Rival Ryanair has predicted the drop in demand for flights due to the coronavirus will result in some European airlines failing in the coming weeks. Since childhood, she became an aviation enthusiast. AIRLINES, railways and bus companies could be temporarily nationalised to keep them afloat during the coronavirus crisis. “We’ll make sure that SIA is able to come through this in good shape,” Heng said, referring to Singapore Airlines. At least four of the 10 airlines named back then have restructured in some fashion, and all but one were in Asia. Copyright © 2020 Printline Media Pvt. Facing years of operational losses and a total of $5 billion in debt, the sale of assets such as aircraft and a complete restructuring is expected. Thomas Cook’s demise was one of 2019’s most shocking failures, but plenty of smaller brands have also gone under, ... Airlines that went bust Air Berlin. Some in Asia, including Korean Air, Asiana, China Southern Airlines Co. and China Eastern Airlines Corp. have reserves to last only weeks, according to Bloomberg Intelligence. The British regional airline was already on the brink of collapse before the COVID-19 pandemic. Panama’s Copa Holdings SA grounded its fleet as of Monday. A spokesman declined to comment further. In the statement, Austrian Airlines highlights that it is not yet possible to determine when the complete freedom to travel will be restored. The model used by BI uses publicly available data on cash in hand and operating expenses to reach estimates on monthly cash burn. Air Deccan had a fleet of four 18 seater Beechcraft aircraft, flying on regional routes specially in western India. A new national airline will be formed, with an ideal mix of private and government ownership. With no income and high fixed costs, by rights, almost all carriers should have gone bust. New Delhi: The global airline industry has never had it so bad. Undoubtedly COVID decimated the airline industry. Flybe operated 67 regional aircraft, including 54 Dash-8s, 9 Embraer 175s, 2 Embraer 190s, 1 Embraer 195 and 1 ATR72. The Z-score involves five variables measuring liquidity, solvency, profitability, leverage and recent performance. Among those airlines found to be most vulnerable in March were Virgin Australia Holdings Ltd. and Thai budget carrier Nok Airlines Pcl. “People that were bragging about not taking state aid and being independent are now themselves all over the world asking for state aid,” he said Thursday on Bloomberg Television. Qatar Airways Chief Executive Officer Akbar Al Baker warned that many airlines will go bust, limiting the scope for takeovers. Most carriers will go bankrupt by the end of May if they can’t find support, Sydney-based CAPA Centre for Aviation said last week. The move will result in all employees’ contracts being terminated; however ex-SAA employees will be given employment priority in a planned new national airline, to replace South African Airways. “In this very difficult period, it will only be the survival of the fittest” – Qatar Airways CEO Akbar Al Baker. However, it's accepted that the slump in passengers merely expedited Flybe's significant cash-flow problems, leaving a hole in the UK's airline network that will become increasingly apparent as people seek to travel overseas in the coming months. Like the virus, the crisis is indiscriminate, affecting everyone from budget operators to national flag carriers. Flybe, at one point Europe's largest independent regional airline, went bust in March 2020, when Covid-19 was beginning to spread throughout Europe. Trip Report: Flying With Etihad During Pandemic. “We also expect the government to provide support measures,” she said, adding that the airline plans to generate more revenue by increasing cargo operations. Trying to Stay Airborne The risk of collapse has spread to the Americas and Africa These airlines could go bankrupt due to the coronavirus crisis, Amsterdam-Delhi flight, which wasn’t allowed to land, ‘took off without permission’, Kolkata Police arrests over 450 persons for defying lockdown orders, With over 85,000 cases, US has the world’s highest number of Covid-19 infections, India records 11,649 new Covid cases, fatality rate 1.43%, Thanks to Covid, smell problems are finally being recognised as serious diseases, As Covid declines, Indians are out shopping, dining, getting haircuts & crowding malls, Why India appears strangely silent on sky-high fuel prices, Vajpayee turned around the fortunes of Vizag Steel Plant, so can Modi. Expect that many of these (older) aircraft will probably not find new homes again and will be retired by the leasing companies and parted out. RavnAir Group lost 90% of their passenger revenue across all three of their airlines, Ravn Air Alaska, PenAir and RavnAir Connect. Compass is the second Trans States-owned airline to close doors since the beginning of the COVID-19 pandemic. A Flight on a Comlux 767BBJ Private Jet. Dozens of airlines have already gone under this year as the coronavirus pandemic brought global air travel to a near-standstill, a new report says. The airline counts the French and Dutch governments as its biggest shareholders, and both governments have signaled they will provide support if needed. But the news media is in a crisis of its own. Indebted low-cost carrier Norwegian Air Shuttle ASA and Air France-KLM both landed below the threshold, as did American