Albert Aviation

The Chinese government recently issued new regulations that all passengers on flights to China need to undergo nucleic acid and serum IgM antibody tests in advance. The testing equipment at Copenhagen Airport will be put into use from November 16. Transit passengers need to set aside 4 hours for testing and obtain testing reports. This time is expected to be shortened to 1 hour after 2-3 weeks. Passengers who have undergone pre-boarding double-checks on flights to China at Copenhagen Airport can board directly with the negative test report. Scandinavian Airlines will continue to provide passengers with the latest news about the Copenhagen Airport testing facilities. More flexible rebooking and cancellation for flights connecting to China According to the new regulations, transit passengers need to undergo nucleic acid testing and serum IgM antibody testing in countries that fly directly to China, which may require extending their stay in Copenhagen, and thus need to rebook or cancel the original flight to Copenhagen. In order to facilitate passengers to accept the test on time, SAS is allowing passengers to rebook or cancel the flight to Copenhagen for free. The resulting change fee, refund fee and possible fare difference will be all exempted, that is to say, all are free. Normally, European inland segments are not allowed to be changed or cancelled individually. Please note that SAS is not responsible for other expenses incurred due to rescheduling, such as accommodation. There is no refund for cancelled connecting flights. Extra Check-in Baggage For Students Fly From China Scandinavian Airlines are now launching very attractive one-way tickets from China. All students departing from China who purchase SAS flight tickets in economy class only need to show a valid student ID at the airport check-in counter to check in one extra piece of luggage. This means that students travelling in economy class (except for Go Light) can carry two pieces of checked luggage, each of which must not exceed 23 kg. The free extra baggage check will be done manually at the airport check-in counter.

Announced on June 15th, Air France plans to operate scheduled flights from Paris to Shanghai once weekly. As the relevant Chinese authorities began to relax travel restrictions, Air France announced that it would resume passenger service on the Shanghai route in Mainland China from June 18, 2020, with one flight per week, operated by Boeing B777-300. Depending on government approval, travel restrictions and customer needs, Air France will gradually increase the frequency of passenger flights to China. The first Air France flight AF198 to China will depart from Paris Charles de Gaulle Airport at 23:30 on June 18, 2020, and arrive at Shanghai Pudong International Airport at 16:45 on June 19. In addition, Air France plans to operate scheduled flights from Paris to Shanghai once weekly, and will issue an official notice after confirming flight authorisation to open sales. From May 11, 2020, all Air France-operated flights will undergo a temperature check on passengers one by one before departure. Passengers need to wear masks throughout the flights; all crew members and agents who are in contact with passengers are also required to cover themselves. “In the context of the new crown epidemic crisis, Air France has always put the health and safety of its passengers and staff first. All Air France team members are doing their best to protect the overall health of passengers. And safety, to ensure that passengers travel safely and worry-free. After this difficult period, we are very pleased to welcome our passengers to choose to take Air France flights again to fly to Chinese destinations.” Mr. Pang Daoan, General Manager of Air France KLM Greater China In addition to resuming passenger flights to mainland China, Air France and KLM will continue to operate cargo flights on Chinese routes to ensure the continued supply of medical supplies from China. Before restarting passenger service, Air France’s operational activities were mainly focused on cargo flights between China and France, and actively participated in the air transportation of masks and medical supplies between China and France. Air France currently operates 27* flights a week on routes in Greater China, using Boeing B777 all-cargo aircraft, Boeing B777 passenger aircraft cargo bays and cabins to carry equipment for cargo operations. (*Among them: Shanghai Pudong-Paris Charles de Gaulle 5 pure cargo flights per week, Paris Charles de Gaulle-Shanghai Pudong 8 passenger-to-cargo freight flights per week, Beijing-Paris CDG weekly 7 pure cargo flights, Hong Kong-Paris Charles de Gaulle weekly 7 pure cargo flights) At the same time, Air France is gradually increasing its 2020 summer flight plan. Air France plans to provide flights to 150 destinations worldwide this summer, accounting for 80% of the usual route network As of the end of June, the planned flight capacity will return to 20% of the same period in previous years. Depending on the cancellation of travel restrictions in various countries, Air France will continue to gradually increase the number of flights and destinations. It is expected to reach 35% of the original flight plan in July and 40% in August. Air France plans to lay off 8,000 to 10,000 employees by 2022. According to the report of the French mainstream economic daily newspaper “Echo”, Air France will announce the specific number of layoffs in the company restructuring plan submitted from the end of June to the beginning of July. According to the plan, Air France will lay off employees on the basis of voluntary departure, involving multiple positions such as pilots, flight attendants, and ground crews. HOP! – Air France’s subsidiary airline, which mainly operates domestic French and European countries, may be the most affected. .

Issued on the 10th June, Poland is to open its borders with EU countries as of June 13, and international flights within Europe will be relaunched from June 17. Among the many airlines resuming flights today, LOT Polish Airlines won’t be one of them, the airline previously stated all international flight operations will be suspended until 30th June, while a few international long-haul charter flights has been operated spontaneously as part of the evacuation mission to help stranded Polish citizens return home. The biggest airlines in Europe: Lufthansa, Air France and KLM will all be resuming flights today from Poland’s Capital Warsaw to Frankfurt, Munich, Paris Charles de Gaulle and Amsterdam. Other airlines including the low-cost carrier Wizz Air will resume services today as well to 13 European destinations including London Luton, Budapest, Sandefjord Torp and Rome. As the flag carrier of Poland, LOT Polish Airlines hasn’t come out with a statement just yet on when will they resume regular international flights. The airline’s current domestic network schedule is planned to run until June 19th with limited capacities, so it’s likely more information will be updated from the airline. Poland will relaunch international flights, but noted that carriers “will probably need a week, or two or three, to prepare a flight-connection network.” Prime Minister Mateusz Morawiecki Commented On June 16 Ryanair, the Irish low-cost airline is planning flight resumption of almost 200 routes to and from Poland from July 1st. After a long period of suspension due to the Covid-19 pandemic in Poland. Base on Poland is one of the most important low-cost market for the airline, the airline is eager to resume much of its network as soon as possible. Lufthansa is resuming once daily service to its hub in Frankfurt and Munich today, confirmed by the airline, the airline is expecting full flights today with a high load factor in the coming days as well, as many passengers are eager to enter or exit the country through the strong connection network available through them. Other major airlines like Air France and KLM are also resuming flights today, though only Warsaw is seeing a huge increase of international flights today, but more are expected for other airports in Poland as carriers slowly goes back to normal operations.

In a press statement released today, SAS is now launching its traffic programme for July. Scandinavian Airlines is bringing back numerous European destinations the airline previously served, and in addition, trans-Atlantic flights from Copenhagen airport to New York, Chicago and San Francisco will resume operations as well. In total, the July traffic programme indicates a capacity increase from 30 aircraft in June to over 40 in July, equivalent to just under 30 per cent compared with the corresponding period last year. After resuming a dozen European flights earlier this month, SAS is planning ahead with more destinations to be served in July. Scandinavian Airlines is resuming flights in stages in June where a dozen destinations has been planned with limited frequencies, however, the airline is still not operating as normal due to the complexities of travel restrictions in different countries they fly to. The flexible booking policy is still in place which allow one-time free reservation modification. SAS planned to operate up to 30 aircraft by the end of June, and putting 10 more aircraft in service with the expanded traffic program in July, an overwhelming majority of flights will be resumed from Copenhagen, Oslo and Stockholm. In addition to a number of routes from Copenhagen, SAS is also resuming international flights from Oslo to a number of destinations, including Reykjavík, and continuing its operations to Finland and London from Stockholm. Here’s the list of destinations SAS is resuming flights to: Copenhagen: Oslo: Stockholm Stavanger Aalborg Alta Ängelholm Aberdeen Aarhus Bardufoss Gothenburg Faeroes Bodø Kalmar Malaga Evenes Kiruna Palma de Mallorca Kirkenes Luleå Alicante Longyearbyen Malmö Athens Tromsø Östersund Nice Lakselv Skellefteå Split Ålesund Umeå London Bergen Visby Berlin Haugesund Malaga Dusseldorf Kristiansand Alicante Frankfurt Kristiansund Palma de Mallorca Hamburg Molde Aten Munich Stavanger Thessaloniki Stuttgart Trondheim London Amsterdam Athens Rome Bologna Malaga Milan Rome Alicante Faro Milan Palma de Mallorca Split Brussels Split Helsinki Faro Barcelona Oslo Gdańsk Billund Copenhagen Geneva Gran Canaria Zurich Nice Reykjavík Aalborg Palanga Aarhus Vilnius Stockholm Stockholm Copenhagen Oslo Reykjavík Stavanger Bergen Trondheim New York Chicago San Francisco SAS - Scandinavian Airlines tweeted: We continue to slowly reopen routes. From July, we will fly to Alicante, Faro, Rome and 7 other destinations again. In addition, we are adding more flights on our intra-Scandinavian routes. Full program: #flysas #wearetravelers

