The airline largely considered to be the best in the world, has acquired a new credit source of some $10 billion to manage the cash flow issues of the coming years.
This is significant in that it’s been possible for many airlines around the world to obtain finance, which was the problem in the last recession – there was no money to lend out.
This time the future prospects for airlines are seen as highly viable and profitable – it may take time but investors are happy to put money behind worthy airlines.
Airbus and the French aviation component sector of industry are to receive a package of aid valued around €16 billion.
The French Government decided that the industry was simply to vital to the country and to Europe as a whole, and couldn’t be allowed to fall into a crisis. With China’s COMAC and Boeing both increasingly competitive, French and European aviation companies are crucial to the economy as a whole.
The Italian government has been asked by the EU to rethink the relaunch of Alitalia.
Part of the problem is that the airline is basically state owned, state funded and controlled to such a degree that its in breach of just about every competition rule going.
The rules for now have been suspended due to the Covid crisis, but the EU is looking past that to an airline that will continue to be a state funded asset for years to come.
The President of Namibia has declared the airline needs to be scrapped.
“Air Namibia must be liquidated, we have a serious problem with Air Namibia. It must be restructured. It is not making any profits and it is just being bailed out. We must do something about it”, he said.
And it’s true, it’s a huge country, lightly populated but it’s very dependent on airlines for connectivity. The trouble is it’s simply not viable.
Without it the country takes a serious hit and becomes dependent again, on neighbour South Africa. With it, it has to be prepared to operate at a loss.