NEW YORK, United States (AP) — The rapid spread of the novel coronavirus since it was first reported in China has dealt an unprecedented shock to the global economy.

Following are business developments yesterday related to the outbreak as governments attempt to stabilise their economies, companies struggle to cope, and millions of people face job losses and disruptions in supplies of goods and in services:

Airlines

Airlines can’t seem to cut capacity as fast as air travel is fading, as businesses and vacationers pull back on plans. Industry analysts are slashing their expectations even faster, with cuts of 40 per cent or more the norm.

Air Canada is laying off more than 5,000 flight attendants as the country’s largest airline cuts routes amid plunging demand. The Montreal carrier is laying off about 3,600 employees, plus 1,549 flight attendants at its low-cost subsidiary Rouge, according to Wesley Lesosky, head of the Air Canada component of the Canadian Union of Public Employees. The layoffs will take effect by April and affect roughly 60 per cent of flight attendants. Air Canada says it will suspend most of its international and US flights by March 31. The carrier says employees will be returned to active duty status once flights resume.

GE Aviation will cut about 10 per cent of its US workforce. David Joyce, vice-chairman of GE and CEO of GE Aviation, will give up half of his salary starting April 1. The aviation arm of General Electric also said that there will be a temporary lack of work impacting approximately 50 per cent of its US maintenance, repair, and overhaul employees for 90 days.

And Canadian airline and travel company Transat AT Inc has temporarily laid off about 70 per cent of its workforce in Canada, or about 3,600 people.

Heavy industry

Millions of people are working at home. However, heavy industrial sectors have come to a standstill because the risk of infection, if operations continue, would be unavoidable.

A big auto industry trade group is telling Congress that 95 per cent of US auto assembly plants have been forced to close due to the coronavirus outbreak.

The Alliance for Automotive Innovation says in a letter obtained by The Associated Press that 42 of 44 US assembly plants were closed as of Friday. The letter says 87 per cent of the assembly plants in North America have been closed, including all seven in Canada and 60 of 69 in Mexico. It says analysts expect March sales to fall by up to 40 per cent from 2019 figures. The association is asking Congress for loans and loan guarantees for affected companies. It also is asking that businesses with more than 500 workers that provide paid leave for employees get a tax deduction or credit. Most US auto assembly workers are being paid through the closure, which in most cases is scheduled to last into late March and early April. The industry also wants Congress to delay 2020 quarterly federal tax payments, start a temporary payroll tax holiday, extend expensing for machinery, and delay the June 1 effective date of the United States-Mexico-Canada Agreement trade pact, which replaces the North American Free Trade Agreement.

Boeing is suspending operations at its Seattle area facilities due to the spread of coronavirus in the area.

Real estate

To conserve capital, Zillow Group postponed home buying in the 24 markets where it participates in such activity. Zillow stopped open houses for homes in all markets last week.

US home sales had jumped 6.5 per cent in February, their highest level in 13 years. But that was for contracts that were signed in December and January, with closings in February. The first report of a coronavirus infection in the US occurred on January 21 and economist are expecting a vast slowdown in the next report with sellers closing their homes to potential buyers.

The commercial real estate market is at risk of collapse, cautioned the founder of Colony Capital, as mortgage loans experience growing pressure. Thomas Barrack said in a blog post that liquidity has dried up as businesses get hit with a temporary cash-flow deficit and a rapid decline in revenue. “The market for commercial real estate mortgage loans in the United States stands on the brink of collapse,” Barrack wrote.

]Supermarkets

BJ’s Wholesale Club is the latest to offer a bump in hourly wages to workers restocking shelves while others stay home. Increased hourly pay would extend at least through April 12. Managers and key personnel will get a one-time bonus, ranging from $500 to $1,000. Walmart, Target, and Amazon are among the other companies giving pay hikes. Walmart is also giving one-time bonuses to its hourly part-time and full-time workers.

The spread of the virus has created a massive disruption in the workplace, with may companies sending workers home. However, other companies, largely those considered essential during the outbreak, have gone on a hiring binge.

Dollar General will hire up to 50,000 workers by the end of April as people ordered to stay home clear the bargain chain’s shelves and stock up pantries. Dollar General said yesterday that most of the jobs will be temporary, but that some may be long term.

Papa John’s is hiring up to 20,000 people with demand for pizza elevated. The need for new workers is so great, the company said yesterday that interviews can turn into punching the clock on the same day. Domino’s already announced additional hiring.

CVS Health also announced Monday that it is looking to fill 50,000 full-time, part-time, and temporary roles across the country. Positions include store associates, prescription delivery drivers, distribution centre employees and member/customer service professionals. The company is also giving employee bonuses ranging from $150 to $500 to workers required to be at its facilities.

The energy sector has lost almost half of its overall value in the month of March. Economic forecasts indicate a vast reduction in the amount of energy that will be needed as national economies are broadsided.