As of June 13, the number of confirmed American Covid-19 cases has reached 2.09 million. Through a review of the development process of the pandemic, it can be clearly seen that in the first quarter, the impact of the aviation industry was mainly concentrated in March. At the end of January, the first patient was diagnosed in the United States. Passenger screening was started at major airports in the United States, and then three major U.S. airlines were grounded on Sino-U.S. routes. At the end of February, the U.S. Centers for Disease Control and Prevention stated that sooner or later the outbreak would occur in the United States. Started to realize the seriousness of the pandemic and began to adjust the annual development expectation; in March, the United States expected an explosion of newly confirmed cases throughout the country. In mid-March, it announced the restriction of passage between European countries, and the transatlantic routes were affected, which marked that the impact to the industry has escalated, until the US domestic market has gradually fallen, and the aviation industry has completely entered the dark night. In the first quarter of 2020, the operating revenues of the three major US airlines decreased by 17%-19% year-on-year, and the operating losses amounted to US$410 million to US$2.5 billion. At the same time as the revenue has dropped sharply, the airline company has a very high proportion of fixed costs to the total cost. The difference in the amount of loss between the three major US airlines is also due to the difference in cost control capabilities. Affected by the pandemic, the operating income of the three major US airlines fell by more than 15% year-on-year compared to the first quarter of 2019. American Airlines’ operating income in the first quarter was US$8.52 billion, down 19.4% year-on-year; US United Airlines’ operating income was US$7.98 billion, down 16.8% year-on-year; Delta Airlines’ operating income was US$8.59 billion, down 18% year-on-year. Among the operating income, both passenger and freight revenue declined to varying degrees. In terms of passenger revenue, the three major airlines fell closer, all from 9 billion to 7 billion. American Airlines, United Airlines, and Delta’s passenger revenue declined by 20%, 19%, and 18%, respectively; The decline in freight revenue is quite different. American Airlines and Delta have dropped from 220 million and 190 million levels to 150 million, with a decline of 33% and 21%, while United Airlines has only fallen from 290 million to 260 million. The range is 8%. 2019 Q1 2020 Q1 Year-on-year change AIRLINES PAX CARGO OTHERS PAX CARGO OTHERS PAX CARGO OTHERS AMERICAN AIRLINES 96,6 2,2 7,1 76,8 1,5 6,9 -20 % -33 % -3 % UNITED 87,3 2,9 5,8 70,9 2,6 6,5 -19 % -8 % 12 % DELTA AIR LINES 92,5 1,9 10,3 75,7 1,5 8,7 -18 % -21 % -15 % Despite the decline in travel demand, various airlines have reduced capacity, but the passenger load factor still declined in the first quarter. The average load factor of American Airlines, United Airlines, and Delta Air Lines in the first quarter of this year were 72.7%, 70.9%, and 73.1% respectively. Compared with last year’s data (82.2%, 80.9%, and 82.7%), the decline rate was about 10%. While revenues have fallen sharply, operating costs have not changed much over the same period. American Airlines’ operating costs have even increased, from US$10.21 billion in 2019 to US$11.06 billion, up 8%; United Airlines’ operating costs have dropped from US$9.09 billion in 2019 to US$8.95 billion, down 1.5% ; Delta Air Lines dropped from 9.45 billion US dollars to 9 billion US dollars, a decrease of 4.8%. From the perspective of cost composition, fixed costs account for a very high proportion. Among the three airlines, labour costs accounted for the largest proportion, accounting for about 30% of the total cost; followed by j...

Sanya International Airlines will be the only airline that currently includes state-owned enterprises, private airlines, OTAs and local state-owned enterprises among its shareholders. After a long period of low-key preparations, a new Chinese airline by the name of ”Sanya International Airlines” led by China Eastern finally surfaced after the instruction on the general plan for the construction of the Hainan Free Trade Port was released on June 13, China Eastern Group participated in the signing of the first key project of the Hainan Free Trade Port and signed a contract with the Hainan Provincial Government formally on the strategic cooperation framework agreement in Haikou. China Eastern Airlines Co., Ltd., the core main company of China Eastern Airlines Group, and the relevant partners formally signed the “Jointly Established Sanya International Aviation Co., Ltd. Cooperation Framework Agreement” (《合资设立三亚国际航空有限公司合作框架协议》) to fully open China Eastern Airlines’ service to Hainan Free Trade Port with a new chapter in construction. According to the strategic cooperation agreement, China Eastern will give full play to the advantages of its aviation industry cluster, join hands with relevant parties in Hainan, vigorously develop the aviation economy and airport industry, and fully support the development of various businesses in the new era of Hainan. China Eastern Airlines and Hainan Province will be committed to promoting all-round and in-depth cooperation in various fields such as air passenger transportation, aviation logistics, aviation catering, aviation finance, aviation industry investment, and aviation innovation technology, to create the “Aerial Silk Road” connecting Hainan to the world, contributing to the “Eastern Air Force” for the construction of a free trade port with Chinese characteristics. Among them, “Sanya International Airlines” is an important part of this strategic cooperation. According to China Eastern Airlines, Sanya International Airlines is positioned as an innovative airline based on Hainan and facing the world, integrating diversification, internationalisation, marketisation and intellectualisation. The airline will be absolutely controlled by China Eastern Airlines (600115), jointly established with Hainan Transportation Investment Holdings Co., Ltd., Sanya Development Holdings Co., Ltd., Juneyao Airlines, and Ctrip Travel Network Technology (Shanghai) Co., Ltd. It is worth noting that “Sanya International Airlines” is also the only airline that currently includes state-owned enterprises, private airlines, OTAs, and local state-owned enterprises among its shareholders. At present, China Eastern has fully entered a new stage of high-quality development, and strived to build a global aviation hub network to achieve new leap-forward development in serving national strategies. The strengthening of strategic cooperation between China Eastern Airlines and Hainan Province and the establishment of a joint venture “Sanya International Airlines” are also the forging competitiveness of Hainan’s seventh freedom rights policy, which effectively integrates the Hainan market into the greater Eastern Airlines to connect 170 countries and 1,036 destinations in the world in order to improve the global accessibility of air passenger and cargo transportation in Hainan, gather more people, logistics, capital, talents and other elements for the free trade port, effectively promote the rapid development of tourism, trade, services and other related industries in the free trade port, and fully serve the self-service port to become the International Tourism Consumer Center, National Key Strategic Service Guarantee Area, National Ecological Civilization Pilot Zone, and comprehensively deepen the strategic realisation of the reform and opening-up pilot zone. China Eastern’s Sanya International Airlines is targeting the support policy of the Hainan Free Trade Port Policy to the hub airlines, including 15% c...

