Airlines Request Government Aid

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

On Monday, many of the world’s airlines put into effect cost-cutting measures. These tough decisions come amid the COVID-19 pandemic, which has all but stopped air travel.

In a joint statement, SkyTeam, Oneworld, and Star Alliance, the three largest airline groups, held a press conference early this week where they announced they’ve been grounding planes, cancelling flights, reducing employee hours, suspending employee contracts all together, and freezing spending. With relatively no revenue coming in, airlines are hemorrhaging money. The alliances requested government bailouts amid these “unprecedented challenges.”

Senior research analyst Daniel Roeska, of Sanford C. Bernstein & Co. in London, said “Airlines are siphoning cash and have no way of stopping it…the key focus should be on emergency liquidity support and enabling short-term layoffs or working-hour reductions to safeguard cash.”

The British, German, Dutch, and French governments are reportedly all discussing an airline industry stimulus package. There have been no signs of the US government doing the same. Several American news sources have run articles condemning assistance to the airline industry. The New York Times muses, “As the government asks what we, the public, should do for the airlines, we should ask, ‘Just what have they done for us?’” It seems the years of baggage fees have left people without much sympathy.

The larger issue is that the airline industry is only one of many that could be brought down by this pandemic. The industries like hospitality and sports and the people that work in them will need government assistance one way or another to survive.

More Stories

Health & Lifestyle

The Benefits of Meditation

You may have turned up your nose at meditation, but aside from its association with various types of exotic religions,

Business & Politics

Tax Deadline Delayed Until July 15th

Treasury Secretary Steve Mnuchin has announced that the tax deadline has been delayed from April 15th to July 15th. This

News

Social Distancing The Right Way

Social distancing is the new norm. Here are some tips on how to do it right. Remember, just because you’re

Health & Lifestyle

5 of the Best Health Benefits of Yoga

Yoga may seem like a soft sport, something that women-who-brunch do on a lazy Sunday afternoon at a high-end gym.

Health & Lifestyle

Top 5 Immune System Boosting Foods

In these days of pandemics, building one’s immune system seems like a good thing to be doing. One way to

News

Covid-19 Relief Package is Law

Yesterday, the first of what is likely to be several covid-19 related relief packages, was passed by the Senate and

Health & Lifestyle

5 Best At-Home Cardio Exercises

If you’re stuck at home because you are under quarantine, isolation, or city-wide curfew, you’ll probably start to get cabin

Business & Politics

Airlines Request Government Aid

On Monday, many of the world’s airlines put into effect cost-cutting measures. These tough decisions come amid the COVID-19 pandemic,

Music & Entertainment

NBC to Release Theatrical Movies

Thanks to the ban on large gatherings in many cities, movie theaters are empty. What will happen to all those

News

Three Killed in Iraqi Protests of Iran

Many Iraqis have expressed frustration with growing poverty and too much political influence from Iran. They believe that the country’s

Technology & Science

ISIS Used TikTok to Spread Propaganda

TikTok, a popular Chinese social media app used by many teenagers, was found to be distributing ISIS propaganda. The revelation

Sports

Patrick Mahomes Knee Injury Update

Kansas City Chiefs quarterback Patrick Mahomes came into Thursday Nights game with an ankle injury, and left the game in