When it rains, it pours. As the world grapples with the fear for Corona Virus (Covid 19), its prevention and treatment, one industry suffers. The travel industry, particularly airlines and their employees.
The suffering comes for a good reason, maintaining good health in those countries. On the other hand, the suffering also means losses for airlines because operational budgets have to be amended, some flight schedules canceled and other airlines suffering grounding due to travel advisories. While money can never precede people on categories of importance
For instance, recently Kenya had to suspend all flights to China after one Southern China Airline flight, reportedly carrying 239, touched down at Jomo Kenyatta International Airport. This means that operations, goods, supplies, and profits from China are on the receiving end, thanks to Corona Virus.
Well, it is not Kenya alone that made that move.
Cathay Pacific Airways Ltd., also known as Cathay Pacific or Cathay, is the flag carrier of Hong Kong, with its head office and main hub located at Hong Kong International Airport.
More than 25,000 Cathay Pacific Airways Ltd. staff are taking unpaid leave, underscoring the depth of the airline’s troubles as it contends with the coronavirus
Chief Executive Officer Augustus Tang said in an internal memo that Cathay’s challenges “remain acute,” and he thanked employees for their support. The Hong Kong-based airline this month asked its 33,000 workers to take three weeks off between March 1 and June 30.
Asian carriers may lose $27.8 billion in revenue this year because of the outbreak, which includes a $12.8 billion loss for Chinese airlines, according to the International Air Transport Association. Tens of thousands of flights that could have carried millions of passengers in and out of China have been canceled.
German carrier Lufthansa has also asked its employees to take voluntary unpaid leave after they recorded massive losses due to the virus.
The epidemic might cost sector as much as $100 billion, some experts say.
Emirates Group that owns Emirates Airlines, has also asked its employees to take leave, stating that they have already shed enough revenue due to the new pandemic.
In a memo to the staff, Abdulaziz Al Ali, Executive Vice President Human Resources recommended their staff to consider taking unpaid leave, saying the company had made many losses.
“We have seen a measurable slowdown in business across our brands, and a need for flexibility in the way we work. If you have accrued a significant balance of annual leave, please consider taking paid leave at this time. We are also offering voluntary unpaid leave (UPL) to all employees in non-operational roles. If you take unpaid leave, you will keep your accommodation and education support allowances, as well as your Staff Travel and medical benefits, but you will not receive your basic salary or other allowances,” he said.
However, while other airlines are asking employees to take unpaid leave, SIA Group from Korea has moved to cut remunerations for its top leadership, in aid to curb operational costs.
“My management team will take the lead with a salary cut effective March 1. I will take a 15 per cent cut in my salary, the Executive Vice Presidents will take a 12 per cent cut, and the Senior Vice Presidents 10 per cent. Divisional Vice Presidents and Vice Presidents will take a 7 per cent cut effective 1 April 2020. Senior Managers and Managers will take a 5 per cent pay cut with effect from 1 May 2020,” Group Chief Executive Officer Choong Pong said in his status message.
AIRLINES THAT HAVE CANCELLED ALL FLIGHTS TO MAINLAND CHINA
-American Airlines- Extends suspension of China and Hong Kong flights through April 24
-Air France- Said on February 6 it would suspend flights to and from mainland China for much of March
-Air India - Suspends flights to Shanghai, Hong Kong until June 30
-Air Seoul - The South Korean budget carrier suspended China flights from January 28 until further notice.
-Air Tanzania - Tanzania’s state-owned carrier, which had planned to begin charter flights to China in February, postponed its maiden flights.
-Air Mauritius - Suspended all flights to China and Hong Kong
-Austrian Airlines - until end-February.
-British Airways - January 29-March 31.
-Delta Airlines - February 2-April 30
-Egyptair suspended flights on February, 1, but on February 20 said it would resume some flights to and from China starting next week.
-El Al Israel Airlines- Said on February 12 it would suspend its Hong Kong flights until March 20 and reduce its daily flights to Bangkok. It suspended flights to Beijing from January 30 to March 25 following a health ministry directive.
