The Association of Asia Pacific Airlines (AAPA) is calling governments to take immediate action to help the Asia Pacific (APAC) air transport industry reeling from the Covid-19 pandemic and the draconian travel measures put in place over the past two months.
The association has been vocal since the virus outbreak, asking governments to rethink or refrain from introducing travel restrictions as they cause disruptions to the aviation and travel industry worldwide, and advocating cooperation and coordination instead of travel bans and flights cancellation to stem the virus spread.
Making the latest call in a statement, the aviation body says the region has virtually ground to a halt as a result of the travel bans, border closures, lockdowns, quarantine and isolation orders imposed by governments.
“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.”
According to AAPA, 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.
Malaysia Airlines, like many of its APAC counterparts, has suspended services and reduced capacity to a number of international destination and scaled down its operations even further with the recent nation-wide implementation of the Movement Control Order (MCO) by the Malaysian government (18 -31 March). Singapore Airlines is slashing its capacity by 96% through the end of April, according to a Bloomberg report.
AAPA reveals that although airlines are seeking additional financing from banks and financial institutions, these measures will not be sufficient to guarantee the survival of the aviation sector.
The aviation body notes that governments globally are only now beginning to appreciate the enormity of the challenge and the need for immediate action to provide critical support to those affected. They can help by implementing the following relief measures:
- Suspension of payroll taxes, deferment or reduction in income taxes, extension of payment terms, waiver of ticket taxes and other government levies, taxes, dues and charges for 2020.
- Direct financial support for reduced revenues and liquidity support due to travel restrictions
- 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
- Direct financial support for individuals facing loss of livelihoods
AAPA affirms APAC airlines are committed to working with governments and the industry to maintain global connectivity and smooth operations despite the very challenging operating environment.
• Featured image credit: william87-Getty/Images
