IATA asks states to ease taxes on Asia-Pacific airlines; warns collapse
Aviation Updates Philippines – The International Air Transportation Association (IATA), a trade association of global airlines, called on several leaders of Asia-Pacific countries to support local airlines as they "fight for survival" amid the shattering COVID-19 pandemic.
IATA, according to a report, addressed the concerns to the heads of government of 18 states in the Asia-Pacific region, including Bangladesh, India, Japan, Malaysia, Pakistan, Philippines, Republic of Korea, Thailand and Vietnam.
“Airlines are fighting for survival in every corner of the world. Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business. For airlines, it’s apocalypse now. And there is a small and shrinking window for governments to provide a lifeline of financial support to prevent a liquidity crisis from shuttering the industry,” IATA Director General and Chief Executive Officer Alexandre de Juniac said.
Based on IATA's latest analysis dated March 24, airlines may lose up to $252 billion in passenger revenues brought by falling passenger demand and collapsing tourism industries of countries around the globe. It noted the estimated losses equate to a 44 percent decrease in profits compared to last year.
The association's chief remarked airlines could suffer drastically without their government's support. He stressed that now is the time for countries to take action in order to save the airlines from collapse. In that situation, jobs are largely at risk.
“Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain,” he said.
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| FIGHTING FOR SURVIVAL. The International Air Transportation Association (IATA) asked for governments' support to their airlines in this time of crisis. The association warns that airlines may collapse without much-needed assistance. Photo form Kit Agad, Click by Kit. |
“Airlines are fighting for survival in every corner of the world. Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business. For airlines, it’s apocalypse now. And there is a small and shrinking window for governments to provide a lifeline of financial support to prevent a liquidity crisis from shuttering the industry,” IATA Director General and Chief Executive Officer Alexandre de Juniac said.
Based on IATA's latest analysis dated March 24, airlines may lose up to $252 billion in passenger revenues brought by falling passenger demand and collapsing tourism industries of countries around the globe. It noted the estimated losses equate to a 44 percent decrease in profits compared to last year.
The association's chief remarked airlines could suffer drastically without their government's support. He stressed that now is the time for countries to take action in order to save the airlines from collapse. In that situation, jobs are largely at risk.
“Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain,” he said.
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