Advertisement
US, Israel war on Iran
AsiaSoutheast Asia

Some Asian airlines could collapse like Spirit without help on rising fuel costs

The head of the Association of Asia Pacific Airlines said direct financial support from governments required to survive the crisis

1-MIN READ1-MIN
Spirit Airlines planes sit parked at Phoenix Goodyear Airport in Arizona. The US-based carrier ceased all operations on May 2. Photo: Getty Images/AFP
Bloomberg
Asian airlines need government support to cope with the more than doubling of jet fuel prices that otherwise risks some carriers collapsing like US-based Spirit Airlines, according to the new head of the region’s industry body.

Wong Hong, who took over as director general of the Association of Asia Pacific Airlines last month, said carriers needed varying levels of help and relief, from direct financial support to being able to cut flight schedules without negative consequences.

“Nobody wants to see any airline getting into a situation like what we’re seeing with Spirit,” Hong said in an interview. “If those things were to happen before governments take action, that would be a pity.”

Advertisement

Spirit shut down operations earlier this month after buckling under the weight of surging fuel prices.

Asian airlines have received mixed, but limited levels of support since the Iran war started in late February. Malaysia has offered extensions and exemptions on a range of airport fees, while India has reduced duties on jet fuel to ease mounting pressures.
05:36
Will the war in Iran leave Asian airlines grounded?

Meantime, Hong Kong airlines have not received any support so far, and nor has state-controlled Air New Zealand, despite forecasting a large full-year loss that has forced it to accelerate cost cuts.

Advertisement
Select Voice
Select Speed
1.00x