Brussels Airlines, as part of the Lufthansa Group, in a press release today has decided to take substantive and essential measures to ensure the company’s survival. Impacted heavily by the continuing development of COVID-19, the airline has been met with ongoing extremely low demand and worsened financials, forcing the carrier to structurally reduce its costs to a competitive level in order to grant a future for Brussels Airlines. With the airline’s turnaround plan, Brussels Airlines will be cutting marginally profitable and unprofitable routes in an effort to tack its cost structure. The plan would result in a fleet reduction of 30% and a 25% smaller workforce. The airline is confident in its ability to safeguard 75% of its employment and grow back to profitability when expected air travel demand bounced back to normal by 2023. The coronavirus crisis is exerting unprecedented pressure on airlines worldwide, and its total revenue impact is expected to exceed 240 billion euros. The number of bookings received fell by more than 60%, and the number of cancellations reached a record high. As a result, many airlines in Europe and elsewhere have had to lay off employees. Unfortunately, Brussels Airlines was not spared from this crisis. Since the temporary suspension of all flights on March 21st, the company lost 1 million euros a day due to loss of revenue and inevitable costs such as aircraft leasing and maintenance. On February 28, the company first announced the impact on air travel demand. The situation deteriorated week by week and the number of days cancelled exceeded the number of bookings received. Today, demand is still very low. According to analysts and experts, the demand for air travel in 2021 is expected to be 25% lower than before the crisis, and the aviation industry can only expect to return to 2019 levels as early as 2023. “We started the year 2020 with positive results in terms of number of passengers and revenues; and for this summer, we planned a strong leisure offer as we could compensate part of the business we lost due to the bankruptcy of Thomas Cook Belgium. But the Coronavirus pandemic is hitting Brussels Airlines extremely hard. We had no other choice than to temporarily suspend our flights as of March 21st and introduce technical unemployment for the entire company. This unprecedented crisis has worsened our financial situation obliging us to take substantial and indispensable measures. The restructuring is urgently needed in order to survive the current crisis and to become structurally competitive in the future” Dieter Vranckx, CEO of Brussels Airlines Brussels Airlines To Reduce Fleet Size By 30% For Future Survival Avianca, Latin American’s Second Largest Airline, Files For Chapter 11 Bankruptcy Protection SWISS To Resume 20% Of Its Original Services Capacity In June Czech Airlines(CSA) To Resume Services To Selected European Destinations On May 18 Brussels Airlines management plans to focus on achieving structural profitability after pulling the company out of the crisis, this will enable solid growth. The carrier plans to reduce its overall costs while increasing efficiency and productivity. Full positive EBIT margins will enable the airline to ensure its future, invest in the fleet and further develop its hub at Brussels Airport. In addition, Belgian domestic airlines will ensure that they continue to play a pivotal role in the Belgian economy and remain one of the core airlines within the Lufthansa Group. The main measures of the turnaround plan includes: The review of the network by focusing on the market needs and by optimizing the route profitability. The adaptation of the fleet according to the network optimization: from 54 to 38 aircraft (-30%) The reduction of the personnel costs by reducing the number of jobs by 25% Together with the social partners, the number of forced redundancies will be reduced to a maximum extent. The reduction of overhead, operationa...

Avianca, together with its subsidiaries and affiliated companies has filed a voluntary petition today under Chapter 11 of the United States Bankruptcy Law to seek protection and reorganization to Avianca ’s business. The pandemic caused a 90% drop in global passenger traffic and is expected to reduce global aviation industry revenue by $ 314 billion. Avianca ’s loyalty program LifeMiles TM is managed by another company and is not part of the submission in Chapter 11. The Chapter 11 process is a well-established legal process in the United States of America that is recognized by other countries around the world. The process is a temporary one that, according to U.S. law, allows a company to reorganize and complete a financial restructuring under the supervision of the U.S. court system, while continuing its operations under the oversight of its board of directors and management team. According to the International Air Transport Association, the COVID-19 pandemic has unforeseen effects, so it is necessary for Avianca to submit this document. Since mid-March, Avianca ’s scheduled passenger business has been grounded, which has reduced its consolidated revenue by more than 80% and has put tremendous pressure on cash reserves. Through this reorganisation process, Avianca stated in a press release that it intends to: Protect and preserve operations so Avianca can continue to operate and serve customers with safe and reliable air travel, under the strictest biosafety protocols, as COVID-19 travel restrictions are gradually lifted; Ensure connectivity and drive investment and tourism by continuing as Colombia’s flagship airline, serving over 50% of the domestic market in Colombia and providing essential non-stop service across South America, North America and European markets as well as continuing cargo operations, playing a key role in the economic recovery of Colombia and the Company’s other core markets following the COVID-19 pandemic; Preserve jobs in Colombia and other markets where the Company operates, with Avianca directly responsible for more than 21,000 jobs throughout Latin America, including more than 14,000 in Colombia, and working with more than 3,000 vendors; and Restructure the Company’s balance sheet and obligations to enable Avianca to navigate the effects of the COVID-19 pandemic as well as comprehensively address liabilities, leases, aircraft orders and other commitments. “Avianca is facing the most challenging crisis in our 100-year history as we navigate the effects of the COVID-19 pandemic,” said Anko van der Werff, Chief Executive Officer of Avianca. “Despite the positive results yielded by our ‘Avianca 2021’ plan, we believe that, in the face of a complete grounding of our passenger fleet and a recovery that will be gradual, entering into this process is a necessary step to address our financial challenges.” “When government-mandated air travel restrictions are lifted and we are able to gradually resume our passenger flights, we look forward to welcoming back our furloughed employees and playing a leading role in restarting the economy in Colombia and our other key markets. We greatly appreciate the dedication of our employees to Avianca and to serving the more than 30 million passengers that fly our airline each year. We remain committed to our purpose to connect people, families and businesses. Our customers can be confident that they can continue to depend on Avianca for safe, reliable and high-quality service, and our valued LifeMilesTM members can expect to accrue and redeem miles as normal, ” Mr. Van der Werff Avianca Airlines is seeking financial support from governments that provide basic essential services just like many other airlines in the world right now. Avianca continues discussions with the Colombian government as well as those from its ket markets, discussing that the financing structure will provide more liquidity through the Chapter 11 process and play an important rol...

In the next few days and weeks, the entry requirements of various European countries will be gradually reopened. This has led to increased demand for air travel. Therefore, SWISS plans to significantly expand its services on the June schedule in accordance with respective countries entry requirements. “We plan to restore approximately 15% to 20% of our original services in June, and we are very pleased to be able to provide Switzerland with more connections to the world.” Swiss International Airlines CEO Thomas Kruhl SWISS plans to operate about 140 weekly flights from Zurich to 30 destinations in Europe, and about 40 weekly flights from Geneva to 14 destinations in Europe. The airline will still provide long-haul flights to Newark, USA three times a week, and more intercontinental destinations will be added in June. In addition, Swiss International Air Lines and its Swiss WorldCargo division will continue to operate its cargo-only flights to destinations around the world. Changes and additions to the June schedule will be announced soon in all reservation systems. According to the needs of customers, the expansion of flight schedules is proceeding gradually. Starting Monday, May 4, 2020, all SWISS passengers will be required to bring their own face masks onboard all flights. The airline also recommends using masks at the airport before or after the flight if sufficient social distance cannot be observed. Despite the adjustments to the program, social distancing is not always possible, and this measure provides everyone with another layer of protection against SARS CoV2 transmission. The recommendation will initially apply until August 31, 2020. The current requirement for the second seat in Economy Class to remain vacant will no longer apply because the nose and mouth masks provide adequate protection. The probability of being infected with coronavirus while travelling by air is still very low: since the outbreak of the pandemic, there have been no known cases of infection on Swiss Airlines flights. All SWISS aircraft are equipped with high-performance air filters to ensure the same air quality as the operating room and to ensure vertical air circulation rather than diffusion in the cabin. Swiss International Air Lines stated that it maintains close contact with relevant authorities to ensure the best protection for passengers and crew.

Czech Airlines (CSA) said the company will resume some operations on May 18. Affected by the COVID-19 pandemic, Czech Airlines has suspended operations for more than 6 weeks now. Flights to Amsterdam, Frankfurt, Paris and Stockholm will reopen in the first phase, and on May 24, the route to Kiev will be reopened, flights to Odessa and Bucharest will also be reopened on May 25. Passengers must wear masks during the entire flight, and keep a distance of 2 meters between each other. In addition, the aircraft cabin will be disinfected before and after each flight. On May 18, 2020, Czech Airlines, a member of the Smartwings Group, plans to resume its route operations between Prague and certain cities after a temporary service interruption for more than one and half month. Amsterdam, Frankfurt, Paris and Stockholm are the first destinations will be connecting to Prague. As of May 24, 2020, the airline plans to resume operations on its Kiev routes, and will begin the Odessa flights the next day, provided that Ukraine has terminated mandatory quarantine restrictions in accordance with current plans. On May 25, 2020, flights to Bucharest, Romania will also resume. The gradual update of route operations is carried out in accordance with local laws and regulations and the relaxation of current effective restrictions in various countries. As a result, other changes may be made to the flight schedule. At the same time, Smartwings Group is taking measures onboard to ensure that it can still fly safely during the coronavirus. The most important actions include: before boarding the plane and throughout the flight, passengers are obliged to cover their noses and mouths with adequate protective equipment like masks; to keep a social distance of two meters between passengers during boarding and disembarking, and in addition, contactless payment will be used to purchase refreshments on board. Strict hygiene standards are followed on the aircraft. Before and after each flight, the interior is thoroughly disinfected according to the strictest hygiene regulations, including seats, tray tables, seat pockets, overhead lockers and toilets.

