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Eye on L.A. Aviation for Thursday, March 19, 2020

Eye on L.A. Aviation for Thursday, March 19, 2020

imageClick Here To View this E-mail as a Webpage Airlines U.S.airlines, saying it will take a ‘long time’ to recover, try to quickly reduce workforce — U.S.airlines are seeking to quickly reduce their workforces through early retirement packages or unpaid leave of up to 12 months with medical benefits in an effort to cut costs as the rapid spread of the coronavirus keeps people from flying.Moves by American Airline Group Inc and Delta Air Lines were a further sign that airlines do not expect a quick rebound to depressed travel demand and must save costs.Tracy Rucinski & Akanksha Rana/Reuters The real cost of bailing out the airlines — They jammed us into 16-inch seats and now they want us to cough up $50 billion.That’s an understandable, if knee-jerk, reaction to news that U.S.airlines are asking taxpayers for a bailout as the coronavirus pandemic decimates air travel.In the space of a week, industry executives have gone from self-congratulatory complacency about their preparedness – “We have restructured our industry to handle an event such as this,” American CEO Doug Parker said at a March 10 investor conference, where he and other airline leaders said they’re not seeking federal aid – to urgent pleading for more than $50 billion in government assistance.

Joe Cahill/Crain’s Chicago Business Column: The airlines want our cash? Give us more legroom in return — The Trump administration this week called for $850 billion in taxpayer funds to boost the economy during the coronavirus pandemic.This isn’t a bad idea in and of itself.

There’s a long history of governments worldwide responding to extraordinary times with measures to protect the overall economy and favored industries.When it comes to handing billions of dollars to struggling airlines, however, let’s stop for a moment and ask whether President Trump, who fancies himself a master negotiator, is giving away the store and seeking little if anything in return.David Lazarus/Los Angeles Times Trump: ‘Airlines would be No.1’ for coronavirus bailout — President Donald Trump pledged a bailout Wednesday for airlines, hotels and other travel businesses that have seen business crater in reaction to restrictions and decreased demand due to the coronavirus.In the White House’s daily coronavirus press briefing, Trump singled out the airline industry as most deserving of assistance but also mentioned other travel businesses.

He said details of a bailout haven’t yet been fully developed, including where the lines will be drawn that will decide which industries are eligible for relief.

Chris Woodyard/USA Today Airline, hotel shares plunge on disappointing rescue plan — Airline shares fell sharply Wednesday after the Trump Administration proposed providing assistance to the struggling industry in loans, rather than the direct cash infusion companies had requested.Shares of major hotel chains including Hyatt Hotels Corp.and Marriott International Inc.also tumbled, down 19% and 15%, respectively, Wednesday, as the administration offered a much smaller rescue plan than the companies had discussed with President Trump one day earlier.

Alison Sider & Ted Mann/Wall Street Journal Democrats call for pollution reduction requirements in any aid for airlines, cruises — A group of eight Democratic senators says that any possible aid for airlines and cruises that are dealing with the fallout from the coronavirus should include requirements that these industries act in a way that is more environmentally friendly.”Given the poor environmental records of some companies in these industries, we believe that any such financial assistance should be paired with requirements that companies act in a more responsible fashion,” the senators wrote in their Wednesday letter to House and Senate leadership.Rachel Frazin/The Hill Delta says March revenue fell by nearly $2 billion, will slash capacity by unprecedented 70% — Delta Air Lines on Wednesday said it plans to cut its flying by an unprecedented 70%, on a year-over-year basis, after March revenue fell nearly $2 billion short of the same month last year as the coronavirus devastates demand.Delta’s shares were down more than 30% in afternoon trading, which would be the biggest one-day percentage decline on record for the airline.

Leslie Josephs/CNBC Delta cutting 70% of flights, more than 10,000 employees to take unpaid leave — Delta Air Lines is cutting 70% of flights and parking at least half of its fleet.The airline will park more than 600 planes and cut 80% of international flying over the next two to three months.And it will “temporarily consolidate airport facilities in Atlanta and other locations as necessary” and close most of its Sky Clubs until demand recovers, according to a memo from Delta CEO Ed Bastian.Kelly Yamanouchi/Atlanta Journal-Constitution ‘Dark moment’: Delta, United, JetBlue slash more flights as coronavirus crisis deepens — How fast is travel demand plummeting as the coronavirus crisis deepens? Delta Air Lines said Wednesday that it plans to park at least 600 planes, more than half of its fleet.

