ustralian Government inaction poses severe risk to aviation sector and lags rest of the world in COV

Critical aviation services and security infrastructure - including imports and exports and the supply of medical supplies to regional areas - is being threatened with collapse by Government inaction

Government inaction poses direct threat to COVID-19 recovery efforts with dire implications for security and travel and tourism sector unless direct support provided urgently

Sydney, 27 March 2020 - Four of Australia's largest ground handling companies, Cabin Services Australia ("CSA"), dnata, Menzies Aviation and Swissport, today warned that Australian Federal and State Government inaction on the risk posed by COVID-19 to the aviation sector (beyond airlines) represents a serious threat to the security of critical infrastructure and post-pandemic recovery.

Despite repeated attempts to engage Government, including letters and calls to the office of the Prime Minister, the Deputy Prime Minister and the Department of Infrastructure, Transport and Regional Development, the ground handling companies have been completely excluded from industry talks to date.

So far, ground handling companies have not seen any benefit from the $715 million aviation relief package airlines received and have been forced to stand down up to 50% of their combined workforce. This means that the people and services that keep Australian airports safe, that ensure imports and exports and critical supplies can get where they are needed, are being lost - and may not be there when the recovery gets under way and Australia is back open for business.

The group estimates, at a minimum, that it needs $25-30M per month in order to retain the resources we need to protect and rebuild supply chains and to prevent unacceptable, increased risk to airline safety and security.

Critical medical supplies & equipment and other time-sensitive goods cannot be moved around Australia without the services ground handling companies provide. Furthermore, because of extensive security and training requirements, the loss of these highly-skilled people means that planes will not be able to take off again once the immediate crisis has passed, crippling the country's infrastructure for longer.

Australia lags behind other Governments like New Zealand and Singapore, the latter yesterday announcing its second round of financial support to the aviation industry, including ground handlers.

Ground handling and cargo companies supply more than 75% of ground support to the aviation sector in Australia.