Europe airline suspensions, country closures 13APR

IAG International Airlines Group will implement further fleet reduction plans, including the aircraft deferrals and the retirement of British Airways' sole A318-100.

The Spain-based holding said in its quarterly earnings release that it has deferred deliveries of 68 aircraft initially scheduled between 2020 and 2022, although it did not disclose the types that had been affected or their new timelines. IAG said the deferrals would contribute to the halving of capital expenditures planned through the end of 2022, which now stand at EUR7.3 billion euros (USD8.6 billion), down from EUR14.3 billion (USD16.8 billion). The group has committed fleet financing of EUR1.5 billion (USD1.8 billion) through the end of 2020 and, even after the cuts, plans to add 75 new aircraft by the end of 2022, including 35 short-haul and 40 long-haul aircraft.

"It's difficult to be too categoric as to how we're going to finance the aircraft deliveries in 2021, 2022 because we need to see how the markets open," Chief Financial Officer Steve Gunning said.

According to the ch-aviation fleets advanced module,...

IAG International Airlines Group has extended its global partnership with American Express which includes a deal to sell the financial services company GBP750 million (USD965 million) worth of Avios loyalty points .

"American Express will make a payment to IAG Loyalty of approximately GBP750 million, a significant part of which is a pre-purchase of Avios points that American Express will utilise in the UK and world-wide for its British Airways co-branded cards and Membership Rewards Programme," the holding said.

IAG Loyalty manages the loyalty programmes of British Airways, Iberia, Aer Lingus, and Vueling Airlines. While co-branded credit cards and loyalty points are fairly common especially in Northern America, IAG is the only major European airline holding to engage in these transactions to such an extent.

Shortly after the announcement of the American Express deal, Reuters reported that IAG was planning to raise an additional EUR2.5 billion euros (USD2.9 billion) in equity through a new share issuance. Sources said that this was one of a few options under consideration to raise new equity...

Comair (South Africa) (MN, Johannesburg O.R. Tambo) is faced with the prospect of liquidation given difficulties in securing post-commencement funding (PCF) from lenders. The carrier, which operates a British Airways franchise as well as low-cost brand Kulula Air, has been in business rescue, a form of bankruptcy protection, since early May this year citing protracted losses deepened by the coronavirus pandemic which has hit the South African economy particularly hard.

Business Rescue Practitioners (BRPs) Shaun Collyer and Richard Ferguson have been scouting for financing to help resurrect the privately-owned firm. On July 2, the BRPs engaged a consortium of banks and aircraft financiers over ZAR226 million rand (USD13.56 million) in emergency financing needed to tide the carrier through until October when flights were expected to resume. While talks went on, the BRPs extended the deadline for the publication of a turnaround plan to late June and eventually to July 28.

However, according to a letter to Comair creditors dated 22 July and seen by Business Maverick, the BRPs said the banks and aircraft financiers...

TUI has cancelled all of its holiday packages sold to consumers for travel to mainland Spain effective July 26, until at least August 9. In a press release, the United Kingdom tour operator said the move had been caused by the UK Foreign & Commonwealth Office's decision to again advise against all but essential travel to mainland Spain.

The FCO said in its travel advisory for Spain that it had based its decision on its "current assessment of COVID-19 risks" but exempted the Balearic and Canary Islands from the recommendation.

"This advice is based on evidence of increases in cases of COVID-19 in several regions, but particularly in Aragon, Navarra and Catalonia (which include the cities of Zaragoza, Pamplona and Barcelona)," it said.

All passengers returning from mainland Spain and the two island groups will, however, have to self-isolate again on their return to the UK effective immediately.

As a result, TUI Airways (BY, London Luton) has cancelled all of its scheduled services to mainland Spain with flights due to operate from Birmingham Int'l...