How to Fix Singapore Airlines

Pushing Back: Inside This Issue

The fateful day of October 1 is fast approaching. It’s the day that U.S. airlines will lose federal money for wages, unless Congress acts to extend payroll support. With time running out, airlines and their unions are lobbying hard for an extension. But as the new week begins, still nothing. Layoffs loom.

Looming large on IATA’s agenda, meanwhile, is Covid testing, and its potential to facilitate a safe resumption of travel and the reopening of international borders without quarantines. “The key to restoring the freedom of mobility across borders is systematic Covid-19 testing of all travelers before departure,” IATA said in a statement. Speed, accuracy, affordability, ease of use, and scalability are all important in creating an effective, globally standardized testing protocol. With advances in these areas, some airlines are now introducing Covid testing in selected markets, like Hawaii.

The industry badly needs something to escape the crisis, which now exceeds six months in duration. Carriers like Lufthansa never expected things to be this bad for this long, forcing it to rethink its survival measures — the big cuts it announced early on won’t be enough. The only silver lining, other than cheap fuel, is the abundance of capital available to airlines, from governments, from banks, from private investors, and from aircraft lessors.  American, for its part, just tapped Washington for billions in new loans.

Verbulence

“IATA is calling for the systematic testing of all international travelers before departure. This should enable governments to safely open borders without quarantine.”

IATA Director General Alexandre de Juniac

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