United Airlines said Wednesday that it has cut its flight schedule by 90% in May and expects similar cuts for June as a result of the coronavirus pandemic, and warned that travel demand that is now "essentially at zero shows no sign of improving in the near term," making job cuts likely. United disclosed its outlook in a memo to employees from CE Oscar Munoz and president Scott Kirby. United said it flew less than 200,000 people in the first 2 weeks of April, a 97% drop from the more than 6m people it flew during the same time in 2019. It expects to fly fewer people during the entire month of May than it did on a single day in May of last year, Munoz and Kirby said. "The historically severe economic impact of this crisis means even when travel demand starts to inch back, it likely will not bounce back quickly," they said. <br/>
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TAP has asked for a state-backed loan to aid the survival of the company, which is at its most fragile since it was founded, board chairman Miguel Frasquilho said in a parliamentary hearing Thursday. "TAP has addressed a bid for support to the Portuguese state," Frasquilho said, adding he hoped the company would get a response from the govt very soon. A TAP spokesperson declined to specify the figure. The airline, which Frasquilho said was "at its most delicate" since its founding 75 years ago, has also asked to be exempt from or allowed to postpone various tax payments. The company temporarily laid off 90% of its 10,000 employees in the first week of April. Both PM Antonio Costa and finance minister Mario Centeno raised the possibility of nationalising the carrier earlier this week. <br/>
State aid for Austrian Airlines, which the govt in Vienna is currently negotiating with Lufthansa, should support climate policy targets, Austria’s environment minister said Thursday. Lufthansa, which like many other international carriers was forced to ground nearly all its flights due to the coronavirus, is negotiating with Berlin about state aid for its German operations and with the Swiss, Belgian and Austrian govts on financial support for its divisions in those countries. “If we are talking about several hundred million euros in taxpayers’ money, then it is clear, that (such aid) will be linked to conditions,” Leonore Gewessler said. “When it is about an industry that particularly needs to contribute to climate protection, then it makes a lot of sense...to use this situation to support this transformation,” the minister said. <br/>
Ethiopian Airlines Group will seek help from the state if the coronavirus crisis impact on global travel persists for more than 3 months. The airline can survive off cargo services until early July, CE Tewolde GebreMariam said Wednesday. “If it goes beyond that and worsens, then we will consult with our govt,” he said. The carrier has until now insisted that it will not become a burden for a country that’s already battling with food shortages and the Covid-19 pandemic, which has wrecked economies around the world. But salaries, loan repayments and cost of leasing planes are proving a burden as revenue slumps, Tewolde said. The airline is banking on winning cargo contracts with the likes of billionaire Jack Ma’s foundation and the UN, which are attempting to fly in medical supplies across the continent. <br/>
The govt expects to conclude a capital injection plan for THAI next week, a govt minister said Thursday. "On the capital needed to support liquidity, it will be clear next week,” Transport minister Saksayam Chidchob said after a meeting with other agencies on the airline’s rehabilitation plan. He did not give details, but in 2010, the govt subscribed to newly issued shares to maintain a controlling stakes in the airline. A committee including the Finance Ministry, which holds a 51% stake in the airline, and the Transport Ministry was formed to oversee the carrier over the next 3 to 6 months, Saksayam said. The govt this week extended a ban on passenger flights until the end of April to limit the spread of the coronavirus. <br/>