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GENEVA: Global airlines need to up to $200 billion of government support to help them survive the coronavirus crisis, the International Air Transport Association said on Tuesday.
Issuing a rallying call for the aviation industry, IATA chief Alexandre de Juniac said governments needed to act decisively to support carriers as many of the companies are running out of cash.
“If we want to maintain a strong airline sector able to cope with this difficult crisis and provide the resources to ensure the recovery will happen in due time, we need governments to act strongly and quickly,” he said.
The $150 billion to $200 billion IATA estimate includes indirect support such as loan guarantees and comes after US airlines asked for a $50 billion bailout on Monday.
The crisis has escalated in the past week, with countries issuing travel curbs and bans, including the US imposing sweeping restrictions on travel from Europe and the EU closing its borders.
The moves have forced airlines to ground most of their fleets as passenger numbers plunge.
BACKGROUND
The crisis has escalated in the past week, with countries issuing travel curbs and bans, including the US imposing sweeping restrictions on travel from Europe and the EU closing its borders. The moves have forced airlines to ground most of their fleets as passenger numbers plunge.
De Juniac said airlines were asking governments for a broad financial support package including support for corporate bond markets.
IATA chief economist Brian Pearce also said cash was running out for many airlines and that 75 percent of them had cash to cover less than three months of unavoidable fixed costs.
Passenger numbers were likely to be down significantly more than the 16 percent decline IATA had previously estimated, Pearce said.
Meanwhile, Belgium’s Brussels Airlines, a Lufthansa subsidiary, said on Tuesday it will suspend all flights for four weeks from Saturday as the coronavirus steadily shuts down the country.
The suspension will run until and including April 19. Flights will be gradually reduced during the course of this week to allow passengers and crew to return home by the time of the full suspension on Saturday.
The airline said the suspension was the result of measures brought in by Belgian authorities, government advice not to travel abroad and an increasing number of countries not allowing flights to their territories.
Customers will have until June 1 to decide a new travel date, and if desired a different destination.
“We will continuously monitor the situation and communicate accordingly, planning a restart of our operations on April 20 to welcome our guests on board again,” chief executive Dieter Vranckx said.