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Daily Mirror
Daily Mirror
Business
James Andrews

Coronavirus: EasyJet boss warns airlines will go bankrupt soon without help

EasyJet's boss has said airlines could go bankrupt thanks to the the coronavirus outbreak without Government support.

Johan Lundgren said the airline has so far cancelled 14,000 flights this month as the virus continues to spread.

His warning came as Ryanair announced it will cancel more than four out of five flights between Thursday and March 24 with an exception for "essential connectivity" journeys. Airline Jet2.com has suspended all of its flights until next month.

"Everything from the Gulf War to the 9/11 to the Sars and the financial crisis in 2008 and ash cloud, there is nothing as bad as what I see right now," he said in an interview with Robert Peston on ITV on Wednesday night.

"And the issue around it is really the uncertainty. You know, when is this going to end."

He added: "If we don't get sufficient levels of support from the Government and this continues for that period of time, the aviation industry will not be intact."

Who will be left operating when the travel ban is lifted? (NurPhoto/PA Images)

When asked to clarify what he meant, he said: "It will not be the way we look at it today... Businesses will go bankrupt long before a year from now unless there is support in there."

Airlines are already appealing to their respective Governments for help.

In an unusual joint statement, the world's three main airline alliances - oneworld, SkyTeam and Star Alliance - called for government aid to alleviate the "unprecedented challenges" faced by the industry.

Lundgren suggested in addition to access to loans on commercial terms, payments on taxes could be deferred as efforts to curb the virus continue.

Meanwhile, Transport Secretary Grant Shapps held a call with major airlines an airports on Wednesday and said the Government was committed to helping the sector while thanking them for helping bring home British nationals stranded abroad.

He said: "Coronavirus is having a crippling impact on the aviation industry and we cannot allow it to force world-leading, well-run, profitable firms out of business.

"We are extremely grateful to airport and airline teams who are continuing to help passengers get home safely. We stand firmly behind the sector and expect to announce a series of support measures shortly."

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