The coronavirus pandemic is hitting the airline industry hard, and Boeing CEO David Calhoun is not taking it lightly.
Savannah Guthrie, co-host of NBC’s “Today” asked Calhoun how “grave” the threat is to the airline industry.
Calhoun claimed the situation at the moment is “apocalyptic” but is optimistic it will not be the situation for the recovery.
“Well it is grave, there’s no question about it. Apocalyptic does actually accurately describe the moment,” Calhoun said. “I don’t think it describes the recovery and I don’t think it describes the medium or long term for the airline industry or aviation in general.”
Check out his comments below:
“(The threat to the industry) is grave. There’s no question about it, and ‘apocalyptic’ does actually accurately describe the moment. … We believe we will return to a growth rate similar to the past, but it might take us 3, 5 years to get there.” -Boeing CEO David Calhoun pic.twitter.com/JOokJXAMy9
— TODAY (@TODAYshow) May 12, 2020
Calhoun is hopeful as Americans begin to return to everyday life, they will also begin to travel again.
As the airlines demonstrate the safety of flying, Calhoun believes they will return to a growth rate similar to the past. He expressed his belief it could take three to five years to return to that rate.
Guthrie noted the money the government is using to bail out the airlines is going to run out in September. She asked Calhoun if he thinks the airlines will survive and whether or not a major carrier will go out of business.
“Well, I don’t want to get too predictive on that subject, but yes most likely. Something will happen when September comes around,” Calhoun said.
He added, “Traffic levels will not be back to 100%, they won’t even be back to 25. Maybe by the end of the year, we approach 50. So there will definitely be adjustments that have to be made on the part of the airline.”
Watch his comments below:
“The money the government used to bail out the airlines runs out in September. … Do you expect the airlines to be able to survive this? Do you think there might be a major US carrier that has to go out of business?” @savannahguthrie asks Boeing CEO David Calhoun pic.twitter.com/Dn7prsCAPs
— TODAY (@TODAYshow) May 12, 2020
In March, Treasury Secretary Steve Mnuchin announced taxpayers will be “compensated” for providing assistance to airlines in the form of $25 billion in direct grants, as IJR previously reported.