These Airlines are about to go Bankrupt
These Airlines are about to go Bankrupt :
Entire World is scared not because of Corona, but because of Job losses and Bankruptcy. Aviation is one of the sectors which has been impacted the most. Across the world, Airlines have either grounded several aircrafts or about to reduce capacity by upto 80%, Yes. that’s a huge number.
Airlines have already asked Govt to help immediately or else they will soon go bankrupt.
Following Airlines may go bankrupt if the Corona Virus stays for one more month :
- Cathay Pacific
- British Airways
- Emirates Airlines
- Ethihad Airlines
- Qatar Airlines
- Air Asia
- American Airlines
- United Airlines
- KML
- Ryan Air
- Indigo
- Finn Air
- Go Air
- Virgin Atlatic
- Norwegian Airlines
- SAS Airlines
- China Airlines
- China Southern Airlines
- China Easter Airlines
- Air Canada
The moves came as an aviation consultancy warned that the international airline industry will collapse within months, with the loss of hundreds of thousands of jobs, unless states worldwide inject billions of dollars of emergency funding to see it through the coronavirus “catastrophe”.
“By the end of May 2020, most airlines in the world will be bankrupt,” the Centre for Aviation said. “Coordinated government and industry action is needed – now – if catastrophe is to be avoided.
“As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.”
A slew of big airline groups announced capacity cuts of up to 80% and plane groundings on Monday, including American Airlines, United Airlines, SAS, Air France-KLM and Air New Zealand. Some airlines, including Ryanair, Europe’s largest short-haul airline, have said their entire fleets could soon be grounded. Ryanair said on Monday it would reduce capacity by 80% in April and May, while BA’s owner IAG said it would cut by 75% over the same period. EasyJet said it could ground the majority of its fleet, as it said governments might need to step in with financial aid.
More important, raising funds, if required, may be very challenging. Reducing Goods & Services Tax (GST) on Aviation Turbine Fuel (ATF) may be critically required but this may not be enough to compensate for a sharp demand slump. At this stage we are now not commenting on the impact in India but it is likely that risks will significantly increase,” he said.
