The global aviation sector has taken a major hit due to the pandemic as lockdowns and travel restrictions continue across the world
Australia’s aviation sector has been thrown another lifeline.
Domestic airline crew will gain access to Covid support payments of $750 a week, in an extension of the Australian federal government assistance for the aviation industry.
Australia’s Deputy Prime Minister Barnaby Joyce announced a range of measures to “keep domestic aviation ready for takeoff” – and that included assistance to retain workforce capability.
The Deputy PM says the decision to limit assistance to flight and cabin crew outside of hot spots, was due to the importance of the aviation industry in keeping Australia’s economy going.
“This is a crucial sector of the economy, it’s crucial to keep the sovereign airline capacity.,”
Joyce Said
Australia’s Deputy PM, Barnaby Joyce.
Australia’s travel market, like the rest of the world, continues to be hammered by COVID
Initially, 50 percent of pilots and cabin crew would be eligible for the $750 a week payment, providing airlines could show their revenue was down at least 30 percent.
“If the crisis goes on then we have the capacity to scale up to more than 50 per cent of employees who are aircrew, we’re talking about pilots and flight attendants,”
said Mr Joyce.
Airlines quickly welcomed the assistance, and the extension of key programs subsidising domestic and regional flights until the year’s end.
A half-price airfare initiative set to end in September was also extended until November, in recognition of the fact many cheap seats were sold on flights cancelled by airlines, due to city lockdowns and border closures.
Qantas cabin crew will have access to the support payments.
Qantas called the support “much appreciated, given the acute challenges facing the sector”.
Virgin Australia CEO Jayne Hrdlicka said the support for services and crew was “essential” as they continued to navigate the most challenging period in aviation history.
“We will continue to work collaboratively with the Deputy Prime Minister and the federal government to maintain stability in our workforce and remain responsive to adding significant capacity when borders are open, which is economically critical to Australia’s future,”
said THE VIRGIN AUSTRALIA BOSS, Hrdlicka.
Virgin Australia CEO Jayne Hrdlicka welcomes the support
Unions were unimpressed however, calling on the government to extend the assistance to all aviation workers
Transport Workers Union national secretary Michael Kaine said lockdowns affected all aviation workers from check-in staff to caterers, not just some cabin crew and pilots.
What a shambles. @Qantas has again written the Fed Govt's policy on aviation. Only cabin crew and pilots will get the new wage subsidy – not ground crew. Of course @Qantas outsourced its ground crew but @VirginAustralia still employs ground crew pic.twitter.com/gubU5p73bt
The government announcement followed a warning from Qantas Group CEO Alan Joyce that the airline would again have to stand down staff without pay, if current low levels of flying persisted.
In June more than 9000 domestic flights were canceled as a result of lockdowns and border closures, including 5000 by Qantas and Jetstar.
Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.
Markets are moving into the Thanksgiving break with strong momentum, as stocks notch four straight days of gains. The Dow Jones Industrial Average jumped 388 points, while the S&P 500 added 0.9%, pushing both indexes toward their best week since June.
Oracle led major movers, rising more than 4% after Deutsche Bank reaffirmed its bullish outlook on the tech giant. Broad investor optimism continues building across sectors as economic data softens and earnings remain resilient.
All eyes are now on the Federal Reserve and what potential shifts in interest-rate policy may mean for the markets. U.S. markets will close Thursday for the Thanksgiving holiday and reopen Friday for a shortened trading session.
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In Short:
– Dow Jones rose 569 points, reflecting optimism for a Federal Reserve interest rate cut.
– Alphabet’s stock increased as Meta may invest in AI chips, but Nvidia’s declined amid market concerns.
The Dow Jones Industrial Average increased by 569 points or 1.2% on Tuesday, reflecting investor optimism for an upcoming Federal Reserve interest rate cut. The S&P 500 and Nasdaq Composite also posted gains, up 0.8% and 0.4% respectively. This represented a recovery from earlier losses, where the S&P 500 briefly fell by 0.7%.
Markets anticipate an 85% chance of a quarter-point rate cut in December, driven by comments from New York Fed President John Williams, who indicated the possibility of lower rates soon. Investor sentiment strengthened following reports that Kevin Hassett may be appointed as the next Fed chair, potentially resulting in a more lenient monetary policy.
Tech Sector
Alphabet saw its stock rise by over 1% after reports indicated that Meta Platforms might invest in its AI chips. This could signal increased demand for AI technology, benefiting the sector overall. However, Nvidia’s stock fell more than 3%, suggesting concerns about its dominance in the AI chip market.
Investors are also wary of the valuation of tech stocks. Despite recent gains, the S&P 500 and Nasdaq remain down over 1% and 3%, respectively, for November, while the Dow has lost more than 1% this month. The broader market’s performance indicates ongoing scrutiny regarding tech valuations amid changing economic expectations.
Gold prices surge as central banks increase demand; risks include a stronger dollar and rising interest rates.
Gold prices are climbing fast as central banks ramp up buying, pushing demand to its highest levels in years. The metal’s reputation as a safe haven is strengthening, especially amid rising geopolitical tensions and global financial uncertainty.
But experts warn the shine could fade. A stronger US dollar and the possibility of rising interest rates may weigh on momentum, making investors question how long the rally can last.
Dr Steven Enticott from CIA Tax breaks down the drivers behind gold’s surge—from ETF inflows to physical bar demand—and what could send the price sharply higher… or lower.
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