Toulouse | March 30, 2020–The Spanish Government announced new measures on 29 March in the fight against COVID-19. These measures are taking effect between Monday 30 March and Thursday 9 April inclusive and restrict all non-essential activities across the country.

Some key activities in Commercial Aircraft, Helicopters and Defence and Space remain essential. Minimum activity in these areas for necessary support functions such as Security, IT, Engineering, will remain under the stringent health and safety measures implemented by Airbus to protect its employees against the COVID-19 pandemic.

All other activities in Commercial Aircraft, Defence and Space as well as Helicopters in Spain will be paused until 9 April, the date when it is foreseen that restrictions will be lifted.

Airbus will closely work with its social partners to apply the social measures applicable under the latest restrictions. Airbus employees in Spain whose jobs are not linked to production and assembly activities and can work from home will continue to support Airbus business continuity in these difficult times.

As a leading company, Airbus needs to retain its ability to support the global crisis efforts, support customers, suppliers and continue to bring its essential contribution to society.

Geneva | April 2, 2020–The International Air Transport Association (IATA) announced global passenger traffic data for February 2020 showing that demand (measured in total revenue passenger kilometers or RPKs) fell 14.1% compared to February 2019. This was the steepest decline in traffic since 9.11 and reflected collapsing domestic travel in China and sharply falling international demand to/from and within the Asia-Pacific region, owing to the spreading COVID-19 virus and government-imposed travel restrictions. February capacity (available seat kilometers or ASKs) fell 8.7% as airlines scrambled to trim capacity in line with plunging traffic, and load factor fell 4.8 percentage points to 75.9%.

“Airlines were hit by a sledgehammer called COVID-19 in February. Borders were closed in an effort to stop the spread of the virus. And the impact on aviation has left airlines with little to do except cut costs and take emergency measures in an attempt to survive in these extraordinary circumstances. The 14.1% global fall in demand is severe, but for carriers in Asia-Pacific the drop was 41%. And it has only grown worse. Without a doubt this is the biggest crisis that the industry has ever faced,” said Alexandre de Juniac, IATA’s Director General and CEO.

International Passenger Markets

February international passenger demand fell 10.1% compared to February 2019, the worst outcome since the 2003 SARS outbreak and a reversal from the 2.6% traffic increase recorded in January. Europe and Middle East were the only regions to see a year-over-year traffic rise. Capacity fell 5.0%, and load factor plunged 4.2 percentage points to 75.3%.

Asia-Pacific airlines’ February traffic plummeted 30.4% compared to the year-ago period, steeply reversing a 3.0% gain recorded in January. Capacity fell 16.9% and load factor collapsed to 67.9%, a 13.2-percentage point drop compared to February 2019.

European carriers’ February demand was virtually flat compared to a year ago (+0.2%), the region’s weakest performance in a decade. The slowdown was driven by routes to/from Asia, where the growth rate slowed by 25 percentage points in February, versus January. Demand  in markets within Europe performed solidly despite some initial flight suspensions on the routes to/from Italy. However, March data will reflect the impact of the spread of the virus across Europe and the related disruptions to travel. February capacity rose 0.7%, and load factor slipped 0.4 percentage point to 82.0%, which was the highest among regions.

Middle Eastern airlines posted a 1.6% traffic increase in February, a slowdown from the 5.3% year-over-year growth reported in January largely owing to a slowdown on Middle East-Asia-Pacific routes. Capacity increased by 1.3%, and load factor edged up 0.2 percentage point to 72.6%. 

North American carriers had a 2.8% traffic decline in February, reversing a 2.9% gain in January, as international entry restrictions hit home and volumes on Asia-North America routes plunged 30%. Capacity fell 1.5%, and load factor dropped 1.0 percentage point to 77.7%.

Latin American airlines experienced a 0.4% demand drop in February compared to the same month last year. This actually was an improvement over the 3.5% decline recorded in January. However, the spread of the virus and resulting travel restrictions will be reflected in March results. Capacity also fell 0.4% and load factor was flat compared to February 2019 at 81.3%.

African airlines’ traffic slipped 1.1% in February, versus a 5.6% traffic increase recorded in January and the weakest outcome since 2015. The decline was driven by around a 35% year-on-year traffic fall in the Africa-Asia market. Capacity rose 4.8%, however, and load factor sagged 3.9 percentage points to 65.7%, lowest among regions.

Domestic Passenger Markets

Demand for domestic travel dropped 20.9% in February compared to February 2019, as Chinese domestic market collapsed in the face of the government lockdown. Domestic capacity fell 15.1% and load factor dropped 5.6 percentage points to 77.0%.

Chinese airlines’ domestic traffic fell 83.6% in February, the worst outcome since IATA began tracking the market in 2000. With the easing of some restrictions on internal travel in March, domestic demand is showing some tentative signs of improvement.

US airlines enjoyed one of their strongest months in February, as domestic traffic jumped 10.1%. Demand fell  toward the end of the month, however, with the full impact of COVID-19 expected to show in March results.

The Bottom Line

“This is aviation’s darkest hour and it is difficult to see a sunrise ahead unless governments do more to support the industry through this unprecedented global crisis. We are grateful to those that have stepped up with relief measures, but many more need to do so. Our most recent analysis shows that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30 June 2020. This includes $35 billion in sold-but-unused tickets as a result of massive flight cancellations owing to government-imposed travel restrictions. We welcome the actions of those regulators who have relaxed rules so as to permit airlines to issue travel vouchers in lieu of refunds for unused tickets; and we urge others to do the same. Air transport will play a much-needed role in supporting the inevitable recovery. But without additional government action today, the industry will not be in a position to help when skies are brighter tomorrow,” said de Juniac.

Read the full report for February 2020 (pdf)

Today’s Image: the new Airbus A330-200 MRTT air-bridge flight between Europe and China delivering additional face mask supplies to support the COVID-19 crisis.


ECLIPSE GLOBAL CONNECTIVITY & DISPLAY INTERACTIVE

Eclipse Global Connectivity and Display Interactive have signed a strategic agreement to provide end-to-end Inflight Entertainment and Connectivity solutions to airlines and business aviation operators worldwide. The agreement, which came into effect on March 15, 2020, sees Eclipse Global Connectivity taking an equity position in Display Interactive (DI) and becoming their first industry-based shareholder.

