OYO’s China collapse threatens Vision Fund returns
>> Local news outlet TechNode said OYO has cut 72% of its China workforce. Overseas expansion is estimated to have lifted OYO’s valuation five-fold, so SoftBank wouldn’t be pleased with pullbacks and reversals in markets like China.
The India-based hospitality startup recently raised USD 800 million as part of its USD 1.5 billion fundraise from SoftBank and RA Hospitality which was announced in October. After this capital injection, SoftBank will, through its subsidiary SVF India, control a 50.6% stake in OYO.
Marriott furloughs tens of thousands of employees
>> The world's largest hotel chain Marriott has started furloughing tens of thousands of employees as demand dries up amid coronavirus. The virus outbreak is costing U.S. hotels USD 1.4 billion a week, according to industry executives.
The hotel industry is seeking a total of UDS 250 billion in bailouts for owners, employees and suppliers.
Fosun Tourism sees acquisition opportunities
>> In face of the COVID-19 outbreak, Fosun Tourism believes that the industry will undergo a round of reshuffle and enterprises with solid foundation will have more opportunities in mergers and acquisitions. The company acquired the brand name of Thomas Cook in November 2019 after the brand collapsed in September.
Fosun Tourism's operation volume increased by 8.9% year-on-year in 2019 to RMB14,595.0 million. The resort business of Club Med has increased by 5.2% year-on-year to RMB13.2 billion in business volume.
The company's CEO Jiannong Qian revealed during a conference call that Fosun Tourism's two resorts in Japan will be closed and it looks forward to starting its European business under the brand name of Thomas Cook.
Air China maintaining U.S. flying
>> U.S. carriers have suspended all services to China due to the COVID-19 virus, but a few Chinese airlines continue to connect the two countries. Air China has offered no fewer than seven weekly flights to the U.S. throughout the crisis and is now seeing a temporary surge in demand.
Air China’s vice president and general manager for North America Zhihang Chi admitted that they are losing money, but stressed that "somebody has to do it" as the air links between these two very important countries can’t afford to be stopped. The average load factor is around 50% to 60%.
Beijing airport to transfer international flights
>> ChinaTravelNews learned that the Beijing Capital International Airport reportedly will transfer all international flights to other airports nearby, and only passengers who have tested negative of the coronavirus are allowed to take the connecting flights. A source said this measure will take place on the evening of March 18 in local time.
Cathay Pacific sells aircraft in virus pressure
>> Cathay Pacific announced that it will sell six of its Boeing 777-300ER planes to BOC Aviation. The deal is set to be worth USD 703.8 million and will help the airline amid the consequences of the COVID-19 outbreak.
Reuters reports that the sale includes all the associated equipment of the aircraft. Ultimately, it will help the Hong Kong-based carrier raise cash to be used towards general working capital requirements.
Boeing seeks $60B bailout amid travel collapse
>> Boeing is seeking at least USD 60 billion in U.S. government aid for itself and suppliers as the planemaker races to shore up the cash needed to weather the coronavirus pandemic.
Travel demand is cratering as consumers follow health warnings to isolate themselves at home. Airlines for America, a trade group, is lobbying for USD 50 billion in grants and loan guarantees for passenger carriers. A hotel association wants USD 150 billion in backstop measures.
Macao bans all foreign visitors outside China
>> Macao has expanded its border restrictions, with visitors from all nations other than mainland China, Hong Kong, and Taiwan now banned from entering. Non-resident workers are an exception.
Residents returning from mainland China, Hong Kong, and Taiwan will not be required to undergo a 14-day quarantine. Visitors from high-risk provinces and cities in mainland China are still required to undergo six to eight hours of medical observation once arriving in Macao.