IATA is calling for govts to urgently step in with financial support measures, warning a liquidity crisis resulting from the swathe of capacity cuts means many airlines are close to running out of cash. IATA had in a March 5 update painted a worse-case scenario under which the coronavirus could wipe US$113b from airline passenger revenues in 2020 - a scenario made before the US announced a ban on travel from European countries and the recent run of countries opting to close their borders to tackle the crisis. ”We are not revising these estimates today, though they are clearly worse than this - particularly in Europe and the Americas,” said IATA chief economist Brian Pearce Tuesday. “If we look at spread of the COVID virus it is covering markets that represent 94% of global passenger revenues." <br/>
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Treasury secretary Steven Mnuchin said the coronavirus outbreak has hurt US airlines worse than the Sept 11 terrorist attacks, and he and president Donald Trump promised federal aid to the industry and suppliers, including Boeing. “This is worse than 9/11 for the airline industry, they are almost grounded to a halt,” Mnuchin said at a White House news conference alongside Trump. “The president wants to make sure that although we don’t want people to travel unless it is critical, we want to maintain for critical travel the right to have domestic travel.” The US airline industry Monday asked the govt to provide almost US$60b in grants and loans. It is unclear how much Trump will sign on for, according to a person familiar with the matter. <br/>
President Donald Trump says the US govt will “protect” Boeing from the adverse effects of the coronavirus downturn, suggesting financial aid to Boeing and other aerospace companies may be part of a pending economic relief plan. “We are looking at that,” says Trump Tuesday when asked if his govt intends to financially assist aerospace manufacturers like Boeing and General Electric. “We have to protect Boeing,” Trump adds. “We absolutely have to help Boeing.” Trump’s comments came the day his administration announced it will seek congressional approval for a broad aid package to individuals and to businesses in variety of sectors, including the airline industry. <br/>
The US is expected to increase US tariffs on Airbus planes by 50% Wednesday, US and European officials say, dealing a further blow to US airlines already hammered by sharp drops in travel due to the coronavirus pandemic. Tariffs on Airbus aircraft built in Europe are to increase to 15% from 10% at 12:01 am Wednesday, as Washington pressures the EU to comply with a World Trade Organisation ruling on illegal aircraft subsidies. The EU is prepared to impose tariffs on US goods once the WTO rules on a parallel case challenging US govt aid to Boeing later this spring. Several EU officials said they had no indication that Washington would delay the tariff increase, despite calls by the Group of Seven rich nations for cooperation to battle the coronavirus outbreak. <br/>
Some Democrats in Congress are pushing back on aspects of a proposal by major airlines seeking US$50b in grants and loans in the face of the massive travel slowdown as a result of the coronavirus pandemic. A4A said the industry needs $25b in grants, $25b in loans and significant tax relief, including the return of at least $4b in taxes paid this year, to survive. It warned that without action, airlines could run out of money by year-end - and even sooner if credit card companies withhold payments. Democrats are expected to back assistance to the sector. But aides say they will likely demand significant conditions as part of any bailout. US speaker Nancy Pelosi and some others insist that any bailout must prioritise workers, while others want airlines to adopt consumer-friendly or environmentally sound business practices. <br/>
Airlines have been accused of charging customers “extortionate” fees to British tourists and business travellers hit by coronavirus, closed borders and Dominic Raab’s new foreign travel advice. People are complaining of high penalties charged to change flights and having to pay far higher fares than on the journey they originally booked. The consumer association Which? said it had heard from an increasing number of passengers who have been asked to pay extortionate flight change fees or left stranded altogether in countries placed under lockdown or where travel restrictions are being introduced. The editor of Which? magazine, Rory Boland, said: “Airlines must stop cashing in on the misfortune of their customers and prioritise getting them home safely". <br/>
Airbus is to halt production across its French and Spanish facilities for four days to give the company time to implement strict hygiene measures in response to the coronavirus outbreak. The airframer says the decision follows introduction of new procedures in both countries intended to contain the illness. Airbus says it will “temporarily pause” production and assembly at sites in France and Spain for the next 4 days, and work with social partners to bring in the changes. “This will allow sufficient time to implement stringent health and safety conditions in terms of hygiene, cleaning and self-distancing, while improving the efficiency of operations under the new working conditions,” it adds. The airframer is aiming to maximise home-working where feasible. <br/>
Australian airlines will have more than A$715m in fees and industry levies waived by the federal govt in a relief package aimed to help them through the major hit to tourism from the coronavirus travel bans. The Morrison government is preparing to refund and drop a range of charges on the industry including aviation fuel excise, the Airservices charges on domestic airline operations and domestic and regional aviation security charges. The total cost of the measures is estimated to be $715m, with an upfront estimated benefit of $159m for reimbursement of applicable charges paid by domestic airlines since Feb 1. Federal infrastructure and transport minister Michael McCormack said the measures were in response to the "unprecedented" and "likely sustained period" of falling aviation demand. <br/>