Qantas and Jetstar yesterday revealed the new look for airline travel once the COVID restrictions on travel are eased and international and intrastate border controls disappear in short social distancing rules will be not enforced on travel, but offered masks and revamped check-in procedures will be the new ’normal’.
Watch US and global airline shares slump tomorrow after Warren Buffett told the Berkshire Hathaway virtual annual meeting that his company had bailed out of all its holdings in America’s four major carriers - United, American, Southwest, and Delta.
Virgin Australia wants a bailout from Canberra, regional operator, Rex does as well, while Air New Zealand, which last week received a $NZ900 million capital injection from the Kiwi government, has started following its Australian rivals and slashing staff numbers.
Qantas will seek to reduce international capacity by -23% until September 2020, or at least until the operating environment is clearer. To ensure the balance sheet can withstand the challenges, the company is cancelling the $150m off-market buyback.
Qantas has deferred a decision on Project Sunrise to March 2020 as it narrows down the type of aircraft, advising there would be no regulatory obstacles from the Civil Aviation Safety Authority regarding non-stop flights.