The fall of the dominoes

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Viewing 15 posts - 226 through 240 (of 241 total)

  • transtraxman
    Participant

    In continuance of my post(#1093629) of 27th Feb. last…
    …Smartwings(the owner of CSA) has won financing to fight another day.
    “Smartwings Secures $90m In Financing,” (Simple Flying, 02-04-21)

    Smartwings Secures $90m In Financing

    What they are going to do with CSA will not be decided until June. Will Smartwings let CSA disappear since its plans were to sack all its staff? Will they just take over its operations themselves to become a scheduled as well as a charter airline? Or will a big space be left for LOT to step into?


    AMcWhirter
    Participant

    PAL has been operating few flights during the pandemic.

    It’s reported that PAL has run up liabilities of US$5 billion.

    PAL is seeking to enter Chapter 11.

    https://business.inquirer.net/322352/pal-wants-deal-with-creditors-before-filing-for-bankruptcy


    transtraxman
    Participant

    It would help to point out, to the unknowing, that PAL is Philippine Airlines.


    AMcWhirter
    Participant

    Fair point transtraxman.

    Of course we do have quite a number of readers in the Gulf area (pre-Covid PAL operated regular flights to Manila from there) along with the Asia-Pacific region.


    cwoodward
    Participant

    PAL has been operating few flights during the pandemic.

    It’s reported that PAL has run up liabilities of US$5 billion.

    PAL is seeking to enter Chapter 11.

    https://business.inquirer.net/322352/pal-wants-deal-with-creditors-before-filing-for-bankruptcy

    I couldn’t agree with your first line Alex the airline has been operating upwards of 50 flights a day including international but most as domestic of which many are operated by PAL Express (GAP) is wholly owned subsidiary.


    AMcWhirter
    Participant

    Thanks for letting me know cwoodward.

    In fact I was concentrating on international services by PAL (Philippine Airlines).

    As you can imagine we in the UK hear nothing from this airline seeing as it suspended London some time ago and now the Philippines has been placed on our Red list.

    I did check PAL’s schedules for late May and its long-haul routes had, according to the website display were either “not available” or had been suspended altogther.

    For example in the case of MNL-DXB one flight only was shown as available over a one week period 21 to 27 May.

    For a short-haul route like MNL-HKG it was the same.

    Of course it could be that PAL’s flights on the other days may have been fully booked but the website does not make this clear.

    If I have made an error I apologise.

    1 user thanked author for this post.

    SimonS1
    Participant

    They were operating, but have been caught up in the new restrictions which allow 1500 people a day through Ninoy Aquino.


    cwoodward
    Participant

    Hi Alex

    They are difficult to track but they are flying regularly NZ and AU and to HK but they were suspended for a couple of weeks because they landed too many passengers into HK that carried the virus = automatic suspension. Big airline and important in Philippines, very unlikely to be allowed to fail.

    1 user thanked author for this post.

    cwoodward
    Participant

    Alex, Again concerning Philippine Airlines and your above.
    Not wishing to be a ‘smart ass’ but as it happens I have had business and property developments in the Philippines for the past 30 years and know PAL rather well and asked colleagues there for an update as below when I read your post as I often use PAL and have status…..

    “As you can imagine we in the UK hear nothing from this airline seeing as it suspended London some time ago and now the Philippines has been placed on our Red list.”

    I stand to be corrected but as I recall PAL is not for some years been on the EU “RED LIST” although PIA the Pakistani airline of course is.

    They do also in normal conditions fly to London.
    Current L.H. destination list below.

    Pacific. Auckland, Brisbane, Perth, Port Moresby, Melbourne, Sydney.
    Europe. London.
    Middle East. Dammam, Doha, Dubai, Kuwait, Riyadh.
    Japan. Haneda, Fukuoka, Nagoya, Narita, Osaka, Sapporo.
    US/Canada. Honolulu, Los Angeles, New York, San Francisco, Toronto, Vancouver.
    Guam. Guam.

