IATA: Governments have three financial avenues to 'avoid an industry calamity' due to COVID-19

IATA director general and CEO Alexandre de Juniac, speaking during an IATA media briefing on COVID-19, stated (17-Mar-2020) global governments have three means to provide financial support to airlines to "avoid an industry calamity":

• Direct financial support for carriers to compensate for reduced revenues, and therefore support liquidity due 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 bank, either directly to the airline or to commercial banks that may be reluctant to extend credit to airlines in the present situation in the absence of such a guarantee;
• Tax relief: Rebates and/or suspension on all employer imposed payroll taxes paid to date with an ongoing review for the rest of 2020, deferral or reduction in income taxes 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.

Mr de Juniac added that there is no "one-size fits all solution" but also "time is of the essence" and governments cannot take a wait-and-see approach and "must act now and decisively". [more - original PR]