“This agreement brings our relationship to a new level,” said Marc Pinault, CEO Eclipse Global Connectivity. “We have a long-standing relationship with Display Interactive and we are con – dent that our respective partners and customers will see an immediate benefit from this partnership. We are combining the quality and flexibility of DI’s proven wireless solution for air- lines with the technical, design and security expertise of our own connectivity systems, plus our long-time engineering and certification know-how. As a result, we can o er a comprehensive IFE solution to our customers.”

Highlighting the value that the partnership will bring to airline operators, Display Interactive’s CEO, Tarek El Mitwalli says, “Over the past 18 months, Display Interactive has invested heavily in the transformation of its wireless entertainment solution into an engagement and ancillary plat- form—focused on revenue generation. Adding connectivity will multiply revenue opportunities and open new business models for airlines.”

Eclipse Global Connectivity and Display Interactive are creating a one-stop shop for airlines, to streamline the implementation process, roll-out and service operation. Airlines, including Qatar Airways, Corsair International, and the former Joon / Air France, rely on DI’s solutions. British Airways, Philippine Airlines, and Ethiopian airlines, among others, y with Eclipse Technics, the aircraft modification arm of Eclipse Global Connectivity, solutions on board. Leveraging this expertise in technical design, kit manufacturing, STCs and engineering studies, both companies will o er an end-to-end inflight entertainment and connectivity solution under a single point of contact and a unique SLA (Service Level Agreement), reducing costs and delays.

Intending to demonstrate immediate benefits, Eclipse Global Connectivity and DI are launching a new entity based in Shanghai, China, which will be jointly operated under a new name. The company will commence operations in mid-2020, the schedule slightly impacted by the CO- VID-19 pandemic.

The new company will provide a customized, localized version of the complete Eclipse Global Connectivity and Display Interactive IFEC solution, fully integrated into the Chinese aero and digital ecosystems.

“Our main goal is to serve Chinese airlines directly in-country,” observed Thierry Carmes, COO at DI. “This means customizing our solution to fully meet airline- and business-partner-specific requirements, as well as supporting their programs and operations locally on a day-to-day basis. We are keen to demonstrate that our IFEC model will work in China—with the same benefits and performance as elsewhere. This is an invigorating challenge, and a deep motivation for our local teams, particularly since many connectivity programs have not yet delivered expected results.”

“Airline demand for airborne connectivity in China is growing, but not satisfied yet,” explained Marc Pinault. “Our strategy is to bring solutions that are already in common use in Europe or the Middle East, and deliver them with the Chinese operator and passenger specifically in mind. Our shared intention is to adapt and to become an integral part of the Chinese IFEC ecosystem.”

Display Interactive and Eclipse Global Connectivity are looking forward to providing cost-effective, innovative IFEC solutions that generate ancillary revenues, and being ready for when the aviation industry ramps-up service again in a few months. Their overriding aim is to offer a complete off-the-shelf solution from nose-to-tail, that ts all kinds of aircraft and delivers a visionary passenger experience and benefits for operators.


Editorial Courtesy of VT Miltope: Software Defined Cabin Wireless Networks

For two decades, cabin wireless functionality has been driven by aviation standards such as ARINC 763 and ARINC 628 Part 1. The industry has evolved through IEEE 802.11a to 802.11ax (Wi-Fi 6). Each time the “standards upgrade” resulted in a higher functionality, often simply related to higher data throughput rates.

Unfortunately, these evolving standards resulted each time in changing radio equipment; subsequently, driving new access point hardware designs. At that time the technological race between the various vendors was determined by who was able to adapt the previous “box” to the new standard faster.

Meanwhile the factors that drive the evolution of the value and services generated by, and with, the cabin Wi-Fi networks for passengers and airlines are no longer just determined by the latest transmission standard. They are driven by various other functionalities of the Wi-Fi network that can be implemented through software solutions and do not necessarily need a change in hardware. The system complexity shifts from designing new hardware towards establishing a hardware infrastructure that can handle continuous functionality or performance improvements via software changes.  Software becomes the leading design entity creating value and flexibility, with hardware providing the processing platform.

Two examples for such software based added-value solutions are Hotspot 2.0 -allowing for seamless Wi-Fi roaming between different providers, systems and modes of transportation – and the embedding of Cyber Security applications to incorporate continuous network monitoring and anomaly detection as essential functionalities of the systems operation.

Miltope Corporation’s next generation cabin wireless solution, the xMAP, is driven by this evolved design philosophy. It enables the xMAP to be an adaptable foundational component to any wireless network in the aircraft.


ASTRONICS

Astronics Corporation announced actions the Company has taken to address the impact the coronavirus, or COVID-19, is having on the aerospace industry and its business. Peter Gundermann, Astronics Chairman and CEO, noted, “This is an unprecedented situation in our industry and we have to take measurable actions. First and foremost is the safety of our team members. We have implemented enhanced cleaning protocols, increased spacing of workstations, work-from-home wherever possible, minimization of visitors, meetings and travel as well as emphasizing the importance of personal hygiene and responsibility.”


AIRBUS

Airbus has deployed a new air-bridge flight between Europe and China to deliver additional face mask supplies to France, Germany, Spain and United Kingdom health systems in support of the COVID-19 crisis efforts (today’s rectangle). The aircraft, an Airbus A330-200 undergoing conversion as Multi-Role Tanker Transport (MRTT), took off on 26 March at 19.15 local time (CET) from Airbus’ Getafe site near Madrid. (Spain) reaching the Airbus site in Tianjin (China) on 27 March. The aircraft, operated by an Airbus crew, returned to Spain on 28 March at 04.05 local time (CET) with a cargo of more than 4 million face masks. In recent days, Airbus had already organized flights from Europe and China with A330-800 and A400M aircraft to donate thousands of face masks to hospitals and public services around Europe.

Airbus CEO Guillaume Faury provides an update on the Company’s action to support the fight against Covid-19.
 Airbus CEO statement on Covid-19 – YouTube

The Spanish Government announced new measures on 29 March in the fight against COVID-19. These measures are taking effect between Monday 30 March and Thursday 9 April inclusive and restrict all non-essential activities across the country. Some key activities in Commercial Aircraft, Helicopters and Defence and Space remain essential. Minimum activity in these areas for necessary support functions such as Security, IT, Engineering, will remain under the stringent health and safety measures implemented by Airbus to protect its employees against the COVID-19 pandemic. All other activities in Commercial Aircraft, Defense and Space as well as Helicopters in Spain will be paused until 9 April, the date when it is foreseen that restrictions will be lifted. Airbus will closely work with its social partners to apply the social measures applicable under the latest restrictions. Airbus employees in Spain whose jobs are not linked to production and assembly activities and can work from home will continue to support Airbus business continuity in these difficult times. As a leading company, Airbus needs to retain its ability to support the global crisis efforts, support customers, suppliers and continue to bring its essential contribution to society.


