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Tuesday, November 3rd, 2020

KLM’s bailout from Dutch government on hold while pilots’ union holds out

Dutch carrier KLM was due to receive a much-needed bailout package of €3.4 billion from the government to counteract recent losses incurred as a consequence of the COVID-19 pandemic.

KLM posted a €234 million for the third quarter of 2020. On October 1, the restructuring of the carrier presented to the Dutch government covered pay cuts up until 2022 which all unions had agreed to. However, the terms of the €1 billion loan and €2.4 billion euros in guarantees for bank loans included a demand that KLM reduce costs by 15% and improve sustainability and it was also dependent on all unions agreeing to pay cuts over a five-year period. Five unions have agreed to sign a ‘commitment clause’ indicating that their members will agree to five years of pay cuts, and while the union representing ground staff and cabin crew are considering the situation, the pilots’ union has refused to sign.

Pilots had already agreed to a 20% pay cut, though their union indicated that they were committed to “continue taking responsibility to get KLM through the crisis and make it a healthy company again.” In a letter to Parliament, Finance Minister Wopke Hoekstra said: “It is up to KLM and the unions to ensure that the conditions set are still met.” (€1.00 = US$1.16 at time of publication.)


Air Canada Rouge returns to the skies

The departure of Air Canada flight AC1810 from Toronto to Cancun on November 2, marked the return of Air Canada Rouge to the skies.

"Air Canada Rouge remains an important part of our overall strategy in rebuilding Air Canada's global network. As leisure traffic resumes, we will progressively add Air Canada Rouge to select North American leisure markets from Eastern Canada," said Mark Galardo, Vice President, Network Planning and Alliances at Air Canada.

All flights are operated using the Air Canada CleanCare+ suite of biosafety measures. Customers can collect and redeem Aeroplan points through Canada's leading loyalty program when travelling and eligible customers have access to priority check-in, Maple Leaf Lounges, priority boarding and other benefits.


Sabre strengthens partnership with Qantas

Sabre Corporation has announced an enhancement to its agreement with Qantas that will offer agents access to richer information about the airline’s fares, products and services.

Sabre’s graphical Sabre Red 360 interface will now showcase Qantas products with rich, relevant and engaging content through the airline’s connection with ATPCO. Sabre will integrate Qantas’ UPAs (Universal Product Attributes), or targeted visual content, that bring unique airline fares, products and services to life. This content has recently expanded into Reassurance UPAs which highlight messaging and graphics about the additional health measures airlines like Qantas are taking to ensure a safe travel environment.

Sabre Red 360 will also showcase Qantas Amenities, such as seat pitch and power outlets, and UTAs (Universal Ticket Attributes) which are consumer-friendly benefits such as baggage allowance and seat selection. 

The connection to Qantas’ ATPCO Routehappy Rich Content expands on Sabre’s existing partnership with Qantas through its Branded Fares solution to deliver greater value to the industry.


flypop receives investment from U.K. Government’s Future Fund

flypop has announced a significant investment from the U.K. Government’s Future Fund. flypop, the U.K.’s only international long-haul low-cost airline, plans to launch in 2021 with scheduled flights to India. It will cater not only to the U.K.’s Indian/South Asian diaspora (and their visiting friends and relatives) but will also serve those keen to explore the Indian sub-continent and region with very low-priced flights.

“The funding from the U.K. Government’s Future Fund will play a key role in putting flypop in a position to start flights, initially between the U.K. and India, something which will contribute significantly to the economic growth and closer cultural links between these two Commonwealth partners and eventually with all of South Asia,” said Nino Singh Judge, Founder and CEO of flypop.

flypop, now completing its final funding round, will begin negotiating low cost airport deals in both the U.K. and India. In addition, it will continue discussions with aircraft manufacturers to secure the best deals which will enable the company to offer the lowest possible fares to the public.


LCI appoints Jaspal Jandu new CEO

Helicopter lessor LCI, the aviation division of the Libra Group, has promoted Jaspal Jandu to Chief Executive Officer (CEO). Former CEO, Michael Platt becomes Vice Chairman, and Praveen Vetrivel is appointed Chief Financial Officer (CFO), with immediate effect.

Jandu, who became LCI’s Chief Financial Officer in 2014 having joined in 2007, has played an instrumental role in developing the company’s proven leasing platform and implementing its financial strategy. He has spearheaded the development of LCI’s partnerships with many leading financial institutions, and will now focus on shaping the company for the next phase of its evolution. LCI completed its exit from the fixed wing market in early 2020 and is currently focusing on the helicopter sector.

Platt, who joined LCI as Chief Executive Officer in 2012, has spent more than 30 years in aviation finance and leasing, and will now direct his attention to pursuing new market opportunities for LCI. He will continue to play an integral role in the company’s development by helping to shape its future strategy in the rotary, fixed wing and other sectors. In addition, Platt will serve as a senior advisor to the board of the Libra Group.

Praveen Vetrivel, who joined LCI in 2008 and was appointed Vice President, Structured Finance in 2013, will now assume overall responsibility for financial strategy and treasury management.


Domodedovo Airport renews ISAGO certification

Moscow Domodedovo Airport has successfully met the requirements of the IATA Safety Audit for Ground Operations program (ISAGO), renewing its certificate.

For the latest certification, the ISAGO team assessed Domodedovo Airport in the categories of organization and management, load control, passenger and baggage handling, aircraft handling and loading, aircraft ground movement, cargo and mail handling.

ISAGO is a system for assessing ground handling services providers for airlines. It relies on unified industry-proven principles.


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Tamar Jorssen
Vice President Sales & Business Development
Email: tamar.jorssen@avitrader.com
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