GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
19 March 2020 (Geneva) – The International Air Transport Association (IATA) is appealing to governments in Africa and the Middle East, as part of a worldwide campaign, to provide emergency support to airlines as they fight for survival due to the evaporation of air travel demand as a result of the COVID-19 crisis. 
 
“Stopping the spread of COVID-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation. 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. Many routes have been suspended in Africa and Middle East and airlines have seen demand fall by as much as 60% on remaining ones. Millions of jobs are at stake. 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,” said Alexandre de Juniac, IATA's Director General and CEO.
 
Extensive cost cutting measures are being implemented by the region's carriers to mitigate the financial impact of COVID-19. However, due to flight bans as well as international and regional travel restrictions, airlines' revenues are plummeting—outstripping the scope of even the most drastic cost containment measures. With average cash reserves of approximately two months in the region, airlines are facing a liquidity and existential crisis. Support measures are urgently needed. On a global basis, IATA estimates that emergency aid of up to $200 billion is required.
 
IATA is proposing a number of options for governments to consider. They include: 
• Direct financial support to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19;
• Loans, loan guarantees and support for the corporate bond market by governments or central banks. The corporate bond market is a vital source of finance, but the eligibility of corporate bonds for central bank support needs to be extended and guaranteed by governments to provide access for a wider range of companies.  
• Tax relief: Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other Government-imposed levies. 
 
“Several governments in Africa and the Middle East have already committed national aid for COVID-19 including Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Egypt, Nigeria and Mauritius. Our ask is that airlines, which are essential to all modern economies, are given urgent consideration. This will help keep them alive and ensure airline staff – and people working in allied sectors - have jobs to come back to at the end of the crisis. It will enable global supply chains to continue functioning and provide the connectivity that tourism and trade will depend on if they are to contribute to rapid post-pandemic economic growth,“ said Muhammad Al Bakri, IATA Regional Vice President Africa, Middle East. 
 
Africa's air transport industry's economic contribution is estimated at US$55.8 billion supporting 6.2 million jobs and contributing 2.6% to GDP. In the Middle East air transport's economic contribution is estimated at US$130 billion supporting 2.4 million jobs and contributing 4.4% to GDP. 



Posted by : GoDubai Editorial Team
Viewed 4346 times
Posted on : Thursday, March 19, 2020  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Etihad Airways Eases Travel Plans by Introducing Etihad Credit
Next Story : Etihad Airways Implements Temporary Changes to Its Route Network
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Make Up for Ever Introduces for the First Time Its New Active Care-in-foundation...
Olay Eyes Hydra Gel
Maillon De Cartier Watch
LG Prioritizes Home Comfort With Latest Air Conditioners for GCC Market
6 Steps X 6 Products from Essence: The Shortcut that Perfects Skin - Now more th...
Kristina Fidelskaya A/W 2020 Collection “Dream”
Eid Gifts From The Body Shop
Ralph Lauren Expands Its Earth Polo Offering, Reinforces Commitment to Protectin...
Happy Eid with Parmigiani Fleurier Toric Fleur
Vatika Focuses on Making Quarantine a Quality Time With New Viral Campaign
Your at-Home Spa Guide With Skin Republic
Sony Middle East & Africa Launches New Compact 4K Handycam® Camcorder with Advan...
Dubai Sports Council Thanks Wise Leadership for Its Protection and Care of the C...
UAE Banks Among Top Performing in GCC, KPMG Report Finds
Dubai Customs: Strategic Plan to Curb Corona
Etihad Guest Rewards Members While Staying Home
Denim Culture
Etihad Holidays to Be Operated by Dnata Travel Group In the UK
Mohap Hails Family Doctors' Efforts in Countering Covid-19 Crisis
Pure Health Launches Covid-19 Field Laboratory at Sharjah Expo Centre
Celebrate Father's Day With Parmigiani Fleurier Tondagraph Slate
Lenovo's Tech Gift Guide
First Range Rover Made Under Social Distancing Measures Comes Off Jaguar Land R...
Made in Italy, ICSA® Issues a Notification of Counterfeit Products Found in the ...
Karl Lagereld Drives Digital Innovation With Launch of the “Maison Karl Lagerfe...
Emirates Post Launches ‘Epostcard' to Connect Friends and Families
Instagram Partners with TBWA Raad and Egyptian Food Bank to #Stopfoodwaste
Covid-19 Disruption Will Lead to 28 Million Surgeries Cancelled Worldwide
Etihad Airways Increases Number and Frequency of Special Flights Worldwide
IATA Outlines Layered Approach for Industry Re-Start
Union Coop Launched ‘Drive Thru' Shopping Service
Ralph Lauren: How to master the art of tie-dye. #RLatHome
Abu Dhabi University Creates Face Shield Prototype to Support the Local Healthca...
MHPS Captures Global Gas Turbine Market Share Leadership Again
Dubai Chamber and Al Tamimi & Co discuss Covid-19 and Force Majeure in the UAE
Emirates Sets Industry-leading Safety Standard for Customers Travelling as It Re...
Keeping Mobile Networks Running Top Priority During COVID-19 Pandemic
Commodity Weekly: Gold and Silver Pop as Economic Clouds Darken
Jaguar Land Rover Special Vehicle Operations Reports Fiscal 2019/20 Retail Sale...
OMEGA Adds Full Gold Models to The Speedmaster 38 mm Collection
ENEC Completes Significant Test for Unit 4 at Barakah
SRTI Park Discusses Reality, Future of Research and Development in Arab Region
Introducing the Marks & Spencer Summer Edit
Jameel Institute at Imperial College London Launches New Tool to Help Hospitals ...
Arabian Automobiles Welcomes the All-New 2020 Nissan Sunny
Give the Gift of Time and Convenience This Eid With Lg Electronics
Abu Dhabi Early Childhood Authority: How to Help Your Children Thrive With Remot...
What Narcolepsy Is and How to Cope With It
UAE Develops a Rapid Coronavirus Laser Testing Technology
Twitter Launches ‘Heroes of Good' Campaign to Celebrate the Spirit of Ramadan