Trade Minister Simon Birmingham has emphasised the need for a “strong airline sector”, after the federal government announced a $715 million financial assistance package in response to the coronavirus. However, UNSW economics professor, Tim Harcourt, warns that the government may need to acquire equity stakes in airlines if the virus-induced downturn worsens. Whereas UQ’s John Quiggin believes the temporary nationalisation of companies such as airlines may be necessary. From The New Daily:
Qantas CEO Alan Joyce, who will forgo his $24 million annual salary for the rest of this financial year, told staff on Tuesday the virus was “the single biggest shock that global aviation has ever experienced”.
…in the aviation sector… fixed costs can comprise 80 per cent of overheads and customers are cancelling flights en masse due to travel restrictions and rapidly diminishing demand for vacations…
