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Friday, May 22, 2020

The reality of most airlines going bankrupt

38 millions Americans have lost their jobs due to Covid-19. Worldwide,billions are out of jobs too and millions may die of starvation due to the lockdown imposed by their governments. Many businesses are bankrupted by the pandemic and airlines will not escape too.
Thai Airways,Virgin Australia, Flybe (UK), Compass Airlines (USA), Trans States Airlines (USA) and others have either closed shop or  file for bankruptcy.
In a way SIA is quite fortunate as the SG government is willing to give a helping hand. Many are not as fortunate as SIA, example the Australian government is unwilling to help Virgin Australia which is saddled with a huge debt of A$5 billion. But the question is how long can the SG government help SIA? If and I say if the pandemic does not go away in the next 18 to 24 months can the government still carry on helping SIA?
According to the British PM Boris Johnson who has just recovered from Covid-19, a vaccine for Covid-19 may never be found. The WHO has warned the coronavirus may never go away and the world has got to live with it.
I shudder at the thought of our airlines falling victim to Covid-19.

Richard Branson warns Virgin Atlantic will go bankrupt if he can't obtain funding for the airlines....more

Some of the above is my personal view after reading so much on how Covid-19 will impact or have impacted businesses around the world and in particular, airlines,tourism and the travel industries.

15 comments:

Anonymous said...

SIA is technically bankrupt already.
Where is the talk of 'should i buy more SIA shares as thing looking good' just a few months ago or the prospect of hitting $18/share when A380 was launched?
Staff are retrenched when they are asked to go on no pay leave. They just dont wanna use the word retrench. Jus like how they use fancy terms like 'circuit breaker'.

Anonymous said...

Things not looking good in the short term.To capture the glory days,a bleak and dark cloudy skies for all airlines,till the magic bullet is found and all innoculated,covid 19 kills all include lives,jobs,fertility and a depopulation exercise by nature.No need suicide bombing,indoctrination,or nuke deterence.Can be considered karma for some,because mother nature is the final victor,not freedom,democracy,rights ,wealth,power.Dont need fancy name,rank like Manager or bigger pay,just live another day seems to be a spin of the dice.The bottle game stop at one,drink up or whatever.

Anonymous said...

SIA the company will still be around,however its share price might continue to sink.

Anonymous said...

Staff received on WhatsApp during hari raya eve

“Sad news from SATS management all Malaysians from cargo, apron, baggage, pax svcs will be terminated from their service this month. Company will give $1000 n notified all thru their email. A very sad day for sats n satswu indeed... 😢”

Guess SQ will kena soon too...? Sigh.

MY SATS Staff said...

You sure or not for I have not received any news on the retrenchment?
If false BT has to deleted the above false information or tio POFMA.

Anonymous said...

ya la. dont stir shit here please. main stream news never report such things. why they axe staff when they received angpow from government to tide through already?

Anonymous said...

If is true,most likely ft and non local,due to conditions.Better then local right,or ft have more rights.That is the fact of employment,maybe higher pay first then,medical and performance based,with rehiring option.It may better be ahead of the rumours then expected fair consideration,when no flight,no pax,no revenue,what would the boss do ?Middle east airline worst option.Things happen during a recession,pandemic and being worldwide,be street smart,start anticipating the best or worse,otherwise blame who ?Will be a lifelong lesson,unforgetable and an innoculation on life,similar to a vaccine for corvid,thus the magic bullet.Then all coat will be at lowest level,affordable post covid.

Anonymous said...

The retrenchment of the Malaysian workers in SATS is true. Sorry and
the payment of 1k is also true.

Anonymous said...

Im the original poster of the comment. I hope that it’s not true too. It was forwarded to me by my friend through her mother’s work chat group in SATS. If I’m not wrong, about a month plus ago, quite a number of Malaysian staff were alr put on indefinite no-pay leave. Since you’re a MY SATS staff, you should know that too.

Ill definitely be sad if it’s true if there’s a retrenchment, I did my poly internship with SATS. Some of the Malaysian staff worked there for many years (even decades and one of the Officers was kind towards me when I had issues at work and received an unreasonable complaint from pax.

And to the other Anonymous, mainstream media may not paint the Full coverage at the airport. They didn’t even write how SQ staff currently have compulsory unpaid leave each month. What do you think? Btw Govt subsidy only covers Singaporeans and PRs. Even salary cover is just 75% for them. The loss of revenue due to fixed operating expenditure for aviation industry is substantial. Just read the annual report for SQ. SATS should be coming out in end May, Facts are facts that they are still bleeding money event though govt is trying to prop them up.

If kena POFMA, then I’ll kena lor. It was what I heard and I had never construed them as facts as it was what people had received through WhatsApp which is not even an official form of communication and those affected were asked to refer to their email. Means those in my friend’s mother chat group (all SATS staff) will also kena lor. My intention was to share what I heard, not to propagate vicious lies and to incite personal attacks.

Whatever it is, I hope the best for everyone, It’s a difficult period for all. We don’t want people to lose their jobs.

Will not be replying further even when I hear more info. People can be overly critical and everything also want to say POFMA . Like that BT might as well shut down his blog cuz many things are based on what he hears due to his connections in the industry as well as readers. May be better to live in our own individual bubble, Again, I sincerely wish everyone the best. Take care.

Boh Tong said...

The retrenchment of Malaysians in SATS etc is also what I've
heard but there is no official confirmation. Let's wait for
the official confirmation either via the mainstream media
or email form SATS to its Malaysian staff.

Cabin crew (foreign) said...

Will SQ cabin crew be the next victim?

Anonymous said...

A ray of hope here,China seems to have control the cases well,so cargo can proceed.Parked ac can be reactivated and updated ppe as standard uniform instead of kebaya.Maybe on board bento box and trashbin at cabin to return tray and least contact sop,include electronic menu.Option include food before boarding on ground,after landing.Cpr stopped,no more mouth to mouth cpr,and dedicated infectious zone for longer flight,and more body bags in board.Telemedical probe on board,and negative airflow toilet,ulvc per use at toilet.Should think out of the box,replace those AO still in the pre covid days,refresh,sack before more cc get covid and infected.Remembering,the sop needed to be trash out at practical and safe,anti covid rather than no 1 inflight blah,blah,blah,but covided.In order to save the airline,drastic and safe,essential steps be taken,or face the consequence of spreading to the rest of the people,costing billions.

Anonymous said...

Cargo can earn how much wor? I did not expect SIA to be reduced to airline industrys' 'Grab carrier'. High class carrier now resort to deliver supplies, cargo, food etc just to survive liao ah?
This year got sponsor Kranji Cup, F1 boh?

Anonymous said...

There is nothing to sad about letting go msian staff.
When I was flying, I always hear them chit chatting never to convert to Singapore Citizen because always have the intention to go back to boleh land to retire once they earn enough, some even choose not to convert because prefer not to contribute CPF like my batchboy,
so now is the time to go back, fair and square

Anonymous said...

Next to go may be foreign cabin crew Msians included.Then next may be the
retired extended crew like the ifm and then the junior crew