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APRIL 2020

Week 17

Daily Update

Australian and New Zealand leaders discuss a trans-Tasman safe travel zone or “bubble”

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May 5th 2020

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  • New Zealand Prime Minister, Jacinda Ardern, met with Australian Prime Minister, Scott Morrison, and the leaders of Australia's state and territory governments today via video link to discuss the implementation of a trans-Tasman safe travel zone, or "bubble". Read More » While noting the important economic and social ties between the two countries, PM Ardern told reporters New Zealand's position was that any easing of travel restrictions would be "when we feel comfortable and confident we both won't receive cases from Australia, but equally that we won't export them, then that will be the time to move".

    Still in New Zealand, the country has signed up six carriers – Air New Zealand, China Airlines, Emirates Airline, Freightways Express, Qantas and Tasman Cargo – to operate 56 air freight flights a week to destinations in Australia, mainland China, the Cook Islands, Fiji, Hong Kong, Japan, Nuie, Samoa, Taiwan, Tonga, the United Arab Emirates and the U.S.

    New Zealand Transport Minister, Phil Twyford, said the NZ$330 million (US$200 million) International Air Freight Capacity (IAFC) scheme built on existing charter flights used to move crucial supplies and export goods. He added there was huge demand for air freight amid limited capacity.
  • Qantas said today it would continue operating a skeleton domestic and trans-Tasman schedule – equivalent to about 5% of pre-coronavirus pandemic capacity when measured by available seat kilometres – until at least the end of June. All scheduled international flights would remain grounded until at least the end of July, the airline group said. The Australian carrier said in a statement the stand down of employees, which affected about 25,000 of its 30,000-strong workforce, would be extended until "at least the end of June".

    The airline group also announced it had boosted liquidity levels by an additional A$550 million (US$355 million) through a new debt facility secured against three of its wholly-owned 787-9s. It had sufficient liquidity to "respond to a range of recovery scenarios, including one where the current trading conditions persisted until at least December 2021", it said and noted cost reduction efforts would cut its net cash burn rate to A$40 million a month by the end of June.

    Qantas Group CEO, Alan Joyce, told reporters the airline group was in talks with Vietnam Airlines about the future of the pair's low-cost carrier, Jetstar Pacific, which is 70% owned by the Vietnamese flag carrier and 30% by Qantas Group. Joyce said the LCC had been struggling even before the COVID-19 pandemic. The talks were about "what we do with that airline", he said. Qantas was talking to Vietnam Airlines "about the process going forward and how they can take a leading role in that", he added.
  • India's Director General of Civil Aviation (DGCA) confirmed on May 2 he had extended the ban on domestic and international flights for another two weeks, to May 17. The decision followed the Indian government's recent announcement that restriction of movement rules would remain in place until May 17.
     
  • Taiwan's EVA Air has announced status and points extensions for members of its Infinity MileageLands frequent flyer program and said the coronavirus pandemic had “affected members’ traveling deeply”. In a statement on its website, EVA said any diamond, gold or silver tier member whose status was due to expire between February 2020 and January 2021 would have it extended for 12 months.

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