Index – Economy – Countries use iron forks to distribute money on their airlines

Many European airlines have launched their flights, including Wizz Air or Ryanair from Budapest. It is true that we could get from Budapest to Lisbon in a few days, in principle, at a much higher price than usual, but about 60-100 thousand forints.

These tickets are worth being careful to the extent that, although refined airlines do not print them in intermittent letters, they still make you an average Hungarian citizen.

For some popular foreign resorts, maybe not even until late fall. And the airline will certainly not compensate us if we return from the airport. Therefore, it is worth thinking very carefully whether we really need to fly right now, and if so, whether we will go beyond airport inspections.

If the flight is unavoidable, the airport will ask you to do it in mask and alone, to check in online and choose self-service baggage check-in. They give them a hand sanitizer, and it would probably be better if they didn’t try to steal them now.

Incidentally, this year, passenger traffic at Ferihegy airport could be cut by about half year-round. The airport also started firing people earlier, as did the large state-run groundhandling company, Malév Ground Handling.

They begin to fly almost empty

Therefore, Ryanair and Wizz Air would flee in advance, although Wizz Air, for example, plans only 10% occupancy for its May flights. This is perhaps easier to imagine if, if the middle seats are omitted due to the risk of infection, they can sell 120 seats on a plane of approximately 180 seats, a tenth of which is exactly 12 passengers. But 18 would not be much more.

But even for June, only around 70 percent occupancy is expected, though on the one hand, it can be said that he is quite optimistic about entry restrictions. On the other hand, under a general industry rule, a flight with zero utilization at approximately 75 percent is zero overall. However, neither Wizz Air nor Ryanair formally requested state aid. Although the Hungarian government was able to request that Wizz Air fly frequently to China during the most empty period, for several medical devices ordered from there by the state.

Among the big low-cost benchmarks, Easyjet, on the other hand, applied for a £ 600m state-subsidized loan (roughly $ 240bn forints), its planes did not fly, and most of its people were shipped from holidays. In addition, its largest shareholder, Stelios Haji-Ioannou, a Greek Cypriot who owns a third of the company, has been completely rejected with them.

Haji-Iannou openly

And you essentially want to fire the entire board right now, based on a variety of arguments. However, the main reason for the problem is probably that you want the company to stop all possible aircraft purchases immediately and prefer to pay more dividends. The administration, on the other hand, does not want to give up the possibility of growth after the closure, it would force the opposite.

There are big problems in most places.

But other European airlines are still not concerned with flights trying to reach others, but how they will survive this year. British Airways recently announced that it would have to lay off almost a third of its workers, which are approximately 12,000 people.

Lufthansa is currently negotiating the nationalization of a quarter of the troubled company in Germany, but the Belgian, Austrian and Swiss states could also embark on a rescue of the company, with a total rescue package of € 10 billion (HUF 3,540 billion). Approximately 10,000 people are planned to be fired along with him.

The Italian Alitalia, which is also in trouble anyway, will be fully nationalized by the summer, reorganized and, according to the Italian Minister of Industry, will become an absolutely competitive airline after the epidemic. If this happened, Italian passengers and taxpayers would also benefit.

Air France-KLM, on the other hand, is asking for even more than the Germans, they need 11 billion euros, much of it from the French state. In return, they plan to undertake something that will operate significantly greener or KLM will not pay dividends as long as they need to receive state support.

Norwegian has laid off 80 percent of its employees, announcing that its machines are unlikely to take off this year, and most of its shareholders are convinced they need to borrow a package of approximately one hundred billion state-subsidized loans in HUF. Scandinavian Airlines, which is also owned by the Danish and Swedish states, is also not very brilliant, but it could get a state loan of approximately half a billion euros.

In the United States, world money may also be scarce

American aviation is also practically dead, and a summer relaunch is likely to remain a dream. Demand fell 95 percent, with more than 80 percent or even more of the machines remaining in the hangars in June. By the end of April, a total of approximately 90,000 employees of the three major US airlines (American, Delta, United) had left on voluntary leave to help their company.

Since then, U.S. airlines have received a total of $ 25 billion ($ 8.1 billion) in immediate rescue packages from the state, as long as they can’t kick a small one until the end of September. But several airlines have indicated that this is good, but if there is to be an incredibly unexpected demand that will skyrocket in the near future, they will have to eject many people in the same way this year.

JP Morgan Chase also noted in his analysis that “October 1 may be one of the darkest days for aviation workers” in the region. The federal government of the EE. USA You have probably only gained time with this money so far, during which time you can be fired to extend generous subsidies or discover something else for workers. It would certainly be a goal of its own to wait for these people to be fired en masse.

United Arilines is still cutting its working hours and wages by a quarter for its 15,000 workers, even though they have received a fifth of the total 25 billion rescue package. That is why some senators and unions have already started flirting because they are already violating the terms of the aid.

This aid package alone only protects airline employees, who are constantly kicked out of companies by other companies associated with aviation. Already in trouble, Boeing plans to ditch 10 percent of the workforce, roughly 16,000 workers. GE has already laid off 2,600 people who worked to drive planes, and now they will be rid of about half of those who worked to assemble them in the US. USA

According to the huge SEIU union, at least 13,000 workers have been expelled from airports so far. Regardless, a $ 3 billion state salary supplement rescue package is also being prepared for them, just for lack of time.

According to Dave Calhoun, CEO of Boeing

It will take 2-3 years for aviation to return to 2019 levels and, a few years beyond, the industry will return to levels in line with the long-term growth trend.

It is a sign that Warren Buffet, one of the world’s most successful long-term investors, has sold all of his stakes in major US airlines. It also had a serious stake in the Delta, the United States, the United States, and the Southwest, about 10 percent, and has now probably fallen dramatically on them.

Incidentally, between the two crises, US airlines were operating with significantly less competition and thus a much higher net profit rate than their European counterparts.

According to the president of the big aviation association, IATA, the industry has never closed at this level, so they don’t even know what a restart will be like next. According to Alexandre de Juniac, the industry could lose more than $ 250 billion in revenue this year, almost half of last year’s total revenue. They are confident that the states will help them recover and, on the other hand, the enthusiasm of the passengers will return as soon as possible. The latter, incidentally, are not doing really well anyway, according to an April global poll, 40 percent of passengers don’t even want to fly for at least half a year if they could.

(Cover image by David Ryder / Getty Images)