The airline industry is warning that it must shed jobs and obtain state support to survive the coronavirus crisis, as carriers around the globe grounded the majority of their fleets and took steps to conserve cash. CAPA warned that by the end of May most airlines would be bankrupt due to the unprecedented travel restrictions that are being rolled out by govts around the world. “Many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants,” Capa said in a report. “Co-ordinated govt and industry action is needed — now — if catastrophe is to be avoided.” IATA estimated that the industry would lose up to US$113b in revenue as a result of the crisis. But that was before the widening international lockdown. <br/>
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US airlines are seeking at least US$50b in financial aid as they manage through the coronavirus crisis, which has caused a sharp drop in demand and mounting losses for an industry accustomed to years of progressive profit growth. A4A said Monday that carriers have experienced “unprecedented harm” in the past 2 weeks. Net bookings have exceeded negative 100% for the coming months. The industry body is asking the US govt for a mix of grants, loans and tax relief as carriers see their business decimated due to fears of the global pandemic’s spread as well as onerous travel restrictions imposed by several countries, including the US. In a worst-case scenario, “all 7 of A4A passenger carriers [will] run out of money completely sometime between June 30 and the end of the year,” the association says. <br/>
US president Donald Trump says his govt will back airlines as they struggle to manage the fallout from the global coronavirus pandemic. “We told the airlines we are going to help them,” Trump said Monday. “We have to back the airlines.” The statement came shortly after A4A said the industry will need at least US$50b in aid to salvage their business after cancellations outnumbered bookings by a ratio of 2 to 1. A4A says its members have experienced “unprecedented harm” in the past 2 weeks and will suffer a decline in liquidity of between US$18-26b alone in the first 6 months of 2020. Air Canada also asked for assistance from its own govt earlier Monday. <br/>
EC president Ursula von der Leyen has unveiled proposals for a 30-day restriction of travel to the EU, as well as development of a framework for state aid to affected businesses. Von der Leyen says EU member states have been taking measures intended to reduce pressure on the healthcare system created by the coronavirus outbreak. But she says that such measures are “effective only when co-ordinated”. “The less travel, the more we can contain the virus,” she states, but adds that there is a need to maintain critical flows of goods. She says that the Commission has submitted proposals to heads of state for a temporary restriction on travel to the EU, which would be in place initially for 30 days. <br/>