Home Travel NewsCovid Travel Covid-19 brings international airlines to the verge of bankruptcy (Updating…)

Covid-19 brings international airlines to the verge of bankruptcy (Updating…)

by Victoria

From mid-2020, the International Air Transport Association (IATA) forecasts the global aviation industry this year will have severe profit loss of 84.3 billion USD, higher than the 30 billion USD loss in the 2008-2009 financial crisis, and will still lose money in 2021. According to IATA, long-distance air travel will only return to 2019 levels by 2024.

The following lists have been compiled by us from a variety of sources.

List of airlines all over the world declared bankruptcy

According to the Yomiuri newspaper, although the world aviation industry suffered heavy losses by the COVID-19, low-cost carrier airlines (LCCs) with inadequate resources are the ones at risk of closing sooner than others

1. AirAsia Japan

Low-cost carrier AirAsia Japan will be the first airline to withdraw from the Japanese market due to the influence of COVID-19 from December 2019. This airline announced that it would officially close all four routes within Japan from December 5.

AirAsia Japan may be closed down | The Star
2. Flybe Airline

British low-cost carrier Flybe airline has struggled with the coronavirus and even the British government and Virgin Atlantic are trying to save it. But with no luck – the airline entered into voluntary management, similar to bankruptcy, in March.

3. Air Deccan

In April, Air Deccan – a regional airline that used to be India’s largest low-cost carrier – was shut down due to the pandemic.

4. NokScoot and Nok Air

Two other low-cost carrier in Thailand, NokScoot and Nok Air, have also declared bankruptcy since June 2020.

5. Level Europe

The latest airline casualty due to the coronavirus virus is low-cost carrier Level Europe based in Austria, which recently announced plans to file for default.

6. South African Airways

Meanwhile, things in South Africa have not been very good either: The future of South African Airways is in turmoil with the government shutting down the airline and starting a new national airline.

7. SunExpress Deutschland

A Turkish airline jointly owned by Lufthansa and Turkish Airlines, SunExpress Deutschland flies to popular Turkish vacation destinations – but not for long. Flight operations will be discontinued soon and the airline will be liquidated.

8. RavnAir

Alaska’s largest regional airline filed for bankruptcy in April and is preparing to auction. This airline previously served 115 rural communities, flying passengers, and delivering freight and mail across the state.

9. Miami Air International

After 29 years of operation, Miami Air International has commenced operations. Despite its small size, the airline has a fleet of Boeing 737s and operates worldwide passenger flights for travel operators, professional sports teams, the US military and more.

10. Thai Airways
Thai Airways heavily criticised by government minister – Business Traveller

In particular, although it is not a low-cost airline, Thai Airways still suffers the same fate. On May 26, Thai Airways officially filed for bankruptcy at Thailand’s Central Bankruptcy Court. Before falling into bankruptcy, Thai Airways tried to save itself. They proposed a bailout package worth about 307 million USD from the Thai government, to pay the employees a month’s salary.

11. Virgin Australia Airline

After nearly 20 years of operation, Virgin Australia – the country’s second largest airline – has applied for voluntary management, the equivalent of restructuring bankruptcy. This is the biggest airline collapsed in Australian history. Private equity group Bain Capital recently agreed to buy the airline for an undisclosed amount but its future is still unknown.

12. Compass Airlines

Regional airline Compass Airlines, which provides services to American Eagle and Delta Connection, also ceased operations in April.

The airlines everywhere are asking for help from the Government

Similarly, the pandemic make so many airlines struggle to borrow money to overcome the crisis everywhere.

1. The US supports 6 largest airlines in this country
Các nước giải cứu ngành hàng không thế giới - Ảnh 2.
Delta Airlines aircraft are not in service during Covid-19

On April 14, the US Treasury Department said that the six largest airlines in the country, including American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, JetBlue, Alaska Airlines and several other businesses, agreed to the terms of supporting package worth 25 billion USD from the government, to deal with the effects of COVID-19.

2. Hong Kong (China) rescued Cathay Pacific Airlines
Các nước giải cứu ngành hàng không thế giới - Ảnh 4.

Recently, Cathay Pacific confirmed that the Hong Kong government (China) will implement a refinancing plan worth 5 billion USD to help the company overcome the crisis caused by COVID-19. The measures taken by the Hong Kong Special Administrative Region (China) government include: issuing preferred shares, granting bridging loans and appointing 2 observers to the board of Cathay Pacific.

3. German Government agreed on the bailout package for Lufthansa Airlines
Skiplagging' flights: Lufthansa sues passenger for deliberately missing  flight to save money

The European Commission (EC) on June 25 approved a huge bailout package by the German Government for Lufthansa Airlines. The EC said it had allowed Berlin to give 6 billion euros to save Lufthansa from bankruptcy, but in exchange Lufthansa had to cede some take-off and landing positions at Frankfurt and Munich airports to other airlines to ensure fair competition. The total bailout will amount to 9 billion euros (10 billion USD) because Lufthansa also receives 3 billion euros in public loan guarantees.

4. The French government provides aid to Air France, Airbus and the major aviation parts suppliers

On June 9, the French government announced a huge financial support program of 15 billion euros (nearly 17 billion USD) for the aviation industry, including aid to Air France, Airbus and major aviation parts suppliers through direct investment of government, subsidies, loans and loan guarantees. The program also includes a special fund, financed by the government, Airbus and other major manufacturers to assist small suppliers.

5. The Dutch government rescued national airline KLM

The bailout package worth 3.4 billion euros (3.81 billion USD) is expected to help the airline survive the collapse of the world aviation caused by the Corona virus pandemic. Dutch Finance – Minister Wopke Hoekstra said that the support package was made up of 1 billion euro loans and 2.4 billion euros underwriters for bank loans. The bailout package falls short of a series of requirements, with government set conditions including KLM to cut costs by 15%, improve airline sustainability and reduce night flights at the national airport Schiphol on the outskirts of Amsterdam.

6. The UAE spent 2 billion USD to ‘rescue’ Emirates Airlines
Emirates Airline Flights Resume Today May 21

According to Bloomberg, the Dubai government has poured 2 billion USD into Emirates since Covid-19 stalled global air travel in March. The United Arab Emirates (UAE) said it was prepared to give extra money to rescue this airline.

7. Australia spent more than 490 million USD to rescue the national aviation industry

The Australian aviation industry will receive a government bailout package, worth 715 million AUD (equivalent to 490.5 million USD), in response to the crisis caused by the acute respiratory infections COVID-19. The bailout package, announced on March 18, included a series of tax-free measures for aviation fuel consumption, domestic aviation service charges and domestic and foreign aviation security fees. These measures will be in place from April 1, accompanied by an estimated reimbursement of AUD 159 million (104.94 million USD) for taxes and fees pre-paid by airlines.

8. The National Assembly of Vietnam agrees to rescue Vietnam Airlines
Toàn bộ tổ bay chuyến bay VN0054 âm tính với Covid-19 - Tan Thanh Medical -  Trust - Cooperation - Success

In the Resolution just passed on November 17, the National Assembly agreed with the Government’s proposal on solutions to solve difficulties for the Vietnam Airlines – VNA due to the impact of the Covid-19. VNA can be loaned 4,000 billion (about 170 million USD) preferential interest rate with the lowest rate under the refinancing policy of the State Bank (about 4% / year).

Stay tuned. We will keep updating with the latest airlines news around the world

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