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Air France-KLM Gets €10 Billion Bailout as Coronavirus Hits Travel Air France-KLM Gets €10 Billion Bailout as Coronavirus Hits Travel
(7 days later)
PARIS — France and the Netherlands will provide an unprecedented taxpayer-funded bailout of 10 billion euros, about $10.8 billion, to salvage Air France-KLM as the fallout of the coronavirus on the travel industry exacts a devastating toll on global air carriers.PARIS — France and the Netherlands will provide an unprecedented taxpayer-funded bailout of 10 billion euros, about $10.8 billion, to salvage Air France-KLM as the fallout of the coronavirus on the travel industry exacts a devastating toll on global air carriers.
Air France-KLM, one of Europe’s biggest airlines, will receive a €4 billion bank loan backed by the French state and a €3 billion direct government loan, Bruno Le Maire, France’s finance minister, said late Friday. The Dutch government said it would provide an additional €2 billion to €4 billion in public aid.Air France-KLM, one of Europe’s biggest airlines, will receive a €4 billion bank loan backed by the French state and a €3 billion direct government loan, Bruno Le Maire, France’s finance minister, said late Friday. The Dutch government said it would provide an additional €2 billion to €4 billion in public aid.
The aid infusion falls short of nationalizing the company, in which the French and Dutch states each own a 14 percent share. The European Commission — the executive branch of the European Union, which has thrown out restrictions on state support amid a deep economic downturn — swiftly approved the bailout.The aid infusion falls short of nationalizing the company, in which the French and Dutch states each own a 14 percent share. The European Commission — the executive branch of the European Union, which has thrown out restrictions on state support amid a deep economic downturn — swiftly approved the bailout.
It is the third multibillion-euro lifeline extended this past week by the French government to companies battered by the coronavirus.It is the third multibillion-euro lifeline extended this past week by the French government to companies battered by the coronavirus.
The government is working on a €5 billion state-backed loan package for the flagship French automaker Renault, Mr. Le Maire said on Friday. Sales at Renault — which is part of the world’s biggest auto alliance, with Nissan and Mitsubishi Motors — have been hammered after quarantines closed dealerships and factories across Europe. The company had already been flagging in recent months as the arrest and subsequent escape of its former chairman, Carlos Ghosn, from Japan in January took a toll on the group.The government is working on a €5 billion state-backed loan package for the flagship French automaker Renault, Mr. Le Maire said on Friday. Sales at Renault — which is part of the world’s biggest auto alliance, with Nissan and Mitsubishi Motors — have been hammered after quarantines closed dealerships and factories across Europe. The company had already been flagging in recent months as the arrest and subsequent escape of its former chairman, Carlos Ghosn, from Japan in January took a toll on the group.
The state also backed a €500 million loan this past week for the French electronics retail giant FNAC-Darty, which employs tens of thousands in France, to help it secure cash flow and prepare for recovery after the pandemic.The state also backed a €500 million loan this past week for the French electronics retail giant FNAC-Darty, which employs tens of thousands in France, to help it secure cash flow and prepare for recovery after the pandemic.
Since the crisis hit, the French government has backed more than €20 billion in loans for 150,000 companies, part of a huge fiscal package to support the economy and limit mass joblessness until businesses can safely start operating again. The French economy is expected to contract by at least 8 percent this year, the sharpest drop since the end of World War II.Since the crisis hit, the French government has backed more than €20 billion in loans for 150,000 companies, part of a huge fiscal package to support the economy and limit mass joblessness until businesses can safely start operating again. The French economy is expected to contract by at least 8 percent this year, the sharpest drop since the end of World War II.
Few industries have been dealt as sharp a blow as the airlines, as worldwide travel bans bring fleets to a standstill. The International Air Transport Association cautioned this week that European airlines would see demand drop 55 percent in 2020 compared with 2019, with potential totaling $89 billion.Few industries have been dealt as sharp a blow as the airlines, as worldwide travel bans bring fleets to a standstill. The International Air Transport Association cautioned this week that European airlines would see demand drop 55 percent in 2020 compared with 2019, with potential totaling $89 billion.
Flights around Europe have slumped 90 percent, and most carriers don’t expect service to resume before June. The rollout of air traffic may depend on the introduction of government-mandated social distancing measures inside aircraft, the air transport association said.Flights around Europe have slumped 90 percent, and most carriers don’t expect service to resume before June. The rollout of air traffic may depend on the introduction of government-mandated social distancing measures inside aircraft, the air transport association said.
