Job cuts continue as financial aid lends support
The outbreak of the coronavirus has dealt a shock to the global economy with unprecedented speed. Following are developments Wednesday related to national and global response, the work place and the spread of the virus.
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CIAO BELLA! Alitalia is resuming direct flights from Rome to New York, Barcelona and Madrid in June. The Italian airline discontinued its Rome-New York flight on May 5 due to the ‘’worrying level’’ of coronavirus cases in New York, which in April had emptied flights to just 12% of capacity. The struggling airline said from June, it will fly 30 routes to 25 airports, of which 10 are abroad, including London, Brussels and Frankfurt.
— Low-cost carrier Norwegian Air Shuttle's restructuring plan has been completed. The government’s loan guarantees worth 3 billion kroner ($290 million) have also been approved. The airline converted 12.7 billion kroner ($1.3 billion) debt to equity, a move required to get state loan guarantees.
— Aerospace engine maker Rolls-Royce plans to cut approximately 9,000 jobs globally. The company employs 52,000 people overall, and it is not immediately clear where the cuts will occur. The move will result in about 700 million pounds ($856 million) in savings, with an overall aim of 1.3 billion pounds ($1.59 billion) in annual savings.
IF YOU BUILD IT: The new CEO of United Airlines says it may take until there is a vaccine for COVID-19 before most people feel comfortable about air travel. Scott Kirby said Wednesday that demand for air travel is improving, especially bookings in the second half of the year, “but the question is, are those people going to show up?” Kirby, the company’s president, spoke to CNBC shortly before United’s online annual meeting in which he was scheduled to replace Oscar Munoz as CEO.
— The Swiss...
