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.

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Analysts urge Canada to focus on boosting the economy

Updated 06 July 2020

Analysts urge Canada to focus on boosting the economy

  • Canada lost one of its coveted triple-A ratings in June when Fitch downgraded it for the first time

TORONTO: Canada should focus on boosting economic growth after getting pummeled by the COVID-19 crisis, analysts say, even as concerns about the sustainability of its debt are growing, with Fitch downgrading the nation’s rating just over a week ago.

Canadian Finance Minister Bill Morneau will deliver a “fiscal snapshot” on Wednesday that will outline the current balance sheet and may give an idea of the money the government is setting aside for the future.

As the economy recovers, some fiscal support measures, which are expected to boost the budget deficit sharply, could be wound down and replaced by incentives meant to get people back to work and measures to boost economic growth, economists said.

“The only solution to these large deficits is growth, so we need a transition to a pro-growth agenda,” said Craig Wright, chief economist at Royal Bank of Canada. The IMF expects Canada’s economy to contract by 8.4 percent this year. Ottawa is already rolling out more than C$150 billion in direct economic aid, including payments to workers impacted by COVID-19.

Further stimulus measures could include a green growth strategy, as well as spending on infrastructure, including smart infrastructure, economists said. Smart infrastructure makes use of digital technology.

“We have to make sure that government spending is calibrated to the economy of the future rather than the economy of the past,” Wright said.

Canada lost one of its coveted triple-A ratings in June when Fitch downgraded it for the first time, citing the billions of dollars in emergency aid Ottawa has spent to help bridge the downturn caused by COVID-19 shutdowns.

Standard & Poor’s, Moody’s and DBRS still give Canadian debt the highest rating. At DBRS, Michael Heydt, the lead sovereign analyst on Canada, says his concern is about potential structural damage to the economy if the slowdown lingers too long.

Fiscal policymakers “need to be confident that there is a recovery underway before they start talking about (debt) consolidation,” Heydt said.

Fitch expects Canada’s total government debt will rise to 115.1 percent of GDP in 2020 from 88.3 percent in 2019.

Royce Mendes, a senior economist at CIBC Capital Markets, said the economy still needs more support.

“Turning too quickly toward austerity would be a clear mistake,” he said.