The Trump administration reached a deal with major U.S. airlines this month over the terms of a $25 billion bailout to help the companies pay flight attendants, pilots and other employees.The Trump administration reached a deal with major U.S. airlines this month over the terms of a $25 billion bailout to help the companies pay flight attendants, pilots and other employees.
Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will participate in the bailout, which is part of an economic stabilization package that Congress passed last month.Alaska Airlines, Allegiant Air, American Airlines, Delta Air Lines, Frontier Airlines, Hawaiian Airlines, JetBlue Airways, United Airlines, SkyWest Airlines and Southwest Airlines will participate in the bailout, which is part of an economic stabilization package that Congress passed last month.
European airlines were affected earlier than in the United States, after President Trump on March 12 shut America’s borders to most European travelers. While the travel ban helped slow the spread of the outbreak in the United States, European carriers have struggled to cope.European airlines were affected earlier than in the United States, after President Trump on March 12 shut America’s borders to most European travelers. While the travel ban helped slow the spread of the outbreak in the United States, European carriers have struggled to cope.
The German airline Lufthansa said on Thursday that it would require government bailouts after plummeting sales led to a loss of more than a billion euros in the first quarter, and investors are no longer willing to lend the company money. Passenger traffic has fallen to almost nothing, and the second quarter will be even worse, Lufthansa said in a statement.The German airline Lufthansa said on Thursday that it would require government bailouts after plummeting sales led to a loss of more than a billion euros in the first quarter, and investors are no longer willing to lend the company money. Passenger traffic has fallen to almost nothing, and the second quarter will be even worse, Lufthansa said in a statement.
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
Norwegian Air is seeking creditor support for a rescue plan that would convert up to $4.3 billion of debt into shares and raise new equity after it announced temporary layoffs last month of 7,300 employees, about 90 percent of its work force, and asked Norway’s government for help.Norwegian Air is seeking creditor support for a rescue plan that would convert up to $4.3 billion of debt into shares and raise new equity after it announced temporary layoffs last month of 7,300 employees, about 90 percent of its work force, and asked Norway’s government for help.
Air France, in which the government holds a 14 percent stake, put employees on part-time paid furlough for six months, complying with a government demand not to lay off workers. The carrier has lost about €25 million a day since then, pushing it into a critical financial state.Air France, in which the government holds a 14 percent stake, put employees on part-time paid furlough for six months, complying with a government demand not to lay off workers. The carrier has lost about €25 million a day since then, pushing it into a critical financial state.
With almost all of the company’s planes grounded, the financial lifeline is needed “to save the 350,000 direct and indirect jobs that go with them,” Mr. Maire said.With almost all of the company’s planes grounded, the financial lifeline is needed “to save the 350,000 direct and indirect jobs that go with them,” Mr. Maire said.
Air France-KLM’s chief executive, Ben Smith, told pilots this month during a videoconference call that it would probably take two years to regain the level of traffic seen in 2019. The carrier, which hopes to gradually restore flights over the summer, warned recently that with absence of ticket sales, it would urgently need cash in the July-September quarter to stay afloat.Air France-KLM’s chief executive, Ben Smith, told pilots this month during a videoconference call that it would probably take two years to regain the level of traffic seen in 2019. The carrier, which hopes to gradually restore flights over the summer, warned recently that with absence of ticket sales, it would urgently need cash in the July-September quarter to stay afloat.
In a statement, the finance ministers of France and the Netherlands said they would “take all necessary measures” to help the carrier “overcome this severe pandemic crisis.” The loans to the company and fresh government money are aimed at preserving the carrier’s financial and operational situation, they said.In a statement, the finance ministers of France and the Netherlands said they would “take all necessary measures” to help the carrier “overcome this severe pandemic crisis.” The loans to the company and fresh government money are aimed at preserving the carrier’s financial and operational situation, they said.
The support “is not a blank check” Mr. Le Maire said on Friday, adding that the governments had set profitability conditions on the carrier.The support “is not a blank check” Mr. Le Maire said on Friday, adding that the governments had set profitability conditions on the carrier.
“It is the money of the French, therefore it is necessary that the company make an effort to be more profitable,” he said. The company will also be required to become “the most environmentally friendly company on the planet,” he added.“It is the money of the French, therefore it is necessary that the company make an effort to be more profitable,” he said. The company will also be required to become “the most environmentally friendly company on the planet,” he added.