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Via the Oz:

Coronavirus: Rex to suspend nearly all domestic flights


ROBYN IRONSIDE
AVIATION WRITER
@ironsider

7:03PM MARCH 23, 2020


Rex is moving towards a total grounding of its fleet following new restrictions on domestic travel. Picture: AAP

Regional Express Airlines has led the charge in the latest round of airline cutbacks, announcing it will suspend all domestic services other than government-sub­sidised flights in Queensland.

The decision followed border closures in five states and government warnings for people to avoid any “non-essential travel”.

Other airlines, including Qantas and Virgin Australia, were continuing to review their schedules after previously announcing cuts of between 50 per cent and 60 per cent to domestic services.

In line with new measures announced by Scott Morrison, airport lounges were closed on Monday, and airport eateries reverted to selling takeaway food only, with tables and chairs packed away.

Rex deputy chairman John Sharp said the airline was supportive of the state and federal governments’ “strong measures” to reduce the spread of COVID-19, but said more financial assistance was needed to keep the airline ­flying.

Mr Sharp said the benefit to Rex of the $715m airlines assistance package announced last week was only about $1m a month, which was “grossly insufficient to cover the $10m a month we expect to lose”.

“If an assistance package of sufficient magnitude and viability can be negotiated by the end of the week, Rex may be able to reconsider its plans to suspend services,” Mr Sharp said. “Failure to achieve any traction in this regard will see regional communities lose their air services for many months.”

His sentiments were shared by the Regional Aviation Association of Australia, which urged the government to extend assistance for the industry.

Association chairman Jim Davis said small regional operators and privately owned flying schools did not have deep pockets.

“The effects of the current loss of business have already been devastating,” Mr Davis said.

“Many have only days or weeks left before they will collapse, so assistance is needed urgently to keep them afloat and preserve the jobs of their staff.”

He also urged the government to consider other measures such as a moratorium on loan repayments until the crisis had passed and introducing a US Chapter 11-style arrangement to allow businesses to keep operating without fear of being closed down by ­creditors.

On a global scale, the outlook was not looking any brighter for the aviation industry, with Emirates announcing a two-week suspension of all passenger flights, and Singapore Airlines cutting services by 96 per cent.

An Emirates spokeswoman said the temporary halt to flying was in compliance with a United Arab Emirates government directive for the protection of communities against the spread of COVID-19.

Singapore Airlines described the crisis as the “greatest challenge the group had faced in its existence”, adding that 138 of its 147 aircraft would be grounded until the end of April.

Sydney Airport on Monday was working through the scheduling impacts of the latest announcements by airlines and anticipated “a significant but temporary reduction in international and domestic traffic”.

Despite another turbulent day for the sector, Qantas and Sydney Airport shares closed up about 2 per cent, at $2.41 and $4.99 respectively. There was no such joy for Rex, with its shares crashing almost 20 per cent to 45c, an all-time low for the regional operator.

MTF...P2