Airlines stunned by the coronavirus crisis and without the prospect of a rebound before long months, even years, are cutting jobs by the thousands, causing the entire aeronautical sector to fall. In an open letter, the main European airlines asked for " urgent " financial and regulatory support at European level, before a videoconference Wednesday of the Ministers of Transport. And this while the social plans follow one another.
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"The situation is not resolved at all"
Faced with an air gap that could last - up to two or three years say experts, and some big bosses in the sector - British Airways announced Tuesday the loss of 12,000 jobs, out of a total of 42,000. The same day, the Scandinavian SAS and the Icelandic Icelandair announced the departure of 5000 employees for the first and 2000 for the second.
Professionals in the sector, accustomed to absorb shocks and rebound quickly - as after September 11, 2001 or the financial crisis of 2008 - fear this time the double effect of a global recession and the caution of travelers paralyzed by the spread rapid and global coronavirus.
Read also: Coronavirus: British Airways plans to cut 12,000 jobs
" Many companies have found themselves in default (...) governments are providing substantial support but the situation remains extremely fragile, " said Brian Pearce, chief financial officer of the International Air Transport Association (Iata), on Tuesday. .
“ The situation is not resolved at all. At the start of the year, companies had an average of two months of cash reserves that they have already used up, "he added.
State aid
The organization estimated the decline in airline revenue in 2020 at $ 314 billion, a drop of 55% compared to revenue in 2019. According to it, 25 million jobs in the aviation and related activities are threatened worldwide. Just over a week ago, the Australian giant, Virgin Australia (10,000 jobs) voluntarily put in default, becoming the first major airline to collapse.
In Norway, low-cost carrier Norwegian Air Shuttle announced on April 20 the bankruptcy of four subsidiaries in Sweden and Denmark, threatening 4,700 jobs. Strangled by large fixed costs, the companies called on the states for help.
The French and Dutch governments announced Friday aid for the two branches of the Air France-KLM group in the form of direct or guaranteed loans, for a total amount of 9 to 11 billion euros. The Lufthansa group is in discussion " to ensure its solvency " with the governments of the four countries in which it is active (Germany, Austria, Belgium and Switzerland).
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For the moment without result: Germany plans to temporarily raise up to approximately 9 billion euros in the capital of the historic company, but the German State claims to have a say in the conduct of business, what Lufthansa does not want.
In this context of tense negotiations, the company says that it is also examining a kind of " safeguard procedure ", allowing it to catch its breath without being controlled by a court administrator or having to file for bankruptcy.
Behind the companies, a whole sector suffers
Airlines are not the only ones affected by the crisis. Condor, a subsidiary of bankrupt tour operator Thomas Cook, will receive 550 million euros in loans guaranteed by the German public authorities. And as a whole, the global airport industry should lose 76 billion in turnover in 2020, according to its federation, ACI.
The manufacturer Airbus sees meanwhile requests for postponement of aircraft orders. The European aircraft manufacturer, which published a net loss of 481 million euros on Wednesday for the first three months of the year, has already slowed down its production and has taken measures of partial unemployment.
Read also: Airbus: net loss of 481 million euros in the 1st quarter, under the effect of the coronavirus
Its American competitor Boeing also publishes its results on Wednesday. He has already asked for government aid of at least $ 60 billion for him and his 17,000 subcontractors, but refuses any entry by the federal state into its capital.