Turbulence worsens in the airline industry

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Qantas has told most of its 30,000 staff to take leave and Lufthansa says the industry might not survive without state aid

Qantas flight QF7879 lands at Sydney Airport on November 15, 2019 in Sydney, Australia. Picture: GETTY IMAGES/DAVID GRAY#J

“The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency,” Lufthansa CEO Carsten Spohr said in a statement. “At present, no-one can foresee the consequences.” Shares in US airlines fell sharply on Wednesday after Washington proposed a rescue package of $50bn in loans, but no grants as the industry had requested, to help address the financial effect from crisis.

In a memo to staff, American Airlines rebuffed criticism that it had rewarded its shareholders with too many dividends and stock buybacks in better times, leaving it with less cash to manage the crisis. Taiwan's transport ministry said on Thursday it was inviting its airlines to submit capital requirements and financial plans with a view to giving them assistance, such as rolling over loans and providing operating funds.

 

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