There are many airlines in the world that are at risk of going bankrupt as air travel has come to a standstill amidst the spread of coronavirus pandemic. Pakistan International Airlines (PIA) is amongst the worst-hit carriers.
As per a spokesman for PIA, the losses and debt of PIA have become too high for the airline to handle alone. The options for the airline include a debt-to-equity swap and issuance of the long-term bond.
The airline industry around the world has never suffered so badly, not even after the 2001 9/11 terrorist attacks in the US.
According to the International Air Transport Association, the airlines can lose a quarter of a trillion dollars in revenue in 2020. As per the Sydney-based CAPA Centre for Aviation most of the air carriers will go bankrupt if they are not able to find support.
Due to coronavirus lockdowns, the airlines can lose a quarter of a trillion dollars in revenue this year.
All the airlines are at risk, there is no discrimination in it. This crisis will affect budget operators, national flag carriers, aircraft manufacturers, suppliers, hence the whole aircraft industry will be negatively affected due to this alarming situation.
The airlines most at risk of getting bankrupt are PIA, AirAsia Indonesia, Nok Air, PNG Air, Kenya Airways, SpiceJet, Virgin Australia, Asiana, AirAsia X, and Avianca.
There is focus on Asia in the list but the European carriers will also get affected as proved by the collapse of UK regional airline Flybe Group Plc
Qatar Airways’ Chief Executive Officer Akbar Al Baker said, “People who were bragging about not taking state aid and being independent are now themselves all over the world asking for state aid.”