Dave

Industry leaders answer GTM’s client’s questions on business travel, coronavirus measures and the future use of the UK’s busiest airport

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Senior travel industry representatives have set out a clear roadmap for business travel growth through London’s busiest airport and have answered questions from GTM’s clients. 

Global Travel Management was one of a selected group of travel management companies to address John Holland-Kaye and Clive Wratten in an online Q&A. 

Holland-Kaye, CEO of London Heathrow Airport repeated his calls for a “Common International Standard for health in aviation”, which would pave the way for infection-free passengers to be able to travel freely.  And Wratten, CEO of the Business Travel Association (BTA) set out his organisation’s five-point plan to get business travel moving again. 

Global Travel Management’s clients were asked what questions they would like to see put to the industry figures.

Global Travel Management Managing Director Scott Pawley asked

The key to stimulating travel and to ensure clients see a swift and comprehensive return to travel plans is confidence.  Until clients have confidence that their travel objectives can be met safely, there remains a barrier to returning to travel.  What specific measures can we tell our clients that Heathrow is undertaking to ensure all travel meets with social distancing guidance and that airport staff, as well as passengers, are screened for coronavirus symptoms?

John Holland-Kaye, CEO of Heathrow Airport, called for a Common International Standard for health in aviation

Holland-Kaye explained that the Common International Standard for health in aviation is something that needs to be in place and confirmed that the UK government is in a good place to bring together international parties to ensure that this happens. 

He also explained that Heathrow is taking several steps to ensure safe, secure passage through the airport for business and leisure travellers:

  • Passengers and staff will be required to wear face masks at the airport  
  • Surfaces will undergo more rigorous and frequent cleaning
  • Hand sanitiser will be made available for general use
  • Investments will be made to ensure zero-touch passage through security becomes the norm – this investment may take up to two years to put in place
  • Once passengers are screened, through security and air-side, the comprehensive use face masks will reduce the need to adhere to typical two metre social distancing

Paul Baker, Sales Director of Global Travel Management asked

Does Heathrow Airport Ltd have plans to instigate something similar to the testing on arrival carried out at Vienna Airport, which helps infection-free passengers avoid quarantine?

Holland-Kaye explained that tests should be carried prior to departure, rather than on arrival, and repeated his request for a Common International Standard to include an internationally agreed permit to guarantee arrival.

Wratten also explained the BTA’s five-point plan.

BTA CEO Clive Wratten has set out a clear, five-point plan to get businesses travelling again

The BTA recognises the many and complex challenges ahead in the fight against Covid-19, but firmly believes the following five key steps are necessary to get the business world travelling again:

  1. Timeframe – No one knows when travel can begin, and this missing date means consumers and businesses cannot be confident about future journeys. We need to move from a restriction of “All but essential” to “Essential business travel permitted”.
  2. International co-operation and clarity – The BTA is arguing for a set of globally consistent guidelines on social distancing, the use of masks and other hygiene measures.
  3. Protected travellers – When Governments and travel providers give the green light, the need to ensure everyone stays safe will remain crucial. This requires insurance to cover employees when they travel and, in case of disruption or infection, that businesses’ actions will not cause employee concern or dissent.
  4. Safe services – Airlines, airports, train companies, car rental firms, hotels and other accommodation providers will need to demonstrate beyond reasonable doubt, the steps they are taking to ensure cleanliness and social distancing. This could be overseen by travel associations such as the BTA across the globe with a recognisable marque provided to those who meet the criteria.
  5. Competitive pricing – Economies are being squeezed; companies are under pressure. Hence, travel budgets for the latter half of this year, and for 2021, will be challenging. Consequently, all elements of the business travel supply chain will need to ensure they remain highly competitive on pricing. Achieving this requires government intervention and financial commitment today to keep struggling businesses afloat – both in the business travel sector and amongst those who buy from it. 

We would like to thank Clive Wratten and John Holland-Kaye for taking the time to answer these questions.

Dave

Lufthansa Group significantly expands service with June flight schedule

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Lufthansa Group airlines have released their June schedule which shows a significant expansion of their services.

