Aviation Industry (incl Maintenance) 02 (Jun 20 - Dec 26)

[behappyalways]

The terms of $25 billion in federal coronavirus relief set aside for U.S. airline payroll prohibit carriers that accepted the aid from laying off or cutting the pay rates of employees through Sept. 30

American Airlines outlines severance packages for high-level employees
https://www.cnbc.com/2020/06/07/america ... tives.html

[behappyalways]

2020.06.14【文茜世界財經周報】眾航空公司停飛　停機坪爆機前所未見
https://m.youtube.com/watch?v=HM7KCDdgdqE

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Air maintenance firms, manufacturers plan for $60 billion in lost sales
https://www.reuters.com/article/us-heal ... SKBN23P0JK

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Things Are Terrible at Airbus, But at Least It’s Not Boeing
https://www.bloomberg.com/opinion/artic ... nd=opinion

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Delta may avoid furloughs after demand for buyouts, other U.S. airlines sound alarm
https://www.reuters.com/article/us-heal ... SKCN24E29L

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Airlines confirm fears that travel demand dropped as new COVID-19 cases rose again in July
https://www.marketwatch.com/story/airli ... ck_seemore

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Aviation sector has biggest pandemic default risk: insurance survey
https://www.reuters.com/article/us-insu ... 500MM?il=0

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Airbus and Boeing Will Keep Making Jets That Airlines Can’t Buy
https://www.bloomberg.com/news/articles ... emium-asia

[winston]

Global Aviation – Sluggish recovery

The International Air Transport Association (IATA) released an updated global passenger forecast showing that global passenger traffic measured by revenue passenger kilometers or RPKs will not return to pre-Covid-19 levels until 2024, a year later than their initial projection, underscoring the harsh challenges the airline industry is facing amid a protracted Covid-19 pandemic.

Latest data highlight that travel demand continued to be driven by domestic travel.

That said, people would prefer destinations which are nearer to home, less crowded, more hygienic, and more affordable.

We believe that international travel will take a longer time to recover due to suppressed demand before the emergence of a successful vaccine.

The resurgence of Covid-19 in several countries which caused the government to reimpose travel restrictions also added uncertainties to international travel.

We believe that airlines with large exposure to domestic routes with strong domestic leisure demand, and less exposure to business travel and international business will see a faster recovery, in our view.

Air China* (753 HK) (BUY, FV: HK$6.50) could potentially benefit from the early recovery in China.

Delta Air Lines* (DAL US) (BUY; FV: US$42.50) and Southwest Airlines* (LUV US) (HOLD; FV:US$44.00) with stronger balance sheet, less reliant on international travel business are our preferred airlines among other U.S. airlines under our coverage.

Source: OCBC

[behappyalways]

Republican senators introduce bill for $28 billion in additional aid for airline industry as job cuts loom
https://www.cnbc.com/2020/09/21/republi ... -loom.html