SYDNEY, May 5 (NNN-XINHUA) – Australia’s national airline, Qantas, extended international flight cancellations till the end of July, but said, it was in a strong position to endure disruptions caused by COVID-19.
The company said, domestic flights would be cancelled till the end of June and international services until the end of July, adding that, domestic and trans-Tasman services could be quickly reinstated, should restrictions ease in coming weeks.
“Australia has done an amazing job of flattening the curve and we’re optimistic that domestic travel will start returning earlier than first thought, but we clearly won’t be back to pre-virus levels anytime soon,” Group CEO, Alan Joyce, said.
“With the possible exception of New Zealand, international travel demand could take years to return to what it was.”
The company, which includes budget branch Jetstar, also revealed it secured a further 550 million Australian dollars (354.3 million U.S. dollars) in debt funding, placing it in a stronger position to endure the COVID-19 crisis.
According to Qantas, by reducing expenditure and borrowing against its fleet of aircraft, the company could survive several recovery scenarios, including one where current travel restrictions persisted until Dec, 2021.
The reduction in expenditure is largely due to the standing down of more than 25,000 staff, who were forced to use leave entitlements before receiving delayed financial assistance from the government.
“The impact of this stand down is deeply regrettable, but has been greatly softened by the Australian Government’s JobKeeper programme, which the Group commenced paying several weeks ahead of the official payment start date,” the airline said in a statement.– NNN-XINHUA
