Airports Council International has called for more financial help from governments around the world to help to protect millions of employees.
New ACI World data shows that airports employ – either directly or indirectly – more than 6.1 million people globally, making up 60 per cent of all employment in the aviation sector.
The typical hub airport has as many as 40,000 employees either working for the airport operator or other on-site employers.
As a result of travel restrictions introduced to curb the virus’ spread, ACI estimates losses of up to US$70 billion to the airport sector. This figure is roughly equivalent to the entire revenue base of the world’s 50 busiest hubs.
“ACI World is calling on states to consider financial relief measures that will help to alleviate the significant drop in cash flows and to ensure operational and business continuity of airport activities, and to protect jobs,” ACI World director general Angela Gittens said.
“The present crisis is leading to a domino effect and Tourism Economics, an Oxford Economics company, estimates that the decline in international visitor spending in the US will tally 13 times the impact of SARS and nearly double the impact of 9/11.”
A pressing concern for many airports is the substantial loss of operating revenues caused by flight cancellations, travel bans, and the sharp declines in passenger traffic. See what measures States should consider: https://t.co/Jr6gzbvJNw #COVID19 #ACIInsights pic.twitter.com/pZr5Trb5px
— ACI World (@ACIWorld) March 29, 2020
ACI also predicts that the decline in economic activity could exceed the loss of income experienced during the global financial crisis of 2008, according to the International Monetary Fund.
“Recognising that the entire aviation ecosystem has been affected by this crisis, financial relief should be non-discriminatory and not benefit one actor at the expense of another actor in the aviation ecosystem.”
Measures cited by ACI include:
- The immediate provision of government assistance through grants and subsidies to support operating expenses and wages to airport staff;
- Ensuring secured financing and loans at preferential rates and bank guarantees;
- The suspension of all national and local aviation-specific taxes for 2020;
- The waiving or postponement of airport rents and concession fees applicable to airport operators, irrespective of their ownership status;
- Wage guarantees across employees essential to continuing operations; and
- “Bridge-in” programs to re-include those temporarily laid off.
