Philippine Airlines Faces Ban for Transporting COVID-Infected Passengers

Philippine Airlines Faces Ban for Transporting COVID-Infected Passengers

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Philippine Airlines Faces Ban for Transporting COVID-Infected Passengers

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Hong Kong has banned Manila to Hong Kong flights after authorities say the airline allowed three COVID-infected passengers to travel into the city from the route. The stoppage is the latest troubling indication that the Pandemic is far from over for airlines, as popular destinations institute new travel restrictions. 

The ban went into effect on Sunday and will last until 11 September. While the airline will not operate flights traveling from Manila to Hong Kong, it will still be permitted to fly departures out of Hong Kong to Manila.

Contact tracers in Hong Kong traced a minor outbreak back to three passengers on PAL flight PR300. China and the Hong Kong government have a “zero tolerance” policy towards COVID-19, prompting officials to punish the airline. 

In a statement, PAL maintained that the three passengers tested negative before boarding the flight – per Hong Kong’s travel restrictions.

“We reiterate that the top priority of Philippine Airlines has always been the safety and health of our passengers. We assure the flying public that strict safety measures are in place to protect our passengers throughout the journey on all our flights,” the statement read.

Demand for air travel surged back over the spring and summer travel seasons, despite lingering lockdowns and restrictions aimed at preventing the cross-border spread of the deadly Delta Variant. Recently, however, governments have put in place ever-stricter rules for air travelers, including expanding quarantines and issuing vaccine mandates for those seeking to enter their borders. 

Airlines are increasingly finding the continued spread of the coronavirus is blocking off many of their most lucrative destinations. Popular hotspots such as Hawaii, Canada, and the Bahamas are closing off travel to passengers coming in from the United States, placing a future of airline profits ever further out of reach. The ban on PAL’s Hong Kong-bound flights underscores the danger that the Pandemic still holds for airlines.

In its statement, Philippine Airlines said the airline would comply with the two-week ban on flights from Manila to Hong Kong. It also pointed to a strong safety track record when it comes to Pandemic mitigation efforts.

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The Ongoing Pandemic Spells Trouble for Airlines

The Ongoing Pandemic Spells Trouble for Airlines

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The Ongoing Pandemic Spells Trouble for Airlines

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While this has been a summer of recovery for the nation’s airlines, there are mounting signs that the party could be over. Despite July being a hopeful month for the carrier, American Airlines recently told investors that August numbers would be weaker than expected. 

At a recent Raymond James investor conference, American’s Chief Revenue Officer Vasu Raja blamed the slowdown in bookings on the surging number of new COVID cases. According to the TSA, air travel has seen a steady decline since early August. About 1.5 million air travelers passed through TSA checkpoints on Tuesday, compared to 2.5 million on August 15, just ten days prior. American stock is currently holding steady at 20.27.

According to Raja, the lower travel numbers are something that airlines would expect to see in mid-September when traffic tends to slow down. In this case, however, cancellations are also on the rise – possibly indicating a systemic reduction in demand. 

Raja said the lower than expected revenue was squarely due to the increasing number of COVID-19 infections, spurred by the highly infectious Delta Variant. Spirit, Southwest, and Frontier have also told investors they expected the ongoing pandemic to weaken their Autumn outlooks. At least one airline catering company has already announced plans to soon lay off about 200 employees due to the impact that COVID is having on airlines. 

There is no question that airlines are improving financially. On Sunday, more travelers passed through TSA checkpoints than in 2019, before the Pandemic began. However, each day seems to bring new travel restrictions as state and local destinations are inundated with new COVID 19 cases. While air travel isn’t plummeting as it did last March, there is also no question that airlines could be in a much better position without the Pandemic.

Airlines are uniquely vulnerable to the economic effects of COVID-19 and were among the hardest-hit businesses throughout the pandemic. In 2020, three of the largest airlines reported losses totaling a staggering $14 billion. Last year, virtually all airline workers in the U.S., from pilots and flight attendants to baggage handlers and customer service agents, got much of their paychecks from taxpayers thanks to the Payroll Support Program, part of the CARES Act. As case numbers get closer to 2020 levels, it becomes increasingly likely that airlines could once again consider mass layoffs to be a reasonable option. 

Moreover, deaths and hospitalizations are ravaging airline workplaces. According to Ed Bastian, the CEO of Delta Air Lines, each employee that gets hospitalized with COVID-19 costs airlines an average of $50,000. Widespread infections among employees that perform key operational functions, such as pilots and control tower employees, could cripple an airline almost overnight. All of this makes unvaccinated employees an extreme financial risk for carriers.

So far, American Airlines has not announced plans to require vaccinations for its 100,000 employees, making it more vulnerable to the effects of COVID-19, including health care and liability insurance costs. Other airlines, such as Air Canada, Cathay Airlines, United, Frontier, and Hawaiian, have drafted policies requiring at least some form of vaccine requirements. Delta is raising insurance premiums for unvaccinated employees by $200 a month in a move that a wide range of employers are now considering. 

