Virtual summit guest says governments must enforce social distancing to ensure tourism can start

Summit News 7th June 2020

Global hospitality will be more competitive than ever as the world reopens, with destinations urged to prepare now for the return of guests.

And for those nations that have Covid-19 under control tourism will return and it’ll happen fast, says Haitham Mattar, senior advisor at the Saudi Arabia Ministry of Tourism, who will be making his third conference appears in eight days pressing for tourism to reopen.

Mr Mattar is a guest panellist at a special virtual summit The Future of Travel & Tourism on Wednesday June 10, 2020.

He will be part of a session titled ‘The way forward: Foresights, initiatives and changing paradigms.’

Mattar has been speaking at two virtual conference last week during ATM’s three-days of virtual webinars and conferences considering the future of travel.

He told conference delegates: “Consumers, travellers, they want to book – live data from Google, Amadeus and others shows this.

“Small numbers for now, certainly, but it is happening – from July forward we will see a return in demand for destinations that have shown they have Covid-19 under control.”

He believes it is the responsility of individual governments to ensure safe, social distancing was enforced if safe travel was to be provided: “We need governments to rigorously enforce physical distancing and other measures to rebuild confidence – but guests will return.

THE FUTURE OF TRAVEL & TOURISM VIRTUAL CONFERENCE June 10, 2020 DETAILS & REGISTRATION

“This is going to be a great opportunity for countries to get back into the market.

“Destinations must have a plan, must have a recovery strategy and must start negotiations with online travel agencies to speak to consumers who are ready to travel.”

His remarks come as countries across the world began to relax strict lockdowns introdcued earlier this year in an effort to save lives and slow the spread of the virus.

Mattar says destinations must be ready for the gradual return of hospitality he shares the belief that domestic tourism is the initial key to unlocking the hospitality sector, ensuring jobs are not lost and facilities can survive.

“We will see a three-phase approach,” he said, “beginning with domestic travel.

“Where you have scale, such as the USA, Germany and others, domestic travellers will be the first to return to market.

“Then regional travel, before going global.”

He continued: “We need to take action today to get people arriving in three months’ time.

“Every destination will reopen, and it will be very competitive once the reopening does start, and people need to prepare today.”

His thoughts were echoed by WTTC ambassador, Gerald Lawless, at the conference on the first day of ATM 2020.

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2. Investment: understanding the financial mechanisms that allow you to survive and rebuild.

3. Future: This may not be the last crisis, how can you prepare for any future global catastrophe

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Reopening Jamaica to travellers is “a matter of economic life or death”

Minister of Tourism Jamiaca Edmund Bartlett

NEWS 5th June 2020

Jamaica is reopening its borders to visitors from June 15 – because it has to, according to the country’s Tourism Minister Hon Edmund Bartlett MP.

“The phased reopening of our borders to international travellers on June 15 is not just about tourism, it is a matter of economic life or death.

He said: “We need to get the over 350,000 pandemic-displaced workers back to work. We need to provide some salvation to the many tourism enterprises that right now are at severe economic risk.”

The Caribbean island, home to three million people, has escaped the worst of Covid-19 recording just 10 deaths. But tourism is vital: worth 10 per cent of its GDP, 354,000 jobs and a whopping 50 per cent of foreign exchange earnings.

Mr Bartlett, who is a special guest panellist at The Future of Travel & Tourism Virtual Summit, on Wednesday June 10, 2020, held press conference online yesterday (June 4).

There he revealed that his ministry has calculated revenue losses between April 2020 to March 2021 is J$38.4 billion(US$273m).

The estimated overall loss to the Jamiaican economy from visitor expenditure and stopover arrivals is J$107.6 billion (US$765m).

Tourism is big business and 80 per cent of that cash goes to small business – the island’s restaurants, craft vendors, tour & transportation operators, attractions, bars and duty-free shops.

He said: “You can see, therefore, that the phased reopening of our borders to international travelers on June 15 is not just about tourism. It is a matter of economic life or death.