That’s double the number of parked planes it announced just a few days ago.In a memo to employees, Delta CEO Ed Bastian described the airline’s latest cuts as a partial shutdown of the airline.Dawn Gilbertson/USA Today Here are the domestic routes United will suspend next month — United Airlines will suspend several domestic and transborder Canadian routes next month, though the cuts are not as deep as I originally anticipated.Only one city, Mammoth Lakes, California, will lose service completely.

Other cities will see cuts from select hubs, but maintain at least one link on United.Overall, United plans to reduce U.S.and Canada flights by 42% versus April 2019.

Here’s a list of route suspensions sorted by hub.Matthew/Live and Let’s Fly Airports U.S.airports ask Congress for $10B over pandemic-related slowdown — American airports have asked the U.S.Congress for $10 billion in immediate aid to help offset the massive drop in travel levels caused by the COVID-19 pandemic.The proposal being discussed would see funds flow through the existing FAA Airport Improvement Program (AIP).

Eligible spending, normally limited to infrastructure projects, would be expanded to include operational expenses and debt payments to help airports weather the temporary fall in revenues caused by fewer passengers.Ben Goldstein/Aviation Week Ontario airport braces for historic slowdown due to coronavirus — As disinfection of terminals are ratcheted up, Ontario airport officials are bracing for a historic decline in passengers as a result of stay-at-home strategies employed to fight the novel coronavirus.Economists predict world air travel will fall in 2020 for the first time since 2009, said Mark Thorpe, CEO of Ontario International Airport.This month, the airport is experiencing a steep slowdown in both domestic and international travel, Thorpe wrote in a statement released Wednesday, March 18.Steve Scauzillo/Inland Valley Daily Bulletin Amex Centurion Lounges closing temporarily — It has been announced that American Express Centurion Lounges globally will be closing temporarily as of Saturday, March 21, 2020.

We don’t yet know when the lounges will reopen.This comes just weeks after the latest three Centurion Lounges opened, in Phoenix, Charlotte, and Los Angeles.At this point Amex has a total of a dozen Centurion Lounges around the globe – other locations include Dallas, Hong Kong, Houston, Las Vegas, Miami, New York LaGuardia, Philadelphia, San Francisco, and Seattle.Ben Schlappig/One Mile at a Time With businesses decimated, airport concessionaires seek relief — The massive disruption in aviation caused by the COVID-19 pandemic has prompted concessionaire trade groups to seek relief in an effort to stem financial losses.The Airport Restaurant & Retail Association and the Airport Minority Advisory Council are urging both airports and the U.S.

Congress to act.Patrick Murray, president of the ARRA Board and executive vice president of SSP America, paints a dire picture of the concessions industry as the crisis deepens.”Things are literally changing by the hour,” he says.Carol Ward/Airport Experience News Mexico defies calls to shut airports for fear of economic hit — Mexico’s President Andres Manuel Lopez Obrador ruled out closing airports and other tough measures to curb the coronavirus pandemic, saying he’s trying to prevent a complete shutdown of the economy that would hurt the poor.In sharp contrast with the policies implemented by most of its neighbors, Mexico for the moment won’t bow to pressure to shut its airports, restaurants and curtail social life because it needs to defend economic activity, Lopez Obrador, known as AMLO, said Wednesday.Juan Pablo Spinetto/Bloomberg TSA to accept some expired licenses as ID at airport security checkpoints — If your driver’s license is expired, don’t worry about getting through airport security checkpoints.

The Transportation Security Administration is now allowing a grace period for those who haven’t been able to get their licenses renewed amid the coronavirus pandemic as people work on social distancing, reports The Arizona Republic, which is part of the USA TODAY Network.As of March 1, TSA started allowing people to use an expired license as identification at airport security checkpoints for one year after the expiration date.Melissa Yeager, Rasha Ali, Curtis Tate & Julia Thompson/USA Today Don’t worry travelers, McCarran airport in Las Vegas isn’t closing — Worried callers flooded McCarran International Airport after Gov.Steve Sisolak announced the closure of nonessential business in Nevada, aimed at limiting the spread of COVID-19.

The wave of concerned people can rest easy: McCarran is considered an essential business.After the high volume of calls received by McCarran asking if it was open, a message was published to the airport’s over 30,000 Twitter followers.Mick Akers/Las Vegas Review-Journal Mayor signs bill to bring relief for Atlanta airport businesses’ employees — Atlanta’s mayor has signed new legislation designed to help employees at Hartsfield-Jackson International Airport make it through the coronavirus emergency.On Wednesday, Mayor Keisha Lance Bottoms signed a bill sponsored by Atlanta City Councilmembers Andre Dickens and Marci Collier Overstreet, that would let the city temporarily suspend the rental payments that concessions and car rental companies have to pay for four months.

