Shifting Gears: Coronavirus has airlines on bankruptcy watch
Hello and welcome to another issue of Shifting Gears, Business Insider's weekly wrap-up of all things planes, trains, and automobiles (and other stuff).
Coronavirus is still top of mind and has dominated the news cycle once again as transportation-related industries feel the crunch. I promise there is some non-pandemic-related coverage at the bottom of this email, and it's worth the scroll.
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It could be bankruptcy time for some airlines as customer bookings "fall off a cliff" to levels not seen since September 2001.
"We previously stated US airline bankruptcies were unlikely and in the near-term that still remains the case," Cowen told clients this week, "BUT if bookings do not improve in the next 3 months things could deteriorate quickly."
There's a good chance that Norwegian could be the first casualty, my colleague Tom Pallini reports. The low-cost European carrier reduced its long-haul capacity by 40% this week following President Donald Trump's new restrictions on travel between Europe and the US. There's a risk the airline might not survive the season.
More important stories from this weeks airline bloodbath:
- Here's why Delta, American, United, and other airlines won't be quick to offer refunds even though travel from the US to some European countries is largely banned due to the coronavirus pandemic
- A JetBlue passenger who flew from New York to Florida has tested positive for coronavirus
- An American Airlines pilot has tested positive for the coronavirus
- A major flight-attendants' union is denouncing Trump's sudden European travel ban. Industry leaders are worried jobs will be in jeopardy.
Cruise lines also continued to feel the pain this week, with the Carnival subsidiary Princess, the company which saw two of its ships quarantined, garnering international attention, and Viking suspending all operations until at least May.
Businesses all over the world are urging their employees to work from home to help limit the spread of the coronavirus, but America's 1.8 million truck drivers, meanwhile, can't work from home. Many of them lack health insurance too, even further complicating the US's efforts to combat the illness.
The pandemic is even affecting space travel. NASA is limiting access to the astronauts scheduled to travel on SpaceX's upcoming mission called Demo 2. It's the first human spaceflight since 2011, but the coronavirus could put it in jeopardy if the key people get sick.
At Tesla, which is grappling with the coronavirus too, 42 current and former workers told Mark Matousek that the company routinely prizes production quantity over quality or safety. You can read his deep dive into Elon Musk's production problems here.
Other fun weekend reads for your quarintertainment:
- NASA is hiring astronauts to go to the moon and Mars. The agency's selection manager says she looks for these 5 qualities in candidates.
- I drove a $60,000 Infiniti Q50 Red Sport 400 all-wheel-drive sport sedan to find out if it could combine luxury, tech, and fun - here's the verdict
- Jonny Kim - a 35-year-old NASA astronaut, doctor, Navy SEAL, and combat veteran - reveals what he learned from his greatest mistake
- Classic 1960s and '70s Ford Broncos get transformed into 600-horsepower electric SUVs by this California startup