    Full flight schedule for May 2021
    https://www.philippineairlines.com/en/ph/home/covid-19/reentryflights

    Re Bankruptcy (chapter 11 protection)

    From what I can gather the PAL financial situation is not worse than many other large airlines that are being badly damaged but will survive the current situation.
    They have it seems been mulling a US filing for Chapter 11 protection since early 2020 when there income stream from their huge local network became severely reduced due to the severity of travel restrictions imposed by the Philippine Government in an attempt to to reduce the virus impact across this vast country of over 7000 islands.
    This filing it seems has always been seen as a precautionary one to protect the airline for the future and not likely to proceed until around the end of May if at all.

    BTW you may find it interesting that PAL is no longer the largest Philippine based airline that honour goes to Cebu Pacific who operate 40 international and 60 domestic routes. Publicly listed and well run.


    AMcWhirter
    Participant

    Hello cwoodward – Thank you for providing such a detailed and informative reply.

    If I had known of that PAL website page my task would have been made much easier !

    There appears to be confusion over “Red list.” I was referring to the current UK government immigration rules for arriving and departing travellers in the case of England.

    These are strict and subject to change.

    Doubtless that’s why PAL suspended London and in any case the cost of operating a very long non-stop flight like LHR-MNL is costly (if the load factor is not healthy).

    I was not referring to the previous “Black List” safety ban imposed some years ago by the EU as a whole.

    1 user thanked author for this post.

    transtraxman
    Participant

    “Airbus Seeks Compensation For Czech Airlines Unpaid A220 & A321XLR Orders”, (Simple Flying, 28-5-21)

    Airbus Seeks Compensation For Czech Airlines Unpaid A220 & A321XLR Orders

    CSA is the bankrupt, non-operating subsidiary of Smartwings (mentioned above in other posts). It has no means of generating income so has gone into administration. The estimated debt was $US85 million.
    Now Airbus has added a demand for $US815 million for four A220 and three A32XLR that CSA ordered in October 2019.
    “…. Airbus is claiming CZK 8.5 billion ($407,000,000) of unconditional receivables from Czech Airlines.
    This is exactly half of the total amount of $815,000,000 that Airbus is claiming for. The other half is contingent receivables, so funds that Airbus wants Czech Airlines to pay if it withdraws from the purchase agreements made in 2019. The amount includes interest payments and arrears fees.”
    ………and CSA never received the aircraft.
    Though Airbus might well be legally in the right, it seems to be an awful lot of money which will make the other 5000 creditors less likely to receive anything from the left overs.


    AMcWhirter
    Participant

    Appears tonight (June 11) that Air Antwerp has been “dissolved.”

    Readers will remember we have published several news pieces about its Antwerp to London LCY route.

    Initially I saw the news via Frederik Ureel.

    A short while later Air Antwerp announced its farewell.


    FaroFlyer
    Participant

    AMcWhirter
    Participant

    Thanks for posting FaroFlyer.

    Today’s news re Stobart will impact travellers far more than the end of Air Antwerp.

    Indeed just over one month ago Mark Caswell reported on how Stobart was expanding its operations to the UK mainland.

    Stobart Air adds routes from Dublin and Belfast to Cardiff


    cwoodward
    Participant

    Hong Kong Airlines
    The long financially troubled Hong Kong Kong Airlines (not to be confused with Air Hong Kong the Cathay Pacific freight subsidiary) part of the Chinese terminally bankrupt HNA (Hainan Airlines Group) is in its death spasms according to reports. The airline that was once billed as a challenger to Cathay and at its peak in 2017 operated 44 aircraft but has been in serious financial trouble and shrinking for the past 3 years has now closed its passenger operation, grounded it mostly leased passenger fleet and will shed most of its remaining employees over the next few weeks. Its subsidiary Hong Kong Aviation Ground Service Ltd also confirmed it will cease its business operation in July. This will leave only its small freight subsidiary of 7 A330 aircraft still operating – at least for the time being.

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