The International Air Transport Association (Iata) – the representative body for the global airline industry – and Airports Council International (ACI) – which represents the world’s airports – issued a joint appeal to governments on April 30 to rapidly provide financial support to airlines and airport operators. This is because of the severe effects on both sectors of the travel restrictions and lockdowns imposed by many countries in attempts to counter the Covid-19 pandemic.
“Governments will depend on aviation to be ready to lead an economic recovery when this pandemic is behind us,” highlighted Iata director-general and CEO Alexandre de Juniac. “Governments must act now with financial lifelines that only they can provide for airlines and airports to see them through these extraordinary times.”
“The financial impact of the current crisis is unlike anything we have ever seen and requires urgent action by governments to assist the aviation industry to protect jobs, ensure essential operations, and plan for recovery,” affirmed ACI World director-general Angela Gittens. “Urgent tax relief and direct financial assistance that is to the benefit of the entire aviation ecosystem is needed to help preserve millions of jobs, protect essential operations, and foster a balanced recovery.”
Iata and ACI together called on governments to provide tax relief for airlines and airports. This would include reducing or waiving payroll taxes, corporate taxes and other levies or taxes on the sector. They also appealed for loans, loan guarantees or “direct support” to ensure the aviation ecosystem maintained financial liquidity.
Worldwide, the aviation sector supported 65.5-million jobs, of whom 10.5-million were in airlines and airports, as well as underpinning $2.7-trillion in global economic activity. “Preserving the continuity of operations for airports and airlines and protecting aviation jobs today will result in a faster economic recovery tomorrow,” pointed out Gittens.
“Airlines and airports are in this together,” averred De Juniac. “The more financially stable our airport partners are, the more they can help the industry to drive a recovery in air travel that will jumpstart the global economy.”