Coronavirus pandemic is biting so hard and so fast into every economy, various sectors have been deeply affected by this situation since businesses are no longer running as usual. World airlines remain among the top of the businesses greatly affected by outbreak of coronavirus.
Almost every nation in the world now has completely shut down its borders or suspended airplanes from certain countries which have been hit by coronavirus. This situation has left many global airlines with no option rather than to ground their planes and halt operations.
These global airlines are now pleading with world superpowers to come into their aid as quick as possible before irreversible damages are inflicted in the airline industry.
A number of countries have stood in solidarity with their airlines by providing much needed support in these tough times. For instance the United States has put aside $58 billion to help its sinking airline industry.
In Asia, Singapore has put measures in place to support its airlines and in Europe Australia has loosened its competition airline rules so as to support the industry.
In order to salvage itself from current situation Singapore airlines announced that it will be selling its shares together with convertible bonds totaling to around S$15 billion ($10.5 billion). The company will use these proceeds to try and limb out of the plunge which coronavirus pandemic has left it into.
In addition, the company is also making arrangements to secure a S$4 billion bridge loan.
Former CEO of Air France-KLM, Alexander de Juniac, called up for governments and investors to inject direct funding into respective airlines since the companies have been operating on cash outwards transactions only for the past two months.
“Many airlines have been paying out more in refunds than they have received in new booking revenues. The average two-month cash reserves held by airlines are rapidly being exhausted,” said de Juniac.
The International Air Transport Association (IATA) drafted a letter and sent it to a group of 20 countries holding a video meeting requesting for government support.
“The spread of the COVID-19 pandemic around the globe and the resulting government-mandated border closings and travel restrictions have led to the destruction of air travel demand,” read part of the letter.