Airline Industry in Need of Loan Guarantees amid Challenging Crisis Due to COVID-19 Pandemic
AIRLINE INDUSTRY – Amid the COVID-19 crisis that affected businesses even the big ones, the airline industry is seeking for loan guarantees.
The COVID-19 pandemic is a huge challenge to both the public health and the economy of the country. Undeniably, the Philippine economy is greatly suffering amid the crisis but the health is more important thus businesses abide by the regulations.
The restrictions in the pursuit to curb the spread of the disease has limited the operation of many businesses. Only the essential firms are allowed to operate in certain areas in the country.
Amid the COVID-19 crisis, many businesses shut down while others temporarily closed as they can no longer withstand the demands of the pandemic. Truths be told that some of these are big businesses in their fields.
One of those affected by the COVID-19 pandemic is the airline industry. A lot of flights were halted amid the closure of borders of certain countries and travel restrictions in some.
Currently, in the Philippines, non-essential inbound and outbound travels from Metro Manila are still not allowed. Based on a report on ABS-CBN News, amid the COVID-19 crisis, the airline industry is seeking for guaranteed loans.
According to the report, the losses of the airline industry since 2020 has already reached P60 billion. Air Carriers Association of the Philippines’ Bobby Lim said that they need loan guarantees so the private banks will allow the aviation to borrow money.
Under the Bayanihan 2, the government has provided interest-free loans for the tourism businesses like resorts. Many resort owners are already calling for the government to allow them to operate.
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