Emirates and Etihad ready to resume transit flights

Resumption of transit services is a major step in returning Abu Dhabi and Dubai airports to normal operations two months after flights were halted. (Shutterstock)
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Updated 05 June 2020

Emirates and Etihad ready to resume transit flights

  • UAE’s two largest carriers lead the way as hard-hit aviation sector struggles to shake off pandemic paralysis

DUBAI: Emirates and Etihad Airways, the UAE’s two largest carriers, said they will resume transit flights as the country’s key aviation sector slowly emerges from pandemic paralysis.

Dubai-based Emirates said on Thursday it will operate transit flights to 29 destinations by June 15, while Abu Dhabi’s Etihad said it would transit passengers to 20 destinations from June 10.

Dubai and Abu Dhabi have become key global layover hubs for passengers moving between Asia, Europe and the Americas and the resumption of transit services is an important step toward returning the cities’ two vast and modern airports to normal operations.

It comes more than two months after the UAE stopped all passenger flights in response to the coronavirus pandemic. Foreign citizens without UAE residency remain banned from flying to the country.

Emirates said it would also offer flights to Bahrain, Manchester, Zurich, Vienna, Amsterdam, Copenhagen, Dublin, New York JFK, Seoul, Kuala Lumpur, Singapore, Jakarta, Taipei, Hong Kong, Perth and Brisbane.

“Customers can book to fly between destinations in the Asia Pacific and Europe or the Americas, with a convenient connection in Dubai, as long as they meet travel and immigration entry requirements of their destination country,” Emirates said.

Meanwhile, Etihad said transfer connections via Abu Dhabi will now be available from Jakarta, Karachi, Kuala Lumpur,
Manila, Melbourne, Seoul, Singapore, Sydney, and Tokyo to
major cities across Europe — including Amsterdam, Barcelona, Brussels, Dublin, Frankfurt, Geneva, London Heathrow, Madrid, Milan, Paris Charles de Gaulle, and Zurich.

Other major carriers are also slowly resuming services as some governments discuss the possibility of opening limited “air bridges” to allow for the possibility of overseas vacations.

Virgin Atlantic said on Thursday it would restart some flights that had been grounded with further services planned for August. It said that flights to Orlando and Hong Kong from London Heathrow would resume on July 20. New York JFK, Los Angeles, and Shanghai are set to restart on July 21.

Global aviation body IATA has warned that post-coronavirus fare discounting was delivering an added financial blow to carriers.

“Airlines need cash because of the crisis and they’re seeking to encourage passengers into seats by offering low fares,” said IATA Chief Economist Brian Pearce.

Carriers reduced domestic fares by an average 23 percent last month according to IATA.


Oil giants’ production cuts come to 1m bpd as they post massive write-downs

Updated 10 August 2020

Oil giants’ production cuts come to 1m bpd as they post massive write-downs

  • Crude output worldwide dropped sharply after the market crashed in April

LONDON: The world’s five largest oil companies collectively cut the value of their assets by nearly $50 billion in the second quarter, and slashed production rates as the coronavirus pandemic caused a drastic fall in fuel prices and demand.

The dramatic reductions in asset valuations and decline in output show the depth of the pain in the second quarter. Fuel demand at one point was down by more than 30 percent worldwide.

Several executives said they took massive write-downs because they expect demand to remain impaired for several more quarters as people travel less and use less fuel due to the ongoing global pandemic.

Of those five companies, only Exxon Mobil did not book sizeable impairments. But an ongoing reevaluation of its plans could lead to a “significant portion” of its assets being impaired, it reported, and signal the elimination of 20 percent or 4.4 billion barrels of its oil and gas reserves.

By contrast, BP took a $17 billion hit. It said it plans to recenter its spending in coming years around renewables and less on oil and natural gas.

Weak demand means oil producers must revisit business plans, said Lee Maginniss, managing director at consultants Alarez & Marsal. He said the goal should be to pump only what generates cash in excess of overhead costs.

“It’s low-cost production mode through the end of 2021 for sure, and to 2022 to the extent there are new development plans being contemplated,” Maginniss said.

London-based BP has previously said it plans to cut its overall output by roughly 1 million barrels of oil equivalent (BOEPD) by the end of 2030 from its current 3.6 million BOEPD.

Of the five, Exxon is the largest producer, with daily output of 3.64 million BOEPD, but its production dropped 408,000 BOEPD between the first and second quarters. The five majors, which include Chevron Corp, Royal Dutch Shell and Total SA, also cut capital expenditures by a combined $25 billion between the quarters.

Crude output worldwide dropped sharply after the market crashed in April. The Organization of the Petroleum Exporting Countries agreed to cut output by nearly 10 million barrels a day to balance out supply and demand in the market.