Fox5 Atlanta Salt Lake City Airport, a hub for Delta, reopening after earthquake — Salt Lake City International Airport is set to reopen after a 5.7 magnitude earthquake that struck west of the city Wednesday morning caused the airfield to close for about four hours.On its website, the airport said that it was closed earlier in the day following the quake.Cargo and general aviation flights were able to resume a few hours ahead of commercial passenger operations.The Salt Lake City Tribune reported the quake caused damage to the airport and buildings in the city’s downtown, including the Salt Lake Temple.Zach Wicher/The Points Guy Southwest cancels Chicago Midway flights; FAA tower still closed after workers test positive for coronavirus — The air traffic control tower at Chicago Midway Airport remained closed on Wednesday, a day after three Federal Aviation Administration technicians tested positive for the coronavirus.Southwest Airlines, the dominant carrier at Midway, canceled 370 flights to and from the airport, while another 26 were delayed, according flight-tracking website FlightAware.

The average delay Wednesday was 36 minutes, according to the FAA.”Midway is open, but flight operations remain limited,” the airport tweeted Wednesday.”Please consult with your airline.” Curtis Tate/USA Today AOPA Baker urges FAA to lift ‘impossible’ compliance barriers — In response to the concerns of many members who face obstacles for remaining in compliance, AOPA is urging the FAA to exert a “maximum amount of flexibility” to help keep pilots and aircraft up and running during the crisis.In a March 17 letter to FAA Administrator Steve Dickson, AOPA President Mark Baker described the impact on general aviation pilots and urged a flexible approach that allows extensions and relief from regulatory time restrictions for the duration of the crisis.Dan Namowitz/AOPA TSA TSA says 5 million fewer people flew in past two weeks than this time last year — Nearly 1 million fewer passengers passed through airport security checkpoints nationwide on Friday, part of a steep drop-off in air travel over the past two weeks linked to the coronavirus, data show.

The Transportation Security Administration data counted 957,000 fewer passengers that day compared with the equivalent day in 2019.It is the most recent day for which the throughput numbers are available.Overall in the past two weeks, nearly 5.2 million fewer people have passed through checkpoints.Gregory Wallace/CNN Travel Hilton CEO tells Trump most hotels in major cities will close — Hilton Worldwide Holdings Inc.plans to close most of its hotels in major U.S.

cities, Chief Executive Officer Christopher Nassetta said at a meeting with President Trump at the White House on Tuesday.Nassetta, whose company has already begun to temporarily shutter namesake properties in New York and Washington, said occupancy rates could fall to 10% globally as world governments seek to halt the spread of the novel coronavirus.Patrick Clark & Mario Parker/Bloomberg Trump, Trudeau agree to close U.S.-Canada border to ‘nonessential’ traffic — The United States and Canada agreed to close their 5,500-mile border to nonessential traffic Wednesday, a drastic measure that officials hope will help stanch the spread of the novel coronavirus in both countries.President Trump and Canadian Prime Minister Justin Trudeau decided to close the border Wednesday morning, Trudeau said at a news conference.

People will no longer be able to traverse between the two countries for recreation and tourism, Trudeau said.Katie Zezima & Rick Noack/Washington Post Still traveling in the middle of coronavirus — Frequent fliers quickly became frequent hand-washers.And despite everything, some are still wiping down their tray tables and flying on.International travel bans are in effect and warnings against nonessential travel are in place.

Companies have issued edicts to scrap trips, and cancellations of just about any and every event and meeting have left little travel going on.Airlines are grounding 75% of their long-haul international flying; some U.S.

carriers are pulling back 20%, even 50% of their domestic flights.Scott McCartney/Wall Street Journal American travelers are trapped abroad by coronavirus lockdowns — It was supposed to have been what the American family called “a bucket list” trip for Lesley Bravi, 77, whose husband had died last year: A trip to Peru with relatives to see the 15th-century Inca citadel of Machu Picchu and Lake Titicaca.But on Monday, a week into her trip, an email came from the U.S.Embassy in Lima, telling Ms.Bravi and her daughter, Kathleen de Chabert-Ostland, that they had to get out of Peru fast.Ryan Dube, Juan Forero & Alistair MacDonald/Wall Street Journal Aviation Data & Analysis.

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