BOEING

Boeing announced a temporary suspension of production operations at its Puget Sound area facilities in light of the state of emergency in Washington state and the company’s continuous assessment of the accelerating spread of the coronavirus in the region. These actions are being taken to ensure the well-being of employees, their families and the local community, and will include an orderly shutdown consistent with the requirements of its customers. Boeing plans to begin reducing production activity and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area. The suspension of production operations will last 14 days, during which Boeing will continue to monitor government guidance and actions on COVID-19 and its associated impacts on all company operations. During this time, we will be conducting additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work.

Editor’s Note: Boeing said they will be using 3D printing to develop and build face shields for medical personnel. They intend to transport the mask cargo on a Dreamliner – all this with their advanced technology and engineering personnel.


COVID-19


OTHER NEWS

New York | March 27, 2020–JetBlue CEO Robin Hayes today issued the following statement:

“JetBlue applauds President Trump, his Administration and the bipartisan leadership in Congress for coming together to swiftly pass and enact the CARES Act, a bill critical to the future of not just of our aviation industry but our entire country. This historic legislation is an important step for those affected by this unprecedented pandemic. Airlines will continue to provide critical air service throughout this crisis, and we stand ready to support the economic recovery when the crisis is over.”

 

East Aurora, NY | March 30, 2020– Astronics Corporation, a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, today announced actions the Company has taken to address the impact the coronavirus, or COVID-19, is having on the aerospace industry and its business.

Peter Gundermann, Astronics Chairman and CEO, noted, “This is an unprecedented situation in our industry and we have to take measurable actions. First and foremost is the safety of our team members. We have implemented enhanced cleaning protocols, increased spacing of workstations, work-from-home wherever possible, minimization of visitors, meetings and travel as well as emphasizing the importance of personal hygiene and responsibility.”

He continued “The aerospace industry has been significantly impacted and airlines are dealing with a precipitous drop in passenger traffic. Accordingly, we are taking swift actions to address the reduction in demand we are likely to see in the aftermarket, which is approximately 25% of our business. These actions will be difficult for our Company and our employees, but they are necessary in the face of the COVID-19 threat.”

Operational Status and Actions Being Implemented

  • As an essential business serving the defense industry, the majority of Astronics operations remain functional except its Test Systems engineering center in India, which is closed by government mandate.
  • The Company has had four other locations closed temporarily for deep cleaning, but all have reopened as of today.
  • Astronics drew down $150 million from its existing line of credit to augment cash on hand, which was
    $31.9 million at December 31, 2019. The Company has also engaged in preliminary discussions with its agent bank around potential modifications to its loan agreement that may be required as a result of the COVID-19 impacts to the aerospace industry.
  • The Company is minimizing its planned capital expenditures, which are now expected to be less than
    $10 million for all of 2020, down from previous expectations of $22 million to $25 million.
  • In the area of employment costs, Astronics has frozen hiring, suspended all wage adjustments and bonus programs, and is adjusting its work force to align with demand.
  • The Company expects these initiatives will reduce its overhead and labor costs this year by approximately
    $55 to $60 million beginning in the second quarter.

Mr. Gundermann concluded, “These actions, combined with others we have taken in recent weeks, position us well to survive the COVID-19 market disruption that we anticipate. The earlier actions include the restructuring of our systems certification and antenna businesses, the launch of Avenir for the VVIP inflight entertainment/connectivity market, and the suspension of our share buyback program and acquisition activity. Collectively, these are significant steps that position the Company as well as possible for the immediate future, realizing that the future is not clear. We will continue to monitor the situation closely and make necessary course corrections as appropriate. We appreciate the collective efforts of our entire team in this trying time.”

Given the fluid nature of the situation and ongoing efforts, Astronics plans to provide further updates as more information is available.

Today’s Rectangle: AirFly Pro


PUBLISHER’S NOTE

Times are tough! Depression just may be around the corner. Read this: Deutsche Bank Economists forecast “severe recession” due to Covid-19 – Newsroom And as of Saturday, 3/21/20, the US numbers jumped up. Confirmed Coronavirus Cases Are Growing Faster In The United States Than Any Other Country In The World  I guess the message here is: As this virus grows, airline and travel news will dwindle, so IFEC news just might be a bit reduced!

The Farnborough Airshow – this year’s largest aerospace expo and a showcase for tens of billions of dollars of business deals – has become the latest major event to be canceled because of the coronavirus crisis, organizers said last week.

Editor’s Note: To give you an idea of how exposed the airline industry is to the impact of Coronavirus, the folks at Moodys Investor Service categorized it a 100% – the biggest exposure to financial risk!


AIRFLY

Despite the current state of air travel, we thought it might be  time to present an article about wireless earphone solutions for travel. The product for review is from the folks at AirFly – a Bluetooth wireless transmitter/receiver for your wireless entertainment earphones, in the case of the Pro version, a device that will receive Bt audio entertainment from an iPod/iPhone/or most Bt enabled devices and send it to a receiver/amplifier in your car, train, plane, or whatever mode of transport you choose.

This is an incredible product that amazed us with quality, small size (57 mm x 25.5 mm x 11 mm & weighs 15.5 grams – about the size of a pack of chewing gum), long life battery and a lot of functionality. Our product review should not only give you an idea about the value of the AirFly Pro, but IFExress feels this is the missing link between wireless headphones and wired headphone jacks because it it creates the wireless Bluetooth link between the audio source and your wireless earbuds or headphones on airplanes. We note, that there are Bt audio jacks being supplied in the industry (IFPL’s is a great product), but not all aircraft have it installed, especially the older jetliners that have not been recently refurbished.

