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Coronavirus chaos and travel concerns – UK airline collapses, aviation industry facing huge losses

The aviation industry is facing losses of more than 100 billion dollars as a result of the coronavirus, according to the International Air Transport Association. The IATA recently revised this figure up to between 63 and 113 billion dollars for 2020, depending on how the virus spreads. That's more than double its original estimate from last month. 

 

This would translate into a loss in worldwide passenger revenue of 11 to 19 percent. To help mitigate the effects, the body has called for the suspension of the 'use it or lose it' rules governing the take-off and landing slots for aircraft. 

 

The IATA's Director, General Alexandre de Juniac, said: "Traffic has collapsed on key Asian routes and that this is rippling throughout the air transport network globally, even between countries without major outbreaks of COVID-19.

 

"The world is facing a huge challenge to prevent the spread of COVID-19 while enabling the global economy to continue functioning. Airlines are on the front line of that challenge and it’s essential that the regulatory community work with us to ensure airlines are able to operate in the most sustainable manner, both economically and environmentally, to alleviate the worst impacts of the crisis."

 

The virus has killed more than 3,000 people and infected 90,000 more as it spreads from China across the world. 

 

Already, it has dragged one airline under. British carrier Flybe has gone into administration, putting around 2,000 jobs at risk. The company’s chief executive Mark Anderson wrote in a letter to staff: "Despite every effort, we now have no alternative – having failed to find a feasible solution to allow us to keep trading." 

 

The UK government has pledged to help Flybe staff find new jobs, and encourage other airlines to replace the company’s routes. Flybe is advising customers not to travel to the airport unless they have booked with an alternative airline. 

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