Airways, airports search recent methods to cope with money crunch amid disaster

By Jamie Freed

SYDNEY (Reuters) – Airways and airport operators stated they’re taking steps reminiscent of suspending dividends, promoting and leasing again airplanes and flying cargo on empty passenger jets as they grapple with a money crunch and plunging demand attributable to the coronavirus outbreak.

New Zealand’s Auckland Worldwide Airport Ltd <AIA.NZ> stated on Tuesday it might scrap its interim dividend on prime of cost-cutting measures that embrace a hiring freeze and a halt to discretionary spending.

In a blow to the airport operator, Air New Zealand Ltd <AIR.NZ> stated it might reduce capability to Australia by 80% from March 30 to June 30 after each nations stated over the weekend that every one vacationers would wish to self-isolate for 14 days after arrival.

Qantas Airways Ltd <QAN.AX> stated it might cease 90% of its worldwide flights and 60% of its home capability till no less than the top of Might, resulting in the grounding of the equal of 150 planes, together with most of its widebody fleet.

The Australian service final week instructed analysts it was trying to increase just a few hundred million {dollars} by refinancing a few of its plane.

Hong Kong’s Cathay Pacific Airways Ltd <0293.HK> stated on Monday it had agreed a $703.eight million cope with lessor BOC Aviation Ltd <2588.HK> to promote and lease again six Boeing Co <BA.N> 777-300ER airplanes to boost much-needed money.

The service, one of many earliest and hardest hit by the outbreak attributable to its proximity to mainland China, stated its full-service airways, Cathay Pacific and Cathay Dragon, had made an unaudited lack of HK$2 billion ($257.5 million) within the month of February alone.

It is going to reduce as much as 90% of its capability in April, up from an earlier plan of 65% introduced alongside its annual outcomes final week.

“If we don’t see a rest of journey restrictions…

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