Airlines Group Inc. and SkyWest Inc. The calculations don’t take into account government bailouts or other funding sources that could help keep operators alive. The airline had planned to shut down by the end of 20220, consolidating their operations with ExpressJet Airlines, but due to the “unforeseen impact of Coronavirus” the airline ceased all operations on 1st April. The communications director for Kenya Airways Plc, which is now operating only five local daily flights, couldn’t immediately comment. “If consumers have a flight-only booking that was Atol-protected, they will only be able to make a claim if they are still due to travel and have not received a valid ticket. Share prices in virtually all airlines have collapsed by more than 50% since the coronavirus crisis struck Europe. Here is a list of retired aircraft due to covid-19 situation. Air Deccan, a small regional airline that was once India’s largest low-cost carrier, ceased operations last April. A Korean Air spokeswoman said the company is about to raise funds through asset-backed securities, reflecting market confidence in the carrier. Singapore’s Deputy Prime Minister Heng Swee Keat said Thursday the city-state’s flag carrier is considering a corporate action supported by majority shareholder Temasek Holdings Pte. You have entered an incorrect email address! Qantas Airways Ltd., Cathay Pacific Airways Ltd. and IndiGo declined to comment. coronavirus There have been another 13,013 cases across the United Kingdom The 3 big mistakes that snared murdering 'enforcer' after he stabbed a young man … Qatar Airways Chief Executive Officer Akbar Al Baker warned that many airlines will go bust, limiting the scope for takeovers. This site uses Akismet to reduce spam. The model initially had accuracy rates of over 95% in predicting bankruptcies, but has come down to between 80% and 90% based on a year before insolvency, Altman said in a 2018 interview. However, thanks to the support of governments and airlines’ own refinancing efforts, the list of casualties for 2020 stands at just 34 airlines. The airline was the first Indian aviation company to go bankrupt due to the pandemic. At the beginning of April Swedish Airline BRA (Braathens Regional Airlines) applied for court-administered reorganisation, this should protect the airline from bankruptcy. India needs free, fair, non-hyphenated and questioning journalism even more as it faces multiple crises. United Express (Photo by LARA) “In view of the recent global and domestic issues and subsequent directive by the Indian regulator (to suspend all commercial passenger flights till April 14) Air Deccan has no choice but to cease its operations until further notice.”. China Eastern said it maintains sufficient liquidity funds, which can fully guarantee normal production and operation. 3 years ago, she became interested in aviation photography. At the time of ceasing operations they had a fleet of 40 Embraer ERJ-145s. The best of journalism is shrinking, yielding to crude prime-time spectacle. After requests for government aid were denied, on competitive grounds, Virgin Australia began working with their administrators on options to resurrect the airline, in the middle of the global COVID-19 pandemic. Without taking that step, assuming revenue from ticket bookings is kept, some may still last more than a year, according to analysts at Credit Suisse Group AG. Flybe entered voluntary administration, a practice similar to declaring bankruptcy, on the 5th of March. 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Virgin Australia Holdings Ltd., which has furloughed 80% of its workforce and slashed flights to a bare minimum, said it is taking measures to rapidly reduce its cost base to preserve cash. Many of those projects we accomplished when others said it could not be done. Aircraft have been sent to the desert, airport terminals are empty, workers are being sent home etc. A Flybe spokesman would not comment on its financial situation. BRA was created in 2016 in a merger of several smaller Nordic airlines; they have been serving about 20 destinations, mostly in Sweden, and employ around 1,100 people. A spokeswoman for Air France-KLM declined to comment. –Bloomberg, Also read: Amsterdam-Delhi flight, which wasn’t allowed to land, ‘took off without permission’, Subscribe to our channels on YouTube & Telegram, Why news media is in crisis & How you can fix it. St. Louis-based regional carrier Trans States Airlines, that flies routes for United under the United Express brand, ceased operations last month. Currently, Air Mauritius’s fleet is composed of 3 ATR 72-500s, 2 Airbus A319s, 2 A330-200s, 2 A330-900s, 2 A340-300s and 2 A350-900s. Here we have collected a list of airlines that have gone into bankruptcy, administration or Chapter 11 protection. A representative for AirAsia Group Bhd declined to comment, while PNG Air Ltd. didn’t respond to a request for comments. Ravn Alaska’s bankruptcy caused many of its partner airlines to fail. A regional airline based in Carlsbad, California, California Pacific Airlines only flew commercially for a few months before suspending operations. The airline previously flew passengers, freight and mail to 115 rural Alaska communities. The airline industry has been ravaged by a slump in demand for air travel as lockdowns aronud the world have forced would-be holidaymakers to stay at home. A