“As I say this, I am mindful of the public sentiment that we are moving too fast, and this will pose a health risk to the Jamaican people. I want to assure you that the reopening will be carried out safely and in a way that protects our frontline tourism workers, Jamaican citizens, and our visitors.  As our Prime Minister stresses, we must continue to protect lives while securing our livelihoods.”

The Minister pledged to ensure the safety of Jamicans with extensive testing of new arrivals. 

“Therefore, let me underscore that non-nationals who enter from June 15 will be subject to the same health and risk screening process (temperature checks, symptoms observation) as nationals.”

Based on screening, if assessed to be high risk, they will be required to self-quarantine at their destination until the results are available.

As announced previously, tourism’s reopening is being guided by a five-point recovery strategy:

  1. Robust health and security protocols that will withstand local and international scrutiny.
  2. Training all sectors to manage protocols and new behavioral pattern moving forward.
  3. Strategies around COVID security infrastructure (PPEs, masks, infrared machines, etc.).
  4. Communication with the local and international markets about reopening.
  5. A staggered approach to reopening/managing risk in a structured way.

The Tourism Product Development Company (TPDCo) collaborated with PricewaterhouseCoopers (PwC) to formulate these tourism protocols.

Read more on this story at eTurbonews.com

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It focuses on three themes:

1. Health: dealing with Covid-19, and how we restore travellers’ confidence and rebuild business.

2. Investment: understanding the financial mechanisms that allow you to survive and rebuild.

3. Future: This may not be the last crisis, how can you prepare for any future global catastrophe

This virtual summit uses the latest video technology, viewable on your browser, will bring together more than 2,000 attendees in an interactive environment.

Thai Airways files for bankruptcy protection and ticket holders will have to wait six months for refunds

Industry News: 1st June 2020

Thai Airways has filed for bankruptcy protection and ticket refunds will take at least six months, according to industry observers.

Its fleet has been grounded since late March and there are thousands of passengers waiting for refunds of their tickets. But under Thai law bankruptcy protection, also known as Debt Rehabilitation will leave ticket holders with a long wait.

The airline begin a programme of replacing its aging 80 aircraft fleet two years ago but has been debt laden for years. It has 74 international destinations.

Thai Airways website has been updated to reveal its regional operator THAI Smile goes back into service this week, serving some domestic routes. Thailand has escaped the worst of the pandemic idetfying its first case in January – a woman from Wuhan province in China – in early January.

But despite some criticism of the government there have been just over 3,000 confirmed cases and 62 deaths. And even though some observers suspect these figures are an underestimate, the country has certainly escaped quite lightly. International arrivals from all destination were finally implemented on April 3, 2020.

In October 2019, Thai Airway’s had a debt burden of 300 billion baht (about US9bn) prompting a deputy transport minister to ask ‘how serious the airline’s executives were in dealing with the worsening financial situation?’[46] Thai reported a net loss of 4.68 billion baht (US$147m) in the third quarter of 2019 and a 10.91 billion baht (US345mn) net loss for the first nine months of 2019.

Thai’s president offered support saying: ‘Such losses were normal for airlines amid fierce competition and price dumping to win customers.”

 
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Emirates chief says Covid recovery could take four years

Industry News: 1st June 2020

Emirates Airline President Tim Clark said on Monday it could take the airline four years to rebuild its network that has been decimated by the coronavirus pandemic.

He was speaking during the opening session of three days of webinars and conferences organised by Arabian Travel Market, which went virtual after pandemic restrictions in Dubai. 

“I think probably by the year 2022/23, 2023/24 we will see things coming back to some degree of normality and Emirates will be operating its network as it was and hopefully as successfully as it was,” he said in the webcast interview.

His interview came less than 24 hours after his airline announced it plans to cut jobs due to the COVID-19 pandemic, but had not given numbers.

Emirates issued a statement yesterday saying: “We have looked at all of the possible scenarios in order to maintain our business operations, but have come to the conclusion that unfortunately we have to say goodbye to some of the wonderful people who have worked for us.”

Emirates employs more than 100,000 people and operates a fleet of 270 wide-body aircraft. In March it confirmed salaries would be cut between 25 and 50 per cent after the fleet was grounded.

“The current pandemic has impacted many industries around the world,” said Emirates in its release.