AirFly offers four product variations:  AirFly Classic (one headphone), AirFly Duo (2 headphones & USB-C), AirFly USB-C (2 headphones & charges via USB-C with pass through power), and AirFly Pro (connects 2 headphones & has a receive mode that provides audio input to a device like a car radio). We tested the Pro and it delivered audio to two Bluetooth headsets – like it would do in an airplane; you and your seat mate could hear the same audio. Check out their website if you have questions or want to see more data on this clever product – AirFly Pro | Bluetooth transmitter connects wireless headphones to wired audio jacks – Twelve South Here’s how works:

  1. Be sure to charge the AirFly Pro module before you leave on a trip via a USB charge jack in the back. The company says you will be able to get some 16 hours of use out of it so virtually all of your flights will be supported.
  2. Setting up the device with your earphones or headphones is easy. We plugged in the AirFly jack to our signal source (iPod) and when we figured out how to put our Bose earphones in the “connect” mode the earphones and the AirFly paired immediately with a fixed light on each when connected. You will be surprised at the quality – it sounds as good as your earphones can deliver.
  3. So, when the movie begins on your next long flight, plug AirFly Pro into your seat’s headphone jack to listen to the movie with whichever premium noise cancelling wireless headphones you employ.

The company lists some of the usable headphones on their website (and there are a lot) but it worked with every Bt stereo headphone we tested. We need to also say the audio was really unbelievable and now we can take that hike with the iPod, without the wires – smooth! We also tried sending a Bt signal from our iPod with music on it through the device when it was plugged into the car radio input port – and it was great. Also, the unit can operate while charging if plugged into the USB power connection.

Lastly, we contacted AirFly and we asked their Marketing Director, Marlee Luttrell if the device was universal, and she said: “Absolutely! AirFly can pair any device with a 3.5m audio jack to almost any Bluetooth-enabled headphones (even hearing aids!). There are so many uses for AirFly beyond in-flight entertainment. A few of my favorites:- plugging into an amp or record player audio jack to listen to your guitar or records wirelessly- pairing Bluetooth-enabled hearing aids with your TV- Listen to your Nintendo Switch with your wireless headphones”

Beyond the auto or airline application this great little invention can be used in the gym, used in gaming, or on your boat. We even tried a wireless remote speaker and the sound was great!

Editor’s Note: Here is what might be happening to Bluetooth Audio – Bluetooth’s LE Audio allows better audio quality, hearing aid support – CNET


AIRBUS

Airbus SE announced that it expects production and assembly work to partially resume in France and Spain on Monday, 23 March following health and safety checks after the implementation of stringent measures. In addition, the Company is supporting efforts globally to tackle the COVID-19 crisis.

Airbus has carried out extensive work in coordination with its social partners to ensure the health and safety of its employees, while securing business continuity. The implementation of these measures required a temporary pause in production and assembly activities at the French and Spanish sites for a period of four days. Work stations will only re-open if they comply with the new health and safety measures in terms of hygiene, cleaning and self-distancing while improving the efficiency of operations under new working conditions.

The same measures are being deployed across all other sites without full interruption.

For other non-production activities globally, Airbus continues to support home-working where possible. Some employees will be asked to return to support business continuity following the implementation of these new measures. In February, the Airbus Final Assembly Line in Tianjin, China, reopened following a temporary production stoppage related to the coronavirus outbreak and is now operating efficiently.
Airbus is supporting those in the health, emergency and public services that rely on its aircraft, helicopters, satellites and services to accomplish their critical missions. In addition, in the past days, the Company has donated thousands of face masks to hospitals and public services around Europe and has started to use its test aircraft to obtain larger quantities from suppliers in China. A first flight with a test A330-800 aircraft has this weekend transported approximately 2 million masks from Tianjin back to Europe, of which the large majority will be donated to the Spanish and French authorities. Additional flights are planned to take place in the coming days.

  • “Health and safety is our number one priority at Airbus so the work stations at our sites in France and Spain will only re-open if they meet the required standards. I’d like to salute the strong commitment from our employees to ensure business continuity in close cooperation with our social partners and other stakeholders. At the same time we are doing all we can to support those on the frontline to fight the coronavirus and limit its spread. We try to live up to our values, humbled by the complexity of the situation, and contribute as much as we can to society in these very difficult times,” said Airbus Chief Executive Officer Guillaume Faury.

Airbus is committed to ensuring the health and safety of its people while maintaining delivery capability for its products and services to its customers

Also, Airbus SE announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic as it continues to assess the ongoing situation and the impact on its business, customers, suppliers and the industry as a whole.

Reflecting the Company’s prudent balance sheet policy and to ensure financial flexibility, Airbus’ management has received approval from the Board of Directors to: secure a new credit facility amounting to 15 billion Euro in addition to the existing 3 billion euro revolving credit facility; withdraw the 2019 dividend proposal of  1.80 euro per share with an overall cash value of approximately 1.4 billion euro; and suspend the voluntary top up in pension funding. Given the limited visibility due to the evolving COVID-19 situation, the 2020 guidance is withdrawn. Operational scenarios, including measures to minimize cash requirements, have been identified and will be activated depending on the further development of the pandemic.

With these decisions, the Company has significant liquidity available to cope with additional cash requirements related to the coronavirus. Liquidity resources previously standing at approximately 20 billion euro, comprising around 12 billion euro in financial assets at hand and around 8 billion euro in undrawn credit lines, were further bolstered by converting an existing 5 billion euro credit line into a new facility amounting to 15 billion euro. Available liquidity now amounts to approximately 30 billion euro.

By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis. Safe and efficient air travel is a key backbone of global economic development and cultural exchange. Airbus therefore highly welcomes governmental efforts around the globe to stabilize this industry by supporting the financial health of its airline customers and its suppliers. Airbus continues to monitor the overall health of the industry.

Airbus has convened its 2020 Annual General Meeting in Amsterdam on 16 April. Due to the global outbreak of COVID-19, Airbus discourages physical attendance and strongly encourages shareholders to vote by proxy in line with public health and safety measures.


BOEING

Boeing announced several decisions to support the company as it navigates through the COVID-19 pandemic while ensuring the company is positioned for the industry’s recovery. Decisions include:

  • CEO Dave Calhoun and Board Chairman Larry Kellner will forgo all pay until the end of the year.
  • The company will suspend its dividend until further notice.
  • Boeing will extend its pause of any share repurchasing until further notice. The company previously suspended its stock buyback program in April of 2019.
  • Boeing is drawing on all of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term.

