The International Air Transport Association (IATA) has made an urgent call to the governments of Latin America and the Caribbean to take measures to help the airline industry during the coronavirus (Covid-19) crisis, through a release.
IATA Regional Vice President for the Americas, Peter Cerdá, said that «The response needed to contain this health emergency has in turn created an economic crisis. While we fully understand the decisions taken to combat the virus, we believe that governments must also mitigate the effects of these measures. We are not asking for a financial bailout. We need help to overcome this crisis because the collapse of the aeronautical sector puts at risk the connectivity of countries, the jobs of the entire industry and its extensive value chain, and hinders the socioeconomic recovery of the region.«.
IATA projects that air passenger revenues will decline by US$314 billion in 2020, representing a 55% drop from 2019. In addition, annual passenger demand (domestic and international) is expected to fall by 48% from the previous year. While for airlines based in Latin America and the Caribbean this translates into a drop in passenger revenues of US$18 billion.
Following this, IATA calls on governments to consider direct financial support to passenger and air cargo carriers to offset revenue losses and liquidity shortages due to travel restrictions; loans, loan guarantees and support to the corporate bond market by governments and central banks; and the reimbursement of payroll taxes paid to date or the extension of payment deadlines during 2020, together with the temporary exemption of airfare fees and other taxes imposed by governments.
«The impact of this crisis on the region's airlines continues to be brutal. Passenger traffic has stopped and sources of income have dried up. No cost cutting will save airlines from a liquidity crisis that is imminent and will be severe, with negative effects on the economies and employment of the countries.. Governments must act quickly", Cerdá warned.
IATA also calls for measures to maintain the flow of air cargo, as delays in permit approvals, quarantine measures for crew and lack of ground support continue to hamper the movement of cargo flights carrying vital medical supplies and other necessities. It should be noted that the suspension of passenger flights has led to the loss of available cargo capacity, which is especially critical in Latin America and the Caribbean, where in many cases there are no alternative means of transport.
Likewise, The association reiterated the importance of cooperating in the organization of repatriation flights. that holds the top spot. "As an industry we can be proud of the way airlines have responded to and managed requests from governments to repatriate citizens. Many of these flights have been logistically challenging and we have even seen airlines serving Latin America and the Caribbean heading in recent weeks to destinations where they have never flown before. Collaboration across the travel value chain is essential and we look forward to counting on governments in the region to support such flights when necessary.", concluded Peter Cerdá.
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