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MAY 2020

Week 19

Short Takes

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May 8th 2020

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Boeing has added a second test aircraft to its 777X flight test program. The inaugural flight of the second test aircraft, designated WH002, was conducted at Boeing’s Everett facility in Washington State on April 30. Read More » It took two hours and 58 minutes, a company statement said.

The Vietnam Airlines Group, which includes joint venture Jetstar Pacific and VASCO, plans to increase frequency on its domestic network under the supervision of the Ministry of Transport and the Civil Aviation Administration of Vietnam. The airline group intends to restore its entire domestic network from next month. It also is working on new routes to be introduced post the coronavirus pandemic.

American Airlines will commence 777-300ER cargo-only weekly flights between Sydney and Los Angeles from May 12 to transport personal protection equipment, pharmaceuticals, electrical machinery, mail and fresh produce, beef and fish. AA also added Dallas Fort Worth-Beijing to its expanding cargo-only network this week.

GE Aviation said this week it planned to cut about a quarter of its workforce – representing some 13,000 jobs - as part of efforts to lower costs and preserve cash following a deep contraction in commercial aviation due to the coronavirus pandemic. GE Aviation CEO, David Joyce, said in a letter to staff published on May 4 the difficult cost-cutting actions were required to scale the business to the realities of the commercial market.

South Korea's Ministry of Transport (MoT) has launched a new body to boost its work with the International Civil Aviation Organisation (ICAO), The Korea Herald reported this week. The head of the Office of Civil Aviation of Ministry of Land, Infrastructure and Transport, Kim Sang-do, said the launch of the MoT's ICAO and Global Partnerships team would allow the country to “reorganize our strategy for strengthening international competitiveness and lay the groundwork to become a Member State in the upper group of the ICAO Council in the future”.

The Association of Asia-Pacific Airlines (AAPA) said combined net earnings of airlines in the region fell 25% to US$3.8 billion in calendar 2019, from US$5.1 billion in the prior year due to intense competition and a weakened cargo market due to the trade dispute between China and the United States. Operating revenue was marginally lower at US$210.5 billion, compared with US$211.2 billion in 2018, AAPA said in a statement this week.

Fiji Airways, which has not flown scheduled international services since March, said on Friday it would extend the grounding of all international flights to the end of June due to the "prolonged impact of the COVID-19 pandemic. Fiji Airways CEO, Andre Viljoen, said the tentative schedule for July would depend on the easing of border restrictions and the return of demand, noting the near-term outlook remained bleak.

Engine maker Rolls-Royce told shareholders during its annual general meeting this week – held virtually – it was preparing staff for job losses due to the downturn in the aviation sector. The company, which has 4,000 U.K. staff on furlough – a scheme where the U.K. government pays 80% of their wages – said it was working on establishing a "more appropriate cost base in order to secure our future for all stakeholders", with more details to be released before the end of the month.

Airbus said this week it received nine net orders in April: eight A320neo and one A321neo from lessor Avolon, bringing net orders in the calendar 2020 to 299 aircraft. It delivered 14 aircraft in April: six A320neos, six A321neos, one A330-200 and one A350-900.

Lufthansa Technik said this week it was working on the conversion of an A380 to carry freight for an undisclosed customer. The aircraft maintenance, repair and overhaul company said in a statement “there had been great interest in its technical and engineering services for temporary operational change from passenger to cargo aircraft, with the A380 contract one of about 15 projects for different aircraft types already in the implementation phase”.

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