MUMBAI: With aircraft fleets grounded and low passenger loads, airline cash reserves are running down so quickly that by the end of May 2020 most airlines in the world will be bankrupt if there is no coordinated government and industry action, warned the Centre for Asia Pacific Aviation (CAPA), a global aviation consultancy firm on Monday.“As the impact of coronavirus and multiple government travel reactions sweep through, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants,’’ said the CAPA report adding that forward bookings are far outweighed by cancellations and each new government recommendation is to discourage flying. “Demand is drying up in unprecedented ways. Normality is not yet on the horizon,” it said.Commenting on the travel restrictions being imposed, the firm said there is “little instinct to act cooperatively”. “Each nation is adopting the solution that appears best suited to it, right or wrong, without consideration for its neighbours or trading partners,” the report said, citing US President Donald Trump ’s decision to cancel airline access to most Europeans without advising his European government counterparts in advance or consulting with them. Such instances, where national self-interest takes precedence over cooperation, present an evolving threat for aviation, CAPA said.In the post-coronavirus environment, Chinese airlines, which are mostly government-supported, would be among the survivors. The US majors (supported by unions) have the lobbying power to access government subsidies and they are already working hard to achieve that. Some European governments will provide selective support for some airlines and Gulf carriers too are likely to be supported by their respective owners. The prospects for many private airlines are not as bright, the report said.“The last thing the world needs post-coronavirus is a nationalistic, aeropolitical confrontation. A conflict along nationalistic lines would have colossal implications for the aviation supply chain, airframe and aerospace manufacturers, lessors and financiers. It would be greatly reduced in size and would be catastrophic for many satellite activities,’’ it added.