ACI World calls for global COVID-19 policy response and proposes relief measures

Angela Gittens: “National authorities have now a key role to play to ensure the sustainability of the entire aviation ecosystem”

INTERNATIONAL. Airports Council International (ACI) World has called for a global policy response to the COVID-19 crisis and proposed a series of relief measures.

“There is a general sense across the aviation community that we are all in this together as this crisis continues to unfold,” said ACI World Director General Angela Gittens. “As the economic policy response is formulated, however, it is important to note that no measure or relief package should disproportionately benefit one sector at the expense of another.

“We should seek to ensure the impact of the COVID-19 pandemic on the aviation ecosystem is borne equitably and that all solutions are fair and reasonable so as to give the industry the greatest chance to recover quickly.”

Gittens noted that current estimates suggest airport industry losses of at least US$20 billion to up to US$25 billion this year.

Recognising that governments across the world are making decisions on economic stimulus, ACI World has recommended a series of policy measures “in order to alleviate the shortfall for airports”.

These include the protection of airport revenues from charges on airlines and passengers and from commercial activities. “Any global alleviation of airport charges or introduction of blanket discounts will place airport operators in greater financial distress,” said Gittens.

ACI World has also called for governments to consider, on a case-by-case basis, “waiving airport rents and concession fees applicable to airport operators, irrespective of their ownership status, given the financial stress they are experiencing”.

The temporary suspension of airport slot usage requirements would enable carriers to adjust their schedules in a sustainable way and for airports “to protect connecting traffic at hub airports and help safeguard connectivity worldwide”, Gittens said.

Tax relief for the aviation sector will also be needed, she said. “ACI World believes that national authorities have now a key role to play to ensure the sustainability of the entire aviation ecosystem by granting relief on airport taxes, on passenger-based taxes, and on taxes on air transport in general to incentivise the return of passenger confidence to travel.”

Finally, government assistance will be needed in some circumstances to help offset losses incurred by the sharp drop in travel due to the continuing outbreak.

“These policy responses aim to ensure the continuity and sustainability of airport operations in these exceptional circumstances,” said Gittens. “The aviation industry and governments should approach the prospects for recovery strategically, pragmatically, and in partnership.”

Angela Gittens’ full article, written for ACI Insights, can be read here.

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