News

PATA to set up crisis resource centre

The Pacific Asia Travel Association (PATA) is in the process of setting up a PATA Crisis Resource Centre to collate reliable data and information to assist all industry stakeholders as they deal with the current COVID-19 crisis. According to a message from Pata CEO Mario Hardy, it is essential to have access to reliable data and information during times such as these in order to enact a measured and balanced recovery strategy. "However, many organisations are being inundated with holding statements, informational webinars and situational updates, while news sites, search engines and social media are being flooded with misinformation and panic. Therefore, what is needed most now is a unified trusted source of data and information that is fact checked and verified," he said. "We are currently asking governments, and international and national organisations to seek their assistance in collecting information on the aid packages available to businesses in their respective destinations," he highlighted. "In addition, we are also planning to add further data and information that will be useful to organisations as they deal with the current situation. While this is a much needed resource, we cannot do this alone and we encourage governments, partners, members and, international and national associations and organisations to assist us and support this initiative," he said. As the industry faces one of the greatest threats it has ever seen, this is not a time for competition between individuals and organisations, but a time for coordinated cooperation between all industry stakeholders, Hardy pointed out. "We need to take action now, and only by working together can we hope to build a more resilient, responsible, sustainable and stronger travel and tourism industry," he said.

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Air New Zealand to introduce sleeping pods for economy class passengers

Some economy-class travelers envying those at the front of the plane with lie-flat beds may soon have another option. Air New Zealand Ltd has developed a sleeping pod prototype to help passengers to cope with near-18 hour flights. The Economy Skynest concept unveiled on Wednesday, which features six bunks akin to those in a train car or capsule hotel, would provide extra comfort for an added cost at a time when airlines are turning to longer flights because passengers are willing to pay for non-stop services. But the airline, which plans to launch Auckland-New York flights in October, faces a stiff hurdle in not just making the economics of the new product work but in meeting regulatory requirements designed to help passengers survive a crash that have held back novel seating concepts in the past. Air New Zealand said economy passengers would book the Skynest in addition to their regular seat. Rival Qantas Airways Ltd considered but ultimately rejected an Airbus proposal to place bunks in the cargo hold on A350 planes to be used on the world's longest-ever commercial flights from Sydney to London. Air New Zealand said it would make a final decision on whether to introduce the Skynest next year after it had assessed the performance of the Auckland-New York route during its inaugural year. The carrier's head of airline programs Kerry Reeves said gaining certification of the product was a definite challenge, even when compared with its earlier innovations like the Economy Skycouch which allows a row of economy seats to be turned into a couch after take-off.

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Paris' Louvre museum shuts its doors for second day as staff walk out over coronavirus scare

The Louvre museum in Paris shut its doors to art lovers and tourists for a second day on Monday after staff walked out over health risks associated with the coronavirus. Queues quickly formed in the morning rain outside the world’s most visited museum, home to Leonardo da Vinci’s Mona Lisa and the Venus de Milo sculpture. French law gives workers the 'droit de retraite' - or 'right to withdraw' - under legislation introduced by Socialist President Francois Mitterrand in the early 1980s, if they feel there is a clear and imminent danger to their safety. At the Louvre, a large majority of some 300 workers voted in favor of the walkout unless the museum’s management provided disinfectant gels and reinstated glass barriers between reception staff and visitors, Le Parisien reported. A notice at the main entrance told visitors, "We will inform you about a potential opening time as soon as possible." The French government has banned public gatherings of more than 5,000 people as it battles to contain an outbreak in France that has killed at least two people and infected more than 130. The measure does not cover museums, tourist venues and theme parks and the Louvre’s management said all necessary precautions were in place to ensure the museum could operate normally. "It is not necessary to close the museum under the current circumstances," the Louvre’s general administrator Maxence Langlois-Berthelot told reporters. "We are putting into action all the measures which the authorities require of us." Disneyland Paris in Chessy, 32 kilometers (19.88 miles) east of central Paris, was open as normal on Monday, a representative said. The Eiffel Tower was also operating normally. French labor law specialists warned that workers in other roles that involve close contact with the public - including public transport, hospitals, schools and supermarkets - might also invoke their right to walk out unless employers boosted protections against virus transmission. "We are just at the start," said Stephane Beal, head of labor law at legal firm Fidal. Two unions at the Paris bus and metro operator RATP said they were following the outbreak carefully.

