These airlines have gone bankrupt 2020
In 2020, the crisis linked to the coronavirus pandemic hit airlines, paralyzing global air traffic. Some went bankrupt.
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| An aircraft operated by LEVEL Europe, one of the airlines that ceased operations in 2020 |
Closed borders and traffic restrictions to combat the spread of the coronavirus left their mark on airlines. The decline in demand continues to be perceived. Already weakened airlines did not resist. Several of them have disappeared, leaving many employees without jobs.
Low-cost airlines affected
The coronavirus crisis has led to the disappearance of certain low-cost subsidiaries such as LEVEL Europe , of the large IAG group, which specialized in low-cost long-haul transatlantic flights. Tiger Air Australia, nokScoot Air Asia Japan are other examples.
Tiger Air Australia was owned by Virgin Australia Holdings, which was placed in receivership in 2020. NokScoot was a joint venture between Thailand's Nok Air and Scoot, a subsidiary of Singapore Airlines. Air Asia Japan also ceased operations in October 2020. It was a joint venture between Malaysian AirAsia and Japanese partners.
Towards a wave of bankruptcies in 2021?
According to the firm Fitch Ratings, other airlines should disappear in 2021. The financial fragility caused by a slow recovery should be taken into consideration. Already indebted airlines may no longer be able to support fixed costs.
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| A Thai Airways A350 taxiing. |
Montenegro Airlines is one of the last airlines to go bankrupt after the end of state aid. Other airlines have had to cease operations and restructure but could resume operations if demand returns.
These include Virgin Australia and Air Mauritius in receivership. Some struggling national airlines manage to survive thanks to the support of their owners: Thai Airways and South African Airways are examples. Job protection is often a priority in both cases.
The new Alitalia should be ready in April 2021. It has been protected by the Italian state for two years. ITA (Italia Transporti Aero) is the group responsible for managing the new Alitalia. The coronavirus pandemic could delay Alitalia's great return.