Emirates had already said on May 10 that it would take at least 18 months for travel demand to return to “a semblance of normalcy”, even after reporting windfall profits before the pandemic.

The carrier had suspended flights on March 22 before resuming certain services two weeks later.

Last week, it began operating scheduled, but partial, services to a number of airports, mostly European

The International Air Transport Association (IATA) forecast in April that air traffic in the Middle East and North Africa (Mena) will fall by more than half this year.

 
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Final list of speakers revealed for the future of travel & tourism Middle East conference

Industry News 29th May, 2020

This week HE Issam Kazim, CEO of Dubai Corporation for Tourism and Commerce, has confirmed his attendance at a conference considering the future of travel and tourism in the Middle East.

The event – part of Arabian Travel Market’s three-days of webinars and conferences – will discuss sustainable investment measures for the region’s travel & tourism sector alongside strategies to restore travellers’ confidence and move forward post-pandemic.

He will talk about his vision for Dubai’s success alongside leaders from across the region:

Panel Discussion: Initiatives to revive the travel and tourism industry and secure sustainable investment in the region?

Moderator: Rajan Datar, Presenter and Broadcaster BBC

Speakers

  • HE Marwan Bin Jassim Al Sarkal, Executive Chairman Sharjah Investment and Development Authority
  • His Excellency Khalid Jasim Al Midfa, Chairman, Sharjah Commerce and Tourism Development Authority (SCTDA)
  • HE Saleh Al Gezeiry, Director General for Ajman Tourism
  • Mr. Majed M. Alghanim Tourism & Quality of Life Managing Director, Ministry of Investment, Saudi Arabia 
  • Mr. Nicolas Mayer, PWC Industry Leader Hospitality and Tourism EMEA & Managing Partner Global Center of Excellence Tourism & Hospitality

This is one of three sessions on the day and you can be part of the event with free registration.

Restructuring to Attract Sustainable Investment and Customers in the New World Order.

Register HERE

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READ MORE ABOUT Arabian Travel Market’s Virtual Programme 1 – 3 June , 2020 HERE

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Europe: flight searches online go up as governments relax Covid lockdowns

 

Industry News 28th May 2020

Flight searches in Europe have plummeted by more than 90 per cent but there are signs that as lockdown restrictions are relaxed, people are preparing to fly again.

And Greece – which escaped the worst of the virus – has becomre a key target for people researching holidays online, according to digital audience analyst Sojern. 

It examines and reports travel intent by internet use, as measured by searches on airline websites, online travel agencies and metasearch.

This week Sojern reported that while bookings in Europe are down by more than 90 per cent in most countries, Greece is a front runner in the recovery forecast.

Sojern has released its latest findings on how travel trends in Europe are being impacted by the COVID-19 outbreak. The most recent insights, from data collected on Tuesday (26 May), are based on over 350 million traveller profiles and billions of travel intent signals.

Flight searches and bookings remain down overall, however we are beginning to see positive signals that travel intent is improving in some markets that have announced an easing of travel restrictions. We will look deeper into these countries in the next section.

 

Global flight searches to key European markets

 

Global flight bookings to key European markets

 

European travellers itching to get away to newly-opened markets

In particular, Greece stands out with a major uptick in global flight searches and bookings in the last week, after announcing that Athens will be open to tourists on 15 June, and that the Greek islands will be open as of 1 July.

But there are other countries hoping to attract European travellers for their usually-busy summer season. In addition to the re-opening of Greece, we know that Italy will mostly reopen on 3 June (with some staggered re-openings in places like Sardinia), while Cyprus and Poland will reopen from 15 June. At present, these countries do not appear to have any self-isolation restrictions from arriving travellers.

When looking at future departure months, while we see longer term recovery nearer the end of the year, we are seeing spikes in regional flight searches to these countries in June.

 

European flight searches to reopening markets

And when we look at bookings to these countries made in the last 14 days, we see that many Europeans have booked travel in July, in line with the reopening of borders. While these spikes are still well down when compared year-over-year, it is a positive sign that we see these upticks in travel searches and bookings so quickly after government announcements. Europeans remain eager to enjoy a summer holiday abroad.