Lufthansa, SWISS and Eurowings are adding numerous destinations to their flight schedules in June, as well as more long-haul destinations.


The flight schedules of Lufthansa Group airlines are closely coordinated, enabling reliable connectivity to European and intercontinental destinations.

By the end of June, the Lufthansa Group airlines plan to offer around 1,800 weekly roundtrips to more than 130 destinations worldwide.

Harry Hohmeister, Executive Board Member of German Lufthansa AG said,

With the June flight schedule, we are making an important contribution to the revitalisation of aviation infrastructure. It is an essential part of European economic power. People want to and can travel again, whether on holiday or for business reasons. That’s why we will continue to expand our offer, step by step, in the coming months and connect Europe with the world.

Lufthansa’s additional flights that are resuming in the first half of June, in Germany and Europe, are from Frankfurt, Hanover, Majorca, Sofia, Prague, Billund, Nice, Manchester, Budapest, Dublin, Riga, Krakow, Bucharest and Kiev. From Munich, it is Münster/Osnabrück, Sylt, Rostock, Vienna, Zurich, Brussels and Majorca.

In the first half of June, the flight schedule also includes nineteen long-haul destinations, fourteen more than in May. In total, Lufthansa, SWISS and Eurowings will be offering more than 70 weekly frequencies overseas until mid-June, almost four times as many as in May. Further resumption of Lufthansa long-haul flights is planned for the second half of June.

Austrian Airlines has decided to extend the suspension of regular flight operations for a further week, from 31 May to 7 June. A resumption of service in June is being considered.

SWISS is planning to resume services to various destinations in the Mediterranean region, and other major European centres such as Paris, Brussels and Moscow will also be added to the programme.

In its long-haul operations, SWISS will offer intercontinental direct services in June, in addition to its three weekly services to New York/Newark. The Swiss carrier plans to offer flights from Zurich to New York JFK, Chicago, Singapore, Bangkok, Tokyo, Mumbai, Hong Kong and Johannesburg.

Eurowings had already announced that it would be expanding its basic program at the airports of Düsseldorf, Cologne/Bonn, Hamburg and Stuttgart and gradually adding 15 further destinations within Europe from May onwards. With flights to Spain, Greece, Portugal and Croatia, the focus is on destinations in the Mediterranean region. The island of Mallorca will again be offered from several German Eurowings gateways

Brussels Airlines plans to resume its flight operations with a reduced network offer as from 15 June

Lufthansa Group issued the following advice to passengers,

When planning their trip, customers should consider the current entry and quarantine regulations of the respective destinations. Throughout the entire trip, restrictions may be imposed due to stricter hygiene and security regulations, for example due to longer waiting times at airport security checkpoints. The catering services on board will also remain restricted until further notice. In addition, passengers will continue to be asked to wear a nose-and-mouth cover on board during the entire journey.

Dave

Dubai Airports CEO says bilateral agreements are needed to enable resumption of services

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Paul Griffiths joined Dubai Airports as its first CEO in October 2007

Dubai Airports CEO Paul Griffiths has set out a number of steps that, he says, will enable a resumption of services.

Griffiths today confirmed that while the airport operator is taking appropriate measures to control costs, optimise liquidity, facilitate cargo and repatriation flights and prepare for a timely and proportionate activation of facilities and services at Dubai International (DXB) to support the resumption of scheduled traffic, the timing and the speed of air traffic recovery will ultimately depend on the development of a vaccine or treatment for Covid-19.

The Covid-19 pandemic is of a very different nature than any previous crisis in that it has affected supply, demand and health security and by extension the entire global economy. Until there is a proven level of confidence medically that people can travel without fear of spreading or contracting the virus, the situation we find ourselves in is likely to continue.

Covid-19 had a noticeable impact on passenger traffic at DXB the first quarter of the year as DXB recorded a total of 17.8 million customers, a year on year contraction of 19.8% due to dampened demand and reduced flight numbers caused by the suspension of services by regulatory authorities in the UAE and elsewhere.

