Virgin Australia asks government for $1.4 billion loan to help it survive
Virgin Australia has asked the government for a $1.4 billion loan to help it survive the coronavirus crisis, a source has confirmed.
The government could convert the loan to an ownership stake in Australia’s second largest airline if not repaid in two to three years, according to a well-placed source who spoke on the condition of anonymity to discuss confidential information.
Virgin said its proposal was “necessary for the industry if this crisis continues indefinitely”. Credit:Bloomberg
Virgin made a formal request to the federal government in a letter sent last week, the source said, and is pushing for a broader $5 billion airline industry support package.
Virgin went into a trading halt shortly before 10am pending a market announcement.
The Australian newspaper first reported the request on Tuesday.
A Virgin spokesman would not provide further details on the request but said it would be "necessary for the industry if this crisis continues indefinitely, to protect jobs and ensure Australia retains a strong, competitive aviation and tourism sector once this crisis is over."
More to come
Police watchdog investigates after northern Alberta Taser incident sends man to hospital
The Alberta Serious Incident Response Team is investigating after police used a Taser on a 20-year-old man immediately following his arrest in northern Alberta last week, sending him to hospital.
Spirit Air Halts Flights to LaGuardia, Newark on Virus Advisory
Spirit Airlines Inc. is temporarily suspending service at five airports in the U.S. Northeast because of heightened government travel advisories aimed at curbing the spread of coronavirus.
The pause begin this week at New York’s LaGuardia and New Jersey’s Newark Liberty International, Spirit said in an email Monday. The discounter is also halting service to Hartford, Connecticut, and two destinations in Upstate New York: Niagara Falls and Plattsburgh. The hiatus will last until at least May 4, said a spokesman for Spirit.
The flight suspensions add to New York’s isolation as the nation’s largest metropolitan area contend with the coronavirus outbreak. On March 28, the U.S. Centers for Disease Control and Preventionurged residents of New York, New Jersey and Connecticut to refrain from non-essential travel for 14 days, effective immediately.
Customers with tickets on flights in those cities will be notified of the changes and travel options by email, Miramar, Florida-based Spirit said.
The carrier’s decision was reported earlier by WPDE-TV in South Carolina.
Trump Says He Discussed Nationwide Stay-at-Home Order But It’s ‘Unlikely’
President Donald Trump considered a national stay-at-home order to combat the coronavirus, but said it’s “pretty unlikely.”
“We’ve talked about it,” he said at a White House news conference on Monday. Some parts of the country “are frankly not in trouble at all,” the president said.
“If we do that, I will let you know, but it’s pretty unlikely, I would think, at this time,” Trump said.
Governors Larry Hogan of Maryland and Ralph Northam of Virginia, together with Washington Mayor Muriel Bowser, announced stay-at-home orders on Monday. The orders allow people to leave their homes for limited reasons, such as to buy groceries, medicine or conduct essential business.
Panicked shoppers. Empty shelves. Meet the workers keeping you stocked
New York (CNN Business)US stock futures were up slightly in after-hours trading following a positive day for Wall Street Monday.
Dow (INDU) futures climbed 15 points, or 0.07%. S&P 500 (SPX) futures were up around 0.1% and Nasdaq Composite (COMP) futures gained about 0.06%.
Each of the three indexes gained more than 3% on Monday, even as the coronavirus outbreak spreads and its impact on the economy continues to unfold. On Monday, Macy’s (M) said it will furlough a majority of its 125,000 workers.
The biggest gainer in the Dow was Johnson & Johnson (JNJ), which surged 8% after saying it hoped to have an experimental coronavirus vaccine ready for human testing by September.
The positive momentum did not, however, extend to the energy market. US crude oil prices sunk nearly 7% Monday, finishing at $20.09 a barrel. At session lows, oil touched $19.27 a barrel — the weakest intraday price since February 2002.
US oil has now lost 68% of its value since its recent peak of $63.27 a barrel on June 6, following a price war between Saudi Arabia and Russia and as oil demand suffers because of coronavirus mitigation measures.
–CNN’s Paul LaMonica and Matt Egan contributed to this report.
American Airlines to apply for up to $12B in government aid
Trump may expand travel restrictions
President Trump says travel restrictions might become tougher in order to contain coronavirus in the U.S.
CHICAGO (Reuters) – American Airlines Holdings Inc (AAL.O) intends to apply for up to $12 billion government aid, ensuring no involuntary layoffs or pay cuts in the next six months, executives said in a memo to employees on Monday.
Continue Reading Below
BOEING CEO: NO GOVERNMENT EQUITY STAKE IN CORONAVIRUS AID
“We certainly hope and expect that by that time, the virus will be contained, Americans will be flying again and we will be back to flying a full schedule,” Chief Executive Doug Parker and President Robert Isom said in the memo.
GET FOX BUSINESS ON THE GO BY CLICKING HERE