Without help plans, half of airlines will be bankrupt in June

Without help plans, half of airlines will be bankrupt in June

Some companies are considering removing the middle seats

On BFM Business, Alexandre de Juniac, head of the international air transport association, explains that the sector has already lost $ 310 billion in revenue since the start of containment.

Plan validated by the European Union at 7 billion euros for Air France, 10 billion euros in talks to save Lufthansa … But how many other airlines are in danger of death because of the coronavirus?

For Alexandre de Juniac, head of the International Air Transport Association (IATA), the answer is simple: “almost all of the airlines are in difficulty or even in very great difficulty”. And to specify: “we will lose 310 billion dollars in turnover and we will consume cash for the second quarter (…) 61 billion dollars. That is what threatens us the most, it is be short of cash. ”

Europe suffers particularly

And to highlight the crucial importance of the support plans decided by the government of different countries: “we estimated (…) that if the government plans were not implemented by June, and normally they should be and in fairly large proportions, (…) half of the airlines would be bankrupt. ” And all geographic areas are housed under the same banner even if Europe suffers “particularly because traffic has fallen by 90%”, against 80% in Asia-Pacific and 70 to 75% in North America.

Are these aids sufficient? “I must say that we were fairly well received (by governments, editor’s note). What we proposed to them was not to say: there is a solution that works for everyone. says: “We are in a cash crisis but it goes beyond that. So implement a plan with notably cash measures but not only.” It can be financial support, guaranteed loans … (. ..) And then the plan implemented for company X or Y (…) must be adapted to this company, to its situation and to the country’s operating conditions “.

This will not prevent massive job cuts. Already 3,000 layoffs have been announced at Ryanair. IATA did not assess the number of posts threatened “because the airlines reacted differently” (partial unemployment, unpaid leave …) but the association recalls that all of the jobs that spend directly and indirectly air transport is estimated at 25 million people worldwide.

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