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.
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.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