For many years, aircraft manufacturers and suppliers in the upstream of the aviation supply chain enjoy higher protection due to technical barriers, and the level of competition in the industry is much lower compared to the lower end of the supply chain. However, the COVID-19 pandemic has caused a large-scale blow to the demand side of air transportation, making it difficult for aircraft manufacturers and suppliers to escape. Since February, the COVID-19 pandemic has swept the world. As the closest link in the aviation industry chain to public travel needs, airlines bear the brunt. As the air transport markets of various countries are shut down like dominoes, an unprecedented large-scale grounding of the global fleet is taking place. According to Cirium’s updated data on April 17, 64% of the world’s 26,000 aircraft in service are grounded. As can be seen from industry figures, the current A330, A340 and B787 series grounding ratios of the wide-body aircraft have reached 90%, and due to the busy cargo aircraft, the B777 grounding ratio is slightly lower, about 75%. Also, more than half of the A320 and B737 series of narrow-body aircraft are grounded. Due to the possible deep damage to the global economy caused by the pandemic, the depression is expected to last longer, and it is difficult for air travel to recover as before in a short period. -Airbus- At present, the damage to Airbus’ commercial aircraft orders has begun to appear, and the aircraft delivery volume has also been greatly affected by the pandemic. In the first quarter of this year, Airbus cancelled 66 aircraft orders, with a net increase of 290 orders and a monthly average net increase of 97, which was higher than last year’s monthly net orders for 66 aircraft. Net orders include 248 A320neo, 42 A220 and 4 A350, while cancelled orders include 29 A320neo, 16 A220, 17 A350 and 34 A330neo. However, if we only look at the March data, Airbus received a total of 60 gross aircraft orders, while 39 aircraft orders were cancelled, and the net order volume was only 21, far below the average of 66 aircraft per month last year. In terms of delivery, Airbus originally planned to deliver 880 aircraft in 2020, slightly higher than the 863 aircraft delivered in 2019. However, in the first quarter, Airbus delivered a total of 122 aircraft, including 31 in January, 55 in February, and 36 in March. The three consecutive months of delivery were lower than the average of 72 in 2019. Delivery level. The aircraft delivered included 91 A320neo, 14 A350, 8 A220, 5 A320ceo, and two A330ceo and A330neo each. In late March, Airbus’s factories in France and Spain were shut down due to the pandemic. Airbus’ original production and delivery plans were disrupted. At the end of March, it announced the cancellation of the original 2020 production plan and delivery plan. Aviation analyst Sandy Morris predicts that Airbus’ delivery this year will likely drop to 650, and it may drop to 600 in 2021. Deliveries Cancellations Net Orders Backlog A220 8 -16 42 529 A320ceo 5 0 0 61 A320neo 91 -29 248 6159 A330ceo 2 0 0 36 A330neo 2 -4 -4 287 A350 14 -17 4 569 A380 0 0 0 9 Total 122 -66 290 7650 As of March 31, Airbus had 7,650 reserve orders, including 6,220 A320, 529 A220, 323 A330, 569 A350XWB and 9 A380, this is still a positive increase compared to 7,482 reserve orders at the end of 2019. After the outbreak, due to tightened airline funding and declining travel demand, the market’s demand for new aircraft will also decline, and the number of new orders is expected to decrease significantly. The current situation may be just the beginning. Although the impact of the pandemic is not very obvious from the perspective of the number of aircraft orders, the market will remain pessimistic after the pandemic has become a consensus in the industry. Aircraft demand is expected to shrink in the future. To this e...

Air France has begun service resumption plans if confinement is lifted. France currently expects to resume flights on May 11, and Air France plans to begin resuming domestic flights between Nice, Toulouse and Marseille on this day. On the premise of border reopening of the destination country, Air France is aiming to resume 30% of flights in July. At present, more than 90% of Air France and KLM flights have been grounded, and the CEO group Ben Smith announced internally that the company is losing €25 million a day. Despite cost saving measures already made, Air France KLM still needs help from the French and the Netherlands’ governments to avoid bankruptcy. Ben Smith is believed to have said that the company has only enough cash to survive until early June, that is not having to refund tickets for thousands of cancelled flights. Since Paris Orly Airport was closed at the end of March, all flights leaving or arriving in Paris have been transferred to Charles de Gaulle Airport. According to Connexion France, from May 11 (the date of initial deconfinement measures), the airline will begin by increasing the number of flights running between Nice, Toulouse and Marseille; three major airports that have stayed open despite confinement. From July, it is expected to increase flights from the current 5% of its usual capacity, to 30%, depending on which countries reopen their borders, both within the EU and outside it. Ben Smith earlier intends to return to 40% service in July to the initially planned offering before the crisis, then 60% in August, before reaching 75% in the fourth quarter at best. Now it still seems to be way too ambitious even for the summer. Currently, more than 45,000 Air France employees have been placed on the partial unemployment (“chômage partiel”) scheme announced by the government, while the airline is continuing to offer a skeleton operation between major European destinations, with a only a handful flights per week. It is also continuing to run a handful of services between Paris and several major cities like New York, Los Angeles, Montréal, Mexico City, Rio de Janeiro, Sao Paulo and Tokyo, in addition they are flying to three African destinations of Dakar, Cotonou and Abidjan. It has also maintained services between mainland France and some overseas territories, including Cayenne in French Guiana, Fort-de-France in Martinique, Pointe-à-Pitre in Guadeloupe, and Saint-Denis in La Réunion. Many of these flights are operating as part of a rescue repatriation programme for French citizens.

At present, European airlines have basically suspended operations between China and Europe. They have been intensively using passenger aircrafts to carry cargo goods out from China. While the Chinese airlines continue to operate part of the Sino-Europe routes in accordance with the latest “Five One” rules of the Civil Aviation Administration of China, they also continue to deliver cargo goods by passenger planes. Finnair and Shanghai-based Juneyao Air have signed a Letter of Intent to deepen their cooperation between China and Europe subject to required regulatory approvals. The aim is to establish a joint venture on the Helsinki – Shanghai route enabling Finnair and Juneyao Air to offer their corporate and leisure customers a seamless travel experience through a wider choice of destination, schedule and fare options via their main hubs, Helsinki Airport (HEL) and Pudong International Airport (PVG). Joint Venture Preparation Juneyao Airlines opened its first European destination between Shanghai and Helsinki in June 2019, thus officially extending the route network from domestic and neighbouring countries to transcontinental scope, and there are plans to open more new fifth freedom routes in Europe via Helsinki. Juneyao Air became the first Star Alliance Connecting Partner in May 2017 and has been in FFP cooperation with several Star Alliance members. In 2019, Juneyao Airlines started FFP cooperation with Finnair. Finnair has entered the Chinese market for more than 30 years. It opened the first direct intercontinental route between Helsinki and Beijing as early as 1988. Currently, there are a total of 7 direct services in China including Beijing Capital,Beijing Daxing, Shanghai Pudong, Xi’an, Guangzhou, Nanjing and Hong Kong direct to Helsinki. Sino-Europe Routes Awaits Market Relaunch, Juneyao Airlines Confirms Finnair Joint Venture Lufthansa To Temporarily Retires Entire Airbus A340-600 Fleet Cathay Pacific To Auto Renew Tiers For All Marco Polo Club Members Flying Blue To Maintain Elite Member Status For Another 12 Months Although the global aviation industry is currently suffering huge losses under the influence of the COVID-19 pandemic and has suspended most of the intercontinental flight services, it is well understood both within and beyond the industry that the current market demand is only suppressed rather than disappeared, it would be wise to use this adjustment period to prepare for the restart of the market. “The aviation industry has encountered tough situations. Nevertheless, we consistently and optimistically trust in our emphasized China-Europe market and partnership with Finnair. We have been in comprehensive cooperation with Finnair and have obtained a mutually trustworthy and beneficial partnership with shared visions and values. Expanding the partnership enables us to accelerate further development and to serve passengers better with diversified choices and broadened network coverage.”, says Mr Yu Chengji, Executive Vice President of Juneyao Air. In fact, airline alliance is a closer way of cooperation between airlines. The two sides further bind the market and revenue links on the basis of code sharing, which can fully maximise the interests of both parties under the conditions of resource constraints. “Despite these immensely challenging times for our industry, we at Finnair remain steadfast in our belief and commitment to China as a key market and to Juneyao Air as a key partner. Over the last year we have built up a close and mutually beneficial partnership with Juneyao Air. Taking the important step to evolve this into a deeper cooperation focused on our Shanghai and Helsinki hubs will allow us to not only serve our current customers even better, but also to lay a platform for further growth in the future, once the aviation market starts to normalise”, says Ole Orver, Chief Commercial Officer at Finnair. Air rights and foothold Shanghai has always been Finnair’s most ...

