Thoughts this week – 16 May 20

This week, we look at

  1. IATA opposed mandatory quarantine measures for arriving passengers
  2. UK announces a mandatory 14-day quarantine for arriving passengers
  3. KLM updates its voucher policy
  4. Virgin Atlantic intends to operate to 24 destinations in 2021
  5. Lufthansa group starts scaling up

IATA opposes mandatory quarantine measures for arriving passengers

Industry body IATA (International Air Transport Association) has opposed the mandatory quarantine requirement which governments have started imposing for international arrivals. This comes on the backdrop of Spain extending the mandatory quarantine requirement and UK imposing it as a new requirement. A survey by IATA stated that 69% passengers surveyed said they wouldn’t want to travel under such conditions. The airline body does not expect demand to return to 2019 levels until 2023.

UK announces a mandatory 14-day quarantine for arriving passengers

The United Kingdom announced that every arriving passenger will have to undergo mandatory 14-day quarantine when arriving by air at one of airports in the United Kingdom. The country had been criticized for letting people in without any checking even in the midst of the pandemic which has engulfed the country. The 14-day quarantine will not be applicable immediately but from early June – when air travel is expected to increase with many airlines announcing schedules at domestic and international sectors.

KLM updates it voucher policy

KLM Royal Dutch Airlines has updated its voucher policy. The airline has stated that while it is compliance with national and international laws and regulations, the on-going unprecedented crisis has cause a great of uncertainty for both customers and companies, not fully covered by existing regulations on various issues – including payment of refunds.

The airline has issued refund vouchers for tickets booked on cancelled flights. The airline now offers the vouchers to be redeemed for cash after 12 months, if the voucher has not been fully redeemed. The airline also intends to make all vouchers more attractive by adding extra perks in near future.

Virgin Atlantic to have 24 destinations next summer

Virgin Atlantic – which is struggling amidst the current times, intends to operate to only 24 destinations around the world with A330-300s, B787-9s and A350-1000s and A330-200s before they retire in early 2022 at planned. The airline has already announced that is vacating Gatwick while it will continue to find ways to protect its slots. In summer 2021, the airline will operate from London Heathrow, Manchester, Glasgow, and Belfast.

While the Delhi and Mumbai feature in the list of destinations from London Heathrow, Delhi doesn’t feature as a destination from Manchester. The airline

Lufthansa group starts scaling up

German carrier Lufthansa and other group airlines like Swiss, Austrian and SN Brussels have announced changes to its network. There will be over 1,800 weekly frequencies to over 100 destinations and over 20 long-haul destinations. Delhi does not feature in the list of destinations for either Lufthansa or Swiss, but Mumbai features in list of destinations for both. However, this will be subject to approval from authorities of respective countries.

While Lufthansa, Eurowings and Swiss begin re-expansion, Austrian has decided to extend the suspension for another week, until 7th June, while Brussels Airlines plans to resume its flight operations with a reduced network from 15th June.

Article snippet from this week

Delta to retire all its B777s by end of 2020

Delta will retire all its B777s by end of 2020 and have its widebody fleet comprising the A330s and A350s, as it tries to rationalize the fleet and save costs.

Singapore Airlines declares full year loss on the back of mark-to-market fuel hedging losses

In what could be one of many airlines who would link the losses to fuel hedging, Singapore Airlines group has announced a full year loss, partly due to loss of demand to China and other parts of the world starting February.


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