NOLAnwGOLD

Seems lots of the Delta partners are worried that they will be shutting down like FlyBe did (code-share partner, future VS regional carrier).

Korean Air Warns That Coronavirus Could Put It Out of Business

https://skift.com/2020/03/09/korean-air-warns-that-coronavirus-could-put-it-out-of-business/

VIrgin Australia's stock is trading around 8 cents a share.
https://australianaviation.com.au/20...ares-nosedive/

Mwenenzi

VA is ~90% owned by foreign airlines, including HNA group, which has its own money problems. Very few VA shares in free float on the market

https://en.wikipedia.org/wiki/Virgin_Australia_Holdings
https://www.asx.com.au/prices/charti...ge=&timeframe=

gitismatt

I think somehow, defying all odds, AZ will still exist after this

The Situation

LOL, so true! Small carriers, especially those that were on questionable financial footing pre-crisis, will be allowed to go under. Once you start talking about flag carriers and major carriers, governments will step in to prevent them from failing. They are too important for commerce (once things return to normal) and too large a source of employment (i.e. AZ). Governments don't like to appear that they don't care about thousands or tens of thousands losing their jobs. In the U.S., things should start to stabilize before bailouts are truly necessary, but that stabilization may include ending service to smaller airports and significantly reducing schedules, and I don't foresee politicians letting that happen. I do expect some sort of an unnecessary "bailout" package in the U.S., and although it should take the form of subsidizing routes that would be cut (if it were to happen, although I do not agree with it), it will wind up being a lot broader.

Stuttgart21

Doesn't look like it. European news outlets reported today that the Italian government is willing to go along with a breakup of AZ. Until yesterday (or a few days ago), the state's position (directly/indirectly the majority owner) was that of no breakup. Now, it is increasingly likely DL or AF-KL-DL gets a piece while LHG or someone else gets another piece.

ab2013

Right on! https://www.reuters.com/article/us-i...-idUSKBN2120PH

GrayAnderson

At least for now. There's still those messy EU state aid rules, but I think there's probably going to be a consensus to suspend those for a bit given that the alternative is likely to be a massive wave of collapses.

NOLAnwGOLD

KAL and Virgin Australia are now stop sale for travel agencies which isn’t a good sign

https://apple.news/AqRENEeS7RASLekNiSx3IJw

travelinmanS

I don’t understand how KAL got into trouble so quickly. But it does shed some light on why my refund for travel with them last month still hasn’t been processed.

Im willing to go out on a limb and say that MU will survive

ekozie

VS is cutting capacity 80% (and parking planes, obviously) according to CNBC this AM. I bet Richard Branson really wishes didn’t back out of he selling his stake a couple months ago.

PeggyJM

Well, this would be a mess since Delta pulled out of most of the Asian market, turning it over to KAL instead.

PeggyJM

I can easily see how they got into trouble. Have you gone to their site to see their list of cancellations/suspensions? Most of the countries they fly to have banned travelers entering from Korea.

ekozie

That was March 9th, at the peak of South Korea’s crisis. Is KE in great shape? No, but it’s not as dire as a week ago.

travelinmanS

I understand the current situation, which is why I cancelled my ticket. What my surprise was based on was that they had such a small cash reserve that in less than a month they are on the brink.

hi55us

Time to bring back the 747s! How much to reinstate them from the junkyard in AZ?