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

READ MORE ABOUT OUR CONFERENCE HERE

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

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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.”

 

 

‘Ski resorts were Covid-19 breeding ground in Europe’

Industry News: 23rd May 2020

Dr Andrea Ammon blames the return of skiers and snowboarders from Alpine skiing breaks in the first week of March was a pivotal moment in the spread of Covid-19 into Europe.

And in her interview with The Guardian newspaper in the UK last week she warned that Europe should brace for a serious second wave.

“The question is when and how big, that is the question in my view,” said Dr Ammon (pictured above), director of the European Centre for Disease Prevention and Control (ECDC), a former advisor to the German government..

In her Guardian interview she said: “Looking at the characteristics of the virus, looking at what now emerges from the different countries in terms of population immunity – which isn’t all that exciting, between 2 per cent and 14 per cent, that leaves still 85 per cent to 90 per cent of the population susceptible – the virus is around us, circulating much more than January and February.

“I don’t want to draw a doomsday picture but I think we have to be realistic. That it’s not the time now to completely relax.”

And she was believes that Alpine resorts were the breeding ground and first point of arrival for much of the pandemic in Europe in Janury.

“Because at that time we saw new cases all over Europe and actually they had been in the skiing places in the Alps, in Italy, Austria,” she said.

“I mean this is a crowded place, the ski resorts, and then you have these cabins that you go up the mountain and these are really crammed.

“Yeah, it’s just perfect for such a virus. I mean I am pretty sure that this contributed to the wide spread in Europe.”

The case of the ski resort of Ischgl in Austria has a reputation as a virus-spreader. The village had the highest concentrations of covid-19 in the whole of Austria.

It remained in full lockdown and along with the other Austrian resorts of St Anton and Soelden long after other areas saw their restrictions lifted.

It is interesting to see this has now been confirmed by the medical experts, but it was obvious for anyone to see with a modicum of knowledge and common sense.

Perhaps the more worrying aspect at this moment in time is that Andrea Ammon believes a second wave is coming.

She advises that the prospect of a second wave of coronavirus infection across Europe is no longer a distant theory.

“The question is when and how big, that is the question in my view,” said Dr Andrea Ammon.

READ FULL GUARDIAN INTERVIEW HERE

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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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Africa escapes worst of first Covid-19 wave by acting quickly, says United Nations

UN chief calls on the international community on Wednesday to show solidarity with Africa in the face of the threat of the coronavirus.
 
As Covid-19 spreads to Africa, countries on the continent have responded quickly to the pandemic, according to UN.news.org.
 
“To date, the number of reported cases is lower than we feared – espite this, the stakes remain high, ”warned the Secretary General of the United Nations, António Guterres , in the presentation of a report on the impact of the coronavirus in Africa.
 
The pandemic is already threatening the progress made in Africa, at the risk of worsening existing inequalities and increasing hunger, malnutrition and vulnerability to the disease. 
 
As proof, the demand for basic African products, tourism and remittances is declining. The opening of the African Continental Free Trade Area (ZLECA) has been postponed and millions of people could fall into extreme poverty. To date, the virus has killed more than 2,500 people in Africa.
 
In this context, “vigilance and preparation are essential,” said Mr Guterres who congratulated the countries of Africa, as well as the African Union (AU), for the measures they have already undertaken. 
 
“Most have been quick to act to strengthen regional coordination, deploy health workers and establish quarantines, containments and closed borders,” he said. The UN is also mobilized alongside Africans in the face of threats from the coronavirus. United Nations agencies, country teams, peacekeeping operations and humanitarian actors are fully supporting these efforts. 
 
“The UN solidarity flights have made it possible to transport millions of screening kits, masks and other equipment, across almost the entire continent,” said the Secretary-General.The United Nations released a briefing note on Wednesday (May 20, 2020) that highlights a series of pressing coronavirus problems in Africa.
 
“We call for international mobilization to strengthen health systems in Africa, maintain food supply chains, avoid a financial crisis, support education, protect jobs, keep households and businesses afloat and protect the continent from lost revenue and export earnings,” said Guterres, noting that African countries must have the same rapid, fair and affordable access to all future vaccines and treatments, which should be seen as goods.
 
The Secretary-General has called for a global recovery plan that represents at least 10 per cent of global gross domestic product. 
 
“For Africa, this means more than US$200 billion in additional support from the international community,” he said. On the security side, the UN believes that it will also be essential for African countries to continue their action to silence arms and confront violent extremism. Mr. Guterres welcomed support across the continent for his call for a global ceasefire. 
 