Boeing announced a temporary suspension of production operations at its Puget Sound area facilities in light of the state of emergency in Washington state and the company’s continuous assessment of the accelerating spread of the coronavirus in the region. These actions are being taken to ensure the well-being of employees, their families and the local community, and will include an orderly shutdown consistent with the requirements of its customers. Boeing plans to begin reducing production activity today and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area. The suspension of production operations will last 14 days, during which Boeing will continue to monitor government guidance and actions on COVID-19 and its associated impacts on all company operations. During this time, we will be conducting additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work.
“This necessary step protects our employees and the communities where they work and live,” said Boeing President and CEO Dave Calhoun. “We continue to work closely with public health officials, and we’re in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension. We regret the difficulty this will cause them, as well as our employees, but it’s vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19,” Calhoun added.

Production employees should continue to report for their assigned shifts today and will receive guidance on their role in the suspension shutdown process. Puget Sound area-based employees who can work from home will continue to do so. Those who cannot work remotely will receive paid leave for the initial 10 working days of the suspension – double the company policy – which will provide coverage for the 14 calendar day suspension period.

“We will keep our employees, customers and supply chain top of mind as we continue to assess the evolving situation,” Calhoun said. “This is an unprecedented time for organizations and communities across the globe.”
When the suspension is lifted, Boeing will take an orderly approach to restarting production with a focus on safety, quality and meeting customer commitments. This will be a key step to enabling the aerospace sector to bridge to recovery. Boeing is working to minimize this suspension’s impact on the company’s ability to deliver and support its defense and space programs, and ensure the readiness of our defense customers to perform their vital missions. Boeing will work closely with those customers in the coming days to develop plans that ensure customers are supported throughout this period. Critical distribution operations in support of airline, government, and maintenance, repair and overhaul (MRO) customers will continue.


OTHER NEWS

IMMFLY

Immfly announced it has secured a long term partnership with International Airlines Group.

Immfly’s specialist onboard software services will support the development and maintenance of IAG’s universal platform (.air). The platform has already deployed the most advanced connectivity service across a large part of the Group’s fleet to deliver a consistent digital customer experience, with built in flexibility to tailor the offering to each airline’s brand and customer proposition.

IMMFLY provides onboard connected digital services specialized in enhancing customer experience, optimizing operations and maximizing revenues. The announcement follows a long standing pioneering wireless IFE collaboration of more than 5 years between Immfly and the Group’s airline Iberia Express. IAG now intends to enhance the .air platform with new features, products, services and retail opportunities designed to progressively unlock new revenue streams and increase customer satisfaction.

“The partnership with IAG and Immfly brings together a world leading airline group composed of top tier aviation brands in Ireland, UK and Spain, with the industry’s foremost partner for pioneering cabin digitization” said Immfly’s Executive Chairman Jimmy Martinez von Korff. “Together, IAG and Immfly will provide digital engagement tools and resources that will enhance the journey of millions of customers.”

“The partnership with Immfly will enable IAG to deliver new personalised services and expand the product range offered to our customers across entertainment, retail and loyalty” said Andrea Burchett, Group Head, IAG Connect at International Airlines Group. “We are excited to work together to develop services that innovate and disrupt the market by leveraging our combined knowledge and expertise for the benefit of our customers and airlines”.


CARLISLE IT & GILAT SATELLITE NETWORKS

Gilat Satellite Networks Ltd. announced the collaboration with Carlisle Interconnect Technologies (CIT).

Gilat’s Electronically Steered Antenna (ESA) was the first-ever to demonstrate in-flight operation over Ka on a commercial aircraft. A series of successful test flights took place over the last few months over GEO and LEO satellites. The ESA terminal is a fully electronic beam steering, no moving parts terminal, featuring wide instantaneous bandwidth, wideband frequency support, instantaneous beam switching and gate-to-gate operation. The elegant compact design by CIT exhibits an ultra-low profile, small footprint and an all-inclusive offering of outdoor antenna equipment in a single line replacement unit for: antenna, baseplate, skirt and transparent radome.

“Gilat is most pleased to join forces with its partner, Carlisle Interconnect Technologies, and to present Gilat’s ESA terminal in CIT’s booth at Satellite,” said Roni Stoleru, Vice President Antenna Products & Strategy at Gilat. “Carlisle Interconnect Technologies’ team is the expert in innovative Thermal Management Solutions (TMS) and we couldn’t be more pleased with the elegant and compact design of Gilat’s proven technology for which we are already seeing significant market interest.”

“We are delighted to collaborate with Gilat and to display the ESA terminal in our booth in Satellite 2020,” said Kris Samuelson, Director of Sales, IFCE/Interiors at CIT. “Gilat’s proven and scalable technology easily integrates our Thermal Management Solution for both the small form factor business and general aviation market, as well as the commercial aviation market.”


GOGO

Fouth Quarter and Full-Year 2019 Highlights:

  • Consolidated revenue of $221.3 million in Q4 2019, up 2% from Q4 2018; Net loss of $22.4 million in Q4 2019
  • Adjusted EBITDA(1) of $34.4 million in Q4 2019, resulting in record full-year 2019 Adjusted EBITDA of $145.6 million
  • Record BA Reportable Segment Profit of $41.7 million in Q4 2019, up 17% from Q4 2018
  • 2019 Cash Flow from Operating Activities of $64.1 million; Free Cash Flow(1) improvement of $162.6 million in 2019 versus 2018, significantly exceeding guidance of improving Free Cash Flow by at least $100 million for the year
  • Reached 1,407 2Ku and 1,657 total CA satellite aircraft online as of December 31, 2019, with a backlog of nearly 950 2Ku aircraft(2), which included 150 new commitments from existing customers in the quarter. In Q4 2019, 2Ku aircraft online increased by 118.
  • As of January 28, 2020, total flights on Gogo’s AVANCE L5 and L3 systems reached 244,000, totaling 154 million miles flown. These milestones were reached approximately two years after the L5 launch in late 2017
  • Qatar Airways selected Gogo’s 2Ku solution for high-speed inflight connectivity and live TV on 70 Boeing and Airbus aircraft, with service expected to begin in 2020

