Woodward and Hexcel Corporation announced (06-Apr-2020) they have mutually agreed to terminate their all-stock merger agreement. The termination was approved by the board of both companies, in response to to the increasing impact on both the aerospace and industrial sectors, and global markets broadly, resulting from the health crisis caused by the COVID-19 pandemic. The pandemic has resulted in a need for each company to focus on its respective businesses and has impacted the companies' ability to realize the benefits of the merger during these unprecedented times. Neither party will be required to pay the other a termination fee as a result of the mutual decision to terminate the agreement. [more - original PR]
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Below is a sample of the latest news headlines. 588 news briefs have been published for CAPA Members in the past 2 days.
ACI World issued (03-Apr-2020) an advisory bulletin on airport best practices in response to the effects and impact of the coronavirus. The bulletin provides guidance on accommodating parked aircraft, the maintenance of airside infrastructure, the management of airside operations teams and continuing essential cargo operations. ACI World director general Angela Gittens stated: "Despite the dramatic decline in passenger traffic, many airports remain open for cargo operations and the continuity of the air cargo business is essential for communities, the global economy at large and, for fighting the ongoing pandemic". [more - original PR]
El Al stated (06-Apr-2020) it received verbal advice from Israel's Ministry of Finance that at present the Ministry's position is not to approve an assistance package requested by the carrier. El Al's position is that it requires state support in the near future to cope with the negative impact of the coronavirus crisis. [more - original PR - Hebrew]
CAPA - Centre for Aviation, in a report entitled: 'UK aviation: Loganair seeks state help. Europe's #1 market falls 79%', stated (01-Apr-2020) total UK seat capacity is scheduled to be 1.3 million in the week commencing 30-Mar-2020, compared with 6.3 million in the equivalent week in 2019, according to the latest schedules data from OAG, combined with CAPA Fleet Database seat configurations. UK seats were down 79% year-on-year in the week of 30-Mar-2020, broadly in line with a 78% reduction across all of Europe. [more - CAPA Analysis]
- Halted spending on capital programmes: Some critical projects may move ahead slowly, but most have ceased. This action has reduced capital spending by at least CAD35 million (USD24.8 million);
- Terminal concession rollout programme, which was scheduled over two plus years, will now take longer and may look different to the initial programme presented in 2019;
- Construction of the Alt Hotel Ottawa Airport will be delayed;
- Cut spending on items that are not aligned with regulatory requirements or safety and security needs;
- Enacted a workforce cost and time adjustment programme across the organisation in the interest of avoiding layoffs. [more - original PR]
Ottawa International Airport Authority president and CEO Mark Laroche stated (03-Apr-2020) he "cannot realistically promise" that all 45 destinations served by the airport before the coronavirus pandemic "will return quickly". As previously reported by CAPA, Air Canada and WestJet cut 85% to 95% of their operations, while Porter Airlines suspended all services until 01-Jun-2020. Mr Laroche said US carriers have suspended services to Ottawa "with few exceptions" and "Lufthansa will not operate Ottawa-Frankfurt service as planned". [more - original PR]
IATA regional VP Americas Peter Cerda, via his personal LinkedIn account, urged (06-Apr-2020) the Government of Panama to grant immediate support to the air transport sector in the country to save jobs and to maintain air connectivity, which will be a critical pillar of Panama's economic recovery after the COVID-19 pandemic. IATA estimated passenger revenues will reduce by around USD700 million in Panama in 2020.
UTair Aviation announced (Apr-2020) it is considering plans to temporarily suspend certain operational payments, including financial lease payments, as a result of the negative impact of the coronavirus outbreak. The carrier is currently in negotiations with lessors regarding the possibility of amending payment conditions. Proposed changes include postponement and reduction of the rate of payment. UTair Aviation is also in the process of restructuring debt obligations and implementing anti crisis measures. UTair's management expects the measures will enable the carrier to attract the amount of financing required to maintain operations. [more - original PR - Russian]
Airways New Zealand CEO Graeme Sumner reported (06-Apr-2020) the NZD70 million (USD41.7 million) stimulus package awarded by New Zealand's Government in Mar-2020 "cannot realistically offset the 95% decline in revenue we are currently facing" due to the coronavirus pandemic. Mr Somner explained the package has "made a significant contribution to cushioning the blow" of coronavirus impacts. [more - original PR]
The Australia Institute climate and energy program director Richie Merzian stated (01-Apr-2020) "With the travel and quarantine restrictions in place, there has been an increased demand for alternative solutions - services like teleconferencing system Zoom recorded more active users in the first two months of 2020 than in all of 2019… If we can work well together online now, perhaps it will permanently reduce the need for business travel and so emissions over the long term". Mr Merzian added: "The question remains as to whether Covid-19 pandemic will permanently change our flying habits, given epidemics like Avian flu, MERS and SARS saw the volume of air travel recover within a few short months". [more - original PR]