Airline travel slump needs immediate govt redressal

The International Air Transport Association (IATA) has stepped up calls for government support, warning that the travel meltdown could lead to many of the airlines facing steep losses within the next two months.

IATA CEO Alexandre de Juniac said the risk of further bankruptcies will depend on the intensity and the duration of the coronavirus crisis. Talking to news agency Reuters, he said if the drop is as significant as seen now, the industry will see difficulties.

Airlines are demanding relief from charges related to aircraft parking and overflight fees, which is essentially a fee for airspace usage. Many carriers are also looking for a deferral of a proposed EU fuel levy and other environmental taxes.

Norway has already suspended aviation taxes, to benefit companies like the Norwegian Air which is struggling with heavy debts on its books.

France and Germany are also looking to help their carriers. German carrier Lufthansa, which was crippled by flight restrictions in China and the US, has stated that it would need government intervention, as it looks to ground two-thirds of its fleet.

British Airways has warned of job losses. Its chief executive Alex Cruz has said that jobs would be cut “perhaps for a short period or long term”.

The various airlines have requested their respective governments not to underestimate the gravity of the present crisis.