In the process of the next 2-3 months, Lufthansa will temporarily decommission their entire fleet of 17 Airbus A340-600s. The oldest three A340-600s, with averaging age over 16.4 years, has already been flown to their graveyard at Teruel in northeastern Spain. These aircraft will be taking out of regular operating schedules for at least the next 12 to 18 months. A decision on the possible reactivation of a maximum of ten aircraft in the future will be taken at a later stage, which means, most of these aircrafts will be scrapped into parts. The first three A340-600s already stored at Teruel are amongst the oldest of the 17 aircrafts. Lufthansa’s A340-600s used to have two types of seat configurations although now they have all been configured to one singular one, with 8 first class, 44 business class, 32 premium economy and 213 economy seats. What’s so special about this aircraft type in Lufthansa’s fleet is that passengers have to go downstairs to use the toilets. You may find the illustration on the seat map below with their older seat configuration of F8 C56 W32 Y189. Leverkusen, with registration number D-AIHE, was named after professional football club Bayer 04 based in Leverkusen, North Rhine-Westphalia, Germany. The aircraft was first delivered on Jan 2004, which currently is 16.4 years old and was withdrawn from service on 18th March 2020 and is now stored at TEV. Lübeck, with registration number D-AIHF, was named after the northern German city distinguished by Brick Gothic architecture. The aircraft was first delivered on Feb 2004, which currently is 16.3 years old and was withdrawn from service on 17th February 2020. D-AIHC, was named Essen after the city in western Germany with a rich historical heritage trail of coal mining and steel production until February 2018, during 2003 to October 2008, Essen was painted with the special Star Alliance livery. The aircraft was first leased on Dec 2003, which currently is 16.5 years old and was withdrawn from service on 4th April 2020. All three aircrafts is now stored at TEV, Teruel, Spain since 14th April. Teruel Airport is located between Zaragoza and Valencia in the northeast of Spain. With around 240 days of sunshine a year and little rainfall, the region is particularly suitable for parked aircraft. REG DELIVERED REMARK NAME AGE D-AIHB Nov 2003 Stored Bremerhaven 16.5 Years D-AIHC Dec 2003 Stored TEV, lsd 16.5 Years D-AIHD Dec 2003 Stored, lsd 16.4 Years D-AIHE Jan 2004 Stored TEV Leverkusen 16.4 Years D-AIHF Feb 2004 Stored TEV Lübeck 16.3 Years D-AIHH Mar 2004 Stored Wiesbaden 16.2 Years D-AIHI Apr 2004 Stored Mönchengladbach 16.2 Years D-AIHK May 2004 Stored Mainz 16 Years D-AIHL May 2004 Stored 16 Years D-AIHP Nov 2006 Stored 13.4 Years D-AIHT Apr 2008 Stored 12 Years D-AIHU May 2008 Stored 11.9 Years D-AIHV Mar 2008 Stored 12.1 Years D-AIHW Dec 2008 Stored 11.4 Years D-AIHX Feb 2009 Stored 11.2 Years D-AIHY Mar 2009 Stored 11.1 Years D-AIHZ May 2009 Stored, lsd Leipzig 11 Years At the end of their useful lives, Lufthansa aircrafts will be dismantled for parts in the dry climate of Teruel, like engines or cockpit computers, are often still in good shape for re-use in other aircraft after careful inspection and certification. With a length of over 75 meters, Airbus A340-600 makes the world’s longest aircraft when it was first launched in 2001. “Ultimately, a plane belongs in the sky, but at some point, their time is up. That’s why we go to such lengths to keep an aircraft alive, albeit in a different form, like a keychain or a piece of designer furniture.” Marius Krämer, From old to new | Lufthansa Magazin

Earlier this month, Marco Polo Club members were given a helping hand to retain their elite membership with club points relief and benefits extension across February, March and April, and as the COVID-19 situation has evolved into a global pandemic, Cathay Pacific has updated their tier renewal policy today on their site, all Marco Polo Club members with their current tier levels due to expire between May and December 2020 will be renewed automatically for another 12 months when the normal requirement is not met. This includes all club members at Green, Silver, Gold and Diamond levels. Marco Polo Club Tiers “Automatic tier renewal The COVID-19 situation has evolved into a global pandemic, and many countries have instituted travel bans and restrictions to curb its spread. This in turn has lowered demand and we have significantly reduced capacity across our passenger network. Renewal of club tiers Knowing this has seriously affected your ability to travel and may continue to impact your travel plans for some months to come, we are renewing the current tier level of Green, Silver, Gold and Diamond members whose membership period expires from May to December 2020 for another 12 months, even if the normal renewal requirement is not met. Reissuing of mid-tier benefits We will also reissue mid-tier benefits that expire between May and December 2020 for another 12 months so you can enjoy them when your travel resumes. The reissue should take 7 working days from the date of expiry. For the ticketing arrangements and precautionary measures we’re taking, please visit the COVID-19 Information Centre.” Marco Polo Club Diamond Membership This is a textbook example of how a flagship full service carrier should be retaining its customers, with the continuous passenger number drop, Cathay is expecting average daily pax number remain below 1,000 throughout April. “A potential bright point could be cargo in upcoming weeks. Cargo revenue won’t be enough to offset passenger revenue loss, but it could cushion the blow from high monthly fixed expenses, Cathay has always had one of the strongest cargo operations in the Asia-Pacific. It would make sense for them to capitalise on this leadership and continue adding cargo capacity on key routes.” Luya You, Transport analyst at Bocom International. Cathay Pacific B777-300ER Cathay Pacific had cut capacity by two-fifths and they could continue to extend its April flight reductions of 96 per cent if travel restrictions remains. Marco Polo Club Status Renewal Frequently asked questions What does automatic tier renewal mean? We appreciate our members’ loyalty. By renewing their membership tier automatically – without the need to apply or have a review – we’re ensuring they can travel in the style they’re accustomed to when they resume flying. Who is eligible for automatic tier renewal? Green, Silver, Gold and Diamond members whose memberships expire between May and December 2020 will automatically be renewed at their current tier levels, even if they haven’t earned the club points normally required to retain their status. When will my status be renewed? If your membership expires between May and December 2020, your current membership status will automatically be renewed at the end of your membership year for another 12 months. Do I need to register to renew my status? No, we will automatically renew your status at the end of your membership year. There is no need to call the service centre. Where can I find the end date of my membership year? Sign in to your account and visit the Account Balance page. If my status will automatically be renewed at my current tier, can I still move up to a higher tier if I’ve earned the required number of club points? Yes, the normal rules for tier qualification apply. If my status is automatically renewed, will my club points be reset to zero in the new membership year? Yes, the normal rule applies – upon renewal,...

From a press update from their COVID-19 statement earlier today, Air France KLM group’s Flying Blue program will be extending elite status for their elite members whose status is expiring from March this year to February next year for another 12 months. As for basic Explorer level members, all of their points won’t expire until the the end of this year. “Coronavirus (COVID-19) Related Updates In challenging times like today, travelling has become more difficult due to reasons beyond your control. In these trying times, we want to remove any uncertainty you may have about your Flying Blue Elite level. We have put the following actions in place: We will maintain all Flying Blue Elite members with a qualification period ending between March 2020 and February 2021 for another 12 months. We will prevent all Miles from expiring between now and the end of 2020 for all our Explorer members. We will continue to monitor the situation closely as it evolves. We are committed to sharing details and updates with you as soon as they become available. In case you have any questions about the implications regarding your situation, please see the frequently asked questions about this topic below: If the travel date of your Reward Ticket or Promo Reward Ticket was before 31 May, 2020. The rebooking, reissuing, or refund of your ticket must be completed on or before 30 September, 2020. The rebooked travel date must be before 30 November, 2020. For trip cancellations with Reward Tickets or Promo Tickets: Penalty fees for trip cancellations are waived. Whether you have a Reward Ticket or Promo reward ticket, your Miles will be re-credited to your Flying Blue Member account and airport taxes on the credit card used for payment. Ticketing fees are non refundable. For change of travel dates with Reward Tickets or Promo Tickets: Flights booked with Air France and KLM, you will be reissued a ticket with same route, airline and booking class. Flights booked with other airlines partners flights or in combination with AF/KLM flights, you will be reissued a ticket with same route, airline and booking class. If we are unable to reissue a ticket with the same route, airline and booking class, we will issue a new one upon your request. We will continue to monitor the situation closely as it evolves. We are committed to sharing details and updates with you as soon as they become available.” How would the status extension be counted towards Platinum for life? If you you keep current level during your next qualification period based on this special covid-19 measurements, this 12 months grace period elite status extension will count towards the 10 consecutive years needed to qualify for Platinum for life. Everything is going very fast these days, that’s to say for the survival of many airlines. The CEO of Air France made assumptions to the French Newspaper La Tribune a few days earlier presented that while almost the entire Air France and KLM fleet is grounded, there was still talk of ensuring a very ambitious offer in July and August, putting 70 to 80% of the long-haul seats initially planned for this summer back on before the Covid crisis, 80 to 90% on medium-haul and 65 to 75% on short-haul. Benjamin Smith, Air France After a minimal activity in June where only 20% of the total capacity could be insured, Ben Smith intends to return to service in July 40% of the offer initially planned before the crisis, then 60% in August, before reaching 75% in the fourth quarter at best. Which still seems terribly ambitious, at least for this summer. Like many, the CEO of Air France-KLM plans a slow and gradual recovery.

