SINGAPORE: Widening travel curbs to contain the spread of the coronavirus led to further flight cancellations on Monday, with new restrictions spanning India, Australia, New Zealand, the UAE, Hong Kong, Singapore and Taiwan.
Globally the number of scheduled flights last week was down more than 12 percent from a year ago, flight data provider OAG said, with many airlines having announced further cuts to come.
“It is a war against a virus,” said Andrew Herdman, director general of the Association of Asia Pacific Airlines.
India’s commercial airlines were to cease domestic flights from midnight Tuesday, a Civil Aviation Ministry spokesman said, the latest country to impose tight air travel restrictions.
Cargo flights were exempt from the order.
The impact on planemakers has been deep and sudden and on Monday planemaker Airbus announced new steps to bolster its financial position, including the signing of a credit facility for €15 billion ($16.1 billion).
Airbus added it was withdrawing its 2020 financial guidance, dropping a proposed 2019 dividend that had a cash value of €1.4 billion ($1.5 billion) and suspending funding to top up staff pension schemes.
Its US rival Boeing is under similar pressure and has called for a $60 billion lifeline for the US industry.
Australia and New Zealand both warned against nonessential domestic travel, while the UAE halted flights and Hong Kong, Singapore and Taiwan took steps to ban foreign transit passengers.
“What we have to do is take care of the institutions and people’s livelihoods, the soft capital, so that we can restart effectively in a timely way when the time comes,” Herdman said.
The UAE, home to major carriers Emirates and Etihad Airways, said it would suspend all passenger flights and airport transit for two weeks to help rein in the virus.
The UAE’s decision takes effect in 48 hours, with cargo and emergency evacuation flights exempted. Emirates responded by saying it would temporarily suspend all passenger services for two weeks from March 25.
Etihad Airways told staff it was temporarily cutting management wages by 50 percent and other staff salaries by 25 percent due to the impact on its business by the coronavirus, said two sources familiar with the matter.
The carrier, which will stop all passenger flights for two weeks from Wednesday, did not immediately respond to a request for comment.
Wages would be cut for the month of April, the sources said.
“We will need to take some drastic measures to weather the storm over the next few weeks and avoid job losses as much as possible,” Etihad Chief Executive Tony Douglas said in a staff email seen by Reuters.
Singapore Airlines grounded most of its fleet after the Asian city-state banned entry or transit by short-term visitors on Sunday.
“This is the greatest challenge in the SIA Group’s existence,” Chief Executive Goh Choon Phong said in a memo to staff.
The group said it had reached agreements with unions on a set of cost-cutting measures, including unpaid leave, affecting about 10,000 staff. The chief executive is taking a 30% salary cut from the start of April.
The airline normally relies heavily on connecting passengers from markets such as Australia to Europe, and India to North America through its Singapore hub.
Taiwan announced similar travel curbs that will hit China Airlines and EVA Airways, which have marketed Taipei as a convenient and affordable transit airport, competing with Hong Kong and Singapore.
In Hong Kong, Cathay Pacific Airways Ltd. has cut its passenger capacity by 96% in April and May as government restrictions hit travel.
In the southern hemisphere, Qantas Airways Ltd, Virgin Australia Holdings Ltd. and Air New Zealand Ltd. were re-examining schedules after their governments advised against non-essential domestic travel.
Regional Express Holdings Ltd. (REX), which serves remote Australian towns, said it would shut all operations, except some subsidised routes, from April 6, unless governments quickly expressed a willingness to underwrite its losses.
In mainland China, domestic capacity has been rising as some internal curbs are eased, but there are concerns that passengers on international flights could re-import the virus.
China’s aviation regulator said all international flights due to arrive in the capital will be diverted to other airports from Monday.
