(Bloomberg) -- Governments have devoted more than $85 billion to propping up airlines after the coronavirus pandemic wiped out travel demand and grounded jetliner fleets. But with job cuts racking up — 20,000 were announced in Europe this past week — a debate is raging over whether opening the spigot will do more than merely delay the inevitable.Some 80% of flight capacity remains idled, while a rebound in China has stalled, leading the International Air Transport Association to suggest the recovery will be a tortuous one. Given the financial impact and safety measures likely to be required, it could be three years before the industry sees a sustainable revival, according to Delta Air Lines Inc. Chief Executive Officer Ed Bastian.Tension is also mounting over whether the cash windfall will interrupt a necessary thinning out of the sector by propping up weaker airlines, many state-owned or former flag carriers, while their leaner rivals rely on their...
