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Global airline situation -- point by point.

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Global airline situation -- point by point.

Old 11th Oct 2001, 01:29
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Post Global airline situation -- point by point.

The following is from the BBC which outlines pretty much each and every airline's situation in round numbers. It is not detailed, but it's better than nothing.
Round-up: Aviation in crisis

The aviation industry has been hit hard by the 11 September terrorist attacks on the US, although, in truth, many airlines were already under severe pressure from falling demand and ill-judged investments.
The number of job cuts announced is now well over 100,000, routes have been slashed and several European carriers are barely clinging to life.

The turmoil in the industry prompted the European Commission on Wednesday to break its own trade guidelines and permit limited state aid for carriers.

The US last month agreed a $15bn aid package for its airlines.

BBC News Online has this round-up of the major announcements made so far.

Ireland's main airline Aer Lingus, highly dependent on transatlantic routes, announced that it was to cut its operations by 25%, sack 2,500 or 40% of its workers, and make more than 600 temporary staff redundant. The firm has also slashed prices to fend of competition from budget airline Ryanair.

Air Canada announced 5,000 fresh job cuts on top of 4,000 already announced in August. The airline said it was facing a "catastrophic" downturn in trade that was forcing it to mothball 84 planes as well as eliminate one quarter of all its jobs. It also pleaded for state aid.

Air New Zealand was rescued from bankruptcy after an emergency cash injection from the New Zealand government, but it has lurched from crisis to crisis over the past few months.

Alitalia reduced its head count by 2,500, said it was selling or mothballing 12 planes including four jumbos and stopped all new plane orders. The action was aimed at limiting already galloping losses.

American Airlines owner AMR Corporation cut 20,000 jobs, shared between American and a number of smaller subsidiaries. American reduced its schedule by 20%, but has not yet said anything about its plans to merge some operations with British Airways.

Austrian Airlines has said it is to cut 800 jobs by the end of 2002 and its management is to take a 15% pay cut next year. The airline also warned that further measures may have to be taken.

Bankrupt Australian budget carrier Ansett is back in the air after administrators took control. The aim is to revive the debt-wracked group as a "no frills" operation, mainly serving the Asian market.

Aircraft giant Boeing plans to cut up to 30,000 jobs by the end of next year. Its order book is heavily dependent on demand from US airlines, most of which have put spending plans on hold.

BAA the UK's main airports operator, said it was possible its profits would fall by a fifth because of the slump in air travel. But it said turmoil in the industry made it impossible to make an accurate forecast.

British Airways added 5,200 job cuts to 1,800 already announced. It is withdrawing 20 aircraft and cutting its schedule by 10%. Top managers are taking pay cuts. Like Aer Lingus, BA is heavily reliant on transatlantic trade.

BMI British Midland is axing 600 jobs - over 10% of its workforce - and grounding eight of its 62 aircraft for the winter. BMI has long aspired to launching direct services between Heathrow and New York.

Continental cut 12,000 staff, reduced its schedule by 20% and postponed the flotation of its ExpressJet unit. The airline said its load factor - the percentage measure of seat occupancy - was down 11% after the attacks.

Delta slashed 13,000 jobs and trimmed capacity 15%, saying it had lost $1bn in the two weeks following the attacks. The airline hopes for a boost from the re-opening of Reagan National airport near Washington DC, one of its key hubs.
Gill Airways, which flies from Newcastle to Belfast City Airport, has ceased trading, blaming the uncertainty created by events in the US.

Avionics manufacturer Honeywell said it would eliminate 16,000 jobs, double the amount previously announced. The firm was already suffering from the economic slowdown, but depends on aviation-industry demand for a substantial chunk of its revenues.

Spain's Iberia is cutting 10% of its flights and levying an eight euro surcharge on all passengers. The airline has, so far, not confirmed reports that it will shed up to 3,000 of its 30,000-strong workforce. The airline has confirmed a 10% volume fall since the attacks.

Dutch airline KLM is shedding 2,500 jobs and asking remaining employees to work shorter hours and take "substantial" pay cuts. KLM hopes to save some 60m euros by the pay cuts alone, which extend all the way through to top management.

Germany's Lufthansa cut three of its transatlantic routes and said it was freezing hiring.
Midwest Airways said it would abandon financial restructuring and proceed with bankruptcy immediately.
Northwest said they would announce cutbacks later this week

Belgium's Sabena filed for bankruptcy after part-owner Swissair failed to come up with funds for a promised rescue package. The airline remains flying, having received emergency financing from the Belgian government. The government plans to relaunch Sabena on a more modest scale, focusing on short-haul European destinations.

Scandinavia's SAS, which saw its entire board resign due to an unrelated cartel scandal, said it would cut capacity because of the industry crisis. An tragedy worsened the airlines situation, when on 8 October an SAS jet crashed at a Milanese airport, killing more than 100 people.

Belfast-based Shorts Brothers, a subsidiary of Canadian Bombardier, announced 800 layoffs and warned it might have to make another 1,100 job cuts next year unless trading improved markedly. Parent company Bombardier has announced a total of 3,800 job losses so far this year.

Swissair has resumed some flights after receiving emergency government financing. A rescue package, under which two Swiss banks are taking majority ownership, earlier meant the airline narrowly avoided bankruptcy. On 9 October, the airline announced it was cutting 9,000 staff. The issue of state aid to the carrier is being examined by the European Commission, however.

United Airlines announced 20,000 job losses and said it was cutting its schedule by 20%.
US Airways cut 11,000 jobs and slashed its schedule by 23%. The airline was the first to fly out of the re-opened Reagan National airport.

British carrier Virgin Atlantic shed 1,200 jobs, partly because of expected downturn on its crucial transatlantic routes.
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Old 11th Oct 2001, 01:39
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........you missed out Riga Air.
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Old 11th Oct 2001, 04:20
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And five AWACs over the continental U.S. on picket duty, partly crewed by foreign nationals. Magic, isn't it? Well a dark but necessary magic at the moment. I think about the small, private, rentable, buy for cheap aircraft now/next - and adequate vigilance.
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Old 11th Oct 2001, 08:07
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Meanwhile we're picking up additional custom from people afraid to travel on potential "target" airlines. Global downturn? Maybe, but it may simply be a case of swings and roundabouts. Seems to me that many of the companies named above were already in trouble and the New York outrage provided a convenient excuse.

Through difficulties to the cinema
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Old 11th Oct 2001, 22:05
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O, ye, a lot of job losses but how much it concerns to pilot`s market? I dont believe that companys will eliminate experienced pilots and engineers.
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