From a press statement update from the CEO of Marriott International today, Marriott is extending Marriott Bonvoy elite membership status globally for a year. These includes all elite levels from Silver, Gold, Platinum, Titanium, and all the way to Ambassador. Marriott Bonvoy “For Our Marriott Bonvoy Members I also want to take a moment to address our Marriott Bonvoy members. Like many of you, frequent travel is a way of life for me and most of the Marriott team. It is the way we connect, get inspired and evolve our business every day. While it is the right thing to do, it’s been hard not to be able to travel. We know that when you get back in the air and on the road, your points and status will be important to you. Status Extension: We want you to be able to enjoy the status that you earned in 2019. With that in mind, the status you earned in 2019 will be extended to February 2022. Points Expiration: To provide you ample time to redeem points, the expiration of points will be paused until February 2021. At that time, your points will only expire if your account has been inactive for at least 24 months. As the days unfold, we will continue to monitor and evolve our program requirements as necessary. We’ve heard from many of you asking how you can help. Through Marriott Bonvoy’s Giving Platform, you can donate your Marriott Bonvoy points to relief organizations that are active in COVID-19 responses around the world and that Marriott is also supporting, including the American Red Cross, International Federation of Red Cross and Red Crescent Societies, UNICEF and World Central Kitchen. Thank you for being a member of our loyalty program or simply for staying with us – we consider you a part of the extended Marriott family. We will travel again, and we can’t wait to welcome you back. Until that day comes, stay well. Arne M. Sorenson President and Chief Executive Officer” Our Continued Efforts: We Will Travel Again This is wonderful news after the extension policy was released for the Greater China region earlier this year, now Marriott has stated that they will come back with more updates for those who would like to qualify for elite status this year regarding how they would adjust the elite qualifying requirements. Reservation flexibility in this period still applies til June 30, 2020 as updated as follows: “For Our Customers We remain committed to ensuring our customers experience flexibility during these challenging times, so we have further extended our cancellation policy and I wanted to give you an update on those changes. For guests with existing reservations for any future arrival date, including reservations with pre-paid rates that are typically more restrictive, we will allow full changes or cancellation without a charge up to 24 hours prior to arrival, as long as the change or cancellation is made by June 30, 2020. Please note that any changes to existing reservations will be subject to availability and any rate differences. For guests making new reservations for any future arrival date, including reservations with pre-paid rates, between March 13 and June 30, 2020, we will allow the reservation to be changed or cancelled at no charge up to 24 hours before your scheduled arrival date. Please continue to visit our website for the most up-to-date information.”

As the situation around novel coronavirus (COVID-19) continues to evolve, Hilton are doing everything they can to provide flexibility for all guests and their Hilton Honors members, this includes all guests may cancel non-refundable reservations at no charge and also extending status for their members based in the great China region, today they have (finally) came out with a new policy that all Hilton Honors members with status will enjoy status extension from one or two years. Regarding Hilton Honors Points and Status (March 25, 2020) Hilton Honors is aware of that earning and using points is not possible for many of their members right now, so a number of adjustments are being made to help members maintain their status and points for the remainder of 2020. For 2019 Status Extension All members whose 2019 status was scheduled to be downgraded on March 31, 2020—whether it’s Diamond, Gold or Silver—will automatically receive an extension through March 31, 2021. For 2020 Status Extension Hilton Honors is extending 2020 member status through March 31, 2022. This means status members will continue to enjoy all the Diamond, Gold or Silver benefits you have access to today for the next 24 months. Regarding Points Extension Hilton Honors will pause the expiration of all Points scheduled to expire from now til December 31, 2020. Regarding Weekend Night Rewards Earned on Eligible Hilton Credit Cards Hilton Honors have extended the expiration date of all unexpired Weekend Night Rewards as of March 11, 2020, and all new ones issued until August 30, 2020, through the end of next summer (August 31, 2021). Regarding Hilton Honors Experiences Hilton Honors are monitoring all active Experiences to ensure the safety of our members and provide maximum flexibility. For more information as it relates to event cancellations and Point refunds, you may find more info by visiting their FAQs page.

The Norwegian government on the 19th March agreed to save struggling airlines in the country with a loan guarantee of NOK 6 billion. Norwegian aviation is in crisis as a result of the COVID-19 virus outbreak. SAS, Norwegian and Widerøe have all canceled thousands of departures and laid off over 18,000 employees. The loan guarantees come with a number of conditions and are distributed to airlines as follows: Norwegian can access 3 billion SAS 1.5 billion Other companies NOK 1.5 billion However, the former managing director of SAS – Eivind Roald, whose current position is an adviser to Altor Equity Partners shared an interesting post 18th March on Dagens Næringsliv, a Norwegian newspaper specialising in business news, which suggested on the possibility of a consolidated Nordic airline bloc that can potentially prevent future business cycle downturns which could require government bailouts again. The former SAS director envisioned a new Nordic airline group – NAP(Nordic Airline Platform), which should include Icelandair, SAS, Finnair and Norwegian, ” [...] at least parts of Norwegian.” said by Eivind Roald. ” I read with amazement that some are advocating that the Norwegian state should buy shares in Norwegian in order to save the company. It is important to maintain the infrastructure was used as an argument. Eight years ago, I sat on the SAS Group Management during the crisis in 2012. We received a clear message from all Norwegian politicians that it was not appropriate to invest one krone in SAS. If SAS were to go bankrupt, Norwegian could help maintain the infrastructure until new competition is established, it was said as a political point of view. Now obviously this is different. Norwegian is an international airline group which is built by a Norwegian and is headquartered in Norway. Thanks to Norway’s development and tough competition, SAS has actually survived – and all of us who have worked at SAS should thank Norwegian for putting pressure on renewing SAS. On the other hand, there is not a good enough answer to save Norwegian in the structure the company has today. Norway’s owners and board of directors, well-praised by the Norwegian financial industry, have taken quite conscious risk through major expansion in recent years, with the result that the company has high debt and low earnings. The company is an international group with a significant number of employees outside Norway, and most flights outside Norway’s borders. The question we then have to ask is whether it is right then to use the Norwegian taxpayers’ money to buy an international airline that primarily has its air operations in Europe and between Europe and the US. Norwegian politicians have a responsibility to maintain the infrastructure in Norway. Airplanes are part of the infrastructure for an elongated country like Norway, no matter what some politicians may think. Competition is another important principle politicians must ensure. Today, both of these conditions require us to rethink. The short-term solution is most likely to give all airlines – Norwegian, SAS and Widerøe – a credit access, it is only breathing aid in a difficult time. The situation should be used to look at a more long-term fundamental solution for all aviation, not only in Norway but throughout the Nordic region. We are five small countries with four airlines of some decent size. Norwegian politicians should now approach their Nordic counterparts and take the initiative to establish a new Nordic aviation group. The company should be structured as a holding company – Nordic Airline Platform – NAP. The Group should be established on the same principle as IAG (International Airline Group – which owns, among others, British Airways, Iberia and others) and listed on the Nordic stock exchanges. These should be included in NAP: Icelandair, SAS, Finnair and Norwegian – at least parts of Norwegian. NAP can be owned 51 percent by the Nordic states and 49 pe...

