Due to Covid-19, world aviation calls for emergency relief

Accordingly, the world's three largest airline alliances, OneWorld, SkyTeam and Star Alliance, had to issue a joint statement calling on governments to provide emergency support to airlines.

Norwegian Air announced it would cut up to 85% of flights. Photo: Business Insider

The drastic measures taken by governments in many countries are causing economic activity to stagnate, affecting many industries, most clearly in the aviation industry where most airlines have had to cut the number of flights to an unprecedented high. Norwegian Air announced that it had canceled up to 85% of its flights, temporarily laid off about 7,300 employees - equivalent to nearly 90% of its staff due to the Covid-19 epidemic. Cathay Pacific also cut 90% of its operating capacity, Air France also cut to a similar extent. Air France CEO Ben Smith also had to cut his own salary by 25%...

With the assessment that the Covid-19 crisis is the most serious crisis in the history of the world aviation industry, the three airline alliances OneWorld, SkyTeam and Star Alliance have had to jointly issue a joint statement calling on governments to provide emergency support to airlines - an unprecedented move. These three alliances believe that airlines are gradually running out of cash and there is no way to stop this trend when flights are unlikely to be operated again within 6 to 8 weeks. Therefore, the existence of airlines "is in the hands of governments". Governments of some countries such as Germany, France, the Netherlands and the UK have all announced that they are considering solutions to "save" the aviation industry.

Travelers line up in front of the Delta Airlines ticket counter at Roissy Charles de Gaulle Airport, Paris, France. Photo: Reuters

In the US, the aviation industry is also calling for urgent government support. The three largest US airlines, American Airlines, Delta Airlines and United Airlines, have called on the government to provide direct support packages or guarantee bank loans worth up to more than $50 billion. In addition, US airlines also proposed to defer tax payments until the end of 2021. Mr. Nicholas Calio, President of American Airlines, affirmed: "This is a problem of today, not a problem of tomorrow, requiring urgent action." President Donald Trump's administration has previously signaled its readiness to support some of the industries most affected by Covid-19, including airlines. If passed, this would be the largest bailout package in the US aviation industry since the 2008 financial crisis.

Not only the aviation industry, many countries are also calling for state-level relief. Managing Director of the International Monetary Fund Kristalina Georgieva said that 20 countries have asked the organization for bailout packages to cope with the economic stagnation. Currently, the International Monetary Fund has mobilized 1,000 billion USD to help members overcome the crisis caused by the Covid-19 epidemic.