This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-51799142
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Coronavirus: Korean Air fighting for 'survival' | |
(about 7 hours later) | |
Korean Air has warned the coronavirus outbreak could threaten its survival in a memo sent to employees. | |
South Korea has been hit hard from travel restrictions aimed at curbing the spread of the virus. | |
Its national carrier has cut more than 80% of its international capacity while encouraging employees to take voluntary leave. | |
In the memo, Woo Kee-hong, Korean Air's president said the airline couldn't predict how long the crisis would last. | |
"But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival," he said in the memo, which was seen by Reuters. | |
A spokesman for Korean Air told the BBC the purpose of the internal memo was "to encourage employees and ask for understanding to overcome the crisis together". | |
"We have gone through numerous difficulties for the past 51 years, and I'm confident that we will overcome this crisis together," he said. | |
The airline industry has been struggling with a sharp downturn in passengers numbers with travel restrictions in place and an unwillingness to fly during the virus outbreak. | |
The International Air Transport Association, a trade body, estimates the virus could reduce passenger revenue globally this year by between $63bn and $113bn. | |
Carriers across the world have been introducing hiring freezes and asking staff to take unpaid leave along with grounding planes. | |
The latest is Australia's Qantas airline which is making deeper cuts to its flights, with Asia and the US routes hit the hardest. | |
The company said it would reduce international flights by nearly 25% as it sees demand fall from passengers worried about the coronavirus. | The company said it would reduce international flights by nearly 25% as it sees demand fall from passengers worried about the coronavirus. |
Qantas and its budget airline Jetstar will reduce operations for the next six months. | Qantas and its budget airline Jetstar will reduce operations for the next six months. |
It will ground eight of its 10 double-decker Airbus A380s and replace them with smaller planes while reducing the frequency of flights. | |
"We expect lower demand to continue for the next several months, so rather than taking a piecemeal approach we're cutting capacity out to mid-September," Qantas chief executive Alan Joyce said. | "We expect lower demand to continue for the next several months, so rather than taking a piecemeal approach we're cutting capacity out to mid-September," Qantas chief executive Alan Joyce said. |
Mr Joyce said he will forgo some of his A$24m (£12m) salary while other Qantas executives will take a 30% pay cut during the downturn. | Mr Joyce said he will forgo some of his A$24m (£12m) salary while other Qantas executives will take a 30% pay cut during the downturn. |
UK-based Flybe was the first casualty of the coronavirus, going into administration last week. Analysts warn others could follow. | |