With tens of billions of dollars in federal funding on the line the DOT’s rules about service obligations under the CARES Act could dramatically affect airlines’ cash flow in the coming months. The divide in views between the large and small players is impressively wide.
Airplanes and Airports
An eerie quiet over New York City: The flights are gone
The airspace around New York City is typically some of the busiest in the world. Three major airports crammed into a tiny space service thousands of daily aircraft movements. But these are not normal days.
US airlines cut deep, but not deep enough
With loads teetering against the single digits the US carriers must cut deeper to rationalize their operations. And there are few good justifications for not making that move.
Supersonic sound standards set; Boom schedule slips
How loud will the next generation of supersonic aircraft be? Facing a continued surge in design and construction efforts from a handful of companies, the FAA set out guidelines this week for how the new aircraft are expected to perform. Just as interesting as the numbers is the model that was left out of the […]
Spirit Airlines reportedly cutting 90% of flights
How deep can the US carriers cut? Spirit Airlines is now reported to be shedding 90%+ of its flights as it seeks to ride out the coronavirus market collapse.
Cancelled flights, vouchers and the airline cash flow crunch
Tens of thousands of cancelled flights. Millions of impacted travelers. Billions of dollars in limbo. And airlines are doing everything they can – including ignoring laws – to keep the money.
JetBlue plans 70%+ cut in April operations
JetBlue continues to trim its operations as demand shows no sign of a near-term recovery. The carrier now expects to schedule approximately 300 daily flights in April 2020, down from more than 1000 on the initial schedule. The move allows the for “maintaining a critical level of service across our network” according to an internal […]
US carriers cut frequencies, not destinations as they seek federal funding
Getting that federal bailout cash means keeping all existing destinations in service for the US airlines. That could prove troubling for some as the cutbacks are already in motion.
IATA anticipates recession, slower recovery, as COVID-19 impact drag on
IATA no longer expects a “V-shaped” recovery for airlines as the COVID-19 pandemic continues to grow. For the past several weeks the aviation trade group presented dire financial forecasts that included a sharp bounce back for the industry. In a media briefing this morning Brian Pearce, IATA’s chief economist, acknowledged that this time it is different, and not in a good way.
Converting to cargo: Putting passenger planes to use in the COVID-19 era
Passenger demand may not exist right now for airlines but global supply chains still demand the cargo capacity those aircraft represent. Passenger aircraft are being pressed into service as freighters, filling their belly space with goods to fly across the globe. And, in some cases, even a bit more.