WHAT’S GOING ON

Social distance

We’re still social distancing (well, some of us are), and we know COVID 19 is playing havoc with the industry, so here’s a general update of the latest in aviation, health and safety procedures, the first European country to declare itself virus free, and the Carnival Breeze finally docks.

Porter postpones service. Cancels seasonal summer service

Porter Airlines is deferring its resumption of flights until July 29, one month later than previously scheduled, due to ongoing COVID-19 travel restrictions.

“We want to see our planes in the sky as soon as possible and are actively working to prepare for our resumption of service. However, the ongoing uncertainty presented by government travel restrictions, including border closures, is impacting our ability to operate flights,” said Michael Deluce, president and CEO of Porter Airlines. “We are closely watching developments and know that Porter will be an important part of providing people with travel options as the economy recovers.”

Seasonal summer markets that Porter intended to serve in 2020 are being cancelled as part of this service deferral. Muskoka, Ontario, and Stephenville, N.L., are the two destinations affected. Porter is waiving change and cancellation fees on all fares booked between 26 May and July 29. This also applies to Porter Escapes vacation packages.

Airline and airport participation required

The European Union Aviation Safety Agency (EASA) published the guidelines last week in conjunction with the European Center for Disease Prevention and Control calling on airlines and airports to participate in a program to help evaluate new coronavirus guidelines in real-life situations, with the goal of allowing air travel to resume under safe conditions, both operationally and from a public health point of view.

The evaluation program will focus on airlines that are fully applying the guidelines and flying to airports that are as well to get the best picture of how the recommendations are working and where improvement is needed.

The guidance breaks down a passenger’s travel journey into six segments: before getting to the airport; while inside the departure terminal; boarding; on a flight; en route transit; and arrival at the final destination. A separate section focuses on flight crew safety.

The safety protocols cover social distancing measures, hand hygiene and mask recommendations. They also rely on passengers taking personal responsibility, such as postponing travel if they learn they have been in contact with someone who has COVID-19.

“What is unique in the operational guidelines is the fact that they are validated both by aviation authorities as well as by health authorities,” said Henrik Hololei, the European Union’s director-general for mobility and transport. “Only if they work together, resumption of traffic will become possible.”

The EU aviation safety agency said it built in flexibility on how to approach implementing the guidelines and hopes to learn from the real-life experience of airports and airlines.

Participating airlines and airports will need to sign a pledge to abide by the guidelines, co-ordinate with national authorities and to design practical solutions when they encounter problems meeting the recommended procedures. Issues that come up will be reported to EASA and the European Center for Disease Prevention and Control together with weekly data and suggestions for improvement.

Latam files for bankruptcy protection

Latam Airlines, South America’s biggest carrier, sought US bankruptcy protection Tuesday as it grapples with a sharp downturn in air travel sparked by the coronavirus pandemic. Passenger and cargo flights will continue to operate during the reorganization, and employees will still be paid, the Santiago, Chile-based airline said. Travellers with existing tickets and vouchers can still use them.

Chief Executive Roberto Alvo said Latam was profitable before the pandemic brought most of the world’s flights to a halt, but is now facing a “collapse in global demand.”

“We are looking ahead to a post-COVID-19 future and are focused on transforming our group to adapt to a new and evolving way of flying, with the health and safety of our passengers and employees being paramount,” he said in a statement announcing the bankruptcy filing.

Latam’s move comes little more than two weeks after another major Latin American airline, Avianca Holdings, filed for bankruptcy protection in New York. Australia’s second-largest carrier, Virgin Australia, sought bankruptcy in its home market last month.

Latam and Avianca are part of a years-long trend of foreign companies filing for bankruptcy in the US, which is more friendly to debtors and usually lets management stay in control. To file, foreign companies need only show that they have assets or operations in the US.

Latam is South America’s largest carrier by passenger traffic. It operated more than 1,300 flights a day and transported 74 million passengers last year. The airline had more than 340 planes in its fleet and nearly 42,000 employees, according to its more recent annual report. It reported a profit of $190 million in 2019.

It said the reorganization effort has the support of two prominent shareholders – the Cueto family in Chile and Brazil’s Amaro family – as well as Qatar Airways, which owns 10% of the company. Latam reached a deal to sell a 20% stake to Delta Air Lines for $1.9 billion last year. The announcement made no mention of the Atlanta-based airline.

Other Financials

Among US carriers, American Airlines is widely seen as facing the greatest risk of bankruptcy, but Washington approved up to US $50 billion in grants and credit for the industry, buying it some time. On Monday, Germany agreed to provide €9 ($13.6) billion to help Lufthansa. Air France-KLM has received billions from the French and Dutch governments.

Others are scrambling. Richard Branson is seeking help from the U.K. government and selling shares in his space company to prop up troubled Virgin Atlantic and other travel holdings. Analysts have been watching some discount airlines including Norwegian Air.

Montenegro declares itself virus free

Montenegro, the first European country to declare itself free of the coronavirus infection. The last recorded case of the coronavirus in the country was about three weeks ago and it now plans to open its borders to citizens of several European countries except for former ally Serbia – drawing angry reaction from Serbian officials.

Montenegro’s Premier Dusko Markovic said the borders will be opened as of June 1 for nationals of the countries that meet the entry criteria of the small country’s health authorities – those that currently have at most 25 COVID-19 patients per 100.000 inhabitants. Countries meeting the criteria are Croatia, Slovenia, Austria, Germany, Poland, the Czech Republic, Hungary, Albania and Greece.

“We will open the borders to the countries that have a similar epidemiological status,” he said. “We will not ask for special tests, everyone will receive clear instructions on what awaits them in the country and what regulations they must respect.”

Markovic didn’t mention neighbouring Serbia, triggering an angry rebuke from Belgrade – even though Serbia isn’t saying it meets Montenegro’s entry criteria. Serbs traditionally are the most frequent visitors to Montenegro, which depends highly on tourism revenue.

Serbia said Montenegro’s decision is “ridiculous” and politically motivated. Prime Minister Ana Brnabic said it shows that Serbs are unwelcome in the Adriatic state. Serbia for now won’t introduce reciprocal measures.

A country of 620,000, Montenegro split from much larger Serbia in 2006, but many in Montenegro and Serbia still remain opposed to the separation though tensions have escalated over religious issues. Serbs represent about 30% of Montenegro’s population.

Montenegro, the last European country to record its first coronavirus case over two months ago, imposed strict lockdown measures to curb the outbreak. A total of 324 cases have been recorded and nine people have died. Serbia has recorded over 11,000 cases and nearly 240 deaths.

Dry land

A cruise ship has docked in Dubrovnik after being stranded at sea for weeks because of the coronavirus.

Croatian media says the Carnival Breeze cruise ship has the capacity of 3,700 passengers. It has carried crew members from various countries, including 93 Croats.

Wearing face masks, Croatian port authority workers greeted those who disembarked from the cruiser amid waving and cheers of those still on the ship. The transfer of foreign nationals from the cruiser will be organized to their home countries.

With files from Canadian Press.