 

European flight bookings to reopening markets

 

Government policies impact European travel intent to the UK, but domestic intent is strong

Last week, the UK announced that starting 8 June, arrivals into the UK will need to go into a 14-day self-isolation, which could be a deterrent to those looking to travel to the UK in the coming months. As a result, with the exception of a small spike in June, European travel intent to the UK remains well below that of the European countries who are opening their borders without any self-isolation rules. For example, the small spike in June is still 86% down YOY, whereas for Greece in the same month, travel intent is only down 31% YOY.

 

European flight searches to UK, future departure months

On a positive note, it does appear that domestic travel within the UK is really starting to improve. We’ve indexed to the first week in April, when Europe was perhaps in the worst phase of the virus, lockdowns were strictest, and travel intent was at its lowest. We now see that searches for travel within the UK are up over 70% from the first week in April. While the government has not lifted restrictions on non-essential travel, it appears that staycations and ‘near-cations’ will be the name of the game once travel is allowed in the UK.

 

Travel intent to the UK, indexed to 5 April

 

 

We will continue to share more insights as we monitor the situation. At the moment, we see that European countries that are starting to reopen their borders without any restrictions are reaping the benefits of growing travel intent, opposed to those countries who are implementing self-isolation restrictions on arrivals. These forward-looking insights will hopefully help travel marketers shape their strategies when the industry starts to recover from this outbreak.

 

 
 
 
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German government gives Lufthansa €9 billion bailout

Industry News: 26th May 2020 The German government threw Lufthansa (LHAG.DE) a 9 billion euro ($9.8 billion) lifeline on Monday (25 May), agreeing a bailout which gives Berlin a veto in the event of a hostile bid for the airline. The largest German corporate rescue since the coronavirus crisis struck will see the government get a 20 per cent stake, which could rise to 25 per cent plus one share in the event of a takeover attempt, as it seeks to protect thousands of jobs, according to a report by the Reuters news agency. Lufthansa has been locked in talks with Berlin for weeks over aid it needs to survive an expected protracted travel slump, with the airline wrangling over how much control to yield in return for financial support. Germany’s central government has spent decades offloading stakes in companies, but remains a large shareholder in former state monopolies such as Deutsche Post and Deutsche Telekom. Berlin also still has a 15 per cent holding in Commerzbank (CBKG.DE), which it took on during the global financial crisis. Other airlines including Franco-Dutch Air France-KLM (AIRF.PA) and U.S. carriers American Airlines (AAL.O), United Airlines (UAL.O) and Delta Air Lines (DAL.N) have also sought state aid after the coronavirus hit global travel. Germany’s Finance and Economy Ministries said on Monday that Lufthansa, whose shares closed up 7.5 per cent at 8.64 euros, had been operationally healthy and profitable with good prospects, but had run into trouble because of the pandemic.

 

 
 
 

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Dubai tourism leaders meet key stakeholders to plan for the future

Industry News: 26th May 2020

ABU DHABI, 25th May 2020 (WAM): Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) held a virtual meeting with key aviation and hospitality partners to discuss current and post-pandemic strategies and joint initiatives aimed at ensuring the tourism industry’s gradual return to normalcy.

The meeting also discussed global efforts to minimise the transmission of COVID-19 and precautionary measures deployed to safeguard the health of communities across the UAE.

On the same day the UAE Government announced that the number of COVID-19 tests has broken the two million mark, reaching 2,044,493 screenings as part of the national plan to intensify coronavirus detection. Three deaths on Sunday due to COVID-19 complications, took the total number of deaths to 248, and 601 individuals have fully recovered from the virus, bringing the total number of recoveries to 15,657. There are 14,402 patients from different nationalities are currently receiving the necessary treatment.

Attendees the meeting hosted by the Director General of Dubai Tourism, included key executives of hospitality groups including Jumeirah, Emaar Hospitality Group, Marriott International, Millennium, Accor, JA Resorts and Hotels, Kerzner International, Al Habtoor Group, Wasl and Rotana, in addition to aviation sector players like Emirates, Flydubai and Dubai International Airport.

