Airline industry to face crisis after COVID-19
Airline industry to face crisis after COVID-19,The skies above seem deserted due to the fear of pandemic and the ban announced by the government on all domestic and International flights for next three weeks. These kinds of bans are announced on airlines throughout the world as people across the world are infected with this dreadful pandemic.
Airports as parking lots
Aerospace manufacturing, with Boeing Co. has brought its production of its jets and Airbus SE to a halt and would be restarting a partial output after a four-day shutdown as there is a dearth from the suppliers due to the Coronavirus pandemic is taking its toll on them.
Due to the reinforced air travel restrictions and as people are not flying because of the fear of the contagion, the plane manufacturers are saving their cash to escape from the liquidity squeeze.
The markets may recover from negative to stable, but the balance sheets of most of the airlines would trouble them a lot. Airports turned into parking lots as more than 2500 plans have been grounded.
The Asian jet fuel margins turned negative for the first time in more than a decade, suggesting that the recovery time for the aviation industry has turned unpredictable.
Financial aid
It is planned that Washington state will pause for 14 days which would stop the Production of jets like 787 and 777, and this would force the world’s largest building to fall silent for the first time.
Few US legislators are considering to give some $58bn to give them some emergency loans.
Lay offs
The world’s third largest aircraft maker,in Brazil would put its on-essential workers on a lay off and the measures would be announced later. Airbus has asked for government’s support for airlines and suppliers and has secured an extra 15 billion euros ($16.14bn) of commercial credit lines.
The European plane maker also needs European government help if the crisis lasts for several months. It is said that more than 500,000 US aerospace production jobs could be in trouble, and were planning for a relief package which included provisions for the people against layoffs.
Engine maker GE Aviation, is planning to cut its workforce by about 10 percent. CAE Inc., a Montreal-based training specialist is planning to lay off 465 manufacturing workers and slashing executive salaries. MTU Aero Engines,German aircraft-engine maker, is planning to shut output in some European plants for three weeks.
As part of the 21-day lockdown, all domestic and air travel have been suspended in India. Hence this sector is faced with crisis after this pandemic, imposed to combat the novel coronavirus thread. It would take quite sometime to recover from the losses.