SITA

SITA and trade association ULD Care hope to bring new efficiency to the air cargo industry by exploring the use of blockchain to digitally track and record change of custody of airline cargo containers or Unit Load Devices (ULDs) across their journey. By eliminating inefficiency, embedding always-on tracking of ULDs and abandoning redundant paper systems, the use of blockchain is expected to save the industry $400m a year in improved efficiency, fewer losses and prevention of damage. The proposed platform also offers a wide range of authentication and trust-based benefits, reducing the risk of tampering, cybercrime, trade-based money laundering, fraud, and illicit trade. Today more than 800 million ULDs are in use by airlines yet the system used to track these ULDs has only been partial digitalized and relies on incomplete data sharing and record keeping. The proposed blockchain system improves efficiency by making use of all data points across the air cargo journey and provides a platform that aggregates and processes the ULD data in a trusted and secure way. The PoC will extend and upgrade the current ULD interlining platform to include non-airline third parties such as ground handlers via open APIs and a new modern interface. The results will transform the industry by lifting the veil on a myriad of previously unknown factors like damage reports. Knowing the location of all ULD’s (and therefore cargo) at all times means companies can accurately track where loss or damage occurs and recover the costs without dispute. For any given shipment there can be up to 12 custodian companies monitoring and tracking the cargo, with many relying on paper documents making the process cumbersome and undermined by trust and transparency issues. Blockchain presents a near-perfect solution to address these industry pain points with huge time and cost-saving potential. This project forms part of SITA’s Global Blockchain Alliance which is leading exploration into blockchain’s potential for the air transport industry. SITA’s role, as the air transport community’s IT provider, is to provide governance for the global alliance, support the working groups, deliver all required blockchain technology components and ensure proper alignment and validation with regulators and international standardization bodies.


GLOBAL CONNECTED AIRCRAFT SUMMIT WARNING

“To our Global Connected Aircraft community: Let us sneak in a few words among the torrent of emails you’re getting about the Coronavirus. As we near the end of a terrible week during which the spread of COVID-19 officially became a global pandemic and its economic fallout dramatically worsened, we are hoping for the best possible health outcome for you, your loved ones and your colleagues. We are watching the situation closely. With regard to our upcoming Global Connected Aircraft Summit event, scheduled for June 2-3 in Denver, the health and well-being of attendees, speakers and exhibitors is our greatest priority. We have not yet taken the step of postponing or canceling the conference, since this is such a fast-moving story and the show’s early summer timing gives us a little more opportunity to assess. As of this writing, information is still hard to come by on when infections are likely to peak in the United States or how far into the future the current suspensions on conferences, sporting events and other large gatherings in March and April should remain in effect. Whatever happens, we will keep you posted.”


COURTESY of  SEEKING ALPHA

“Without a lifeline from governments we will have a sectoral financial crisis,” according to the International Air Transport Association, which called for extending lines of credit to airlines, reducing infrastructure costs and cutting taxes. IATA last week estimated that the crisis could wipe out some $113B of industry revenue, in a forecast that did not include the U.S. clampdown on European travel. “There is a heightened concern there will be increased airline bankruptcies in 2020 given the fallout from the coronavirus,” added Cowen analyst Helane Becker. “We expect some governments to step in to help some airlines, but ultimately we expect more airlines to fail this year than last year.”


BOEING

Boeing is freezing new hiring and overtime except in certain critical areas to preserve cash as the coronavirus compounds the fallout from a year-old grounding of its 737 MAX. News that Boeing was planning to draw down the rest of a $13.8B loan it took last month sent shares tumbling 18% on Wednesday, their biggest one-day percentage drop since 1974. Other issues: Boeing booked 46 cancellations last month, resulting in a net loss of 28 orders, as carriers switch from the grounded MAX to other planes.


US CDC

The Centers for Disease Control and Prevention has issued guidelines for “community mitigation strategies” to limit the spread of COVID-19, the disease caused by the coronavirus, which include recommendations for “social distancing”—a term that epidemiologists are using to refer to a conscious effort to reduce close contact between people and hopefully stymie community transmission of the virus.

Note: We got an email in from Kelvin Boyette, CEO Latitude Aero
“Here is a quick LinkedIn post I composed discussing how airline’s current cabin decontamination methods, using fogging and non-approved chemicals, causes damage to the aircraft seating.”

Editor’s Note: The US Federal Reserve, advised “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” and they will cut interest rates to near-zero on 3/15/20 and launch a massive $700 billion quantitative easing program to isolate the economy from the effects of the virus. It will take the form of $500 billion of Treasury’s and $200 billion of agency-backed mortgage securities. The Fed said the purchases will start on Monday with a $40 billion installment. Interestingly, in 2014, Bill Gates saw the problem in his TED Talk Bill Gates suggests, to put all our good ideas into practice, from scenario planning to vaccine research to health worker training. he notes: “There’s no need to panic – but we need to get going.”

Bill Gates: The next outbreak? We’re not ready | TED Talk


COVID-19

As you can well imagine, with COVID-19 running rampant throughout the world, air travel is being destroyed and the airlines are feeling the hurt – big time! The world is getting hit, while in Seattle companies like Alaska Airlines stock has dropped some 44%, the value of Boeing stock has plunged 48% at the time of this writing! Today (3/17/20) the world has some 196,639 cases and it will continue to climb.

Presently, scientists don’t know exactly when the disease will peak but we suspect 2 months is optimistic and this timeframe will be telling in the US and globally as well. Below the equator, the virus is just beginning to hit and we expect third world countries will be hit the hardest. There is no virus innoculation in sight and that means the airlines/travel/hotel industries will continue to be in big trouble. In actual fact, the travel industry is in disarray, and will get worse in the short term.

If you want to stay up on travel, check out: Coronavirus & Travel Industry: Breaking News & Impacts – Coronavirus & Travel Industry: Breaking News & Impacts – Skift , and here is the Airline Industry Coronavirus Impact: Coronavirus & Airlines: Coronavirus & Airlines: Breaking News & Updates – Skift

Noted AXIOS: “Last year, 46 million passengers flew on roughly 200,000 flights between the U.S. and the 26 affected European countries, says IATA. In March 2019, international visitors arriving from Europe (excluding the U.K.) accounted for about 29% of total overseas arrivals to the U.S., according to the U.S. Travel Association. Those visitors spent approximately $3.4 billion in the U.S., the group said.”

Lastly, we suggest you WASH YOUR HANDS frequently and keep your distance from just about everybody. Good Luck and Stay Healthy!


