COVID-19: governments across the world step up to provide emergency support to airlines at the time of need
As this is a fast moving topic, please note that this information is current as at 01/04/20. For further information, please contact Nick Humphrey.
As a result of the outbreak and spread of COVID-19, the global airline industry is facing a crisis greater than the combined impact of September 11 and SARS. With massive flight cancellations, travel restrictions and border closures, airlines are facing an imminent liquidity crisis as they manage fixed costs and fast depleting cash reserves with ticket cancellation and refunds. It is a fight for survival.
Passenger airlines and the aviation industry generally contribute significantly to the broader global economy and to help protect the industries survival, and importantly, immediate protection of jobs and wage, government across the world are stepping up to help. Some of the supporting steps taken include the relaxation of the EU slot rules, tax breaks and airport and aeronautical charge relief.
Kennedys Dubai-based aviation partner Nick Humphrey was interviewed on Dubai's Business Breakfast radio program to discuss the government support being provided in UAE to its fly carriers Emirates and Etihad and what the future shape of aviation may take in the coming years.