IATA urges Africa, Middle East govts to grant emergency support to airlines 'fighting for survival'

IATA urged (19-Mar-2020) African and Middle Eastern governments to provide emergency support to airlines, as the coronavirus causes demand for air travel to plummet. "Stopping the spread of COVID-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation", stated IATA director general and CEO Alexandre de Juniac, adding: "The scale of the current industry crisis is much worse and far more widespread than 9/11, SARS or the 2008 Global Financial Crisis". IATA estimates airlines in the region have average cash reserves for approximately two months and require emergency financial aid of up to USD200 billion. The association recommended a number of options for governments to evaluate, including the following:

• Direct financial support for passenger and cargo carriers, in order to compensate for lowered revenues and liquidity;
• Loans, loan guarantees and support for the corporate bond market by governments or central banks. Corporate bonds for central bank support need to be extended and guaranteed by governments so as to provide access to more companies;
• Tax relief, such as rebates on payroll taxes paid to date in 2020 and the extension of payment terms for the remainder of 2020.

IATA regional VP for Africa and the Middle East Muhammad Al Bakri advised airlines be "given urgent consideration", noting that "several governments in Africa and the Middle East have already committed national aid for COVID-19". Financial aid for airlines will "enable global supply chains to continue functioning and provide the connectivity that tourism and trade will depend on if they are to contribute to rapid post-pandemic economic growth", he stated. Mr de Juniac noted African and Middle Eastern airlines have suspended many routes and "seen demand fall by as much as 60% on remaining ones". He warned: "Airlines are fighting for survival". [more - original PR] [more - original PR - II]