Our website uses cookies to give you the best and most relevant experience. By clicking on accept, you give your consent to the use of cookies as per our privacy policy.AcceptDeny

Takeover Desktop Banner

Sidebar

webvic-c

Crunch time for multiple airlines as COVID-19 impact is felt

As international travel restrictions continue, airlines around the world are feeling the pinch.

This week, Air Mauritius went into voluntary administration in an attempt to remain in business, while still providing humanitarian flights to assist with efforts to fight COVID-19.

Reuters has reported that the German government has agreed to help Lufthansa with a rescue package worth around 9 billion euros in exchange for a blocking minority and some supervisory board mandates. However, neither Lufthansa or the German government had commented at the time of writing.

Virgin Australia, meanwhile, has also gone into administration - Deloitte, the administrators, is seeking to sell the airline. According to a report in the Financial Review, Deloitte is looking to bring in Morgan Stanley to run the sale in conjunction with Houlihan Lokey, which is already acting as an adviser.

In a stock exchange announcement, SAS, announced a job cut of 5,000 staff across Denmark, Norway and Sweden, representing around 50% of the total workforce.

"To be able to continue to fulfil this important social function [as part of the region's infrastructure], we must adapt our costs to the prevailing circumstances," said SAS CEO Rickard Gustafson

Wizz Air, however, is bucking the trend by announcing that flights could resume out of Luton airport, as well as Barcelona, Brussels, Paris and Rome, as early as this Friday. The Hungarian-based budget airline announced it would be implementing "new protocols" to observe social distancing and enhance the cleaning procedures. Cabin crew will wear masks and gloves, passengers will be encouraged to pay for meals by contactless cards, and sanitising wipes will be handed out during flights.

Read More: