ASIA PACIFIC. The Association of Asia Pacific Airlines (AAPA) is urging governments to rapidly implement emergency relief measures to guarantee the survival of the aviation sector.
AAPA has called for a suspension of payroll taxes, a deferment or reduction in income taxes, an extension of payment terms, a waiver of ticket taxes, and other government levies, taxes, dues and charges for 2020.
The organisation is also asking for direct financial support for reduced revenues and liquidity support due to travel restrictions, and direct financial support for individuals facing loss of livelihoods.
Finally, it has called for an extension of interest-free loans or loan guarantees, and support for corporate bond markets either directly or to commercial banks to extend credit for affected companies.
“Asia is still reeling from the COVID-19 pandemic and the draconian travel measures put in place over the past two months. Air travel in the Asia Pacific region has virtually ground to a halt as a result of the travel bans, border closures, lockdowns, quarantine and isolation orders imposed by governments,” commented AAPA.
“Asian airlines are facing revenue shortfalls of upwards of US$60 billion this year as a result of sharp falls in demand which have already forced the grounding of over half of the fleet. By the same token many of the one million workers employed in the Asia Pacific airline industry are unable to work because of the drastic reductions in operations. Many are facing the threat of a loss of their livelihoods.”
The organisation continued: “We believe that it is time to consider holistic global measures to pave the way for the aviation industry to survive this crisis. Such a global approach is necessary to manage the economic and social impact of the COVID-19 pandemic.
“Airlines have been taking tough but necessary steps to deal with the current crisis by sharply reducing operations and costs including discussions with staff members whilst trying to preserve jobs. Airlines are also actively seeking additional financing from banks and financial institutions. Such measures will, however, not be sufficient to guarantee the survival of the aviation sector.
“AAPA urges all governments to take immediate action to address the societal impact of the world’s worst public health crisis in a century.”
