Airline aid: Qantas raises cash, rivals cut costs

A glimmer of hope Wednesday for one of the world's battered airlines.

Shares in Qantas closed 26% higher.

The Australian airline said it had got new financing to help it ride out the industry storm.

It raised over $600 million secured against several of its Boeing jets.

But there's no doubting that times remain tough.

Qantas has suspended all international flights, and put about 20,000 staff on extended leave.

International Air Transport Association chief Alexandre de Juniac says time is running out:

(SOUNDBITE) (English) INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) DIRECTOR-GENERAL, ALEXANDRE DE JUNIAC, SAYING (INTERVIEWED OVER SKYPE):"We have something like two months, or slightly less, ahead of us in terms of cash. After that, we'll run out of cash. So we desperately need a cash injection in our industry, for an amount of 200 billion U.S. dollars, we have estimated as a cash need for the airline industry."

Other carriers were also looking to raise cash Wednesday.

Korean Air Lines said it would sell non-core assets, and cut executive pay by up to 50%.

Virgin Australia said it would stop almost all domestic flights, and put 80% of its 10,000 staff on leave.

The global crisis has now devastated the air-travel industry.

Data firm Cirium says there are now around 3,500 jetliners stuck on the ground.

So many that parking spaces are starting to become hard to find.