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* Airlines may need $200 bln from governments -IATA
* SAS to get $300 million loan guarantees
* Job cuts sharpen calls for aid and tax relief
* U.S. carriers ask for $50 bln from Washington
(Updates with SAS aid, Trump comments)
By Sarah Young and Laurence Frost
LONDON/PARIS, March 17 (Reuters) - Airlines demanded urgent
tax relief to avoid multiple bankruptcies as coronavirus
disruption continued its spread across the global industry on
Tuesday.
As EU transport ministers prepared to discuss financial
support, the Airlines for Europe group called for widespread tax
deferrals "to ensure that as many airlines as possible survive"
the crisis.
The call came as the aviation industry's main global body,
IATA, said the total government support needed worldwide could
reach $200 billion. U.S. carriers have already asked Washington
for $50 billion in grants and loans, plus tens of billions in
tax relief.
Major airlines have made drastic and unprecedented schedule
cuts, bringing operations to a near halt, as demand dries up and
the fight against the virus brings draconian travel
restrictions, soon to include the closure of EU borders.
The appeals from industry leaders became more strident as
more airlines grounded planes on Tuesday.
Sweden and Denmark announced $300 million in loan guarantees
for Scandinavian carrier SAS, becoming early movers in
an expected rush of pledges to the sector.
Job losses are adding to pressure on governments to act.
IAG-owned British Airways told unions it planned to
make an unspecified number of pilots redundant.
"We are extremely disappointed that a company like BA, with
a strong balance sheet and cash reserves, has rushed into
redundancy consultation," said Brian Sutton, head of pilots'
union BALPA.
"This is the biggest crisis the aviation industry has faced
in decades," Sutton added. "Without more government support we
fear the impact will be far greater."
The British government is discussing a support package for
airlines and airports, finance minister Rishi Sunak said later
on Tuesday.
APPEAL FOR BILLIONS
In a letter to U.S. political leaders, United Airlines'
management and unions pleaded for urgent financial
support to "allow United to continue paying our employees as we
weather this crisis, protecting tens of thousands of people".
Boeing will get government aid, President Donald
Trump said - as European rival Airbus ordered
production halts in France and Spain, where lockdowns are
affecting workers and suppliers.
European Union transport ministers will hold a
video-conference on Wednesday, an EU official said. Besides
Britain, France, Germany and the Netherlands have expressed
readiness to extend financial support to airlines.
Lufthansa is expected to receive a government cash
injection, one German banker told Reuters. Sweden's support for
SAS was part of a larger loan-guarantee package for airlines
worth 5 billion crowns ($500 million).
Brussels Airlines, a Lufthansa subsidiary, on
Tuesday said that it was suspending all flights for four weeks.
Singapore Airlines also cut more capacity, Emirates
suspended dozens of destinations and Canada's WestJet halted
international services.
'VERY FRAGILE PLACE'
The Philippines' Cebu Air cancelled all flights
from March 19, and Jetstar Asia announced a three-week shutdown
after parent Qantas cut its own capacity by 90%.
The global airline industry will need "something like $150
billion to $200 billion" from governments including loan
guarantees, IATA head Alexandre de Juniac told reporters.
The coronavirus is now affecting countries accounting for
94% of passenger revenue, according to Brian Pearce,
Geneva-based IATA's chief economist.
Three-quarters of airlines now have liquidity covering less
than three months of unavoidable fixed costs, Pearce said. "The
majority are in a very fragile place."
(Reporting by Sarah Young in London and Laurence Frost in
Paris; Editing by Pravin Char)
