Lufthansa aims to finalise a state aid rescue package worth up to E10b (US$10.8b) next week after the coronavirus crisis forced it to ground almost all of its planes, people close to the matter said. The package will consist of equity from Germany's new economic stabilisation fund (ESF), state-guaranteed loans from Germany and debt supplied by Austria, Switzerland and Belgium, where Lufthansa subsidiaries are based, they added. Lufthansa is in intensive negotiations with the govts regarding various financing instruments to secure the group's solvency in the near future, Lufthansa said as it reported a Q1 loss of E1.2b Thursday. CE Carsten Spohr this month said that Lufthansa would seek state aid in Germany, Austria, Switzerland and Belgium, citing cash burn at a rate of E1m per hour. <br/>
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South African Airways administrators delivered a stark choice to those opposing their plan to fire the entire workforce and sell assets: It’s either that or full liquidation. The carrier doesn’t have funds to continue trading nor pay salaries beyond the end of this month, and the govt has so far refused requests for financial assistance, the team led by Les Matuson and Siviwe Dongwana said in a Thursday letter addressed to “all affected persons.” The business-rescue practitioners sent a proposal to labor groups about retrenching all 4,700 staff April 17, and are asking for a response by Friday. If the unions agree, the administrators can draw up a new recovery plan. If not, they will proceed with the full liquidation process, according to the letter seen by Bloomberg News. <br/>
There is "substantial doubt" about Avianca Holdings' ability to stay in business due to the coronavirus crisis, the reported Thursday, citing the conclusion of its financial auditors. Avianca, Latin America's second-largest airline, made the disclosure in a securities filing with the US Securities and Exchange Commission explaining why it was unable to file its 2019 annual report on time. Avianca said it will file the report in June and expects to disclose the conclusion made by accounting firm KPMG that there were serious questions about the airline's "ability to continue as a going concern." Avianca has grounded all its passenger flights since March due to the coronavirus crisis, after its main hubs in Colombia, El Salvador, Ecuador and Peru all shut down air traffic. It has put about half its workforce on unpaid leave. <br/>
All United Airlines flight attendants must wear a face covering or mask while on duty starting April 24, the airline said Thursday, in the first such rule by a major US carrier. The Association of Flight Attendants, whose members work for United Airlines and 19 other carriers, welcomed the move but urged Washington to require passengers to wear masks as well to protect against the spread of coronavirus on airplanes. In an April 23 letter, AFA president Sara Nelson asked the DoT and DHHS to mandate masks for crew, employees and passengers; require personal protective equipment; and end all leisure travel until the coronavirus pandemic is contained. United's move reflects airlines' evolving stance on masks for crew members. Initially flight attendants were only allowed to wear masks on international flights to coronavirus hotspots. <br/>
Goldman Sachs deems SIA’s plans to raise up to S$15b (US$10m) the “gold standard” among coronavirus-related rescue packages for airlines. “We view that as really the gold standard for the packages that have been put in place,” Nicola Dondi, MD at Goldman Sachs (Asia), said April 17. The plan is backed by SIA’s largest shareholder Temasek Holdings and Dondi says: “It’s a comprehensive package. It’s very large in quantum. It gives SIA a lot of additional liquidity and it’s obviously led by a blue-chip shareholder that was already a shareholder in SIA, who has shown further commitment to the company.” SIA’s shareholders will vote at the end of this month on an issuance of $5.3b in equity and $3.5b in 10-year mandatory convertible bonds. The plan also offers SIA the option to issue $6.2b through additional tranches. <br/>