Most of the largest employers in the U.S. now require employee vaccinations, ensuring that widespread infections do not disrupt their workplaces. The list includes McDonald’s, Google, Uber, Lyft, Netflix, UPS, Walgreens, Walmart, and Disney. The largest single employer in the U.S. is the Federal Government, which also requires vaccinations of armed forces members, employees, and contractors.

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How the Machinists Union is Critical to the Afghanistan Evacuation Efforts

How the Machinists Union is Critical to the Afghanistan Evacuation Efforts

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How the Machinists Union is Critical to the Afghanistan Evacuation Efforts

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The IAM is proud to be the largest aerospace, airline, and defense labor union in North America. The recent evacuation efforts of thousands of U.S. citizens and allies in Afghanistan have been made possible by IAM members throughout the union.

Both commercial and military aircraft being used in the evacuation effort are built and maintained by IAM members. In addition, IAM members work side-by-side with the military on bases across the country that are housing Afghan refugees upon their arrival to the United States.

“Our union is proud to be a part of this important mission to safely return U.S. citizens back home and to keep our promises to Afghan allies,” said IAM International President Robert Martinez Jr., a U.S. Navy veteran. “As a union with such a large percentage of military veterans, we are honored to once again play a vital role in supporting our men and women in uniform. I send my sincere thanks to every IAM member and our brave service members who make this effort possible.”

The IAM Veteran Services Department has compiled resources available to military veterans experiencing a wide range of emotions during the withdrawal from Afghanistan.

 

 

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Canada Will Require All Airline Employees and Passengers to be Vaccinated

Canada Will Require All Airline Employees and Passengers to be Vaccinated

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Canada Will Require All Airline Employees and Passengers to be Vaccinated

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All Canadian forms of mass travel will soon require proof of vaccination for both passengers and employees. The new rules will include commercial air travel, trains, busses, and all federal workers. The International Association of Machinists and Aerospace Workers has represented workplaces in Canadian rail and Commercial Aerospace and has a significant presence in the Canadian medical industry.

The requirements will impact about 1.2 million Canadians. Commercial air travelers within Canada will also need to vaccinate, but not those traveling Air Canada from two destinations in the United States.

According to the Canadian Treasury Board, the changes will take effect “as soon as possible in the fall and no later than the end of October.”

“Today, we are announcing that the government of Canada intends to require vaccination across the Federal public services,” said Transport Minister Omar Alghabra as he announced the plan. The move is not limited to government agencies but will extend to employees at private companies in the federally regulated sector. “The government of Canada will require employees in the federally-regulated air, rail, and marine transportation sector to be vaccinated,” Alghabra said in the statement.

The mandates will extend to passengers flying on Canada’s two large airlines, as well. Air Canada and WestJet employees and passengers will need to show proof of vaccination by the end of October at the latest,” he said. The goal is to have the new rules enacted as early as the end of September, however.

“We have seen how devastating COVID-19 has been to our transportation and tourism sectors,” Alghabra said of the new mandates. “We must protect the hard-won gains made by Canadians,” he said. Canada has a vaccination rate of 73%, with 64% being fully vaccinated, making Canadians one of the best-protected populations in North America. About 26,000 Canadians have died of the COVID-19 virus.

The vaccination requirements allow those who cannot get vaccinated due to cancer or who have undergone a recent organ transplant, among other medical conditions, to get exemptions. Those with exemptions will have to pass frequent testing and other screening measures. 

In early August, Canada began relaxing some of the travel restrictions for US air travelers, which have somewhat slowed the recovery of air travel in the US. 

While the requirements do not reflect a policy specific to airlines per se, the addition of Air Canada and WestJet to the “vaccinated” column grows the list of airlines that are now requiring immunizations for employees. Delta was the first to mandate vaccinations for new hires in the Spring, and United, Hawaiian, and Frontier have at least some form of vaccine requirements for employees. Delta was the first to mandate vaccinations for new hires in the Spring, and United, Hawaiian, and Frontier have at least some form of vaccine requirements for employees. The Supreme Court in the United States has thus far thrown out two challenges to vaccine mandates, upholding a 1905 decision that allows employers and other organizations to require them. 

 

Photo Credit: Wikimedia Commons

 

 

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Hawaiian Airlines Will Require Employee Vaccinations for COVID-19

Hawaiian Airlines Will Require Employee Vaccinations for COVID-19

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Hawaiian Airlines Will Require Employee Vaccinations for COVID-19

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Last week, Hawaiian Airlines announced plans to require all US-based employees to be vaccinated against COVID-19. The new policy will make Hawaiian the fourth airline to issue a vaccine requirement for employees. Delta issued vaccine mandates for new hires this spring. United and Frontier made similar policy changes in early August.

“As of November 1, 2021, Hawaiian Airlines will require all of our U.S.-based employees to be vaccinated against COVID-19,” the airline said in a memo to employees. The airline presented the policy partly as a safety measure and necessary to coordinate with pandemic-related restrictions in other countries.

