Govt weighs up further airline support amid COVID-19 crisis

The federal govt is mulling further financial support for the aviation sector as Qantas, Virgin Australia and regional carriers bear the brunt of an unprecedented industry downturn due to the coronavirus crisis. The pandemic and resulting travel restrictions have thrown airlines around the world into chaos, with Qantas and Virgin cutting domestic capacity by around 60% and planning to ground their international fleets entirely. The federal govt announced an A$715m rescue package this week, consisting of waived fees and levies, however airlines have continued to push for more help, according to industry sources. With new bookings slowing to a trickle, Qantas and Virgin will have to drain their cash balances and available debt facilities to cover overhead costs until travel bans are lifted and passengers return the skies. <br/>