Coronavirus Impact: Airlines Need up to Rs 1.5 Lakh Crore in Emergency Aid, Says IATA

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Representative image. Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong, China. (Photo: Reuters)

Representative picture. Cathay Pacific plane are seen parked on the tarmac on the airport, following the outbreak of the brand new coronavirus, in Hong Kong, China. (Photo: Reuters)

IATA known as on governments to offer help in varied methods, together with by way of direct monetary help to passenger and cargo carriers, loans and mortgage ensures and tax aid.

  • PTI
  • Last Updated: March 21, 2020, 6:14 PM IST

Up to USD 200 billion (which interprets to about Rs 1.5 lakh crore) is required to rescue the world’s airways in the course of the coronavirus disaster, the worldwide aviation affiliation stated on Thursday, interesting particularly to African and Middle Eastern nations to offer emergency help.

“Support measures are urgently needed,” the International Air Transport Association stated in an announcement, including that “on a global basis, IATA estimates that emergency aid of up to $200 billion is required”.

Airlines worldwide face an unprecedented existential menace because the COVID-19 pandemic, which has killed greater than 9,000 individuals world wide, shuts down international journey. “Stopping the spread of COVID-19 is the top priority of governments,” IATA chief Alexandre de Juniac stated within the assertion. “But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation,” he stated, declaring that “the scale of the current industry crisis is much worse and far more widespread than 9/11, SARS or the 2008 global financial crisis.”

“Airlines are fighting for survival,” he stated, warning that “millions of jobs are at stake.” IATA expressed explicit concern for the scenario in Africa and the Middle East, the place many routes have been suspended, and the place demand has fallen by as a lot of 60 per cent on the remaining routes. It identified that the air transport business’s financial contribution in Africa alone is estimated at $55.eight billion, supporting 6.2 million jobs and contributing 2.6 per cent of the continent’s gross home product (GDP). In the Middle East, the contribution stands at $130 billion, some 4.Four per cent of GDP, supporting 2.Four million jobs, it stated.

“Airlines need urgent government action if they are to emerge from this in a fit state to help the world recover, once COVID-19 is beaten,” Juniac stated.

Carriers throughout Africa and the Middle East had begun implementing in depth cost-cutting measures to mitigate the monetary influence of the pandemic, IATA stated however warned that airways within the areas on common held sufficient money reserves for roughly two months.

“Due to flight bans as well as international and regional travel restrictions, airlines’ revenues are plummeting (and) outstripping the scope of even the most drastic cost-containment measures,” it stated.

IATA known as on governments to offer help in varied methods, together with by way of direct monetary help to passenger and cargo carriers, loans and mortgage ensures and tax aid.

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