Airline and airport groups have called on governments around the world to provide fresh aid packages for the struggling aviation industry. The appeal was made on Tuesday, October 13, in a news briefing that brought together global players and investors in the industry. During the ceremony, airports and airlines bodies also reiterated their demand for a universal testing regime to be introduced globally as a means to “safely reopen borders and re-establish global connectivity” amid a dire situation for international flights. According to the International Air Transport Association (IATA), airlines revenues for the year will fall by $418 billion, a situation that could lead to the industry’s worst year in history. Airport Council International (ACI) World said airports would see their own income fall by $104bn. “The Covid-19 pandemic remains an existential crisis, and airports, airlines and their commercial partners need direct and swift financial assistance to protect essential operations and jobs,” said ACI World director general Luis Felipe de Oliveira. “Without this action, it is not an exaggeration that the industry is facing collapse.” “We need action quickly,” stated IATA director general Alexandre de Juniac, adding “Momentum is building in support of testing to re-open borders. It’s the top operational priority.” Apart from the airlines, Felipe de Oliveira said that airports were also facing extreme financial pressure. We could see airports going bankrupt in a very short period of time, he said. ACI and IATA are aligned in calling for urgent government action to introduce widespread and coordinated testing of passengers to enable quarantine requirements to be removed.” He decried that, Without this action, it is not an exaggeration that the industry is facing collapse. At the heart of the problem is that while carriers have seen their revenues fall by around 80 per cent, costs have declined only 50 per cent, as aircraft and staff costs are difficult to reduce. “This is why airlines burning through cash and still making significant losses,” the two organisations stated. Governments are therefore urged “to address the devastating impact of border closures and other government-imposed travel restrictions by supporting aviation’s viability through direct financial support”, ACI and IATA state. A failure to invest in the sector not only threatens the aviation industry, but the 10% of global economic activity that is linked to it, he argues. Estimates from IATA indicate that combined, aviation supports 46 million jobs across the world and $1.8 trillion in economic activity. When pressed on how urgently the assistance was required, de Juniac was emphatic: “Pretty critical. Pretty critical, otherwise the industry will run out of cash and you will see more and more bankruptcies. It is critical and urgent.” On testing, the two bodies have again called on the ICAO Council Aviation Recovery Task Force to provide an internationally agreed approach to replace the quarantine requirements and travel restrictions that are currently puzzling connectivity.
