Mar 19, 2020 06:00:00

Countries announce support to the aviation industry as `` the damage to the new coronavirus for the aviation industry is worse than 9.11 ''

As the new coronavirus infectious disease (COVID-19) spreads around the world, countries are increasingly refraining from or restricting their travel overseas. Airlines have been heavily damaged by the decline in travel, and governments have expressed support for airlines.

White House seeks to pass coronavirus aid, including for airlines and Boeing, 'very quickly'
https://www.cnbc.com/2020/03/17/us-airlines-rally-after-mnuchin-seeks-to-pass-coronavirus-aid-very-quickly.html

'Worse than 9/11': Coronavirus threatens global airline industry
https://techxplore.com/news/2020-03-worse-coronavirus-threatens-global-airline.html

The U.S. government is reportedly asking Congress for a budget of $ 850 billion (approximately 91 trillion yen) as an economic measure following the economic stall caused by the new coronavirus infection. In connection with this move, the aviation industry, which has been severely damaged by a series of self-restraints, is calling for government support of $ 50 billion (about 5.4 trillion yen).

'The damage from the new coronavirus infection is worse than the

September 11 terrorist attacks (9.11) . The aviation industry is almost at a halt,' said Stephen Mnuchin , US Treasury Secretary for the Trump administration.

To the U.S. aviation industry, which has been severely damaged by the spread of the new coronavirus, President Trump said, 'We intend to provide 100% support to airlines. This damage is not their fault.' does not mean that someone's failure, we are in a position to support the airline, 'said Trump President comment has been. President Trump has also expressed support for Boeing , whose stock price has plummeted due to financing concerns, and appealed that 'we must protect Boeing.'

by

Liam Allport

In Europe, where the spread of the new coronavirus continues, the aviation industry is also severely damaged.Belgium-based Brussels Airlines was on March 17 due to a decrease in demand associated with the spread of the new coronavirus. Decided to suspend all routes for about one month from April 19 to April 19. Lufthansa , the parent company of Brussels Airlines, has also taken steps to minimize damage to management, including suspending 90% of long-haul flights and 80% of short-haul flights.

Scandinavian Airlines has stated that 'flight demand has virtually disappeared' and has decided not to operate most of its scheduled flights after March 16. As a temporary measure, the company has been forced to cut up to 10,000 employees, or 90% of all employees. In response, Scandinavia's major shareholders, Sweden and Denmark, have announced that they will lend a total of € 275 million. 'Scandinavian Airlines is crucial for the accessibility of both the Scandinavian Peninsula and Denmark, and the impact on employment, business and the economy as a whole is expanding,' said Danish Finance Minister Nicolas Wammen.

In Russia, Alexander Neradko, director of the Federal Aviation and Transportation Agency (RosAviation), pointed out that the suspension of flights to China has hurt airlines, saying, `` Airlines in severe financial conditions are at risk of bankruptcy. Is growing. ' 'The government is actively discussing ways to help airlines,' said Dmitry Peskov, a spokesman for the Russian government.

In addition, Australia, far away from Europe, has decided to require 14 days of self-isolation measures for all immigration, including its own citizens, and has set the highest level of vigilance on all travel abroad. Aggressive closure measures such as raising to In response, Qantas , a leading Australian airline, has announced a 90% reduction in international capacity.

Qantas Australia cuts international flights by 90% with new Corona (Photo = Reuters): Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXMZO56894990X10C20A3FFE000/

Brian Pierce, an economist at the International Air Transport Association (IATA) , estimates that IATA's `` damage to the aviation industry due to the new coronavirus is $ 113 billion (about 12 trillion yen) '' in early March , I think you underestimated. '75% of the airlines we surveyed have only three months of cash assets to pay fixed costs,' he said, as the demand for flights continues to decline, the risk of airline bankruptcy increases. That.

'Connectivity is very important,' said IATA Executive Director Alexandre Dojuniak, stressing that the aviation industry is an integral part of the international community. 'The world will survive the crisis of the new coronavirus. When the world is working again, the air transport sector needs to be working,' he said, instead of continuing to maintain the aviation network until the world calmed down. Complain that it should not be.

In addition to airlines, airports around the world are at risk, and the International Airport Council (ACI) Europe needs to pay high fixed costs while airports lose a lot of revenue It says. ACI Europe Chairman Jost Lammers has filed a request for urgent financial assistance to the EU, claiming that `` emergency funds must be available under similar conditions to the funds being considered for airlines. '' Did.