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Tag: Airline Industry

  • US-based airlines want more money than the federal government offers

    US-based airlines want more money than the federal government offers

    Major US airlines have asked the US government in a joint letter for $58 billion in financial aid.
    “Given the urgent and immediate need, it is imperative that these funds be paid out as soon as possible,” it is said in a letter read by Reuters news agency.
    AA airplane (public domain)
    The letter is signed by the directors of American Airlines, Delta Air Lines, United Airlines, Alaska Airlines, JetBlue, Southwest Airlines, Hawaiian Airlines and Atlas Air, and freight carriers UPS and FedEx.
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    In the $2 trillion bailout package that aims to mitigate the economic impact of the corona virus, $50 billion is reserved for airlines that carry passengers and $8 billion is reserved for grants and loans to freight carriers.

    The companies risk firing thousands of people if they don’t get enough support. The airlines based the calculations of the necessary cash on the salaries paid in the period April – September last year.

  • Virgin Atlantic to ask British government for financial support

    Virgin Atlantic to ask British government for financial support

    The British airline Virgin Atlantic will knock on the door of the British government for state aid in the coming days, Financial Times (FT) writes. The worldwide travel restrictions have forced many airlines to cut flight schedules, causing economic difficulties.

    Virgin Atlantic plane (pic: wikimedia commons)

    In addition to Virgin Atlantic, other airlines such as EasyJet, Loganair and Eastern Airways are also considering going to the government for financial support.

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    According to FT, regional airlines will be the first to qualify for emergency aid, given the government’s policy to promote economic activity in regions outside London.

    Virgin Atlantic’s wealthy owner, Richard Branson, pledged to invest $250 million (224 million euros) in Virgin Group last week, much of which will go to the airline. In addition to Atlantic, companies such as Virgin Hotels and Virgin Rail are also part of Virgin Group.