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Indian Firms Cite ‘Act Of God’ Clause Seeking Relief For Loan Repayment

Hit by the novel coronavirus, or COVID-19, outbreak, real estate, tourism and hospitality companies have sought relief in loan repayments, citing the ‘Act of God’ clause, as per the reports. According to sources, the business owners from real estate, hospitality and tourism sectors have approached banks citing the “Act of God” clause in their loan covenants to delay payments and seek a restructuring of past loans. Basically, “Act of God” is a legal term used to describe events outside of human control and activity, and is invoked if a business is impacted by circumstances such as natural calamity, epidemic or war. As we can see that travel restrictions over the past month have hurt the tourism and hospitality industries hard. Further, the situation worsened after India suspended both international and domestic flights. Also, yesterday Prime Minister Narendra Modi announced a 21-day lockdown starting from March 25. Ultimately, this will force employees across all sectors to stay at home, except those in essential services. While talking about the coronavirus impact, a banker said “We have started receiving requests from several companies citing “Act of God” clause to restructure loans and provide leeway in repayments. In some cases, these loans are upwards of Rs 200 crore,”. So, lenders are seeking an industry-wide asset classification forbearance from the Reserve Bank of India (RBI), as the banking industry is in a precarious position. The Analyst at IndiaNivesh Securities, Ravikant Bhat said, “Lenders are likely to be less affected in Q4, FY20 with the lockdown becoming widespread only in the last week of March this year,”. “The current lockdown shall affect every business and individual. Hence, the economic fallout shall require a comprehensive package based on the needs of each affected segment,” he added. How Does Regulatory Forbearance Help? According to the industry officials, the Reserve Bank of India and the government should be generous with any assistance they may provide to key industry sectors reeling under the total demand collapse caused by the spread of the coronavirus pandemic and the total government-ordered nationwide shutdown. The senior group vice president, ICRA Ratings, Subrata Ray said, “A regulatory forbearance will definitely help both lenders and aviation companies avert any genuine financial crisis,”. “Airlines with a robust liquidity position would be able to sustain meeting repayments on schedules. Regulatory curbs over Covid-19 has triggered significant disruptions,” he said. Further, ICRA has reviewed the credit risks of aviation companies and has retained the outlook at negative for now. It will also review the rating if any relief measures are announced by the government. According to an Icra estimate, the total fund-based aviation industry debt (excluding Jet Airways debt and the capitalization of leases) is pegged at around Rs 40,000 crore.

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Railways mulls converting coaches into isolation wards for coronavirus patients

New Delhi: The Indian Railways is contemplating to convert its coaches and cabins in isolation wards in view of the growing number of COVID-19 patients, sources in the ministry said. The Railways runs 13,523 trains daily, and has now suspended all passenger services till April 14 in view of the country-wide lockdown. According to sources, the proposal to offer the empty coaches and cabins to be used as isolation wards was discussed in a meeting of Railway Minister Piyush Goyal with Chairman Railway Board V.K Yadav, General Managers of all zones and Divisional Railway Managers over video conferencing on Wednesday. The idea was discussed after Prime Minister Narendra Modi in the cabinet meet on Wednesday nudged all the ministers to think out of the box to deal with the coronavirus crisis. Yadav said railway coaches and cabins can be converted into makeshift hospital on wheels equipped with consultation rooms, medical store, ICU and pantry. These coaches can be sent to those parts of the country which has seen rapid rise of the coronavirus cases. As per the WHO estimates, India has only 0.7 beds per 1,000 people. While it has targeted to increase this to two beds, WHO mandates for at least 3 beds per 1,000 people in the country.

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IndiGo offers govt its aircraft and crew to transport medicine, equipment across country

IndiGo on Wednesday said that it has offered Union Civil Aviation Ministry its "resources, aircraft and crew" to transport medicine, equipment and relief material from one part of the country to another. As the Modi government has suspended all domestic and international passenger flight operations in India to curb the spread of coronavirus, IndiGo's fleet of more than 250 planes is currently grounded. IndiGo is the largest airline in India with around 47% share in domestic passenger traffic, according to aviation regulator DGCA's February data. In a press statement, the airline said, "In an endeavour to support Government of India, IndiGo, India's largest airline, today has offered its resources, aircraft and crew to assist the nation in the worldwide battle against coronavirus." "The airline has expressed support to contribute in the ferry supply of medicine, equipment, and relief samples from one part of the country to another," the low-cost carrier said. India has banned international commercial passenger flights for a period of one week from Sunday. Moreover, domestic flights have also been suspended from Tuesday midnight. The airline stated that its CEO Ronojoy Dutta has written a letter to the civil aviation Minister, wherein he said, "I know you must be facing major logistical challenges in moving medicine, equipment and relief supplies from one part of the country to another. We at IndiGo would be extremely proud to be associated with this critical life-saving activity at this hour of great need for our nation." "Please be assured that all our employees are highly motivated in the service of this country and are eagerly looking for opportunities in which to contribute. We would consider it an honour if you would engage us in this activity," Dutta noted. The airline has aircraft and crews covering major cities across India and are willing to fly in the service of the nation

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