Global Airlines go Bankrupt in COVID-19 Crisis

  • CAPA has warned that “most” of the world’s airlines will go bankrupt the end of May, 2020.
  • Several airlines have already collapsed due to the pandemic, including those in the US and UK.
  • Virgin Australia has already declared bankruptcy but is continuing to operate.
  • More than 29 lakh jobs will be affected in India because of COVID-19 crisis in Asia-Pacific Region- said IATA.

Going recent alarming calls raised the global aviation industry including International Air Transport Association (IATA), global airlines could lose $252 billion revenue year end.This would mean loss of another million jobs all across the world. In words of IATA, airlines have been “hit a sledgehammer called COVID-19,”.

The industry supports 65.5 million jobs around the world including 10.5 million people employed airlines and at airports. It makes a contribution of $2.7 trillion to the world economy. However, the same will not be the case for 2020, and it may possibly take 3 years to return to same operational levels- indicated two leading international carriers of UAE: Etihad Airways and Emirates.

As soon as news of the virus spread worldwide in late January 2020, travel demand to Asia saw a huge dip. Flights were cut down from many nations to China and other locations in Asia. However, when the virus travelled to Europe, America, and Africa, the curtailment of air travel among people was so high that they even avoided buying tickets for future travel fearing the outbreak. And now when most nations are under lockdown with tightly-sealed boundaries, it is hard to predict when air travel will get back to normal.

Also Read: ILO Cautions an Increase in Global Unemployment 25 Million

British regional airline Flybe was already facing financial difficulties in the first week of March. The coronavirus situation served as the final nail in its coffin. For the US airline industry, President Donald Trump has signed a $58 billion bailout aid- $29 billion in payroll grants for workers, and $29 billion in loans for the airlines. Though this may save some, many airlines have already collapsed.

Here are the names of the airlines that have either collapsed, suspended operations, or declared bankruptcy.

  1. Virgin Australia (Australia): April 2020

(Image Courtesy: Virgin Australia)

The airline entered “voluntary administration” on April 21 when it had suspended most of its operations and was still losing money operating about 65 daily flights.

  1. Compass Airlines (US): April 2020

(Image Courtesy: Routesonline)

Also owned Trans States Holdings, the airline was shut in April, 2020.

  1. Trans States Airlines (US): March 2020

(Image Courtesy: AirlineGeeks | Ian McMurtry)

The airline ceased to operate on April 1, 2020 due to “unforeseen impact of coronavirus”.

  1. Flybe (UK): March 2020

(Image Courtesy: Wikipedia)

The airline entered administration on March 5, 2020. Though the airline was already on the verge, the coronavirus crisis made it fall from the cliff.

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