment’s adjusted EBITDA decreased by $5.5 million. The 2020 results were impacted by:

  • a reduction in other revenue due to a decrease in third-party MRO activity, lower aircraft part sales, and reduced contract flying in Jazz and Voyageur due to the economic impact of COVID-19;
  • decreased capitalization of major maintenance overhauls on owned CPA aircraft of $1.3 million over the previous period; and
  • expected credit loss and inventory provisions of $1.3 million in Voyageur; partially offset by
  • decreased stock-based compensation of $5.2 million due to the change in the Share price inclusive of the change in fair value of the Total Return Swap and
  • increased aircraft leasing under the CPA.

Adjusted net income was $45.5 million year-to-date, an increase over 2019 of $2.9 million due to:

  • a $19.2 million increase in adjusted EBITDA as previously described;
  • a decrease in income tax expense of $2.9 million resulting from a reduction in EBT combined with a decrease in certain provincial tax rates and non-deductible expenses of $5.9 million offset by a tax recovery on adjusted items of $3.0 million; and
  • a decrease of $2.0 million in realized foreign exchange and unrealized foreign exchange losses on working capital; partially offset by
  • an increase in depreciation of $11.7 million primarily related to additional aircraft in the Regional Aircraft Leasing segment and impairment on aircraft;
  • an increase in net interest costs of $7.6 million primarily related to additional aircraft debt in the Regional Aircraft Leasing segment, the 5.75% Unsecured Debentures and the unsecured revolving credit facility; and
  • a decrease of $1.8 million due to a loss of $0.4 million versus a gain of $1.4 million on disposal of property and equipment.

Net income decreased $60.5 million over 2019 due to the change in net unrealized foreign exchange on long-term debt of $48.8 million, $15.5 million on non-cash impairment provisions, $2.0 million on lease repossession costs net of the Flybe security package recovered, and increased employee separation program costs of $2.1 million; offset by the previously noted increase of $2.9 million in adjusted net income, tax recovery on adjusted items of $3.0 million and decreased signing bonuses of $2.0 million related to the Jazz pilot collective agreement

https://chorusaviation.com/chorus-aviation-announces-second-quarter-2020-financial-results-and-market-update/

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1 hour ago, Turbofan said:

Dr. Theresa Tam presents pair of infection-rate scenarios, warns of COVID-19 cases continuing into 2022

https://www.theglobeandmail.com/canada/article-dr-theresa-tam-presents-pair-of-infection-rate-scenarios-warns-of/

Dr. Tam has stated in the past that a 14 day quarantine will remain a vital part of Canada’s Covid strategy.  
 

Can any Canadian airline survive for 2 years under these rules?

 

Fixed the link

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I think areas like rapid testing and effective therapeutics/treatments will have a significant impact sooner than a vaccine which may not be available to enough people much before mid-2021, if not the fall of 2021.

Here's some good news that has potential applicability for the airline industry. A quick saliva test. It's not even unthinkable that Transport Canada could licence a lab to set up a facility at each major airport so inbound travellers can get a test result while they wait. I'd think an hour would likely be sufficient. It could also benefits schools, workplaces, etc big time. Every student could be tested a few times a week. The best part of all  - it's simple and cheap. You just spit in the little tube.

The test has a 90% accuracy rate, so if you test positive, and have no symptoms, you would be retested immediately and if that comes up positive, you'd likely be sent for a conventional COVID nasal test. Widespread use of this test would also reduce pressure on labs processing nasal swab tests, so those results would be available at most, within 6-24 hours.

Thank you, NBA

https://financialpost.com/pmn/business-pmn/yales-covid-19-saliva-test-used-in-nba-gets-fda-ok-for-emergency-use

 

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34 minutes ago, dagger said:

I think areas like rapid testing and effective therapeutics/treatments will have a significant impact sooner than a vaccine which may not be available to enough people much before mid-2021, if not the fall of 2021.

Here's some good news that has potential applicability for the airline industry. A quick saliva test. It's not even unthinkable that Transport Canada could licence a lab to set up a facility at each major airport so inbound travellers can get a test result while they wait. I'd think an hour would likely be sufficient. It could also benefits schools, workplaces, etc big time. Every student could be tested a few times a week. The best part of all  - it's simple and cheap. You just spit in the little tube.

The test has a 90% accuracy rate, so if you test positive, and have no symptoms, you would be retested immediately and if that comes up positive, you'd likely be sent for a conventional COVID nasal test. Widespread use of this test would also reduce pressure on labs processing nasal swab tests, so those results would be available at most, within 6-24 hours.

Thank you, NBA

https://financialpost.com/pmn/business-pmn/yales-covid-19-saliva-test-used-in-nba-gets-fda-ok-for-emergency-use

 

I think that is good news, however I would set up the airport testing for passengers prior to departure...domestic and international.

Much better to head it off in a travellers home area before they subject the flight crew and other passengers to the risk.

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1 hour ago, FireFox said:

I think that is good news, however I would set up the airport testing for passengers prior to departure...domestic and international.

Much better to head it off in a travellers home area before they subject the flight crew and other passengers to the risk.

That would of course work for purely domestic flights but I would bet the procedure would never be world wide for international flights or indeed allowed if an airline wanted to perform the tests so it should also be mandatory for all inbound flights so as to check the spread of any travel related contagion.  

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Alternatives exist for safe travel but the Canadian government and the other 10 Provinces and Territory need to be willing.  They are not.  At least not at the moment.  The untold truth about the 14 day quarantine is that it is also a tool to discourage travel. It is therefore more than just a safety measure.  It is also a deliberate deterrent.

If government is bent on discouraging travel as a Covid strategy then they will hold like glue to quarantine.  It won’t matter what alternatives exist, or how good they are.

The last comment about quarantine from Dr. Tam was that quarantine is an integral part of Canada’s go forward Covid strategy.  As far as I can tell I haven’t seen any retreat from that position.
 

Based on her words so far as guidance.  I read the latest news from her as 14 day quarantine will likely be in place until 2022.  Travel will continue to be deliberately discouraged likely for another 1 1/2 to 2 years.  

So from that perspective, how long can the travel industry last?  Can anyone make it past next spring?  If it will be summer 2022 before we start recovery in the travel industry, what strategies, if any exist?  If they exist how sever do those strategies  need to be?
 

 

 

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