* Boeing seeks U.S. aid for aviation sector
* Qantas cuts international capacity by 90%
* Cathay Pacific strikes $704 mln sale and leaseback deal
* Airlines carrying cargo on empty passenger planes
(Adds Airbus, Stobart, Avinor, and stocks)
By Jamie Freed and Tim Hepher
SYDNEY/PARIS, March 17 (Reuters) - Boeing and other U.S.
aviation companies are seeking billions of dollars in aid as
they battle to survive a plunge in demand caused by the
coronavirus pandemic, while Airbus is pausing production at two
sites to bolster health and safety measures.
The rapid spread of the virus across the world has battered
airlines as governments have introduced travel restrictions and
consumers have stopped making bookings, calling into question
the survival of several companies.
To preserve cash, airlines are cutting flights, laying off
staff, suspending dividends, selling planes and flying cargo on
empty passenger jets.
"It's now fair to call this the single biggest shock that
global aviation has ever experienced," Qantas Airways Ltd
CEO Alan Joyce said in a memo to the airline's 30,000
staff on Tuesday that was seen by Reuters.
Boeing Co on Monday said it was in talks with senior
White House officials and congressional leaders about short-term
assistance for the entire U.S. aviation sector.
U.S. airlines and cargo carriers have said they are seeking
at least $58 billion in loans and grants along with additional
tax changes, while airports are seeking $10 billion.
European airlines have also stepped up calls for emergency
government aid. Passenger traffic across the region slumped by
more than half on average last week, and the situation will
worsen as borders closed, trade body Airports Council
International Europe said.
Industry consultancy Tourism Economics forecast
international travel will slump at least 10.5% this year, the
biggest year-on-year drop.
Planemaker Airbus SE said on Tuesday it would pause
production and assembly at its French and Spanish sites for the
next four days to put in place strict health and safety
provisions.
British infrastructure and aviation group Stobart
said it likely needed additional liquidity because of the
disruption to its business, especially at London Southend
Airport.
Airbus shares were down more than 7% at 0930 GMT after heavy
losses on Monday. Boeing shares closed down 24% on Monday.
In Asia, Qantas, which is looking to raise a few hundred
million dollars by refinancing some aircraft, said on Tuesday it
planned to cut international capacity by 90% and domestic
capacity by 60% until at least the end of May.
"Our goal is to protect as many jobs as possible and to make
sure we remain strong enough to ride this out," Joyce told staff
in the memo seen by Reuters.
New Zealand's Auckland International Airport said
on Monday it would scrap its interim dividend after freezing
hiring and halting discretionary spending.
Air New Zealand said it would cut capacity to
Australia by 80% from March 30 to June 30 after both countries
said over the weekend that all travellers would need to
self-isolate for 14 days after arrival.
Australian airports are set to lose more than A$500 million
($307 million) in take-off and landing fees, the Australian
Airports Association said.
Avinor, a state-owned Norwegian company, said on Tuesday the
number of passengers travelling from the country's airports fell
40% in the week ending March 15 from the same period a year
earlier.
The only bright spot for airlines is the cargo market, where
rates are surging as a result of the loss of capacity in the
belly of passenger aircraft as those flights are cut. Airlines
are flying some planes without passengers to transport cargo due
to high demand.
RAISING CASH
Simon Birmingham, Australia's minister for tourism, said on
Tuesday that neither Qantas nor smaller rival Virgin Australia
Holdings Ltd had asked for a bailout, but that the
government had not ruled out providing assistance.
"They believe they are viable and have strong cash positions
... but we want to make sure we maintain that confidence in the
airlines," Birmingham told reporters.
Hong Kong's Cathay Pacific Airways said on Monday
it had agreed a $703.8 million deal with lessor BOC Aviation
to sell and lease back six Boeing 777-300ER airplanes
to raise cash.
The carrier, one of the earliest and hardest hit by the
outbreak due to its proximity to mainland China where the virus
originated, said its full-service airlines, Cathay Pacific and
Cathay Dragon, had made an unaudited loss of HK$2 billion
($257.5 million) in February alone.
Cathay Pacific plans to cut up to 90% of its capacity in
April.
"If we do not see a relaxation of travel restrictions in the
near future, we expect the same arrangement will have to
continue into May," Cathay Pacific Group Chief Customer and
Commercial Officer Ronald Lam said in a statement.
Japan's ANA Holdings said it would cut 2,630 more
international flights serving 58 routes between March 29 and
April 24.
Philippines' Cebu Pacific said it would cancel all
flights from March 19 to April 14 after stringent quarantine
orders.
($1 = 7.7659 Hong Kong dollars)
($1 = 1.6316 Australian dollars)
(Reporting by Jamie Freed and Tim Hepher; additional reporting
by Colin Packham in Sydney, David Shepardson in Washington,
Sayantani Ghosh in Singapore; Editing by Lincoln Feast, Gerry
Doyle and Mark Potter)
