government aid

Disunified chassis leasing system exacerbates port congestion

Federal Maritime Commission

The ongoing container shortage and port congestion is becoming old news. Freight income per TEU is higher than ever due to the COVID-spurred consumer demand for goods. The industry is seeing a large number of blank sailings, not for lack of cargo, but because the containers sit in waiting for so long, they lose their place in the rotation.

“If your product isn’t in the U.S. by the end of October, you’ve hurt your ability to maximize holiday sales,” FreightWaves Senior Retail Analyst Andrew Cox...

https://www.freightwaves.com/news/disunified-chassis-leasing-system-exacerbates-port-congestion

Lufthansa warns bailout in question, bankruptcy possible

A big white Lufthansa plane gets loaded with cargo through side door.

Duetsche Lufthansa AG warned Wednesday that shareholders may not approve a $9.8 billion financial rescue package that would see the German government take a 20% stake in the company and provide other loans and loan guarantees to help it withstand the downturn in business caused by the coronavirus pandemic.

Lufthansa, major provider of air cargo and passenger transport, said that without the government aid it may need to apply for court-administered bankruptcy protection while it continues to...

https://www.freightwaves.com/news/lufthansa-warns-bailout-in-question-bankruptcy-possible

Airlines seek government help to survive winter doldrums

Close up of a white jet from behind the wing, jet is on the ground.

Airlines need more government help dealing with the fallout from the coronavirus if they are to get through the winter doldrums, when revenues tend to wane, the International Air Transport Association (IATA) said Tuesday. 

The key to survival during the winter is schedule flexibility at large airports and for that airlines say they need relief from use-it-or-lose- it slot rules – authorizations to takeoff and land at busy airports on a particular day during a specified time period. 

Governments...

https://www.freightwaves.com/news/airlines-seek-government-help-to-survive-winter-doldrums

Cathay Pacific, Austrian Airlines recapitalize with state help

A big white jet heading away lifts nose off runway

Cathay Pacific, a major Asian airline that also operates a large fleet of dedicated freight aircraft, and Austrian Airlines are recapitalizing with the assistance of home governments, the latest in a string of airlines receiving outside assistance to keep operating until travel demand rebounds.

Cathay Pacific (OTCUS: CPCAY) said Tuesday it will issue warrants giving the government of Hong Kong the right to purchase HK$19.5 billion ($2.5 billion) worth of stock and that it received a HK$7.8...

https://www.freightwaves.com/news/cathay-pacific-austrian-airlines-recapitalize-with-state-help

Mounting debt to shackle airlines’ pandemic recovery, group says

A white passenger jet, closeup view on the tarmac.

The leading airline industry group is warning that mounting debt incurred by members to stay in business during the coronavirus crisis could eventually endanger their survival when the bills come due.

Airlines are scrambling to borrow money from commercial banks and investors, sell securities, and tap government aid in a desperate attempt to build a cash cushion that will let them weather a long drought in revenue while passenger traffic slowly rebuilds from pandemic lows.

Deutsche Lufthansa AG,...

https://s29755.pcdn.co/news/mounting-debt-to-shackle-airlines-pandemic-recovery-group-says