Air France today announced its new creative space design partner for their newly built Air France Lounge in terminal 2F at Paris-Charles de Gaulle airport. Patrick Jouin and Sanjit Manku from the Parisian space design studio Jouin Manku will be working with Air France to design the future lounge in Terminal 2F at Paris-Charles de Gaulle, which will be ready to welcome the airline’s Business and Flying Blue Elite Plus customers at the end of 2020. This lounge will be serving Air France customers departing on or connecting to a medium-haul flight within the Schengen area or a domestic flight. As a result of new constructions aimed at developing the best transfer conditions and easing the already overcrowding issues at Terminal 2F with the Paris Aéroport, the new 3500 sq. m. space of the new Air France lounge will be located at the centre of the two boarding areas which make up Terminal 2F. It will play a full part in the new airport design to create a more streamlined and comfortable lounge visit experience. This prestigious collaboration with Jouin Manku goes hand in hand with Air France’s tradition of regularly calling on the best designers and architects of its time. “We are delighted to include Patrick Jouin and Sanjit Manku in the incredible history that Air France has had with design since its creation. Following Charlotte Perriand, Andrée Putman and more recently Noé Duchaufour-Lawrance and Mathieu Lehanneur, a new creative stage is opening up to us. By creating an iconic new lounge, the Jouin Manku studio will enhance the very French notion of hospitality, combining pleasure and poetry.” Catherine Villar, SVP Customer Experience at Air France. “We are very proud to be embarking on this new project alongside Air France. With this new lounge, we wish to offer the airline’s customers a real moment suspended in time before take-off. At the heart of the lounge, a “runway view”, a huge curved window with a view of the sky, will reinforce the impression of being in a bubble of serenity at the heart of the airport. We have designed an intuitive space that every customer can enjoy, whatever the time of day.” Patrick Jouin and Sanjit Manku

The Lyon–Saint-Exupéry Airport is the second main hub for Air France’s regional subsidiary HOP!, the airline is created to help Air France to keep market share, the only all year round Air France flight operates from Lyon is a feeder route to Paris Charles De Gaulle. The lounge is newly renovated earlier this year and it’s located right outside the gate 21B boarding area; the auto-sliding door at the entrance will get you a lot of attention from people waiting for boarding outside. Practical Info: Contracted Airlines: Air France HOP! by Air France Aeroflot KLM Admission: Business Class, First Class on contracted airlines Skyteam Elite €25 or 6,000 Flying Blue Miles *subject to availability Opening Hours: 5:40-22:00 Area Size: 280 sq. m. 85 seats Dedicated Platinum Ultimate area Seating Area: After the renovation earlier this year, the lounge now looks in line with Air France’s new design concept of French chic and elegance, the seating are more comfortable, with different layout options that suits to different passengers need. In addition to newer seating design, Air France went one step ahead with more dedicated attention for its first class La Premier and Platinum Ultimate passengers with an exclusive seating area which are blocked for them, this corner will get you special attention from lounge staff which includes a light conversation regarding your personal life and then they will bring the slev service items from the counter all the way to you, and even more, they might prepare you with the selv-serve counter snacks to be nicely unwrapped onto a plate in the kitchen and serve it to you with fork, knife and napkins. You will of course also get all the eye attention from other normal elites through the glass wall. Food & Drinks: The food and drinks options are rather limited, this can be the problem for all Air France Salon Lounges, packaged biscuits and crackers are hardly something people really want to eat, there are as daw as chewing wax, but they are served only for the purpose of having things to offer. Although the hot drink cups came with a new design, so came the cost-cutting measures like having the chocolate or tea bag being fixed to the cup itself which kan save their staff more time to do inventories check while passengers can feel more like visiting a fast food joint. Conclusion: The Air France Salon Lounge at Lyon airport came with the newly expanded Terminal 2 building, facilities and amenities inside the terminal are kept at the minimum while being new and clean, so is what I have to comment about the new lounge. The lounge decor is up to date with Air France’s overall new service concept, while cost cutting had been put into practice at every aspect possible. I certainly wouldn’t recommend paying in any form to gain access to this lounge, as during quieter hours, the terminal itself has more area to sit and explore than this. Being a frequent traveller these days can only remind people of lowering their own expectations, though the hallway inside the lounge does bring you some peace and solitude while being at such a hectic place like the airport.

Scandinavian Airlines System (SAS) earlier today came out with a statement that they will shift their Copenhagen – Narita service to Haneda. The route will gives travellers access to downtown Tokyo directly with 30 domestic codeshare destinations with its Star Alliance partner All Nippon Airways (ANA). The metropolitan area of Tokyo has two international airports are looking to increase Japan’s tourist numbers by adding significantly more international flights ahead of the 2020 Summer Olympics. Japan’s biggest airport, Haneda, is more ideally located for business travellers and the airport is set to add 50 international routes per day as, starting in late March 2020, the government of Japan for the first time will allow aircraft to fly over central Tokyo during the day. The direct Copenhagen-Haneda route will be served by SAS’ brand new Airbus A350 aircraft. As the most environmental-friendly airplane on the market, the A350 will reduce emissions by 30 percent compared to earlier generations of similar long-haul aircraft. “Japan is already a very popular destination, and this will provide a positive boost for our travellers, both in relation to business travel and tourism. The new service offers an attractive timetable to Haneda and we hope it will be well received and appreciated by our travellers throughout Scandinavia and Japan, SAS looks forward to the opportunity to serve Haneda from summer season 2020 in time for the Olympic and Paralympic Games. With this initiative, SAS aims to support Olympic athletes in the national teams of Denmark, Norway and Sweden in their quest for Olympic success” Rickard Gustafson, President and CEO, SAS. There is a large Scandinavian common market with a strong interest in Japan, both for leisure and business travel. The route is particularly well timed as SAS is in a unique cross border partnership with the three national Scandinavian Olympic and Paralympic Organising Committees and will be their principal airline partner during the 2020 Olympic Games in Tokyo. Additional cities (Istanbul, Milan, Moscow, Shenzhen and Stockholm) are part of the 12 new routes ANA will serve out of Haneda Airport starting in 2020. ANA will also be increasing the frequency of the Haneda – Los Angeles and Haneda – Sydney route in 2020. The routes are part of ANA’s dual hub strategy to enhance its international network as Tokyo metropolitan airports continue to expand. The two international airports had different roles when Narita first opened in 1978, Haneda was focused on domestic service while both ANA and JAL had to move their entire long-haul network til Narita. But since the opening of a fourth runway in 2010, the government of Japan has been gradually approve more international service from Haneda, with Narita will continue to serve more long-haul routes than Haneda, for legacy carriers like ANA and JAL, Haneda will become ever more important for capturing business travellers who are less price sensitive. ANA will shift its U.S. destinations of San Jose, California, and Washington to Haneda with new destinations like San Francisco, Milan and Istanbul be added. This will shift ANA’s long haul operation to be more focused at Haneda. More capacity between Japan and Scandinavia will be added in spring 2020 when All Nippon Airways opens a new route between Haneda and Stockholm.

From December 30, Urumqi Airlines plans to open two new international routes from Urumqi to Nagoya, Japan. With the opening of Urumqi(URC) – Wuhan(WUH) – Nagoya(NGO) from the 30th of December, with flights scheduled on Monday, Wednesday, and Friday; Urumqi(URC) – Jinan(JNA) – Nagoya(NGO) route will be opened on December 31 for every Tuesday, Thursday, Saturday, and Sunday. The route is the second and third international scheduled routes opened by Urumqi Airlines. The opening of this international route indicates that Urumqi Airlines will further accelerate the pace of international route network build-up, and is these route layout is significant for Urumqi Airlines to create a “connected Eurasian” network. In the past, citizens of Urumqi and surrounding areas traveling to and from central Japan required transit in cities such as Xi’an and Beijing, which took a lot of time. After the opening of the route, Xinjiang passengers only need 9 hours to reach central Japan, which greatly reduces the travel time and travel costs of passengers. In addition, the route connects the two secondary aviation hubs of Wuhan and Jinan in China, enriching the routes and time options for passengers from the two places and surrounding provinces and cities to Japan. At the same time, the opening of the route provides a more convenient air channel for economic and trade exchanges and cultural exchanges between these cities. The flights from Urumqi (URC) to Nagoya (NGO) via Wuhan (WUH) will operate with the following schedule starting on December 30, 2019: UQ2657 / URC – WUH / 7:05AM – 11:25AM (Mon, Wed & Fri) UQ2657 / WUH – NGO / 1:05PM – 5:15PM (Mon, Wed & Fri) UQ2658 / NGO – WUH / 6:45PM – 10:05PM (Mon, Wed & Fri) UQ2658 / WUH – URC / 11:55PM – 4:20AM (Fri, slightly different on Mon & Wed) The flights operating via Jinan (TNA) will operate from December 31, 2019, with the following schedule: UQ2659 / URC – TNA / 7:30AM – 12:00PM (Tue, Thu, Sat & Sun) UQ2659 / TNA – NGO / 1:30PM – 5:15PM (Tue, Thu, Sat & Sun) UQ2660 / NGO – TNA / 6:45PM – 9:15PM (Tue, Thu, Sat & Sun) UQ2660 / TNA – URC / 11:50PM – 4:30AM+1 (Tue, Thu, Sat & Sun) None of the flights between Urumqi and Nagoya will be non-stop and it would still be difficult to foster them in the future, as there are currently 10 other Chinese carriers serving flights to Nagoya from 23 cities in mainland China. As for the two routes Urumqi Air is serving from Wuhan and Jinan, both airports are already served by other Chinese carriers who are competing on the same route, with Shandong Airlines serving Jinan and Nagoya 3 times weekly and China Southern serving Wuhan – Nagoya with twice weekly as well. From 1st April earlier this year, Urumqi Airlines implemented service differentiation and customisation on its entire flight network which divided baggage allowance and meal policies into four different classes, with baggage allowance ranging from 10kg to 30kg and after the new implementation, meal service for flights within three hours will be cancelled, with more snack options being added for purchase.