The report released by state newsagency WAM said partners were briefed on the phased approach being adopted to reopen the tourism sector in Dubai, and the marketing communications and activities in progress across key markets to reinforce Dubai’s high global profile including the ongoing #TillWeMeetAgain digital activation.

With the hospitality sector being a key pillar of Dubai’s economy, the discussions between Dubai Tourism and partners focused on the steps being taken to pave the way for the reopening of hotels and other tourism facilities across the city, while ensuring adherence to the strictest guidelines and providing opportunities to revive domestic market demand.

As part of overall efforts to create a positive perception and a conducive environment aimed at instilling confidence among travellers who plan to visit Dubai, the meeting also looked at precautionary measures that have been implemented, both at a citywide level and across specific sectors including tourism, which represent critical touchpoints for visitors and residents during their stay.

One of the key priorities from a marketing perspective, the meeting heard, is to emphasise the safety and security that Dubai provides, and the clear stringent health and safety protocols issued by the Dubai Health Authority based on international standards and best practices aimed at containing the contagion. The meeting also discussed the mechanism to ensure adherence to the guidelines, practical solutions to scan and monitor passengers at Dubai International Airport and the effective management of contact tracing in compliance with privacy standards, following the resumption of air travel.

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All participants at the meeting expressed their appreciation for the way in which government – both at the Dubai and UAE level – have dealt with the threat of COVID-19 including the rational policy decisions that have allowed robust management of the health crisis and mitigation of the economic repercussions by allowing for the gradual reopening of vital sectors like tourism.

Industry executives at the meeting also agreed that the postponement of Expo 2020 was prudent and well-received. It provides the opportunity to hold the event in a more normalised global environment where all countries can actively participate, making it a more representative Expo for the world in 2021. The businesses also reiterated their support to Dubai Tourism to kick-start the sector with collaborative development of promotional programmes and strong customised packages that take into account the current realities of the global market. The stakeholders were unanimous that there was positive sentiment surrounding Dubai as a key destination in the international circuit thanks to the city’s world class health infrastructure, and protocols and processes deployed during the management of this pandemic.

Helal Saeed Almarri, Director General, Dubai Tourism, said: “It must be emphasised that the health and safety of our residents and guests will always remain our top priority as we continue to work with the industry and our government partners not just during this critical period but beyond, to develop innovative approaches, real-time responses, and proactive yet prudent initiatives to ensure that Dubai remains at the forefront of the world’s leading destinations in line with our strategy.

“As we look ahead to a gradual reopening of tourism, we will focus on the key elements that have ensured the industry’s success over the past decade – creating unique value and delivering an uncompromised guest experience. To achieve this, we rely on the solidarity of our stakeholders who have always played a pivotal role. We hope they will continue to lead from the front in positioning Dubai as a must-visit destination.”

Paul Griffiths, CEO of Dubai Airports, said: “Dubai International Airport is prepared to welcome visitors as soon as airports around the word start reopening and pave the way for a phased resumption of air services. As health and hygiene standards will play an influential role in encouraging people to travel, we have put in place a set of health and safety protocols at our airports including all necessary quarantine arrangements and the implementation of sanitisation and disinfection measures to reassure tourists that Dubai is one of the safest destinations to visit. We will also continue to receive incoming flights from select destinations, operate cargo flights, as well as flights to repatriate expatriates and guests to their home destinations.”

Adnan Kazim, Chief Commercial Officer at Emirates Airline, said: “The health and safety of our customers and employees remain our top priorities across our operations, and Emirates has implemented comprehensive measures at every step of the customer journey. This includes thermal temperature scanning before check-in, the mandatory use of masks and gloves for everyone at the airport, protective suits for our crew and ground employees, physical distancing protocols, modified services to reduce contact, enhanced cleaning of all our touch points, and much more.”

Ghaith Al Ghaith, CEO of flydubai, said: “Since the flight restrictions came into effect, we have operated more than 100 repatriation flights to 19 different countries enabling 14,000 citizens to return home. flydubai will continue to work closely with its strategic partners to ensure that all safety measures are in place in line with international standards when flight restrictions are lifted.”

