IATA calls for extension of airline COVID-19 relief measures into winter schedule

IATA warned (16-Jun-2020) the airline industry faces a "hard winter" and called on governments to continue providing relief measures as the COVID-19 crisis continues. IATA highlighted four keys areas where governments could assist airlines:

• Extending the waiver from the '80-20 use-it-or-lose-it' rule in the Worldwide Airport Slot Guidelines. According to IATA, airlines need much more flexibility to plan schedules and business critical decisions should not be compromised by slot allocation guidelines designed for normal times. IATA director general and CEO Alexandre de Juniac said regulators should "apply the same common-sense approach" as they did to the summer season and waive the rule for the winter season as well. Airlines "need to focus on meeting what consumers want today, without trying to defend the slots needed for what their schedule might look like a year from now", said Mr de Juniac;
• Continued financial assistance in ways that do not increase industry debt levels which have risen sharply. Some governments are exploring measures including subsidising domestic operations and waiving airport and air traffic control charges;
• Extensions to wage subsidies and corporate taxation relief measures. The wage subsidy schemes have provided some USD35 billion in relief to airlines. Tapering these more slowly would give airlines more time to recover and minimize job losses. Relief for corporate and indirect taxes such as VAT, passenger taxes or fuel taxes would support market stimulus;
• Avoiding increases in charges and fees. While airports and air navigation service providers have suffered revenue falls, steep increases in charges must be avoided during the restart period as this will severely impact airline financials and market recovery. Similarly, governments should cover the costs of new health measures imposed as a result of COVID-19. [more - original PR]