SYDNEY/PARIS (Reuters) – Boeing and other U.S. aviation companies are seeking billions of dollars in aid as they battle to survive a plunge in demand caused by the coronavirus pandemic, while Airbus is pausing production at two sites to bolster health and safety measures.
FILE PHOTO: An Air New Zealand aircraft passes a fuel truck on the tarmac of Auckland Airport during fuel shortages in New Zealand, September 20, 2017. REUTERS/Nigel Marple
The rapid spread of the virus across the world has battered airlines as governments have introduced travel restrictions and consumers have stopped making bookings, calling into question the survival of several companies.
To preserve cash, airlines are cutting flights, laying off staff, suspending dividends, selling planes and flying cargo on empty passenger jets.
“It’s now fair to call this the single biggest shock that global aviation has ever experienced,” Qantas Airways Ltd CEO Alan Joyce said in a memo to the airline’s 30,000 staff on Tuesday that was seen by Reuters.
Boeing Co on Monday said it was in talks with senior White House officials and congressional leaders about short-term assistance for the entire U.S. aviation sector.
U.S. airlines and cargo carriers have said they are seeking at least $58 billion in loans and grants along with additional tax changes, while airports are seeking $10 billion.
European airlines have also stepped up calls for emergency government aid. Passenger traffic across the region slumped by more than hal