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Hertz Files for Bankruptcy Protection

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One of the oldest car rental companies in the US is filing for bankruptcy protection due to the COVID 19 pandemic.

Hertz Global Holdings said in a U.S. court filing on Friday that it voluntarily filed for Chapter 11 reorganization. Its international operating regions including Europe, Australia and New Zealand were not included in the U.S. proceedings.

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According to a CBC News report, the company has $19 billion US of debt and roughly 38,000 employees worldwide and is among the largest companies to be undone by the pandemic. The company also runs the car rental brands Dollar and Thrifty.

Hertz had said earlier this month they could avoid bankruptcy if it received relief ffrom the U.S. government. who has started assisting companies as part of an unprecedented $2.3 trillion US relief package.

This post was published by our news partner: TravelPulse.com | Article Source

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Car Rental & Rail

Amtrak Asks Government for More Bailout Money

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Amtrak announced Tuesday it has requested another $1.475 billion in bailout funding from the United States government to avoid service cuts and route suspensions as a result of reduced demand caused by the coronavirus outbreak.

While the rail company received $1 billion in emergency funding in April, Amtrak officials said the continued impact of the viral pandemic on business has forced them to reduce operating costs by approximately $500 million.

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Amtrak plans to cut costs through restructuring its workforce and controlling discretionary expenses. The funds would be used to maintain minimum service levels and continue capital investments for the future.

“As the severity and duration of this pandemic and its economic fallout become clearer, we are seeking supplemental federal funding for the next fiscal year,” Amtrak CEO Bill Flynn said in a letter to congress.

“It is clear that Amtrak faces daunting challenges in Fiscal Year 2021, which will require us to take action to protect our rail network, our critical capital assets, and the livelihoods of our employees,” Flynn continued.

Even with the government assistance, Amtrak revealed it still plans to extend service cuts, as social distancing guidelines will continue to capacity limits as travel demand returns. Flynn also said the railroad faces “daunting challenges” that will require the company to take action.

Amtrak officials said revenue for the next fiscal year is expected to fall by $1.6 billion and to run a $1.4 billion loss after it nearly broke even last year. Employee expenses are expected to be cut by $350 million.

This post was published by our news partner: TravelPulse.com | Article Source

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