Fiji Airways has announced that it will permanently cut its current staff levels by 51% while also negotiating with lenders and aircraft lessors to defer payments and, additionally, arrange further debt financing as the South Pacific carrier struggles with the fallout from the COVID-19 pandemic. The staff cuts equate to 758 employees, of which 78
The International Air Transport Association (IATA) has released an analysis showing that the airline industry’s global debt could rise to US$550 billion by year-end. That’s a US$120 billion increase over debt levels at the start of 2020. US$67 billion of the new debt is composed of government loans (US$50 billion), deferred taxes (US$5 billion), and
After many weeks of protracted negotiations, Deutsche Lufthansa AG (Lufthansa), Germany’s largest and Europe’s second-largest carrier has announced it has come to a deal with the German government over a rescue package valued at €9.0 billion. The airline, which also includes subsidiaries Germanwings, Austrian Airlines, Swiss International Airlines and Brussels airlines has agreed to give
LATAM Airlines Group S.A. and its affiliates in Chile, Peru, Colombia, Ecuador and the United States have initiated a voluntary reorganization and restructuring of its debt under Chapter 11 protection in the United States with the support of the Cueto and Amaro families and Qatar Airways, two of the largest shareholders of LATAM. In light
CAE has reported strong annual performance despite the COVID-19 impact during its fourth quarter of fiscal year 2020. Annual revenue was CA$3.6 billion, up 10% over the prior year. Annual segment operating income was CA$537.1 million compared to CA$480.6 million in fiscal year 2019. Annual segment operating income before specific items was CA$590.4 million, up
Austrian Airlines has reached an agreement with its technical and commercial staff. This includes the stations as well as technical and administrative employees, comprising close to 3,000 of the 7,000 people working for Austria’s national carrier. Austrian Airlines anticipates a very slow recovery after the pandemic crisis. In order to retain as many employees as
Norwegian has confirmed that the restructuring is completed and that the state loan guarantee of in total NOK 3 billion has been approved. The company has now converted NOK 12.7 billion of debt to equity and laid a solid foundation for the future, although the next months will remain challenging. Since the end of 2018,
The Finnish Government has approved that the State of Finland guarantees Finnair’s pension premium loan up to €540 million. With the state guarantee, Finnair aims to further secure its cash position and business continuity also after the exceptional situation caused by the corona-crisis. Further, a commercial bank has guaranteed up to €60 million of the
Having already taken action to strengthen the financial resilience of its business and reduce its cash expenditure in 2020 to cope with the impact of the COVID-19 crisis, Rolls-Royce is proposing a major reorganization of its business to adapt to the new level of demand it is seeing from customers. As a result, the company
Long before the COVID-19 pandemic had any effect on Thai Airways International Plc’s finances, the Southeast Asian Carrier was already in trouble, having failed to post a profit in all but one year since 2012 and reported losses of 12.04 billion baht (US$377.3 million) in 2019. The state-controlled airline has struggled to deal with bloated