Mohammed Al Habtoor, Vice Chairman and CEO, Al Habtoor Group, said: “Dubai with its wide experience in successfully dealing with challenging situations is capable of restoring tourism momentum and paving the way for the hospitality sector to returns to its previous state. This is also a view shared by our international hospitality partners who have placed great faith in Dubai’s resilience during tough times, as well as in its world-class healthcare system and the range of preventive measures taken across the city such as the effective and regular sanitisation and sterilisation programmes, that will help highlight Dubai as one of the world’s safest destinations.”

Mark Willis, CEO Middle East and Africa at Accor, praised the government’s efforts in reopening the markets and supporting the tourism sector: “Accor is committed to coordinating with Dubai Tourism and all related entities, from both government and private sectors, to ensure we are aligned in making the safety and well-being of our guests and team members our key priority”

Neal Jones, Chief Sales & Marketing Officer, Europe, Middle East and Africa (EMEA), Marriott International, said: “As an international chain that enjoys a longstanding relationship with Dubai, Marriott is committed to supporting the industry’s efforts to regain momentum by rolling out our own initiatives and packages to attract visitors to Dubai when the time is safe for travel.”

 

 

Turkish Airlines further extends flight suspensions until June

Industry News: 23rd May 2020 Turkish Airlines has extended the suspension of its domestic flights until June 4 due to coronavirus (Covid-19) with international flights scheduled to resume on June 10. According to a statement issued by the company, the suspension of domestic and international flights will be extended due to the pandemic. It had previously given a deadline of May 28, 2020. The airline has a fleet of 350 aircraft serving 300 international destinations. Currently, the Republic of Turkey’s Prime Ministry Privatization Administration owns a 49.12 per cent interest in THY, while 50.88 per cent of shares are publicly traded. Turkish Airlines claims to have one of the best Business Class products in the world, , flies just about everywhere, offers several unique amenities, and promises bargain prices. It is part of the Star Alliance is the world’s largest airline community, consisting of 26 members from leading companies in the global aviation sector.  It has said that in response to the pandemic, cabin baggage will now be placed in the hold, with luggage allowances increased by 8kg.
 

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Air France dumps the A380 superjumbo and Emirates wants out of new orders

French flag carrier Air France has announced on Wednesday afternoon that it will retire its nine strong Airbus A380 fleet with immediate effect.

The airline’s fleet of superjumbos was initially set to be retired in 2022, but in light of the Coronavirus, the Air France-KLM Group has decided that it will bring this forward.

The company owns five of its A380s and another four on lease. Most of the fleet has been grounded since March, as the worldwide pandemic brought air travel to a dramatic stop.

Air France said in a statement: “The phase-out of Airbus A380 fleet fits in the Air France-KLM Group fleet simplification strategy of making the fleet more competitive, by continuing its transformation with more modern, high-performance aircraft with a significantly reduced environmental footprint.”

The airline received its first A380 in October 2009 and it’s most recent delivery was in June 2014, making the youngest aircraft in the fleet a mere six years old. Air France’s Airbus A380 fleet will be replaced by smaller long-haul aircraft, including Airbus A350 and Boeing 787 Dreamliner, the carrier says.

The £164million superjumbo is close to the end of its production run after demand switched to smaller jets, and airlines including Air France have been idling the double-decker temporarily because of the coronavirus crisis. 

Air France announced a fresh 500million euro ($548.50million, £449million) writedown as it permanently retires its nine jets, just over a decade after becoming the first European airline to operate them.

The French announcement came hours after aircraft engine maker Rolls-Royce announced 9,000 redundancies across its UK operations.

Emirates – which operates more than 100 A380s and has been one of the few airlines to adopt it – no longer wants to take all eight A380s due to the pandemic and is in talks with Airbus, industry sources said.

Bloomberg earlier reported that Emirates hoped to cancel five.

Both Emirates and Airbus said they were in regular dialogue with each other, declining further comment.

Halting Emirates deliveries could be painful for both sides, with the airline foregoing deposits and Airbus left with parts already ordered and no significant market to dispose of them.

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