spokesman for Pakistan International Airlines Corp. said losses and debt have become too much for the company to handle alone and that options suggested to the government include a debt-to-equity swap and long-term bond issue. The model assumes 100% capacity cuts and zero cash inflow. In January, the UK government and Virgin Atlantic tried to save Flybe. Japan Airlines Co. issued bonds earlier than originally planned based on the trend in interest rates, according to a spokesman, who said details on the company’s financials will be revealed in its next earnings. "I tried three times to get through that system and they were gone in 10 minutes." Which airlines are most at risk? It declined further comment. Yesterday the second-largest carrier in South America, Avianca, voluntarily filed for reorganisation proceedings, under Chapter 11 of the US Bankruptcy Code. “People that were bragging about not taking state aid and being independent are now themselves all over the world asking for state aid,” he said Thursday on Bloomberg Television. Who’s Gone Bust in 2021 by Company . The list of U.S. companies that blamed Covid-19 for helping to push them into bankruptcy has grown to more than 340. The bankruptcy came just days ahead of looming government bond payments. Vietnam Airlines will lose 50 trillion dong (RM9.23 billion) in revenue this year as most of its 106-strong fleet have been grounded due to the coronavirus, state media reported yesterday. “It’s also possible that a number of airlines will have gone bust and uneconomic discounts will be necessary to attract demand back,” he said in a statement. Much hinges on an airline’s ability to use cash in hand or access more money. Apart from airlines retiring parts of their owned fleets, they will also hand back aircraft to the leasing companies (remember, ca.53% of the global western built commercial jet fleet in service and in storage is currently owned by these leasing companies). Ryanair Holdings Plc said it had cash and equivalents of over 4 billion euros as of March 12, undrawn credit lines and nearly 300 owned aircraft valued at about $8 billion to $10 billion. Governments around the world are in talks with aviation companies about financial support, and those with deep-pocketed backers — such as Delta Air Lines Inc. with billionaire investor Warren Buffett — will have access to other avenues for cash. EasyJet staff are to take three months unpaid leave because of a … Aircraft manufacturers and their suppliers also are under immense pressure, with Boeing Co. calling for billions of dollars in state support and Airbus SE extending credit lines and canceling its dividend. Trans States Airlines flew for nearly 40 years and included partnerships with well-known airlines like Trans World Aviation (TWA). On 20th April Virgin Australia filed for voluntary administration, after nearly 20 years of operation. Different methods of estimating airline viability give out varying results, and not all airlines that are short of cash are going to go bust. More than 20 separate potential buyers are looking to invest in the airline. U.S. passenger carriers are poised to receive up to $25 billion in payroll support funds and cargo haulers $4 billion — earmarked for items like salaries, benefits and healthcare — with a like amount of loans. Catarina graduated with Mechanical Engineering and is now doing the B1 AME license. A Department for Transport spokeswoman said: "We won't comment on speculation." Asiana Airlines Inc. said it secured a bridge loan and will receive 1.6 trillion won ($1.3 billion) from Korea Development Bank and other creditors. Trip Report: What’s Changed on Emirates Flight? Last month, Air Mauritius entered into voluntary administration; after not being able to meet their current and future financial obligations, as a direct result of COVID-19 disruptions. The South African Government officially moved to shut down South African Airways on 1st May. Stop privatisation, Rinku Sharma brought knife that killed him & started the fight, claim families of accused. The global airline industry is facing a severe financial crisis due to coronavirus travel restrictions with a growing list of casualties. The airline announced a slump in bookings due to the deadly COVID-19 virus could make it difficult for them to survive until next week's budget review of … Not even after the 9/11 terrorist attacks. UK airline Flybe went into administration March 4, after a slump in bookings due to the novel coronavirus outbreak proved the nail in the coffin for the struggling carrier. While the list is concentrated in Asia, mostly due to high debt levels, European carriers aren’t immune, as the collapse of U.K. regional airline Flybe Group Plc proved. and will make an announcement in due course. “There is uncertainty as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020.”. Join 70,000+ others by subscribing to Sam Chui's weekly newsletter and be inspired by latest Aviation & Travel reviews and breaking deals! All Nippon Airways Co. declined to comment, saying the health and safety of its passengers and employees was its priority. There have been brutal layoffs and pay-cuts. Norwegian Air is trying to secure a government lifeline worth up to $270 million under certain conditions, and this week two Nordic banks were approved to provide a guarantee for the required 10% for the first tranche.