Boeing Executives to Give Up Pay

The International Air Transport Association (IATA) has renewed call on governments to take urgent measures to ensure that vital air cargo supply lines remain open, efficient and effective.

“Air cargo is a vital partner in the global fight against COVID-19. But we are still seeing examples of cargo flights filled with lifesaving medical supplies and equipment grounded due to cumbersome and bureaucratic processes to secure slots and operating permits.

“These delays are endangering lives. All governments need to step up to keep global supply chains open,” said IATA’s Director General and CEO, Alexandre de Juniac.

The global body noted that the COVID-19 crisis has seen almost the entire worldwide passenger aircraft fleet grounded; a fleet, which normally transports almost half of total air cargo shipments.

It disclosed that airlines are scrambling to meet the gap between cargo demand and available lift by all means possible, including re-introducing freighter services and using passenger aircraft for cargo operations.

Boeing has announced several extraordinary measures to help the company through the coronavirus crisis, which has left the entire aerospace industry reeling.

The Chicago-based aircraft manufacturer said in a statement that its chief executive, Dave Calhoun and board of directors’ chairman Larry Kellner, would forgo all pay until the end of the year.

Flight Global reported that Boeing would also suspend dividends and continue to pause share-repurchasing plans until further notice. The company had suspended stock buyback programs almost a year ago, following the grounding of its 737 Max aircraft following two deadly crashes that killed 346 people.

“Boeing is drawing on all

To support these efforts, governments need to remove key obstacles by introducing fast track procedures for overflight and landing permits for cargo operations, particularly in key manufacturing hubs in Asia -- China, Korea and Japan -- in response to the increased number of cargo charters replacing withdrawn passenger operations.

Governments also need to exempt flight crewmembers who do not interact with the public from 14-day quarantine requirements to ensure cargo supply chains are maintained and supporting temporary traffic rights for cargo operations where restrictions may apply.

Governments are also expected to remove economic impediments, such as overflight charges, parking fees, and slot restrictions to support air cargo operations during these unprecedented times and removing operating hour curfews for cargo flights to facilitate the most flexible global air cargo network operations

The World Health Organisation (WHO) reiterated the importance of air cargo in the fight to slow the spread of COVID-19:

“Around the world the frontline health workers who fight against COVID- 19 need of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term,” the company said.

Earlier in the week, former Boeing board member, Nikki Haley, resigned after disagreeing with the aircraft maker’s request for a $60 billion government aid package for the aerospace industry, funds the company says will help the industry weather the coronavirus downturn and protect 2.5 million jobs.

Boeing’s request for aid came the same day President Donald Trump pledged to assist Boeing and other travel-related industries, including the airline sector, which also asked for an aid package of tax relief, grants to be continuously supplied with necessary medical equipment and protective material.

“It is our collective duty to keep these supply lines open by continuing air cargo operations. The scale-down of air passenger flow is seriously hurting our scheduled freight operations.

“We call on airline companies and governments to join the global effort to ensure dedicated freight capacity continues to operate on previously high volume passenger routes that are now closed down,” says Chief, Operations Support and Logistics, WHO, Paul Molinaro.

“Air cargo is on the front line, not only fighting COVID-19 but ensuing that global supply chains are maintained for the most time-sensitive materials including food and other products purchased online in support of quarantine and social distancing policies implemented by states.

“But we can only continue to do this if we work together with the support of governments. Keeping supply lines open also supports jobs in local economies for example producers of perishables in Africa and Latin America. We are stronger together,” said IATA Global Head of Air Cargo, Glyn Hughes. and loans worth a total of $58 billion.

But last week, Trump said that he supports imposing stock buyback restrictions on companies that receive financial aid as part of the federal government’s coronavirus recovery package. Airlines and Boeing have been criticised for spending billions of dollars repurchasing their own stock during recent boom years.

The company was already struggling with the 737 Max grounding when the coronavirus outbreak started. Resulting travel bans and declines in demand have led airlines to ground huge portions of their fleet and spurred some to defer or cancel aircraft orders. Analysts suspect more deferrals and cancellations are coming.

There are many people familiar with the Murtala Muhammed International Airport (MMIA), Lagos who cannot imagine that the airport will be closed and flight operations stopped at any point in time.

Nobody would be believed if anyone had predicted that in December, but the pandemic, the COVID-19 has made it a reality. It has happened beyond the imagination of pundits.

By Saturday morning, well known domestic carriers which use the Lagos airport as operational hub must have suspended their operation. Such airlines as Aero Contractors, Air Peace, Arik Air, Dana Air have shut down their flight service.

Hit by the shutdown is the multimillionnaira daily economic activities that go with movement of flight services at the airport terminals, beyond the airport terminals and at the premises of the airports.

Taxi operators at the airport churn out a daily living from their proceeds from air travel. Taxi operators live on their daily earnings. It is also the same situation for many retailers at the airport.

Also, many eateries, snack bars and shops have shut down. The operators may not be able to remember in the remotest memory when the Lagos airport was shut down since 1979 it was opened for service.

At the General Aviation Terminal, the Toyota Camry cars that grace every part of the taxi section of the car park have disappeared to the homes of their owners. Who knows when they will come back to the airport again? It is this gloomy cloud of uncertainty that has become so disheartening to the taxi operators.

A staff of the Nigerian Airspace Management Agency (NAMA) told THISDAY that while running away from being infected by coronavirus at the airports, many of the people that depend on the airport for their daily earnings would struggle with hunger when they lock themselves up in their home.

Bureau de Change operators, food vendors, retailers and travel agents were lamenting the shutting of airport due to the spread of the pandemic, coronavirus.

When THISDAY visited the Lagos airport after the stoppage of scheduled flights, a deserted facility brought huge contrast to a place known for its hustle and bustle.

The airport was almost empty but for the workers of the Federal Airports Authority of Nigeria (FAAN), other airport agency officials and airline workers that were moving out their working materials. Passengers had disappeared from the usually crowded departure lounge in the evenings.

But another group badly hit by the unfortunate development at the airports are the touts who had totally disappeared from the facility.

At the arrival hall, only one of the entrances was open with two security officials manning it. The same scenario was at the departures. Despite having more than two entrances, only one had security officials stationed there, while the others were locked.

The Seymour car park, which used to have many cars, was virtually empty and Bureau De Change operators were seen loitering around trying to convince the few people who were going in and out of the airport to carry out transactions with them. That was their last breath of hope of getting patronage fort the day.

One of the operators who gave his name as Mohammed Aliyu said even though the federal government shut the airport to contain the virus, he and his colleagues were apprehensive about the lull in their business pending when the airports would be reopened.

He said even though he knew that the airport would be shut, he and three of his colleagues resumed work with the hope that some of their customers would still patronise them.

At the shopping complex close to the airport where many restaurants are located, the situation was the same. THISDAY observed that most of the restaurants had very few customers.

One of the restaurant owners, Mrs. Yemisi, attributed the dearth of customers to the shutting of the airport. She said even though she was happy that flights have been restricted, she and other food vendors hoped that the situation would improve and things get back to normal.

But at the corporate level, THISDAY learnt that many of the workers at the catering companies that supply food to the airlines would be on pay cut. In fact, THISDAY learnt that some might not be paid and some were asked to take compulsory leave without pay.

A FAAN official told THISDAY that the agency would be losing over N3 million daily from the tollgate at the link road between the domestic terminal and international terminal. It is hoped that life would come back when the airport would be opened after the devastating Coronavirus.