U.S. airlines are seeking as much as $50 billion in federal support as travel restrictions aimed at containing the spread of coronavirus have pushed the industry’s biggest players to the brink of bankruptcy.
The airlines are seeking a combination of grants, government-backed loans and tax relief, the industry’s main trade group, Airlines 4 America, has said.
The impact of the travel restrictions has been swift and dramatic: Among the country’s Big Three airlines, American Airlines has slashed its international flights by 75 percent, United Airlines plans to cut half its domestic and international flights through the next two months, and Delta Airlines has said that bookings have plummeted by roughly a third.
Meanwhile JetBlue, Southwest and Alaska have reduced their schedules, and some ultra-low-cost providers like Frontier and Spirit have taken dramatic steps to prop-up ridership, with Frontier on Monday announcing free flights for students with .edu email addresses.
“This is a today problem, not a tomorrow problem. It requires urgent action,” A4A president and CEO Nicholas Calio said in a statement.
The Wall Street Journal was the first to put a number on the bailout request.
The trade group’s statement sought to underscore the urgency, describing a “dramatic decline in demand” that is “getting worse by the day,” “historic capacity cuts” and a “staggering” economic impact on U.S. airlines.
United Airlines’ market value has plunged by 60 percent since the start of the year. American Airlines’ stock price has fallen by more than 50 percent, and Delta Airlines’ by close to 40 percent.
“U.S. carriers are in need of immediate assistance as the current economic environment is simply not sustainable. This is compounded by the fact that the crisis does not appear to have an end in sight,” the trade group said.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