“The political processes and the elections represent in the months to come so many opportunities to take important steps in terms of stability and peace,” he said.
 
 

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Dr Taleb Rifai, former UN WTO secretary calls for ‘safe’ tourist areas to be created

 

Tourist destinations will have to consider offering Corona-free hotels, beaches and areas to ensure that visitors feel safe ‘from the minute they leave home until they return”.

The initiative was voiced by  Dr Taleb Rifai, the Former Secretary General of the United Nations World Tourism Organization (UNWTO) and chairman of the ITIC advisory board.

He was speaking at a new grassroots initiative with leaders from the travel and tourism industry joining from 76 countries the #rebuildingtravel globally: High Level Taskforce Meeting.

At the meeting, hosted by ETurboNews, Dr Rafai revealed his four pillars for the recovery of the travel & tourism sector.

Rebuilding.travel started two weeks ago and already many of the who’s who in the global travel and tourism industry as part of the group. Today membership has increased to 102 countries.

In a follow up to initial plan, Dr Rifai was clear that as the world moves from the containment to the recovery phase, the whole economy was more important than our specific industry.

But travel & tourism are essential for employment and the economies of many countries worldwide said Dr Rifai, speaking from Amman, Jordan, to a virtual gathering of industry and government leaders from around the world.

Speaking second to the Taskforce, he offered his own four point roadmap for recovery.

First he said is making domestic tourism a priority. “It does not contribute to balance of trade or bring in foreign currency but it it keeps facilities open and maintains employment,” he said. It reflects his own philosophy that “we should encourage people to enjoy their country,” something he admitted had not always been the case and had sometimes caused conflict between visitors and local people.

Second he said was the need to concentrate on the digital sector. “The future of tourism is centred around technology,” said Dr Rafai. “This is a main pillar of the post-corona era.

“Everything is going to be from home and we must start thinking outside the box. I have attended weddings where the priest is on one line marrying people elsewhere.” 

Number three, he said, is training: “Our new post-corona era will be completely different. How we qualify our waiters – they will need trained to do packing for home delivery.” He said hotels will need to be more clean, training of staff to ensure the very best sanitisation will become a priority as destinations “compete with each other”.

Fourth, he said, every country must put money in the hands of people to encourage spending. “Spending is very, very important,” he said.

He urged destinations to prepare now for setting side certain areas that are corona free. “Destinations must start thinking about this: certain areas, certain hotels, certain beaches… that mean people are safe from minute the arrive until they return to their homes.”

And these protocols will need certification, he said. “You cant have any protocol if you don’t have certification. This is something you will need to see in the future.”

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

QATAR AIRWAYS REVEALS ‘SUBSTANTIAL’ STAFF CUTS

Qatar Airways has warned today (May 6) of “substantial” redundancies as it struggles with a collapse in demand.

Its chief executive Akbar Al Baker wrote to staff warning of the job losses, although the airline has not revealed the numbers.

Qatar Airways said it needed to “act decisively to protect the future of the business”.

Worldwide it employs 45,000 people and runs a fleet of 240 aircraft – described as one of ‘the world’s youngest airline fleets’.

“The truth is, we simply cannot sustain the current staff numbers and will need to make a substantial number of jobs redundant – inclusive of cabin crew,” Mr Al Baker wrote in an internal memo.

The state airline of the wealthy, gas-rich Gulf country was considered less vulnerable than many Europen and US airlines but today’s news indicates the depth of damage Covid 19 is causing to the sector.

Qatar Airways increased its stake in British Airways owner IAG to 25% as part of its strategy to invest in other carriers.

BA revealed this week it would cut 12,000 jobs from its 42,000 employees. See our story HERE

“The unparalleled impact on our industry has caused significant challenges for all airlines and we must act decisively to protect the future of our business,” a Qatar Airways spokesman said.

“As a result, Qatar Airways can confirm that the airline will make a number of roles redundant due to the impact of Covid-19.”

The International Air Transport Association (IATA), warned last month that air traffic in the Middle East and North Africa was forecast to fall by more than half.

IATA also warned that most airlines would struggle to make a profit if social distancing measures were introduced, such as keeping middle seats empty.

On Tuesday, Virgin Atlantic said it would be cutting 3,000 jobs and quitting its operations at Gatwick airport.

MORE NEWS HERE

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