-Iberia Airlines - The Spanish carrier extended its suspension of flights from Madrid to Shanghai, its only route, from February 29 until the end of April.
-JejuAir Co Ltd - Korean airline to suspend all China routes starting March 1
-Kenya Airways - January 31 until further notice.
-KLM - Will extend its ban up to March 28
-Lion Air - All of February.
-LOT - Extends flight suspension until March 28
-Oman and Saudia, Saudi Arabia’s state airline, both suspended flights on Feb. 2 until further notice.
-Qatar Airways - February 1 until further notice.
-Rwandair - January 31 until further notice.
-Scoot, Singapore Airlines’) low-cost carrier - February 8 until further notice.
-United Airlines- February 5-April 23. Service to Hong Kong suspended February 8-April 23.
-Vietjet VJC.HM and Vietnam Airlines HVN.HM - Suspended flights to the mainland as well as Hong Kong and Macau Feb. 1-April 30, in line with its aviation authority’s directive.
AIRLINES THAT HAVE CANCELLED SOME CHINA FLIGHTS/ROUTES OR MODIFIED SERVICE
-Air Canada - Extended the suspension of its flights to Beijing and Shanghai until March 27. It also suspended its Toronto to Hong Kong flights from March 1 to March 27, but its Vancouver to Hong Kong route remains active.
-Air China - Said on February 12 it would cancel flights to Athens, Greece, from February 17 to March 18
-Air China- State carrier said on Feb. 9 it will “adjust” flights between China and the United States.
-Air New Zealand- Suspended Auckland-Shanghai service February 9-March 29. Reduced capacity on Shanghai route throughout April and Hong Kong route throughout April and May.
-ANA Holdings - Suspended routes including Shanghai and Hong Kong from February 10 until further notice.
-Cathay Pacific Airways - Plans to cut a third of its capacity over the next two months, including 90 per cent of flights to mainland China. It has encouraged its 27,000 employees to take three weeks of unpaid leave in a bid to preserve cash.
-Emirates and Etihad - The United Arab Emirates, a major international transit hub, suspended flights to and from China, except for Beijing.
-Finnair - Cancelled all flights to mainland China and decreased the number of flights to Hong Kong until March 28.
-Hainan Airlines - Suspended flights between Budapest, Hungary, and Chongqing Feb. 7-March 27.
-Korean Air Lines Co.- The national flag carrier suspended eight routes to China and reduced services on nine Chinese routes between February 7 and 22.
-Philippine Airlines - Cut the number of flights between Manila and China by over half.
-Qantas Airways - Suspended direct flights to China from February 1. The Australian national carrier halted flights from Sydney to Beijing and Sydney to Shanghai between February 9-March 29.
-Royal Air Maroc - The Moroccan airline suspended direct flights to China Jan. 31-February 29. On Jan. 16, it had launched a direct air route with three flights weekly between its Casablanca hub and Beijing.
-Russia - All Russian airlines, with the exception of national airline Aeroflot stopped flying to China from Jan. 31. Small airline Ikar will also continue flights between Moscow and China. All planes arriving from China will be sent to a separate terminal in the Moscow Sheremetyevo airport. Aeroflot reduced the frequency of flights to Beijing, Shanghai and Guangzhou until Feb. 29.
-Nordic airline SAS - Extended its suspension of flights to Shanghai and Beijing until March 29.
-Singapore Airlines - Suspended or cut capacity on flights to Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Xiamen and Chongqing, some of which are flown by regional arm SilkAir.
-UPS - Cancelled 22 flights to China because of the virus and normal manufacturing closures due to the Lunar New Year holiday.
-Virgin Atlantic - Extended its suspension of daily operations to Shanghai until March 28.
-Virgin Australia - Said it will withdraw from the Sydney-Hong Kong route from March 2 because it was “no longer a viable commercial route” due to growing concerns over the virus and civil unrest in Hong Kong.
Additonal reporting by Reuters