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TICKER VIEWS – Why governments should be compensating airlines for COVID disruptions

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A year into the pandemic and yet on the rare occasion, a border is snapped shut due to the detection of a few cases of COVID-19.

That’s the case in Australia, at least.

There is no doubt the nation is doing incredibly well with managing the virus – in fact, the country rarely records a locally transmitted case.

“Unprecedented” – Why airlines didn’t know how serious COVID-19 was when it all started

On the rare occasion that the nation does record a case of COVID-19, often we see the states and territories of Australia snap their borders shut, in fear that the virus will enter.

But when this happens, what happens to businesses that are impacted by the loss of revenue? Who compensates the world’s airlines when flights are forced to be canceled and travel grinds to a halt?

Internationally, the problem remains much the same.

Irish A330 First Officer, Brian O’Leary says airlines still being ‘left on the ropes’ and Governments aren’t providing enough support.

Small Business Australia’s Bill Lang, who says ‘it’s time for Governments to do more and start compensating the industry before it becomes too late.

Delta Airlines jets sit idle on a runway in the US.

What the aviation sector has to say:

The Australian Aviation sector continues to slowly recover from the devastation caused in 2020.

We’re now seeing airlines bounce back to 80 percent capacity of pre-COVID levels.

But still, the industry is brought to its knees when border closures are put into place, having to cancel flights, furlough employees and leave many travellers frustrated by the news that their flight ‘won’t be going ahead today’

Declan Kiddle, an Australian Aviation Operations Controller based in Perth, Western Australia, says the industry heavily on Jobkeeper, a former wage subsidiary.

Kiddle says the announcement of a $1.2 billion aviation and travel support package for the troubled sector has been welcomed, but the continuation of snap-border closures is resulting in traveller hesitancy.

Vaccinations and travel

Airlines right across the world are heavily reliant on the rollout of the COVID-19 vaccine.

Carriers such as Emirates have begun implementing full digital verification procedures to ensure smoother processing of passengers without needing physical paperwork.

Other airlines such as Australian carrier, Qantas has hinted at making it mandatory for all passengers that wish to travel overseas to have received a COVID jab.

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Warner Brothers & Discovery considers splitting up to boost stock value

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Warner Bros Discovery is considering a strategic breakup to enhance its stock performance, according to a Financial Times report.

The potential move aims to unlock value by separating its media assets from its reality TV and lifestyle businesses.

This decision follows pressure from investors to improve stock performance, amidst challenges in the media industry #featured #trending

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Investors worldwide grow increasingly optimistic about Trump winning the election

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Investors are increasingly optimistic about Donald Trump’s potential re-election, prompting a resurgence in the so-called ‘Trump trade’.

Market participants are closely monitoring Trump’s political strategies and public sentiment, influencing their investment decisions.

Kyle Rodda from Captial.com joins to discuss all the latest.

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Netflix expands use of ads despite slow subscriber growth

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Netflix is intensifying its efforts to introduce an ad-supported tier amidst a plateau in subscriber growth.

The streaming giant hopes to attract new users and boost revenue by offering a cheaper alternative that includes advertisements.

This move marks a significant shift from its traditional ad-free model, reflecting Netflix’s response to competitive pressures and evolving consumer preferences.

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