France heading for worst recession since WWII: minister

Officials have said the lockdown will last until at least April 15. (File/AFP)
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Updated 06 April 2020

France heading for worst recession since WWII: minister

  • France imposed a nationwide stay-at-home order from March 17 after shuttering all nonessential businesses
  • Statistics office Insee said last month that the lockdown has slashed overall economic activity by 35 percent

PARIS: France is likely to see its deepest recession since the end of World War II this year because of the coronavirus crisis, Finance Minister Bruno Le Maire warned Monday.
“The worst growth figure in France since 1945 was -2.2 percent in 2009, after the financial crisis of 2008. We will probably be very far beyond -2.2 percent” this year, Le Maire told a Senate panel.
“It’s an indication of the amplitude of the economic shock we’re facing,” he said.
France imposed a nationwide stay-at-home order from March 17 after shuttering all nonessential businesses. Officials have said the lockdown will last until at least April 15.
Statistics office Insee said last month that the lockdown has slashed overall economic activity by 35 percent, and estimated every month of shutdown would cut annual GPD by three percentage points.
Services, heavy industry and construction are all taking big hits, Insee said, as factories are shut and only a handful of business sectors, such as supermarkets and pharmacies, remain open.
A wave of French blue-chip companies have abandoned their profitability targets for the year, while employers’ associations have warned that hundreds of smaller firms and shops risk bankruptcy.
The government has pledged 45 billion euros ($49 billion) in loan guarantees and other relief to help companies get through the crisis.


Turkish Airlines may delay delivery of Airbus, Boeing planes

Updated 27 May 2020

Turkish Airlines may delay delivery of Airbus, Boeing planes

  • The carrier plans to begin some domestic flights on June 4 and international on June 10
  • Airlines chairman said the impact of the coronavirus on market could last up to five years

ISTANBUL: Turkish Airlines, which halted nearly all of its passenger flights as a result of the coronavirus crisis, may delay the delivery of some Boeing and Airbus planes, its chairman was quoted as saying on Wednesday.
The carrier plans to begin some domestic flights on June 4 and some international flights on June 10 as airlines worldwide try to get planes flying again after a global travel slump.
But Turkish Airlines chairman Ilker Ayci said in an interview with Turkey’s Hurriyet newspaper that the impact of the coronavirus could last up to five years and that it would take a while to reach 2019 load factor levels.
Turkish Airlines had received half of its order for 25 Boeing 787-9 planes, he said, adding that the delivery of the rest could be delayed.
The airline is in talks to take delivery of Airbus 350-900s that are ready from an order of 25, and that it was working to delay the delivery of the rest, he said.
“We are trying to lighten the serious loads that could arise. We are getting our narrow-body planes.”
Ayci said Turkish Airlines would no longer offer free in-flight food and drinks on domestic flights and other flights shorter than two hours.
He also repeated that the company would try to maintain employment, but that salaries would have to be adjusted, with the aim of supporting those paid the least.