Most airlines will be bankrupt soon without government bailouts

Most airlines will be bankrupt soon without government bailouts

Most airlines will be bankrupt soon without government bailouts

United Kingdom airlines called on the British government to help ensure their survival, while Germany's Tui AG and Scandinavian carrier SAS said they would suspend the vast majority of operations due to the COVID-19 outbreak and apply for government support. It will mostly consist of airlines that are the biggest and the best-supported by their governments.

CAPA said the entire airline industry needs to be re-thought for the modern era to catch up with the rest of the world that "has moved on from the Abacus to the Cloud". Some European airlines have already issued urgent appeals for help.

CAPA Aviation said the impact could wipe out the aviation industry entirely unless governments act quickly in a co-ordinated effort.

As the situation continues to remain unabated, the number of cancellations are rising more than forward bookings and cash reserves of the airlines are declining amid grounding of the fleet in the wake of thinning passenger numbers, the report said citing a CAPA report.

The scale of the deepening crisis was underscored Monday when Europe's biggest low-priced carrier, Ryanair, said that it will ground most of its fleet over the next seven to 10 days.

Boo also said Malaysia Airlines was considering more hard decisions to sustain itself through this critical time in the future to stem losses and save cash. In addition, American Airlines will suspend 75% of its global long-haul flights.

The global airline industry is expected to face its worst crisis even as the coronavirus pandemic is likely to cripple the economic activities across the world, said a news report.

Malaysia Airlines employees are also urged to take the Voluntary Unpaid Leave Programme.

Other worldwide airlines such as Singapore Airlines, Cathay Pacific, British Airways, Lufthansa, Emirates, Virgin Atlantic and EasyJet are also cutting capacity and salaries and offering staff unpaid leave to counter the impact of Covid-19. Delta is down to just one flight a day on five European routes.

Governments are now facing calls from airlines for financial assistance.

The position was, mere hours ago, shared within a media release from the Center for Aviation, CAPA and is another casualty of fears linked to COVID-19. "That is not a prospect that any responsible government should be prepared to contemplate", the consultancy firm said.

To date, Malaysia Airlines has cancelled more than 2,000 flights up to April due to travel restrictions imposed by countries within its network.

As governments fail to cooperate, national self-interest is proving to be a threat for the aviation industry.

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