“There is no greater demonstration of our values than ensuring the safety of others,” the memo read. “Safety is the foundation of air travel, and it is ingrained throughout our operation and service. This is no different. By getting vaccinated, we protect ourselves and those around us. That is malama.”

The list of major companies requiring vaccines includes executives at Walmart – as well as workers at companies such as Google, Facebook, Tyson Foods, Disney, and others. Members of the armed forces are also required to undergo immunizations. Fox Corporation is strongly encouraging executives and talent at the company to get vaccinated, using a voluntary self-reporting system.

Hawaiian Airlines CEO Peter Ingram told workers they had until November 1 to be fully vaccinated. This timeframe means that employees getting a two-shot vaccine will need to get the first dose in the next two months. United set a deadline for its 67,000 employees of five weeks after the FDA grants full use authorization to have at least one vaccine, or October 25, whichever date is sooner. Frontier will require vaccinations by October 1 or employees will need to undergo regular testing. Frontier has a ‘soft’ vaccine requirement, granting exemptions to virtually anyone that requests one.

All airlines have had vaccine mandates for some employees for years, dating back to long before the pandemic. Pilots and flight attendants who travel to regions where certain diseases are prevalent, for example, must get vaccinated. 

Delta has mandated vaccinations for new hires, meaning anyone leaving Hawaiian, Frontier, or United for Delta will need to prove vaccination status.

The International Association of Machinists and Aerospace Workers (District 141), which represents ground crews at Hawaiian, has supported incentive programs for airlines trying to immunize their workforces. These efforts have encouraged airlines to offer on-site clinics, time off from work, extra pay, and more. However, the union’s District President Mike Klemm has voiced concern that similar requirements happening at United Airlines are going out without proper communication with workers, leading to a clumsy and ineffective vaccination policy overall. He stressed that Hawaiian has been much more professional than United and that Hawaiian managers are actively trying to partner with employees, and are largely avoiding the widespread backlash occurring at United.

“Hawaiian has been courteous and careful with their communications with the union,” he said. “That shows a lot of respect. And, that kind of partnership will go a long way towards encouraging more vaccine participation.”

Federal agencies such as the Equal Employment Opportunity Commission and courts have repeatedly found that requiring employee vaccinations is a power companies have. Earlier in 2020, the IAMAW consulted with attorneys and legal experts who determined that companies that choose to require employee vaccinations are legally able to do so. 

It is not yet clear how the decision by airlines to require vaccinations will impact their business liability insurance costs, or whether or not such concerns are influencing their decision-making. 

Those eligible for an exemption will have to get frequent COVID-19 tests and wear masks, among other safety procedures.

 

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Airline Business Weaker Due to Delta Variant

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Airline Business Weaker Due to Delta Variant

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While summer traffic has been promising, there are troubling signs that the profit season for airlines may have peaked early – due to the continuing Pandemic.

TSA bookings year over year show positive growth throughout commercial aviation. Compared to 2019, the year before the pandemic began to ravage airlines, today’s air traffic is 80% of what it historically should be for August. 

However, it may be too early to declare the pandemic behind us. With the Delta variant clogging hospitals with unvaccinated Americans, airline travel is showing severe signs of weakening. For the third straight week, airline bookings are down and far weaker than in 2019. System bookings are currently 53.8% lower than 2019 levels. That could show that the most profitable quarter for airlines may be shorter this year than the historical average. If the trend continues, many airlines will not have enough summer profits to get them through the rest of 2021 as they might have wanted. 

The cause of the general malaise within airlines can be attributed to the continued COVID-19 pandemic. 

Lucrative business and international travel is down at all airlines and show few signs of a quick comeback. Popular destinations for American air travelers, including France, remain on the CDC’s “Do Not Travel” list. Hawaii is restarting restrictions on travel to the islands, including group sizes. Several other resort destinations are asking visitors to leave as soon as possible, while others extend border closures. All of which are challenges that airlines do not need right now. 

Southwest attributed a general slowdown “close-in reservations” for August to the Delta Variant in an SEC filing last week. Delta, Hawaiian, Air Canada, United, and Frontier have imposed some vaccine requirements for employees. 

recent study of air travelers conducted by Longwoods International is not helping relieve fears of long-term, pandemic-related slowdowns for air travel. According to the research, a shocking 67% of communities want to shut their doors to tourists and their money. This number is high and growing; two months ago, it was at 47%, an already incomprehensibly high figure for areas dependent on tourist revenue. The study also found other indicators that COVID-19 concerns are a serious threat to aviation. 

30% of respondents reported that they would rather drive instead of fly to their next travel destination, with 25% choosing domestic rather than international travel. The number that said COVID-19 concerns would “greatly” impact their travel decisions over the next six months was a staggering 34%. 

If all these indications of weakening air travel demand are accurate, airlines may have hit the high point of their profit season. 

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