OTHER NEWS

Insights Help Travel Brands Stay Up-To-Date on Consumer Travel Behavior Trends

London | March 16, 2020– ADARA, the world’s travel data co-op and leading provider of traveler intelligence today announced the new COVID-19 Coronavirus Resource Center for travel brands. To help travel brands adapt to a fast-changing environment, ADARA created the ADARA Travel Trends Tracker, which taps into real-time travel data to easily access travel-related consumer behavior and identify key trends. The anonymized data from over 270 travel data co-op partners is designed to help travel marketers activate the most informed marketing strategies based on current consumer travel activities.

“Over the years I’ve worked shoulder to shoulder with many of the marketing executives now striving to navigate the effects of Covid-19. ADARA is dedicated to providing consumer-level intelligence in order to make the best decisions in an extremely uncertain environment,” said Carolyn Corda, CMO at ADARA. “We will continue to provide insights to support travelers and the companies that serve them.”

ADARA’s Travel Trends Tracker indicates that travel behaviors follow different patterns across leisure and business, family and solo, and domestic and international destinations. As such, it’s important for brands to closely watch changing patterns as they determine their path forward during the progression of COVID-19 worldwide.

ADARA analyzed anonymized behavior of travelers on air and hotel bookings for 2020 year to date, to surface trends on booking volume, booking windows and trip purpose. ADARA will continue to utilize real-time data to update these findings. Note that the data has a slightly higher representation of leisure and unmanaged business travelers.

ADARA finds that:

  • Flights originating in EMEA with a US destination skyrocketed almost 250% in the 24 hours following the March 11 travel ban.
  • Flights booked for family leisure (3+ travelers) were up 25% the week beginning March 5 compared to the week starting Jan 2, 2020, with a particular uptick in flights purchased 90 days in advance.
  • Flights booked for business travel were down 30% the week beginning March 5 compared to the week starting Jan 2, 2020.
  • Hotels booked for leisure were down 15% for solo and couple travelers and down 5% for family (3+) travelers the week beginning March 5 compared to the week starting Jan 2, 2020.
  • Hotel bookings for leisure travel with shorter departure horizons (<15 days) are flat in 2020, with declines in bookings with longer time horizons.

By no means could anyone refer to me as an alarmist; however, the potential impact of the Coronavirus (COVID-19) on the global economic marketplace could be significant and it has the potential to dramatically impact how we live our day-to-day lives, as well as, the aviation industry in general.

One can argue that COVID-19 is not anymore dangerous than the common flu – but this is irrelevant if people perceive it to be more contagious and deadly. It all boils down to fear, especially fear of the unknown, and the potential for overreacting, and travelers are especially susceptible. A state of panic can quickly be reached, and if that happens, we can say goodbye to rational thought.

The airline industry is perhaps more vulnerable than many other businesses as the majority of people don’t need to fly but they still need groceries, household items, etc. In other words, travel tends to be discretionary. As many of us may remember, we have seen this before with 9/11 and then, to some degree, with SARS a year or two later. Many people opted not to fly because they were scared of circumstances that were beyond their control. And it took a while for the airline industry to rebound.

Our industry is facing a huge problem, as COVID-19 is moving towards a global pandemic. Some sources have compared it to the Spanish Flu pandemic of 1918 that infected an estimated 500 million people and killed roughly 20-50 million. In fact, Bill Gates refers to COVID-19 as a “once-in-a-century” pandemic . If COVID-19 was restricted to a single region (let’s say Asia) most airlines have the capacity to cope with a region that is underperforming; however, with COVID-19 taking hold in Europe, many of that regions carriers are restricting flights and the ‘alarm bells’ are beginning to ring in regards to the decrease in demand and its affiliated affect on the bottom line. And now it has a foothold in North America as well. If we look at the current problems the Asian carriers are facing, we can see how bad this could get. In fact IATA is forecasting that the Asia-Pacific airlines could lose roughly $28 billion in revenue during 2020 as a result of the virus.

How might the airline industry react? To address the traveler concerns, airlines may begin to clean the domestic/short-haul aircraft more thoroughly, implementing similar procedures like they do now for long-haul flights – disinfecting after each flight. Alterations to the inflight service by reducing the amount of interaction between the flight attendants and passengers could also been seen on some carriers. Also, the airlines may dramatically discount fares in an effort to increase demand and fill seats. And to further align supply/demand, we could easily see airlines park some of their jets, especially older and less fuel-efficient models.

On another front there is a broiling dispute between airlines and the CDC. In the USA there is increasing pressure from the CDC on airlines to assist with the efforts on controlling the spread of COVID-19 by providing more complete passenger data about international travelers. Airlines have responded that collecting this information is the responsibility of the federal government. It is reported that airline executives are to meet with Vice President Pence tomorrow on the subject of the coronavirus. It will be interesting to watch how this unfolds and to see the long-term impact this sort of information gathering will have. Like so many things, once these types of procedures are in place, they rarely are removed.

However, the results of the COVID-19 might help Boeing. With a decrease in the number of people traveling and a reduction in the number of routes being flown, one could argue that the airlines that have been hindered by the grounding of the MAX may be happy its return to service is delayed.

As with any crisis, there is a trickle down effect to other industries and IFEC will most probably be impacted by delayed deliveries and/or order cancelations. Much depends on how long the rate of infection continues to climb. It is too early to truly understand what the basic reproduction number (R0 = the number of individuals statistically to catch the disease from 1 individual) of the coronavirus but as of mid-February it appears to be similar to flu.

The questions we face are: How to move forward? How do we adjust to weather the storm that is COVID-19? What changes do we make in order to not only survive, but possibly, thrive?

One IFE company in Ireland has already filed for bankruptcy sighting COVID-19 as the culprit and they may well not be the last.

Below are some hyperlinks that are both interesting and informative. If you only have time to read one, I highly recommend, “Coronavirus On The Latin Bridge”.

 

Using Big Data to Fight the COVID-19 Epidemic in China

Just How Contagious is COVID-19? This Chart Puts It In Perspective

Global Cases of COVID-19: John Hopkins CSSE

Recession Fears Are Rising Globally


ASTRONICS

Astronics Corporation Reported their 2019 Fourth Quarter and Full Year Financial Results. Below are the highlights:

Fourth quarter sales of $198.4 million; full year sales of $772.7 million
• Consolidated orders for the quarter were $156 million
• Fourth quarter net loss of $34.1 million includes restructuring and impairment charges and legal reserves totaling $51.7 million
Backlog at the end of the year was $360 million


AXINOM

Continuing with its initiative of standardization in digital aerospace, Axinom has become the first digital solutions provider in the industry to provide a production common media application format (CMAF) with cipher block chaining encryption (CBCS). The technology eliminates the need for a native app and multiple file-formats to deliver the video content to mobile devices that can utilize browsers and DRM protection for playback.