Until a medical solution is found, the industry will rely on bilateral agreements that enable the resumption of services. We will gradually start to see some confidence build between trusted countries where the governments have acted significantly enough and early enough to get the spread of the virus under control.

As the UAE government took significant and early steps to get the virus under control, we are optimistic that there will be opportunities to pair with other governments that have been similarly effective to get air services going between them. With millions across the world in lockdown and eager for a change of scenery or to visit friends and relatives, travel has become one of the most desirable commodities. However, the current inability to safely travel is diminishing that demand.

Restoring consumer confidence is another area requiring industry attention. Griffiths confirmed that Dubai Airports will continue to ensure a safe and healthy airport environment by enabling social distancing, conducting thermal screening and Covid-19 testing in support of health authorities and undertaking robust deep-cleaning and sanitisation to help alleviate customer concerns about air travel once scheduled services resume.

In the short term, until we get a medical and technical solution, we will have robust measures in place. And while we will all have to practice social distancing in the near term, the idea of social distancing as a permanent part of society would be so socially and economically destructive it would simply not be sustainable. With the human ingenuity in the medical field and technology now, it’s quite possible a combination of the two will bring us a primary solution to get back to the social norms we’ve enjoyed for centuries.

While we’re certainly ready to ramp up for the resumption of travel, it’s virtually impossible to forecast with any reliability as to how rapidly air services will be re-established on a regularly scheduled basis and how long it will take to get back to previous traffic levels.

We’re looking at an 18 month to two-year time frame but that is highly dependent upon the development of an effective treatment or vaccine and the establishment of bilateral arrangements between countries. So, while we can’t predict how quickly or when this will happen, I am optimistic that the innate demand when people realise it is once again safe to travel will be huge. There will come a point where the world will open up again and the desire to travel will be even stronger than it has been in the past and Dubai Airports and the entire aviation community will be ready.

Dave

Walsh spells out IAG coronavirus safety plans

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Willie Walsh has told a committee of MPs his plans for ensuring the safety of passengers and crew while the coronavirus epidemic continues.

Willie Walsh, chief executive of IAG, gave evidence to the House of Commons Transport Select Committee yesterday (Monday, 11 May)
Image: StuBaileyPhoto/Wikimedia-Commons/parliament.uk

Walsh, chief executive of International Airlines Group (IAG) was facing MPs gathering evidence for the Transport Select Committee.

He explained,

There is very little evidence of any passenger to passenger contact spreading of the coronavirus.  That’s not to say people on flights have not got off and subsequently tested positive and spread it as a result of that. 

Walsh went on to explain the measures IAG – comprising British Airways, Iberia, Aer Lingus, Level and Vueling – will take:

We will take all measures and we are working with regulators to implement what I hope will be a common system across – let’s start with – Europe, and hopefully globally, will take measures that need to be taken at airports, on board the aircraft and to ensure that all of the responsible authorities are able to track and trace everybody who has come off an aircraft to ensure that, if there is anybody that tests positive, that they can be tracked.

We are working with a number of regulators.  EASA, the European Safety Agency, will be publishing a draft document some time this week which will set out the regulations that they will propose to the EU27.  I expect that to be a comprehensive document which will deal with all aspects.  We will follow any regulation that is introduced to ensure that people can be confident that it is safe to climb aboard an aircraft in this environment.

Dave

Willie Walsh faces tough questioning from MPs

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Willie Walsh faced a series of questions via video conference from MPs at a Select Committee meeting this morning.

Walsh, Chief Executive of British Airways owner International Airlines Group (IAG) was quizzed on a range of topics, including potential redundancies at BA, passenger refunds and how airlines will help combat the coronavirus pandemic.

Huw Merriman MP, Chair of the House of Commons Select Committee, orchestrated a number of questions from fellow MPs from all sides of the House and drew out significant comments from Walsh.

