Airlines in joint call for urgent aid
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AIRLINES made unprecedented cuts to flights, costs and staffing yesterday, stepping up calls for emergency aid as coronavirus lockdowns and new travel curbs hit more major routes.
Already battered shares in British Airways parent IAG, easyJet and Air France-KLM plunged again as they scrapped most flights for the coming weeks, joining other major carriers that are all but halting operations in the face of the pandemic.
“It is now clear that the coronavirus is by far the biggest crisis in the history of aviation,” Finnair Chief Executive Topi Manner said, as the carrier announced a 90 percent capacity reduction and its second profit warning in three weeks.
The outlook darkened further after Spain declared a state of emergency and the US extended travel restrictions to Britain and Ireland, while Australia and New Zealand began requiring all travelers to self-isolate.
The travel collapse threatens more bankruptcies in the wake of British carrier Flybe’s failure this month.
Troubled Norwegian Air yesterday laid off 90 percent of its workforce and canceled 85 percent of flights, while the Italian government prepared to take control of Alitalia with another 600-million-euro (US$668 million) cash injection.
In an unusual joint statement, the world’s three main airline alliances — oneworld, SkyTeam and Star Alliance — called for government aid to alleviate the “unprecedented challenges” faced by the industry.
United States officials and lawmakers view the situation with increasing alarm. United, American and Delta are in talks with the government about potential assistance. Tax relief and federal loans are being considered, officials say.
German airline Lufthansa said in a statement that it would cut long-haul capacity by up to 90 percent from today, and would only operate 20 percent of intra-Europe flights it had planned to operate.
IAG, which also owns Spain’s Iberia and Vueling, said it would cut April-May capacity by at least 75 percent and postpone CEO Willie Walsh’s retirement — keeping successor Luis Gallego at Iberia’s helm as the group navigates the crisis.
Besides canceling flights, the group announced moves to freeze discretionary spending, reduce working hours and temporarily suspend employment contracts.
British Airways’ archrival Virgin Atlantic said yesterday it would ground 75 percent of its fleet by March 26 and by up to 85 percent at points in April, cancel its London-Newark flights permanently, and ask staff to take two months of unpaid leave.
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