TravelNewsAsia.com
Wed, 25 March 2020

Aviation: IATA Calls on Governments to Give More Support

IATA has welcomed the support of those governments around the world that have provided financial relief to airlines and urged other governments to follow suit before more damage is done.

“Airlines are fighting for survival in every corner of the world,” said Alexandre de Juniac, IATA’s Director General and CEO. “Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business. For airlines, it’s apocalypse now. And there is a small and shrinking window for governments to provide a lifeline of financial support to prevent a liquidity crisis from shuttering the industry.”

According to IATA’s latest analysis, released on Tuesday, annual passenger revenues will fall by $252 billion if severe travel restrictions remain in place for three months. That represents a 44% decline compared to 2019 and is well-over double IATA’s previous analysis of a $113 billion revenue hit that was made before countries around the world introduced sweeping travel restrictions.

Refueling an aircraft at London Heathrow. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

“It did not seem possible, but in a matter of days, the crisis facing airlines worsened dramatically. We are 100% behind governments in supporting measures to slow the spread of COVID-19. But we need them to understand that without urgent relief, many airlines will not be around to lead the recovery stage. Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain. Some governments are already responding to our urgent calls, but not enough to make up the $200 billion needed,” said de Juniac.

In urging more government action, de Juniac cited examples of state support:

Australia has announced an A$715 million (US$430 million) aid package comprising refunds and forward waivers on fuel taxes, and domestic air navigation and regional aviation security charges.

Brazil is allowing airlines to postpone payments of air navigation and airport fees.

China has introduced a number of measures, including reductions in landing, parking and air navigation charges as well as subsidies for airlines that continued to mount flights to the country.

Hong Kong's Airport Authority, with government support, is providing a total relief package valued at HK$2.6 billion (US$206 million) for the airport community including waivers on airport and air navigation fees and charges, and certain licensing fees, rent reductions for aviation services providers and other measures.

New Zealand’s government will open a NZ$900 million (US$580 million) loan facility to the national carrier as well as an additional NZ$600 million relief package for the aviation sector.

Norway’s government is providing a conditional state loan-guarantee for its aviation industry totaling NKr6 billion (US$533 million).

Qatar’s Minister of Finance has issued a statement of support for the national carrier.

Singapore has undertaken relief measures valued at S$112 million (US$82 million) including rebates on airport charges, assistance to ground handling agents, and rental rebates at Changi Airport.

Sweden and Denmark announced $300m in state loan guarantees for the national carrier.

In addition to this support, the European Central Bank, and the United States Congress are expected to enact significant measures to aid the airline industry in their respective jurisdictions as part of large packages of broader economic measures.

“This shows that states around the globe, recognize the critical role that aviation plays in the modern world. But many others have still to act to preserve the important role of this sector. Airlines are an economic and employment engine. This is demonstrated even as passenger operations shrink, as airlines continue to deliver cargo that is keeping the economy going and getting relief supplies where they are needed most. The ability for airlines to be a catalyst for economic activity will be vital in repairing the economic and social damage that COVID-19 is now causing,” said de Juniac.

IATA is calling for:

- Direct financial support to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19;

-  Loans, loan guarantees and support for the corporate bond market by the Government or Central Banks. The corporate bond market is a vital source of finance, but the eligibility of corporate bonds for central bank support needs to be extended and guaranteed by governments to provide access for a wider range of companies; and

-  Tax relief: Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies.

See latest Travel News, Interviews, Podcasts and other news regarding: IATA, COVID19.

