Airlines are now sprinting to slash costs and bolster company war chests where possible — laying off staff, cutting routes, renegotiating deals with suppliers and flying smaller, cheaper-to-run planes.
Australian carrier Qantas has cut international flight capacity by 90 per cent and domestic routes by 60 per cent.
British Airways is slashing capacity by 75 percent. Meanwhile, Dutch national airline KLM plans to cut up to 2,000 jobs, the CEO of Delta Air Lines has seen his salary cut to zero, and Lufthansa suspended dividends. In an internal memo, Malaysia Airlines admitted the company was already in a “critical situation” and urged staff to take voluntary unpaid leave.
“Many airlines are now at risk of going bankrupt and Malaysia Airlines is no different,” chief financial officer Boo Hui Yee wrote. Previously hushed whispers about government bailouts have become panicked screams for help.
British airlines are said to have asked the government for more than $9 billion in support. Trade group Airlines for America has called for a $50 billion bailout.