The first successful adoption by a notable industry-leading integrator came in the form of a streaming solution that utilizes Axinom VIP (Video Ingest and Processing) to encode and package video assets in the CMAF file format. “The CMAF format paired with the common encryption scheme makes the assets interoperable across device platforms while maintaining industry-grade security,” says Ralph Wagner, CEO, Axinom. “This is a crucial step in our initiative to bring standardization in the digital vertical of the aerospace industry.”

Advancement in on-board entertainment delivery:

Smart and portable devices have become a crucial part of consumer experience and adopting this trend to aerospace not only enhances the value but also makes digital operations more efficient. A multi-screen IFEC offering with modern technological solutions allows passengers to use whatever devices (bring your device scenario) on-board to consume entertainment or connectivity.

Today, Axinom’s product-stack is enabling companies across aerospace industries to leverage the multi-screen trend. Advancement brings forth the following capabilities:

  • Axinom VIP encapsulates the video assets into a single format that is compatible with both HLS and MPEG-DASH streaming
  • Axinom VIP with CBCS mode common key encrypts video assets, described in either an m3u8 (HLS) or MPD (MPEG-DASH) playlist
  • Axinom DRM (Digital Rights Management) delivers licenses to on-board devices for content protection and playback

Providers are also realizing cost benefits as the new solution eliminates the need for an app, multiple file-formats, and vast amounts of space for the storage and playback of videos. Moreover, the comprehensive solution extends to a large number of commonly used devices and platforms, making it extremely practical.


AIRBUS

Aeroflot, the Russian flag carrier and member of the SkyTeam alliance, has taken delivery of its first A350-900, becoming the launch operator of the latest generation widebody aircraft in Eastern Europe and CIS. Aeroflot’s A350-900 features a distinctive new livery embracing its almost 100 year heritage. Aeroflot has a total of 22 A350-900 aircraft on order and operates an Airbus fleet of 126 aircraft (107 A320 Family and 19 A330 Family aircraft). Aeroflot’s A350-900 features a brand new elegant cabin design, offering a spacious three-class cabin layout with 316 seats: 28 private Business Class suites with full-flat seats, 24 Comfort Class with extra legroom and 264 Economy Class. In addition the latest generation Panasonic eX3 in-flight entertainment system, HD screens and Wi-Fi connectivity will ensure enhanced experience for all passengers on long-haul flights. Aeroflot will operate its A350-900 from Moscow to a number of destinations including London, Dubai, New York, Miami, Osaka and Beijing.


BOEING

Boeing  named Susan Doniz as the company’s chief information officer and senior vice president of Information Technology & Data Analytics, effective in May. She will succeed Vishwa Uddanwadiker, who has served in an interim capacity since October 2019. In this role, Doniz, 50, will oversee all aspects of information technology, information security, data and analytics for the world’s largest aerospace company. She also will support the growth of Boeing’s business through IT- and analytics-related revenue generating programs. She will report to Boeing President and CEO David Calhoun, serve on the company’s Executive Council and be based in Chicago. Doniz joins Boeing from Qantas Group, where she has served as Group chief information officer since January 2017. In that role, she oversaw technology innovation, development and integration, digital capabilities and cybersecurity across the Group’s companies, including Qantas Airlines, QantasLink, Qantas Loyalty and Jetstar. Doniz has more than 25 years of global technology leadership experience, including strategic roles at SAP, Aimia and Procter & Gamble. She holds a bachelor’s degree in applied science and engineering from the University of Toronto, and serves as vice chair of the Digital Transformation Advisory Council of the International Air Transport Association.


OTHER NEWS

Geneva | March 2, 2020–The International Air Transport Association (IATA) is contacting aviation regulators worldwide to request that the rules governing use of airport slots be suspended immediately and for the 2020 season, due to the impact of COVID-19 (the Coronavirus).

Around 43% of all passengers depart from over 200 slot coordinated airports worldwide. At present, the rules for slot allocation mean that airlines must operate at least 80% of their allocated slots under normal circumstances. Failure to comply with this means the airline loses its right to the slot the next equivalent season. In exceptional circumstances, regulators can relax this requirement. The COVID-19 crisis has had a severe impact on air traffic.  Airlines are experiencing serious declines in demand. Including:

  • A carrier experiencing a 26% reduction across their entire operation in comparison to last year
  • A hub carrier reporting bookings to Italy down 108% as bookings collapse to zero and refunds grow
  • Many carriers reporting 50% no-shows across several markets
  • Future bookings are softening and carriers are reacting with measures such as crew being given unpaid leave, freezing of pay increases, and plans for aircraft to be grounded.

Given these extraordinary circumstances as a result of the public health emergency, the collective view of the airline industry is that the application of the 80% rule during the upcoming season is inappropriate. Flexibility is needed for airlines to adjust their schedules according to extraordinary demand developments.

Regulators have already been waiving the slot rules on a rolling basis during the COVID-19 crisis primarily for operations to China and Hong Kong SAR. However, given the recent further outbreaks this is no longer contained to the Asia markets.  Without certainty that these waivers will continue for the summer season (or winter season in the Southern hemisphere), airlines are unable to plan ahead sufficiently to ensure efficient rostering of crew or deployment of aircraft.

Suspending the requirement for the entire season (to October 2020) will mean that airlines can respond to market conditions with appropriate capacity levels, avoiding any need to run empty services in order to maintain slots. Aircraft can be reallocated to other routes or parked, crew can have certainty on their schedules.

“IATA research has shown that traffic has collapsed on key Asian routes and that this is rippling throughout the air transport network globally, even between countries without major outbreaks of COVID-19. There are precedents for previous suspension of the slot use rules and we believe the circumstances again calls for a suspension to be granted.  We are calling for regulators worldwide to help the industry plan for today’s emergency, and the future recovery of the network, by suspending the slot use rules on a temporary basis,“ said Alexandre de Juniac, IATA’s Director General and CEO.

“The world is facing a huge challenge to prevent the spread of COVID-19 while enabling the global economy to continue functioning. Airlines are on the front line of that challenge and it’s essential that the regulatory community work with us to ensure airlines are able to operate in the most sustainable manner, both economically and environmentally, to alleviate the worst impacts of the crisis,” he said.