Leading airline bosses have warned more carriers are likely to collapse but dismissed demands for state aid to offset the impact of the coronavirus.
UK regional carrier Flybe collapsed on Wednesday and more failures are expected among smaller and weaker airlines.
IAG chief executive Willie Walsh told the Airlines for Europe (A4E) summit in Brussels on March 3: “I can’t see a way through this crisis for weaker airlines.”
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Walsh, who is poised to stand down this month as head of the group running British Airways, Iberia, Aer Lingus and Vueling, said: “There are carriers likely to fail and this will make it more likely.”
Yet he insisted: “Governments should stay away.”
‘Catalyst for consolidation’
Carston Spohr, head of the rival Lufthansa Group, told the summit: “We don’t ask for help. We ask for burdens to be taken away. We all believe consolidation in Europe is overdue [and] this crisis could accelerate consolidation.”
Air France-KLM chief executive Benjamin Smith insisted: “This will definitely be a catalyst for consolidation.
“There are many airlines whose business model is out of date and they will fail earlier than they would because of this virus.”
Ryanair group chief executive Michael O’Leary agreed, saying: “Consolidation is inevitable. The last thing we need is state aid.
“Airlines that were unviable before this will be looking for bailouts for their failed business models and this should be resisted.
“We need sensible, calm, rational advice, and let the bankrupt go bankrupt.”
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Posted by Travel Weekly UK on Wednesday, March 4, 2020