Airline industry turmoil deepened on Thursday as Qantas Airways Ltd told most of its 30,000 employees to take leave and India prepared a rescue package of up to US$1.6 billion to aid carriers battered by coronavirus, government sources said.
Shares in US airlines fell sharply on Wednesday after Washington proposed a rescue package of US$50 billion in loans, but no grants as the industry had requested, to help address the financial impact from the deepening coronavirus crisis. “Unfortunately, this is no ordinary rainy day,” said Nate Gatten, American’s senior vice president global government affairs. “These are extraordinary circumstances, and additional support is necessary to protect jobs and ensure that the flying public can continue to rely on our industry after the crisis ends.”
Senior Qantas executives and the board will take a 100% pay cut until at least the end of the financial year ending June 30, up from 30% earlier, joining the chairman and CEO in taking no pay, the airline said. India is poised to join a growing list of countries offering aid to its aviation industry. The Finance Ministry is considering a proposal worth up to US$1.6 billion that includes temporary suspension of most taxes levied on the sector, according to two government sources who have direct knowledge of the matter.