AFRICA/MIDDLE EAST/INTERNATIONAL. The International Air Transport Association (IATA) has called on governments in Africa and the Middle East to provide emergency support to airlines as a result of the COVID-19 crisis.
The appeal is part of a worldwide campaign, according to IATA Director General and CEO Alexandre de Juniac, who said the “scale of the current industry crisis is much worse and far more widespread than 9/11, SARS or the 2008 global financial crisis”.
He commented: “Stopping the spread of COVID-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation.
“Airlines are fighting for survival. Many routes have been suspended in Africa and Middle East and airlines have seen demand fall by as much as 60% on remaining ones. Millions of jobs are at stake. Airlines need urgent government action if they are to emerge from this in a fit state to help the world recover, once COVID-19 is beaten.”
On a global basis, IATA estimates that emergency aid of up to US$200 billion is required. It is proposing the following for governments to consider:
- Direct financial support to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19.
- Loans, loan guarantees and support for the corporate bond market by governments or central banks.
- Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies.
IATA Regional Vice President Africa, Middle East Muhammad Al Bakri commented: “Several governments in Africa and the Middle East have already committed national aid for COVID-19 including Saudi Arabia, the UAE, Qatar, Bahrain, Egypt, Nigeria and Mauritius.
“Our ask is that airlines, which are essential to all modern economies, are given urgent consideration. This will help keep them alive and ensure airline staff – and people working in allied sectors – have jobs to come back to at the end of the crisis. It will enable global supply chains to continue functioning and provide the connectivity that tourism and trade will depend on if they are to contribute to rapid post-pandemic economic growth.”