Among the topics covered were:

  • Potential redundancies among BA staff and the consultation process.
  • The refunds due to passengers for cancelled flights and rearranged bookings.
  • State aid accessed by airlines within the group, including a Spanish government-backed loan of up to €1bn and UK government aid totalling in the region of £300m.
  • The level of cash being burned by IAG during the coronavirus-forced cessation of services.
  • Press reports of IAG “buying” 200 aircraft from Boeing – a purchase Walsh explained had not been confirmed.
  • The actions airlines within IAG will be taking to protect passengers and staff from coronavirus.

We will be publishing further information on some of these issues later this week.

Dave

BA owner sees “meaningful return” in July

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International Airlines Group is planning for a “meaningful return” in flights from July, but says it does not see a recovery in passenger traffic to 2019 levels until 2023.

In a communication to investors, IAG stated:

IAG is planning a meaningful return to service in July with a planning scenario that could see an overall reduction in passenger capacity of c.50% in 2020, but these plans are highly uncertain and subject to the easing of lockdowns and travel restrictions.

The group has taken advantages of the UK’s UK’s Coronavirus Corporate Finance Facility and Spain’s Instituto de Crédito Oficial facility. It expects that its second quarter 2020 will be significantly worse than the first quarter.

British Airways has formally notified its trade unions about a proposed restructuring and redundancy programme which is subject to consultation.

Willie Walsh, IAG Chief Executive stated:

We are working with the various regulatory bodies and are confident that changes in regulations will enable a safe and organised return to service. The industry will adapt to new requirements in the same way that it has adapted to developments in security requirements in the past. However, we do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest. This means Group-wide restructuring is essential in order to get through the crisis and preserve an adequate level of liquidity. We intend to come out of the crisis as a stronger Group.

In addition, IAG Chairman Antonio Vazquez has announced today that Luis Gallego will succeed Willie Walsh as Group Chief Executive on 24 September.

Antonio Vazquez said:

We announced in March that Willie would delay his retirement for a short period. We can confirm today that Luis Gallego will take over the leadership on 24 September, the expected date for IAG’s AGM, when Willie will step down as CEO. We are grateful that Willie delayed his retirement at this challenging time providing the airlines’ management with the necessary stability to focus on the immediate response to the crisis. We look forward to working closely with Luis in his new role.

Dave

KLM mandates face masks and increases daily flight capacity

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KLM has become the latest airline to mandate the use of face masks by passengers.

In a statement released on 4 May, the carrier stated that the requirement for masks starts on 11 May.

The statement said:

Since the Covid-19 outbreak began, KLM has introduced many measures around screening and hygiene to protect customers and KLM staff, on board and at airports. KLM’s policy is based on national (RIVM) and international (WHO, IATA) guidelines, and complies with international law and regulations. In situations where social distancing cannot be guaranteed, the wearing of face masks will be recommended or made compulsory. Some destinations already require face masks to be worn on board flights.

Starting 11 May, masks will be compulsory on board and during boarding.

The airline also clarified that passengers will be responsible for providing their own face masks.

The announcement comes as KLM confirmed the reintroduction of a number of flights. One, daily flight will operate to Barcelona, Madrid, Rome, Milan, Budapest, Prague, Warsaw and Helsinki, operating from 11 May. This will meet KLM’s target of reintroducing 15% of the airline’s pre-pandemic capacity.

Dave

Lufthansa Group mandates use of face masks for passengers

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Passengers on Lufthansa Group flights for the next four months will be required to wear face masks.

Mouth-nose covers will be a compulsory prerequisite throughout the entire journey on Lufthansa, Swiss, Austrian Airlines, Brussels Airlines and Eurowings flights until 31 August 2020.

Passengers are required to use face masks on Lufthansa Group flights until at lest the end of August 2020

In addition, Lufthansa Group is asking all passengers continue to wear masks at the airport, before and after the flight, wherever the required minimum distance cannot be guaranteed without restriction.

The group has also provided details of changes to in-flight procedures:

The current regulation of Lufthansa Group Airlines to keep the neighbouring seat free in Economy and Premium Economy Class will no longer apply, as wearing the mouth-nose cover provides adequate health protection.  Due to the current low occupancy rate, seats will nevertheless be allocated as widely as possible throughout the cabin. 

