INTERNATIONAL. Airports Council International (ACI) World has called for measures to protect the livelihoods of millions of employees who work at airports around the world amid the COVID-19 crisis.
The organisation says airports employ more than 6.1 million people globally either directly or indirectly, which makes up 60% of all employment in the aviation sector. Travel bans and other measures as a result of the COVID-19 outbreak have put a “huge and unprecedented amount of economic pressure” on the aviation industry, according to ACI World Director General Angela Gittens.
In a new blog post on the ACI World website, she said: “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.
“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.
“Indeed, it is predicted that the decline in economic activity could potentially 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.”
ACI World is calling for a series of measures to be considered. These include the immediate provision of government assistance through grants and subsidies to support operating expenses and wages to airport staff.
Other possible measures include ensuring secured financing and loans at preferential rates and bank guarantees, as well as the suspension of all national and local aviation specific taxes for 2020.
ACI World also believes airport rents and concession fees applicable to airport operators should be waived or postponed, irrespective of their ownership status.
States must also consider maintaining a minimum level of employment to allow continued operations and to preserve a rapid return to full operations, the organisation said. “This would mean supported wage guarantees with regards to those still employed and bridge-in programmes for those temporarily laid off,” Gittens wrote.
Airport industry losses of up to US$70 billion are expected as a result of COVID-19 according to current forecasts, ACI World said, when compared to a projected pre-COVID-19 baseline for 2020. Estimated losses are almost equivalent to the entire revenue base of the world’s 50 busiest hubs, and this does not take into account “the losses that the other service providers at airports will inevitably incur”.
ACI World said it would publish a detailed update on the predicted economic impact of the pandemic on the global airport industry next week. Gittens’ full blog post can be read here.