There are two routes in China Eastern’s network that is of crucial importance for the airline’s survival, it’s domestic flight between Shanghai and Beijing(MU&FM) together with its low cost subsidiary – China United Airlines(KN), generated almost half of the airline’s annual profit in fiscal year 2018; and its most important long haul route, Shanghai Pudong to Paris Charles De Gaulle, is becoming the second most frequently operated Sino-European route after Shanghai(SHA) – London(LON) which is served by four carriers (Air China(CA), British Airways(BA), China Eastern(MU) & Virgin Atlantic(VS)) with up to 4 flights daily. In 2020, China Eastern Airlines’ Shanghai – Paris route will continue to served with a frequency increase of up to 17 flights per week and they are in the planing phase of opening a direct route from the brand new Beijing Daxing airport to Paris. “This year marks the 55th anniversary of the establishment of diplomatic relations between China and France. The heads of state of China and France have successfully exchanged visits, pushing the relationship between the two countries to a new level. Aviation cooperation is a “bridge” connecting the people of China and France. It is hoped that the aviation industry of China and France will continue to work together to contribute to the pragmatic cooperation between China and France and write a new chapter in aviation cooperation.” Chinese Ambassador to France Lu Shaye In 2017, China Eastern Airlines invested 375 million euros in the Air France-KLM Group, holding 10% of the shares, becoming the second largest shareholder of Air France-KLM, and co-operating with Air France-KLM on four routes from Paris to Shanghai, Kunming, Wuhan, and Qingdao. On July 27, 2017, a wholly-owned subsidiary of China Eastern Airlines Holding(hereafter as CEA Holding) and Delta Air Lines entered into a conditional subscription agreement with Air France-KLM, respectively, to acquire 10% newly issued shares in the share capital of Air France-KLM after the completion of issuance of additional shares. CEA Holding entered into a marketing agreement with Air France-KLM to further strengthen the business partnership on the basis of good business relationship between the two parties. On October 3, 2017, the trading of the fixed issuance of additional 10% shares to CEA Holding by Air France-KLM was completed in the Euronext. CEA Holding appointed Tang Bing, its Director and vice president as the director of Air France-KLM. According to the relevant requirements of the Shanghai Stock Exchange, the daily businesses such as joint operation and service security between CEA Holding and Air France-KLM and its controlled subsidiaries constituted a related party transaction of the Company under the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. On December 22, 2017, the Board of Directors considered and approved the relevant resolution regarding the 2017-2019 daily related party transactions between Air France-KLM and CEA Holding, pursuant to which, we will provide aircraft aviation transportation cooperation and support services to Air France-KLM and Air France-KLM will provide aircraft aviation transportation cooperation and support services to CEA Holding. The Board of Directors also approved the 2017-2019 annual caps for the Air France-KLM aircraft aviation transportation cooperation and support services. On August 10, 2018, a wholly-owned subsidiary of CEA Holding entered into the aeronautical materials and components maintenance and spare parts supply service agreement and components lease service agreement with the wholly-owned subsidiary of Air France-KLM, KLM Royal Dutch Airlines, pursuant to which, KLM Royal Dutch Airlines will lease and maintain aeronautical material and spare parts for CEA Holding‘s 15 B787 airplanes for 15 years. The Board of Directors considered and approved the relevant transactions. On October 30, 2018, a wholly-owned subsidiary of us ...

Embraer and the Netherlands KLM Cityhopper signed 21 E195-E2 confirmation orders and 14 purchase rights. The 21 confirmed order aircraft will be purchased and leased by Airbus Industrial Leasing business partner Aircastle and ICBC Leasing. At this year’s Paris Air Show, the agreement was announced in the form of 15 confirmation orders and 20 purchase rights letters of intent. If all purchase rights are converted to confirmation orders, the total value of the agreement will be $2.48 billion. It is confirmed that the 21 aircraft in the order will be leased from Aircastle and ICBC Leasing respectively, providing 11 and 10 E195-E2 aircraft to KLM. “KLM’s decision to add a further six aircraft to this order is a significant vote of confidence in our E2 programme”, said John Slattery, President and CEO, Embraer Commercial Aviation. “Delivering 30% lower emissions when compared to KLM’s current E190s, yet still providing a further 32 seats, the E195-E2 will simultaneously increase capacity for KLM at slot constrained Schiphol Airport, while also delivering huge reductions in emissions.” John Slattery, President and CEO Embraer Commercial Aviation “For KLM this aircraft is a significant part of our commitment to improving our environmental impact. Not only is the E195-E2 the most fuel efficient lowest emission aircraft in its class, it is also the quietest by a considerable margin – a huge benefit for both our communities and our passengers.” Pieter Elbers, President and CEO of KLM Royal Dutch Airlines The economic and environmental performance of the aircraft makes the E195-E2 the ideal aircraft for growing KLM’s European business and supporting their hub-and-spoke operation, complementing the mainline fleet. This is why Embraer nicknamed the jet – The Profit Hunter. KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes. KLM Cityhopper’s all Embraer fleet currently has 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190s and 17 E175s. KLM will use a 132-seat layout for the E195-E2 aircraft. Delivery will begin in the first quarter of 2021. Embraer is the world leader in the manufacture of aircraft below 150 seats. At present, more than 100 customers worldwide operate the ERJ series and E-jet series aircraft of the Embraer industry.

Cathay Pacific Group is set to receive 65 new aircrafts by 2024 despite recent developments in Hong Kong; in an effort for fleet modernisation, the group’s 3 airlines – Cathay Pacific, Cathay Dragon and HK Express (acquired since March 2019 for HK$4.93 billion or US$628 million) will be each taking deliveries of a dozen new aircrafts that better suits their respective market positioning. In order to continue strengthen Hong Kong’s position as Asia’s leading international aviation hub; the group’s existing aircraft order is comprised of 21 Boeing 777-9 aircrafts, 12 A350s and 32 A321neo aircrafts between 2020 and 2024, the group has decided upon the following fleet allocation after a comprehensive review. B777-9X A350 A321neo Cathay Pacific 21 12 n/a Cathay Dragon n/a n/a 16 (2020-2022) HK Express n/a n/a 16 (2022- ) “We have four airlines in the group, each of them has its clear proposition. Cathay Pacific will continue to operate as an international full-service airline providing premium services to customers while Cathay Dragon is our regional full-service carrier. Meanwhile, HK Express will remain as a standalone, low-cost airline focusing on serving leisure travel destinations. AHK Air Hong Kong will continue to be the Group’s all-cargo carrier specialising in express cargo services. “We will continue to invest in each of our airlines, their products and services. New aircraft are always the best platform to showcase our customer experience offerings which we are continuously enhancing in the spirit of our progressive and thoughtful ‘Move Beyond’ brand values. Our goal is always to move people forward in life through our ability to connect them to meaningful people, places and experiences through our Hong Kong hub.” Cathay Pacific Group Chief Executive Officer Augustus Tang The Chinese market currently makes up around 20% of Cathay Pacific’s daily flights, however, the airline is facing negative exposure in China following criticism from the Civil Aviation Administration of China, resulting the airlines earning of HK$1.34 billion in the first half of year 2019. HK express currently operates 13 routes to Japan, marks up half of its total destinations, recent meetings between executives at HK Express and Japanese official and business in both Hong Kong & Japan signals the airline group will double its effort for Japanese expansion to offset its negative exposure from China. Aircraft Type Inventory On Order Firm Cathay Pacific Boeing 777-200 3 Boeing 777-300 15 Boeing 777-300ER 52 Boeing 777-9X 21 Airbus A330-300 33 Airbus A350-900 23 Airbus A350-900 5 Airbus A350-1000 12 Airbus A350-1000 8 Cathay Dragon Airbus A320 15 Airbus A321 8 Airbus A321neo 16 Airbus A330 25 HK Express Airbus A320 8 Airbus A321 11 Airbus A321neo 16 Airbus A320neo 5 Cathay Pacific Boeing 747-400ERF 6 Boeing 747-400BCF 1 Boeing 747-8F 14 Air Hongkong Airbus A300F 10