Not only American Airlines, Delta, Air France, Lufhtansa, Alitalia, Ryanair and beyond: loans and state aid to airlines for the lockdown from Covid-19
The lockdown imposed by the Covid-19 pandemic has also brought airlines to their knees, forced to leave their aircraft on the ground and cancel all scheduled flights. A crisis that has led many governments to get their hands on the portfolio to help companies in the sector.
Italy has nationalized Alitalia, which has been in crisis (in reality) for several years now and Germany has set up a 9 billion package to help Lufthansa (in exchange for entry into the shareholder base). EasyJet and Ryanair have instead resorted to a loan of £ 600 million. France plans up to 15 billion for companies in difficulty, while the US is ready to allocate over 50 billion. All the details.
THE US SPENDS MORE THAN 50 BILLION
Let's start from overseas. In fact, the USA has put the most conspicuous aid package to national airlines on the plate: up to € 53.7 billion. The big companies will benefit from it, such as American Airlines, Delta Air Lines and United Airlines, but also the smaller airlines: JetBlue, Alaska Air, Allegiant, Frontier, Hawaiian and SkyWest.
According to Il Sole 24 Ore , American will receive 5.8 billion: 4.1 billion in the form of grants, grants, and 1.7 billion as a loan. The company plans to apply for an additional 4.75 billion in loans from other chapters of the coronavirus relief law.
FRANCE PUTS ON THE PLATE 15 BILLION
France also puts its hand to the wallet to help airlines. According to what was announced today by the Minister of Economy, Bruno Le Maire, Paris opted for "a total effort of 15 billion euros".
"We declare a state of emergency to save our aviation industry and allow it to be more competitive" and "more decarbonised," said the minister. A message also to Air France, therefore
7 billion, with the endorsement of the EU, will go to Air France-KLM . Holland is also ready to provide substantial aid.
GERMANY: 9 BILLION FOR LUFTHNSA
The German government is ready to help Lufthansa: Merkel has designed a 9 billion package for the German airline, which in the first quarter of 2020 recorded a net loss of 2.1 billion euros.
The state will enter the capital and will be the first shareholder with a 20% stake (with the possibility of increasing to 25%). The stabilization fund will acquire holdings of up to € 5.7 billion, € 4.7 billion of which classified as equity. It will also subscribe shares as a capital increase in order to constitute a 20% stake in the share capital. The cash contribution will amount to approximately 300 million. 3 billion should go to Lufthansa's coffers in the form of loans from the public bank Kfw (private banks for 600 million euros also participate in the figure).
However, everything is still to be decided (Lufthansa is still undecided whether or not to accept aid because of the conditions imposed by the EU) .
SWITZERLAND PUTS 1.8 BILLION FIELDS
And always remaining on Lufthansa, Switzerland allocates 1.2 billion euros to help Swiss (which is part of the German group) and the Edelweiss company.
THE NATIONALIZATION OF ALITALIA
In the midst of a pandemic, Italy has instead decided to nationalize Alitalia, the former flag carrier. With the relaunch decree, the Ministry of Economy has allocated a total of 3 billion for 2020 to make the company take off again with the birth of a newco. The money adds up to the 350 million of the Cura Italia decree and old aid.
EASYJET AND RYANAIR HAVE OBTAINED A LOAN
The low cost EasyJet and Ryanair, on the other hand, made use of a loan.
The two companies received a £ 600 million loan each from the Treasury and the Bank of England. The money was taken from the Coronavirus emergency fund.
THE BRITISH AIRWAYS CRISIS
A very different situation for British Airways that in the absence of unconditional state aid from the British government, it now threatens to cut 12,000 of its 42,000 employees. The British company is already in talks to agree on the dismissal of over 1,130 pilots with Balpa, the trade union association of the sector.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/american-airlines-air-france-lufthansa-alitalia-e-non-solo-come-decollano-aiuti-e-prestiti-di-stato/?utm_source=rss&utm_medium=rss&utm_campaign=american-airlines-air-france-lufthansa-alitalia-e-non-solo-come-decollano-aiuti-e-prestiti-di-stato on Tue, 09 Jun 2020 12:38:15 +0000.