LONDON - Passengers facing cancelled flights and lockdowns are having trouble receiving refunds as airlines burn through cash.
And government-mandated border shutdowns aimed at stopping the spread of the virus have dealt a hammer blow to airlines forced to ground their fleets. The global industry is bleeding billions of dollars in cash, with some carriers already facing bankruptcy and others seeking government help. United States Treasury Secretary Steven Mnuchin and United Airlines CEO Oscar Munoz have both said the crisis is worse than the one the aviation industry faced in the aftermath of the September 11, 2001 attacks.
But the jury is out as to whether the assistance that governments are offering will be enough to save all the carriers facing financial hardship. And such measures are reopening the debate over whether public funds should be used to rescue companies and their shareholders.
More than half of the world's fleet of passenger aircraft has been grounded because of travel bans, according to the International Air Transport Association (IATA), an airline industry group.
"The industry's outlook grows darker by the day," Alexandre de Juniac, IATA's Director General and CEO, said in an April 14 statement.(FA)
And government-mandated border shutdowns aimed at stopping the spread of the virus have dealt a hammer blow to airlines forced to ground their fleets. The global industry is bleeding billions of dollars in cash, with some carriers already facing bankruptcy and others seeking government help. United States Treasury Secretary Steven Mnuchin and United Airlines CEO Oscar Munoz have both said the crisis is worse than the one the aviation industry faced in the aftermath of the September 11, 2001 attacks.
But the jury is out as to whether the assistance that governments are offering will be enough to save all the carriers facing financial hardship. And such measures are reopening the debate over whether public funds should be used to rescue companies and their shareholders.
More than half of the world's fleet of passenger aircraft has been grounded because of travel bans, according to the International Air Transport Association (IATA), an airline industry group.
"The industry's outlook grows darker by the day," Alexandre de Juniac, IATA's Director General and CEO, said in an April 14 statement.(FA)
