LONDON - Airlines in the US and Europe cut flights, idled planes and drafted plans to eliminate jobs, while seeking government support to weather the roughest downturn in the industry's history, caused by the spread of the coronavirus.
The Italian government is considering pumping €300 million into struggling Alitalia and may take over the airline, people familiar with the matter told Bloomberg. The existing travel curbs on Europe affect about 7,300 flights to the US, or more than two million one-way passenger tickets over the one-month period, according to Cirium, which tracks traffic. Adding in Britain and Ireland adds about 4,300 more flights to the total.
The airline, owned by IAG, has held talks with multiple banks on its urgent financing need, the Financial Times reported. In the US, where Trump declared a state of emergency on Friday, the situation has quickly turned grim for airlines. In a statement, the carrier acknowledged it is seeking additional funds and will use aircraft financing to help with the effort. The company, with bases in Germany, Austria, Switzerland and Belgium, owns about 86 per cent of its fleet.
Jacob Schram, who leads Norwegian Air, said measures presented by the government in Oslo Friday were positive, but that more targeted support will be required, including an injection of liquidity. The carrier plans to park 40 per cent of its long-haul fleet through May while laying off half of the workforce.
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