Passengers are required to wear masks throughout the flight as well as at the airport

All flight attendants on Lufthansa Group flights in direct contact with customers will also wear a corresponding mask.

Passengers are requested to bring their own mouth and nose cover. A reusable fabric mask is recommended, but all other types of coverings such as simple disposable masks or scarves are also possible. The airlines will inform their passengers in advance by SMS or e-mail and on their websites about the new regulation.

The airline group also gave information about the likelihood of transmission on its flights:

In principle, infection on board remains very unlikely. Since the outbreak of the pandemic, no concrete cases of transmission on Lufthansa Group flights have become known. All Lufthansa Group aircraft are equipped with the highest quality air filters, which guarantee air quality similar to that in an operating theatre. In addition, the air circulates vertically instead of being distributed throughout the cabin

The requirement comes in to force on Monday, 4 May 2020 and will “preliminarily apply” until 31 August 2020.

Dave

The Covid-19 pandemic

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The Covid-19 pandemic continues to cause uncertainty to industries in the United Kingdom and beyond. The travel industry is not immune to the disruption caused. But at Global Travel Management we are committed to ensuring we provide a safe business travel management service and that our clients have access to up to date information and guidance.

What we are doing

We are monitoring the Covid-19 pandemic and how the travel industry is dealing with it very closely. Members of our management team are in regular dialogue with industry bodies and are working to ensure that travellers’ best interests are at the forefront of decision-making. We will be happy to answer any questions you have.

We have closed our office premises and transferred all travel management functions to employees working from home. You can still reach Global Travel Management by phone or email in the usual way.

Where you can get more information

We have a news page on our website that gathers some of the most important and breaking news on Covid-19 and its impact on the travel industry and business travellers. Covid-19 news page.

You can follow our Twitter account which contains business travel news as it breaks. GTM Covid-19 tweets. (Opens in new tab).

The Foreign and Commonwealth Office has a frequently-update page offering guidance for British people travelling overseas during the coronavirus (COVID-19) pandemic. FCO guidance for travel. (Opens in new tab).

The UK Government’s has published advice: “Covid-19: what you need to do”. (Opens in new tab).

The Association of British Travel Agents has produced “Advice on travelling”. (Opens in new tab).

Dave

British Airways is helping thousands of British travellers return home from India

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British Airways is flying thousands of UK nationals who have been stranded in India as a result of the Covid-19 crisis back to the UK this week.

The airline has already flown back thousands of travellers as part of 65 rescue flights which have either operated or are planned to operate in the coming days from destinations across the globe. This is through agreements with travel operators including cruise companies and national authorities, as well as part of a continued effort between British Airways and the Foreign & Commonwealth Office to bring people home from cities all over the world. The airline is also carrying hundreds of tonnes of essential supplies including medicines and personal protective equipment to the UK through IAG Cargo.

More flights from India to the UK are continuing this week.

In India the airline is serving eleven airports across the country with special flight departures over a period of two weeks. Flights are taking off from Delhi, Mumbai, Hyderabad, Bengaluru and Chennai and the airline has also extended its operation to serve additional cities which include Goa, Amritsar, Kolkata, Ahmedabad, Kochi and Thiruvananthapuram. The repatriation effort has been a collaboration between the UK and Indian Government authorities, British Airways and the airport teams in both Britain and India.

Alex Cruz, British Airways’ Chairman and CEO, said:

It is an honour to support the government’s repatriation efforts and keep a small fleet of aircraft flying to bring stranded Britons back to the UK.  When families step foot on board our aircraft and tell us how emotional it feels to be coming home, it reminds us why the job we are doing is still so important. We are hugely proud of our colleagues who continue to work with such dedication and commitment through this crisis to fly people and essential supplies across the world.

The Foreign Office’s Minister of State for South Asia and the Commonwealth, Lord Ahmad of Wimbledon, said: 

We know this is a difficult time for British travellers in India and we are pleased to have partnered with airlines, including British Airways, to get them home. This is a huge and logistically-complex operation, and we are working tirelessly with the Indian Government and state authorities to help more British travellers get home.