Covid-19: Four Airlines That Will Survive

Source: Rate a Cabin Crew

Some airlines are going bankrupt. Many are selling or pledging their assets, doing their best to survive the crisis. However, there are some airlines much stronger than we expected. They are backed by extremely wealthy owners and ready to survive the pandemic. Below are top 4 airlines that are well equipped to survive according to Amanda Collins from rateacabincrew.com:

1. Chinese Government Airlines – Air China, Chinese Eastern and Chinese Southern

These three airlines are Government owned and plays a major role in expanding the influence of China all over the world. Chinese government has trillions of dollars in deployable capital and virtually unlimited options and reasons to keep these airlines flying. Even if it takes several decades of operating at losses, the owners of these airlines are well determined to keep them flying.

2. Qatar Airways

Qatar Airways is owned by the Qatari government which has over $350 billion in known assets worldwide. During the blockade imposed by Qatar’s neighbors several years ago, Qatar Airways single handedly saved the country from starvation flying in essentials including milk and bread from Turkey and Iran as well as dairy cows from far off countries such as New Zealand. The airline flew aircraft even during the peak of the pandemic crisis. A diverse fleet, superior product and access to virtually unlimited funds makes Qatar Airways one the most resilient airlines to survive the crisis.

3. Etihad Airways

Etihad Airways is the flag carrier of UAE, owned by the Abu Dhabi royal family. Abu Dhabi royal family owns Sovereign Wealth Fund and Investment companies Abu Dhabi Investment Authority (ADIA) and Mubadala which has assets under management worth over $1 Trillion. Other major assets include ADNOC, the oil company owned by Abu Dhabi government.

Etihad virtually has access to any amount of money it needs. Etihad is also a strategic asset to Abu Dhabi. Hence, no matter what, Etihad will keep flying.

4. Singapore Airlines

Singapore Airlines is owned by the Singapore government in the form of majority shares and is a vital link to the Asian business hub. Without a national airline to provide travel link to the country, the economy will collapse which makes the Singapore government take a ‘whatever it takes’ approach to support the airline. The government poured in over $8 billion in June 2020 to improve the liquidity of the airline.

Some carriers like Emirates are not on the list because the Governments do not have enough resources to support the airline for an unlimited period. In US, all airlines are public limited companies which put a limit on the cash it can access. The major US airlines have tens of billions of dollars in liquidity but that can last only for a certain period of time. If debt rises exponentially, shareholders will lose confidence and will end up in insolvency.

Reference:

Amanda Collins, Top 4 Airlines That Will Survive the Covid-19 Crisis No Matter What https://www.rateacabincrew.com/