COVID-19: CAPA says most airlines will be bankrupt by May-end unless there is coordinated government-industry action

News Network
March 16, 2020

New Delhi, Mar 16: Due to the coronavirus pandemic, most airlines in the world will be bankrupt by the end of May and only a coordinated government and industry action right now can avoid the catastrophe, said global aviation consultancy firm CAPA in a note on Monday.

"As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants," it stated.

Across the world, airlines have announced drastic reduction in their operations in the wake of the coronavirus outbreak. For example, Atlanta-based Delta Air Lines stated on Sunday that it would be grounding 300 aircraft in its fleet and reduce flights by 40 per cent.

The US has suspended all tourist visas for people belonging to the European Union, the UK and Ireland. Similarly, the Indian government has suspended all tourist visas and e-visas granted on or before March 11.

CAPA, in its note on Monday, said, "By the end of May-2020, most airlines in the world will be bankrupt. Coordinated government and industry action is needed - now - if catastrophe is to be avoided."

Cash reserves are running down quickly as fleets are grounded and "what flights there are operate much less than half full", it added.

"Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon," it said.

India's largest airline IndiGo -- which has around 260 planes in its fleet -- said on Thursday that it has seen a decline of 15-20 per cent in daily bookings in the last few days.

The low-cost carrier had stated that it expects its quarterly earnings to be materially impacted due to such decline.

CAPA said the failure to coordinate the future will result in protectionism and much less competition.

"The alternative does not bear thinking about. An unstructured and nationalistic outcome will not be survival of the fittest.

"It will mostly consist of airlines that are the biggest and the best-supported by their governments. The system will reek of nationalism. And it will not serve the needs of the 21st century world. That is not a prospect that any responsible government should be prepared to contemplate," the consultancy firm said.

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News Network
July 24,2020

Kathmandu, Jul 24: At least 132 people lost their lives as a result of heavy rains triggering landslides, and flash floods in Nepal.

"132 people dead, 128 injured, 53 missing and 998 families affected due to rainfall, landslides and floods in the country as of 23rd July," Nepal Disaster Risk Reduction and Management Authority Within the last two weeks, the Myagdi district of western Nepal was the worst affected with 27 reported deaths.

Search and rescue operations are being conducted continuously with officials and police personnel who are looking through the debris to find missing people.

Monsoon-induced disasters are common in Nepal owing to the country's mountainous topography. Hundreds have been displaced as landslides have swept away their homes. They ended up taking refuge in local schools and community centers.

Nepal's Meteorological Forecasting Division earlier last week had predicted heavy downpour across the country. The Division had warned of monsoon winds being near the low-pressure line in the Terai belt, which would consequently cause more rainfall.

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News Network
April 6,2020

New Delhi, April 6: The United States has donated $2.9 million assistance package for India to help the Narendra Modi government brace itself against the coronavirus as countries across the world are coming together to combat the outbreak.

On March 28, the US government, via US Agency for International Development, announced $2.9 million to support India in its response to COVID-19.

"It builds on a foundation of over $1.4 billion in health assistance and nearly $3 billion in total assistance that the US provided to India over the last 20 years," the US Embassy in India said in a statement.

"These new funds will support two organisations, including $2.4 million for USAID's health strengthening project, implemented by Jhpiego, an international non-profit health organisation affiliated with Johns Hopkins University and $500,000 for the World Health Organization (WHO)," the statement said.

The funds will also help India combat the spread of COVID-19, provide care for the affected and support local communities with the tools needed to contain the disease, it added.

Moreover, being a global leader in health and humanitarian response to COVID-19, the US has provided approximately $18.3 million assistance package to ASEAN member countries to fight the contagion.

The funds will be used to prepare laboratories for large-scale testing for the lethal virus, infection prevention and control, enable risk communication, implement public-health emergency plans for border points of entry, activate case-finding and event-based surveillance for influenza-like illnesses, train and equip rapid-responders in investigation and contact-tracing and update training materials for health workers.

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Agencies
June 23,2020

Islamabad, Jun 23: Seven more Pakistan cricketers, including Muhammad Hafeez and Wahab Riaz, selected for the tour of England have tested positive for COVID-19, taking the total to 10, the PCB revealed on Tuesday.

The seven who tested positive on Tuesday are Kashif Bhatti, Muhammad Hasnain, Fakhar Zaman, Muhammad Rizwan, Imran Khan, Hafeez and Riaz. Shadab Khan, Haider Ali and Haris Rauf had returned positive tests on Monday.

“It is not a great situation to be in and what it shows is these are 10 fit and young athletes...if it can happen to players it can happen to anyone,” Pakistan Cricket Board (PCB) CEO, Wasim Khan told a media conference.

He said a support staff member, masseur Malang Ali, had also tested positive for COVID-19.

Khan said that the players and officials would now assemble in Lahore and another round of tests would be carried out on June 25 and a revised squad would be announced the next day.

The squad has to leave on June 28 for the series scheduled to be held next month, he said.

“It is a matter of concern but we shouldn’t panic at this time as we have time on our hands,” Khan said.

He said the players and officials would be retested on reaching England.

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