The International Air Transport Association has called for measures including credit lines, tax breaks and passenger duty deferrals to alleviate the strain on the industry following US President Donald Trump’s travel ban.
IATA director-general and CEO Alexandre de Juniac said, “Without a lifeline from governments, we will have a sectoral financial crisis piled on top of the public health emergency.”
The news came as the French government pledged financial support to embattled flag carrier Air France and hard-hit nations such as China and Korea also promised to assist the sector. Lufthansa has already approached the German government asking for help.
De Juniac added, “These are extraordinary times and governments are taking unprecedented measures. Safety — including public health — is always a top priority. Airlines are complying with these requirements.
“Governments must also recognise that airlines — employing some 2.7 million people — are under extreme financial and operational pressures. They need support.
“Governments must impose the measures they consider necessary to contain the virus. And they must be fully prepared to provide support to buffer the economic dislocation that this will cause. In normal times, air transport is a catalyst for economic growth and development.
“Suspending travel on such a broad scale will create negative consequences across the economy. Governments must recognise this and be ready to support.
“This will create enormous cash flow pressures for airlines. We have already seen Flybe go under. And this latest blow could push others in the same direction. Airlines will need emergency measures to get through this crisis.
“Governments should be looking at all possible means to assist the industry through these extreme circumstances. Extending lines of credit, reducing infrastructure costs, lightening the tax burden are all measures that governments will need to explore.”
IATA also said that governments should follow World Health Organization (WHO)-issued guidelines on travel restrictions.
The WHO currently recommends against such bans, saying that interference with international traffic “may only be justified at the start of an outbreak to gain time”.
