The global aviation industry has been hit hard by the spread of overseas outbreaks. EasyJet, Europe’s second-largest budget airline, has suspended all flights and its employees will take a two-month leave of absence from April 1,media reported.
The UK government has previously said it would subsidize 80 per cent of its previous wages to all the millions affected by the outbreak who are unable to work, capped at 2,500 pounds (about 20,734 yuan) per person per month.
This means that all employees of easyJet can take two months’ paid leave through 80 percent of the government’s salary.
EasyJet says it has carried out more than 650 rescue flights to date, bringing home 45,000 passengers. EasyJet will continue to work with government agencies to provide more rescues. However, the aircraft was temporarily sealed because it was not possible to determine when commercial flights would resume.
And easyJet says it is in good balance and debt, with no debt due until 2022, and is taking all possible steps to help weather the financial crisis.
In addition, as Europe has become one of the worst affected regions in the world, it has hit the local aviation industry particularly hard. A few days ago, Ryanair, Europe’s largest airline, said it would ground most flights in the near term, cutting capacity by up to 80 per cent in April and May, not ruling out a complete suspension.
Nordic Airlines, the region’s largest carrier of civil aviation, said it would be forced to lay off about 10,000 employees, or 90 per cent of its workforce.
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.