Global aviation is shutting down in the face of the coronavirus outbreak and travel restrictions designed to restrain it. The Covid-19 will push most airlines all over the globe to bankruptcy by the end of May, according to the aviation consultancy Centre for Asia Pacific Aviation (CAPA).
The Sydney-based consultancy of the aviation and travel industry’s market intelligence warned that many airlines would probably be driven into technical bankruptcy or substantially breached debt covenants. Airlines are among some of the most massive corporate casualties of the virus outbreak. The pandemic has brought air traffic to a standstill. The world’s three airline alliances, Oneworld, SkyTeam, and Star Alliance together have sought the governments’ support to tide over the crisis.
With demand drying up in unprecedented ways, CAPA said that only a coordinated action by governments and industry could save them. Citing the US’ travel ban on flights to and from European countries, CAPA said that each nation is adopting the solution that appears best suited to it. They added that right or wrong, there is no consideration of its neighbours or trading partners. Meanwhile, India has also shut itself for foreign nationals and Overseas Citizen of India (OCI) cardholders.
Several international and foreign carriers have cancelled almost 500 flights to and from India. Airlines such as Delta Air Lines, Qatar Airways, and some African carriers have already restricted their capacity into the Indian market while few other airlines are reviewing the situation.
The three global alliances representing almost 60 airlines worldwide have called on governments to support the airline industry. They urged governments worldwide in a joint statement to evaluate all possible means to assist the airline industry during this unprecedented pandemic period.
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