Covid-19 Impact on Airlines
Airlines need bailout and support to recover from cover-19 impact.
Airlines around the world has taken big hit because of Covid-19 , in india alone covid-19 could cost airlines over $4 billion in revenue , by the end of june most of the world airlines will go bankrupt if no bailout or easy loan support is given starting from Virgin Airlines in Uk. Airline sector is among worst hit within hospitality sector after hotels , restaurant , cruises and if reports are to be believed most airline will lay off 20 to 30% jobs starting from October or even before.
US is already giving financial aid worth $5 Billion dollar under Financial Aid Program to its airlines where as on the other hand Uk is giving easy loans to small & Large businesses but decision on airline bailout is yet to be taken. Airline badly need government support or they will end up filing bankruptcy, most airline companies have warned that's job cuts will be coming as demand won't be back to normal even if lockdown is lifted. Several years of growth has been lost which will take at least 2 years to recover and most domestic , international airlines might not survive this period starting from Virgin Australia. Virgin Australia has confirmed it has entered voluntary administration making it Australia first big corporate casualty of the coronavirus pandemic. Air Mauritius the flag carrier of Mauritius, has ben put under voluntary administration by its board this is second big casualty after Virgin Australia but not last if no support or bailout is give to Airlines.
What Governments around the world can do to help Airlines.
1- Emergency cash bailout or easy loans with low interest rate (no fee or interest to pay for the first 12 months).
2- Waiver of airport charges & tax for at least 1 year or some kind of rebait
3- Tax Waiver on Aviation Fuel
4- Extended credit facility to airlines for Fuel payment
Billions of losses and Airlines started shutting down urgent bailout program is required, we can just hope that thing will get normal with in years time for aviation sector.