Tag Archives for coronavirus.
Norwegian Air says they may run out of cash in a matter of weeks. Their long haul business is between several European countries and the U.S., but Europeans largely cannot travel to the U.S. for the next month. Bookings are down anyway in the current environment, and this was a troubled airline to begin with.
What a difference a few weeks make. Qatar Airways CEO Akbar al-Baker gave an interview where he was skeptical about the seriousness of the novel coronavirus, and annoyed at the inconvenience to aviation. “You don’t block aviation just because there is something in the air but it’s really not a scientific fact” he said.
He probably now wishes there wasn’t video.
At the beginning of the week airlines knew the novel coronavirus impact on their business could be large, but no one was taking this as seriously as United. That’s changed. Delta has sent a memo to employees outlining unprecedented changes to their business in light of drying up revenue.
Delta’s CEO Ed Bastian says that they’re receiving more cancellations than new bookings, and that “the demand fall-off is unlike anything we’ve seen” as a result they are “moving quickly to preserve cash and protect” the airline.
Marriott is out with a policy giving flexibility to existing reservations, offering additional flexibility on new bookings, and extending expiring points, suite upgrades, and free night certificates.
Domestic hotels already began experiencing a decline in rates and occupancy last week. Next week will be worse. Here are the details.
In light of the U.S. government’s limits on travel by non-U.S. citizens that have been to Europe within the past 14 days, in addition to reduction in travel broadly in reaction to the novel coronavirus, United has announced that it will only fly it’s current schedule through Thursday, March 19. That gives people time to get home, and to bring employees home.
Here’s what Europe should look like after that for United.
Disneyland in Southern California will close Saturday through end of month (though of course that closure could be extended). Disneyland resort hotels will remain open through Monday to let guests make travel arrangements.
The President of the United States is said to be considering travel restrictions between California, Washington, and the rest of the country. I’ve heard rumors of this prior to this reporting and it is certainly not confirmed and not at this point certain to happen.
Meanwhile it appears that travel restrictions haven’t been effective in stopping the spread of this virus.
The airport chief “was disheartened by refusal from other agencies” including immigration, health and the military, to provide cooperation in screening passengers. Indeed, reports are that face masks intended for workers screening passengers have been taken away from the airport and given to other government agencies.
United is farthest ahead preparing for the worst as a business. They are cutting capital spending, slashing flying, and eliminating discretionary expenses. They have raised additional cash and assume that their revenue is down 70% in April and May and not fully recovering this year. We don’t know yet if things will be even worse than this, and more drastic measures will need to be taken.
For now there aren’t any layoffs, but United is trying to reduce personnel spending and they’ve imposed a hiring freeze so that retirements will reduce their head count. Here’s the detail of the United Airlines voluntary leave plan.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
