As the new crown epidemic spreads in overseas countries, the road transport and air passenger transport industry has been hit hard, passenger traffic continues to decline, resulting in many airlines bear huge losses, and have to carry out layoffs and other cost-cutting measures. Australia’s biggest airline, Qantas and Jetstar, have announced that two-thirds of their workforce will temporarily leave their jobs from the end of March to at least the end of May, meaning about 20,000 people will be out of work for a short period of time,media reported.
Qantas has grounded all international flights after the federal government announced that all citizens should avoid international travel. At present, Qantas has more than 150 aircraft temporarily grounded, including its Airbus A380, Boeing 747, 787 and many other aircraft.
In addition, Qantas said in a statement that after the reduction of flights, but will retain some important international and domestic passenger and cargo routes. The decision was made as a result of a significant drop in travel demand caused by the outbreak of new coronary pneumonia, he added.
The global aviation industry has been hit hard by the outbreak. Global airlines are facing $113 billion in losses as a result of the outbreak, according to data released by the agency. This has led British Airways Flybe to bankruptcy filings, where it was in financial trouble before the outbreak.
And one of Europe’s biggest airlines has taken steps to cut jobs. Rickard Gustafson, chief executive of Nordic Airlines (SAS), said SAS had been forced to lay off about 10,000 employees, or about 90 per cent of the workforce.
In response, several of the world’s largest airlines are also demanding help from the government. It is reported that the United States, including Delta Air Lines, American Airlines and Southwest Airlines, including a number of aviation departments, is seeking more than $50 billion in government assistance, including direct assistance and loan guarantees.
More notably, the latest report from CAPA, the Asia-Pacific aviation hub, shows that most of the world’s airlines will go bankrupt at the end of May as flights are grounded, cash reserves are rapidly reduced and less than half of the number of flights operated.