Headlines: Ritz-Carlton Opens Luxury Resort in Nikko, Japan  Air New Zealand Completes Refurb of Domestic Lounge in Auckland  Hong Kong Disneyland Park Closes; Hotels Remain Open  Malaysia Airlines Starts Providing Passengers with Hygiene Kits  HK Government Names Two Observers for Board of Cathay Pacific  Maldives Reopens for Tourism  Travelport Launches COVID19 Smartpoint Plugin  Air France Aiming to Serve Close to 170 Destinations by End of Summer  Japan Becomes First International Operator of V-22 Osprey  Thai AirAsia to Launch Two New Routes from Hua Hin  Asia Pacific Airlines Hardest Hit by COVID19 Crisis  Four Seasons Reopens Global Flagship Hotel  Thai Vietjet Launches Lunchtime Promo with 500,000 Tickets from THB 50++  Malaysia and Japan Airlines to Cooperate on Flights from 25 July  Condor to Deploy eWAS Pilot and eWAS Dispatch  Airbus Forms Team Nightjar as Australia Looks for Special Ops Helicopters  US Air Force to Replace F-15C/Ds with F-15EX Fighter Jets  Etihad to Operate Special Passenger Flights to Six Destinations in India  BA Has Repatriated Nearly 40,000 People on 134 Flights Since 29 March  Bombardier Transportation Appoints Rajeev Joisar as MD for India  Dassault Falcon 6X on Track for First Flight in Early 2021  IATA Calls on IEA to Prioritise Investment in Sustainable Aviation Fuel  Smiths Detection Producing Portable COVID19 Triple Antibody Test Device  Ansat Helicopter Simulator Receives Certification from TsAGI  Delta Cargo Partners PayCargo  Boeing Delivers Last of 22 Apache Attack Helicopters to Indian Air Force  Churning a Dream into Reality - Interview with CEO of Laos Buffalo Dairy  Kew Green / Siamese Asset JV to Open 7 Hotels in Bangkok in 2021  Marriott Expands AC Hotels Brand to Japan  Mandarin Oriental Signs Hotel and Residences in Vienna, Austria  Sabre Signs SynXis Platform Agreement with Japan's Resorttrust, Inc  Accor Opens 39th Pullman Hotel in Greater China  Banyan Tree Opens Third Hotel in Mexico  Bombardier Delivers 350th Challenger 350 Business Jet  Elbit Systems Adds Mini-UAS to Seagull Unmanned Surface Vessel  Thai Airways Extends Suspension of Flights to 1 September  Sabre Names Members of New Executive Leadership Team  Air Canada Explores Rapid COVID19 Testing with Spartan Bioscience  ATR Appoints Sadika Moussaoui as Head of Human Resources  Airbus Reports Increase in Commercial Aircraft Deliveries in June  Smiths Detection Signs Kuwait T2 Contract  Four Seasons Atlanta Appoints Nancy Chacon as GM  Marc Rivest Appointed GM of Bombardier's Service Center in Dallas  Qantas to Bid Farewell to Boeing 747 with Three Special Flights  Korean Air to Sell Inflight Catering and Duty-Free Business  New IATA Survey Highlights Decreasing Desire for Air Travel  Air France to Cut Over 7,500 Jobs  Philippine Airlines Re-Routing Manila Passengers to Cebu  AirAsia Reports Q1 Net Loss of RM 953 Million  Etihad Airways to Expand Network as UAE Travel Restrictions Eased  Smiths Detection to Expand Biological Capabilities with Acquisition  Embraer Upgrades Cabins of Praetor 500 and 600 Business Jets  Air New Zealand Puts Hold on New Inbound International Bookings  Indonesia's Smart Cakrawala Aviation Takes Delivery of First Helicopter  China Airlines Resumes Hot Meal Service on Flights of 3+ Hours  Lotte Signs Distribution Agreement with Sabre  ATR 42-600 a Test Flight Closer to Certification in China  MTCO Names 18 Finalists of Experience Mekong Showcase 2020  Smiths Detection Launches iCMORE Algorithms for Lithium Batteries  RAF Air Vice-Marshal (Ret) to Lead DSEI 2021 Aerospace Expansion  HK's Airport Authority Appoints Julian Lee as Executive Director - Finance  Singapore's Changi Airport Installing New Contactless Systems  United Airlines to Launch Singapore - Hong Kong - San Francisco Flights  Niel Golightly Resigns from Boeing Over 33-Year Old Article  Qatar Airways Giving All Passengers Free Protective Kit; New PPE for Crew  Airbus H160 Helicopter Receives Type Certification from EASA  Avis Targets Long-Term Rentals in Singapore with Flex Solution  IATA Welcomes ICAO's Decision on CORSIA  Embraer Delivers 1,600th E-Jet, an E190-E2 to Helvetic Airways  American Airlines to Significantly Reduce International Network  Thai Airways Appoints Chansin Treenuchagron as Acting President  Aviation: RPKs Down 91.3% in May  United Airlines to Operate Nearly 25,000 Flights in August  Three Executive Appointments at Delta Cargo  IATA Appoints Karen Clayton as General Counsel  Qatar Airways Resumed Flights to 11 Destinations on Wednesday  Elbit Systems to Supply Intelligence Suites to a Navy in SEA  Laos and Myanmar Unveil Domestic Tourism Strategy  Far East Takes Over Hotel in Ariake, Tokyo  Airbus to Reduce Workforce by Around 15,000 People  Air Cargo Down 20% in May, Capacity Down 34.7%  Remaining Rounds of HSBC World Rugby Sevens Series 2020 Cancelled  Emirates to Add Seven Cities to Expanding Network  Qatar Airways to Launch Thrice Weekly A350 Flights to Toronto, Canada  Air Canada Ends Service on 30 Domestic Regional Routes; Closes Eight Stations  COVID19: WHO Praises Japan, South Korea; Says Worst Still to Come  Hong Kong's Airport Authority Publishes Annual Report and Future Plans  Airbus Concludes Autonomous Taxi, Take-Off and Landing Project  Marriott Appoints Brian King as President - Caribbean and Latin America  Air Canada Stops Guaranteeing Adjacent Economy Class Seats are Empty  Bombardier Global 5500 Enters Service  Embraer Delivers First of its Enhanced Phenom 300E Aircraft  Airbus Delivers First of Eight A330 MRTTs Ordered by NATO MMF  Cape Panwa Hotel Phuket Raceweek 2020 Cancelled  Rémi Maillard Appointed President of Airbus India  Korean Air Chairman Gets His Hands Dirty Disinfecting Aircraft  United Airlines to Operate Shanghai Flights via Seoul  Thai Airways Operates Third Repatriation Flight from London Heathrow  Akbar Travels of India Expands Partnership with Sabre  Malaysia and Singapore in Talks Over Resumption of Cross-Border Travel  Morocco Orders 24 Boeing AH-64E Apache Helicopters  Belmond to Reopen Hotels in South East Asia - Interview with Iain Langridge  Qantas to Layoff Over 6,000 Staff and Ground 100 Aircraft for 12 Months  Thai AirAsia Launches Promotion to Boost Mid-Week Travel  Hi Air Orders Two ATR 72-500 Aircraft  Japan's National Police Agency Orders 5 Airbus Helicopters  IATA Urges Governments Not To Implement Quarantine Measures  Inmarsat's New Smart Pipe Technology to Feature on Boeing 777X  US Navy Takes Delivery of First CMV-22B for Fleet Operations  Hilton Signs Deal to Expand Home2 Suites Brand to China  COVID19 Interview with GM of Courtyard by Marriott Siem Reap, Ms. Ashley Lai  Grand Richmond Hotel in Nonthaburi Launches Quarantine Package  Thailand to Promote Domestic Tourism First  HD Videos and Interviews  Podcasts from HD Video Interviews  Travel Trade Shows in 2020 and 2021  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also receive the daily news service by WhatsApp, stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Advertising
Advertising
Copyright © 1997-2020 TravelNewsAsia.com