In Focus
May
5 May
Catering and ground handling business dnata reveals it’s been excluded from the JobKeeper support package – which provides struggling Australian businesses with $1,500 per employee, per fortnight – because it’s owned by a foreign government. Dnata is owned by the Emirates Group, which is in turn run by the state government of Dubai. The decision puts 4,500 jobs at risk, the business says. “We are surprised and disappointed by the government’s decision to retrospectively amend the JobKeeper legislation,” says spokesperson. “This change, at short notice and backdated to 30 March, excludes dnata, an employer of 6,000 Australians from the JobKeeper scheme.”
6 May
Mildura Airport follows dnata in revealing it, too, has been excluded from JobKeeper, this time because it’s deemed to be council owned. Talking to the ABC, Mildura’s Peter O’Donnell says, “Nearly every bit of support we’re looking at is unavailable to us despite the fact we’re running 95 per cent down on revenue and we’ve laid off 60 per cent of our staff.”
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8 May
Prime Minister Scott Morrison says interstate flights will return in July, and possibly earlier, under a three-stage plan to lift coronavirus restrictions in Australia. The roadmap, agreed in principle by the national cabinet of state leaders, also hinted at the introduction of cross-Tasman, Pacific island and international student travel in mid-winter, too. Currently, a combination of state border closures and day-to-day movement restrictions have ruled out all but essential interstate journeys. The Prime Minister says, “Today, we move ahead with reopening our economy and our society, with a clear plan, and a clear framework, that shows Australians the road ahead.”
Meanwhile, Air New Zealand says it will aim to return flights to the majority of domestic airports when the country’s coronavirus restrictions are lowered to ‘Alert Level 2’ – a decision expected next week. Chief executive Greg Foran says the airline plans to operate around 20 per cent of its usual capacity, but will not be able to offer cheap fares because of social distancing requirements. He also warns that, even when all restrictions are eventually lifted, it will be a “slow journey” back to pre-coronavirus frequencies. “This is the harsh reality of closed international borders and a depressed domestic economy, with more Kiwis in unemployment and people watching what they spend,” Foran says.
12 May
Rex says it will aim to rival Qantas, Jetstar and Virgin Australia by expanding its network to service capital cities by early next year. Deputy chairman John Sharp informs the media of the regional airline’s intention to capitalise on recent market upheaval and boost its fleet to include 10 narrow-bodied jets. Sharp suggests that Australia “may as well” have a three-airline market, noting that the new and improved Rex is likely to sit “halfway between a full-service airline and a low-cost airline”. “The domestic aviation market is not going to go back to what it was three months ago so we are ready to scale up in line with demand,” he says. “We are doing this because we see an opportunity. We have the advantage of having successfully run an airline for 18 years.”
13 May
The next AVALON airshow is being postponed from 23 February 2021 to a later date, likely to be in November. The ADMA foundation, which organises the biennial event, blames the lengthy logistical lead times and uncertainty about international travel caused by the coronavirus pandemic. The move follows the postponement of its sister shows Land Forces and PACIFIC International Maritime Exposition.
14 May
Air New Zealand declares on Wednesday it is ‘warming up’ its engines as it prepares to resume recreational flights today. The airline’s Twitter account says, “See you soon New Zealand” as the business issued guidance for passengers flying under lowered ‘Alert Level 2’ restrictions, which are now in effect. PM Jacinda Ardern announced earlier that Kiwis could travel around the country and meet friends and family for the first time in weeks.
15 May
Virgin Australia’s administrator says it expects to receive eight indicative offers ahead of its 6pm deadline. Deloitte adds nearly 20 interested parties had been granted access to the data room and eight to a “Virgin 2.0 business plan”. Lead administrator Vaughan Strawbridge points out there was “plenty of competitive tension” during what he termed an “aggressive process”. “It’s one we are confident we can achieve,” says Strawbridge. “Our objective remains to deliver a revitalised, viable, and profitable airline under new ownership.”
19 May
Federal Tourism Minister Simon Birmingham appears to criticise Queensland Premier Annastacia Palaszczuk’s suggestion that her state’s borders may remain closed until September. “If one or two states were to hold out, then they will be answerable to their tourism industry and will ultimately need to provide additional support to that industry,” says Minister Birmingham.
20 May
Fly in, fly out charter operator Alliance says its ability to adapt planes for coronavirus helped it to increase profits this financial year by $7 million. The business adds its “pioneering” measures, including social distancing seating plans, new cleaning regimes and passenger temperature checks, have been adopted by much of Australia’s industry.
“The swift and flexible response has seen Alliance capitalise on additional demand for flights in the resource sector and, particularly, increases in flight schedules of contracted clients,” Alliance says in a statement to the ASX. This financial year, Alliance expects to make $40 million in profit before tax, up from $32.8 million in 2019. Its board calls the result “exceptional” and says it will award most of its employees, other than senior management, $1,000 in free shares, which are now trading at a four-month high
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