Business
U.S. airlines move toward federal loans as COVID-19 surge threatens demand, jobs
CHICAGO (Reuters) – The largest U.S. air carriers have all signed letters of intent on federal loans to help them weather the novel coronavirus, with United Airlines warning employees on Tuesday that a surge in outbreaks was hitting bookings, threatening a travel rebound and jobs.
United employees should expect to receive as soon as this week notices about potential furloughs effective Oct. 1, the airline said in a regulatory filing. It expects travel demand to remain depressed until a widely accepted COVID-19 treatment or vaccine is found, with no straight line to an industry recovery.
U.S. airline shares closed 5% lower on Tuesday, with United down 7.6%.
While travel had picked up in some areas over the past two months from pandemic-driven lows in April, United has seen reservations for travel within the coming month slide after New York, New Jersey and Connecticut said they would require people arriving from hot-spot states to quarantine for 14 days.
The slump was most pronounced at United’s Newark hub, where near-term net bookings were just about 16% of year-ago levels as of July 1. Raymond James analyst Savanthi Syth said the bookings trend was likely much broader than the New York area.
Andrew Nocella, United’s chief commercial officer, told employees at a virtual town hall meeting on Tuesday that its network would be slightly more impacted than other U.S. domestic airlines, sources said after the meeting.
It is among U.S. airlines encouraging employees to accept voluntary departure packages to help prevent tens of thousands of job losses in the fall but said not enough workers have signed up ahead of a July 15 deadline to apply.
U.S. airlines have drastically reduced their flight capacity and rushed to shore up capital while warning that tens of thousands of jobs could be at risk as the industry braces for a slow recovery.
United sees domestic load factors at around 50% in July versus around 80% normally, with international loads around 30%, and will continue to adjust its capacity based on demand.
Delta Air Lines said last week it may scale back the number of flights it had planned for August.
United and Delta were among U.S. carriers – along with Alaska Airlines, JetBlue Airways and Southwest Airlines – that the U.S. Treasury Department said on Tuesday had signed letters regarding the terms of a $25 billion loan package under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Last week, the department said it had agreed on the terms for government loans under the CARES Act with five other airlines including American Airlines.
U.S. airlines have already received $25 billion in payroll aid under the CARES Act to protect jobs through September and have until Sept. 30 to decide whether to take the loan, which would include the issue of warrants and restrictions on executive compensation and share buybacks.
U.S. unions representing aviation workers have separately asked lawmakers to extend the payroll aid package through March as Congress considers a new round of spending to address coronavirus-related issues and jobs.
Reporting and photo: Reuters
Maldives on Thursday welcomed the one millionth tourist to visit this year.
The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.
Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.
After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).
Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.
Maldives expects to reach 2 million tourists this year.
Chongqing Airlines on Monday began its inaugural flights to Maldives.
The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.
The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.
“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.
Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.
In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.
China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.
CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.
Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.
The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.
SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.
Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.
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