UPDATE 5-Governments offer airlines aid as coronavirus drives deeper flight cuts

* Boeing calls for $60 bln in U.S. aid for manufacturers
* Trump to hold call with U.S. airline execs on Weds
* Airlines could need $200 bln of govt support -IATA
* Singapore Airlines, Virgin Australia slash flights

(Adds El Al Israel, paragraph 8)
By Jamie Freed and Tracy Rucinski
SYDNEY/CHICAGO March 18 (Reuters) - Australia and Taiwan
joined countries offering financial aid to airlines as
coronavirus and stricter travel controls forced carriers to
deepen cuts to capacity and staffing.
U.S. airlines have asked Washington for $50 billion in
grants and loans, plus tens of billions in tax relief. Sector
executives are due to speak with U.S. President Donald Trump by
phone on Wednesday.
Planemaker Boeing Co BA.N has called on the U.S.
government to provide at least $60 billion in access to
liquidity, including loan guarantees, for the aerospace
manufacturing industry as airlines halt deliveries and new
orders to conserve cash.
Airbus AIR.PA has also signalled some government support
may be needed if the coronavirus crisis lasts for several
months, three people familiar with the matter said. The Australian government said it would refund and waive
charges to airlines such as domestic air traffic control fees
worth A$715 million ($430 million), including A$159 million
upfront, as it advised citizens against all foreign travel.
Taiwan's civil aviation regulator said late on Tuesday that
its airlines could apply for subsidies and loans backdated to
Jan. 15.
Sweden and Denmark on Tuesday announced $300 million in loan
guarantees for Scandinavian carrier SAS SAS.ST . El Al Israel Airlines ELAL.AT on Wednesday said it had
sent 5,500 of its 6,000 workers on unpaid leave until May 31
after it slashed its flight schedule.
The outbreak of the flu-like virus has wiped 41%, or $157
billion, off the share value of the world's 116 listed airlines,
with many using up their cash so fast they can now cover less
than two months of expenses, a Reuters analysis showed.
The International Air Transport Association (IATA)
representing the sector said $200 billion in government support
could be needed worldwide. Trump said on Tuesday that travel restrictions within the
United States are being considered, which would be a further
blow to its domestic carriers. "You can do a national lockdown. Hopefully, we're not going
to need that," Trump said. "It's a very big step."
U.S. airlines are seeking to quickly reduce their workforces
through unpaid leave of up to 12 months with medical benefits or
early retirement packages in a sign carriers do not expect a
quick rebound. Global passenger numbers are expected to fall by as much as
30% this year with a full recovery not likely until 2022 or
2023, S&P Global Ratings said.
"At the risk of being alarmist, the airline industry is on
the brink of collapse as governments are quarantining large
portions of their populations and closing off borders," Cowen
analyst Helane Becker told clients.

CUTS GET DEEPER
The situation has worsened for airlines this week as
governments have tightened travel restrictions.
United Airlines Holdings Inc UAL.O said it would cut 60%
of its capacity in April, including 85% of its international
flights. Air New Zealand Ltd AIR.NZ on Wednesday suspended trading
for another two days to assess the financial implications of
deep capacity cuts announced on Monday. "This is going to be quite tough as we forecast the volumes
that we are looking at over the next few months," CEO Greg Foran
said in a video sent to reporters.
Up to 30% of the airline's 12,500 staff will not be
required, he said, adding that the carrier would offer leave
without pay and voluntary redundancies before moving to job
cuts.
Auckland International Airport Ltd AIA.NZ said
international passenger volumes on Monday were 44% lower than a
year ago.
Australia's Qantas Airways Ltd QAN.AX on Tuesday announced
plans to cut 90% of international capacity and its
Singapore-based low-cost airline Jetstar Asia said it would stop
flying altogether for three weeks from March 23 to April 15.
Australia's No. 2 carrier, Virgin Australia Holdings Ltd
VAH.AX , said it would suspend all international flying from
March 30 to June 14 and cut its domestic capacity in half, in a
move that could lead to job losses. Singapore Airlines Ltd SIAL.SI plans to halve its capacity
through the end of April, with further cuts possible as it
braces for a "prolonged" period of difficulty.
"Make no mistake – we expect the pace of this deterioration
to accelerate," CEO Goh Choon Phong said in a statement on
Tuesday.
($1 = 1.6642 Australian dollars)