15 September 2020: IATA is striving to restore the aerospace industry to its former glory and in that attempt they have made an urgent appeal to all the governments globally to work together and re-establish global connectivity by re-opening borders. This call by IATA is a clear outcome of deep industry frustration as government policies continue to be adamant about their travel plans.
“Protecting their citizens must be the top priority of governments. But too many governments are fighting a global pandemic in isolation with a view that closing borders is the only solution. It’s time for governments to work together to implement measures that will enable economic and social life to resume, while controlling the spread of the virus,” said Alexandre de Juniac, IATA’s Director General and CEO.
Specifically, IATA calls for governments to grasp the seriousness of the crisis facing the airline industry and its consequences for their citizens.
Re-opening borders – The world remains largely closed to travel despite the availability of global protocols to enable the safe re-start of aviation developed by governments through the leadership of the International Civil Aviation Organization (ICAO) with the support of the World Health Organization (WHO). This guidance covers all aspects of the passenger journey and recommends sanitary measures to keep travellers safe and reduce the risk of importing infection.
“Airlines have been largely grounded for a half-year. And the situation is not improving. In fact, in many cases it is going in the wrong direction. We see governments replacing border closures with quarantine for air travelers. Neither will restore travel or jobs. Worse, governments are changing the entry requirements with little notice to travelers or coordination with their trading partners. This uncertainty destroys demand. Ten percent of the global economy is sustained by travel and tourism; governments need to do better to re-start it,” said de Juniac.
The prerequisite to open borders is the ICAO Take-off guidance. Additionally, IATA is proposing travel bubbles to mitigate risks between specific markets and foresees a much wider and strategic use of COVID-19 testing as technology improves accuracy, speed and scalability.
“No government wants to import COVID-19. Equally, no government should want to see the economic hardships and associated health impacts of mass unemployment. Successfully getting through this crisis requires careful risk-management with effective measures. If government policies focuses on enabling a safe re-start, aviation is well-prepared to deliver. Risk-management is a well-developed discipline that airlines rely on to keep travel safe and secure,” said de Juniac.
With the exception of some domestic markets there is little evidence of an early industry recovery. Airlines continue to lose billions of dollars and are facing difficult decisions to resize their operations and workforce for the future.
“Many airlines will not have the financial means to survive an indefinite shutdown that, for many, already exceeds a half-year. In these extraordinary times, governments will need to continue with financial and other relief measures to the greatest extent possible. It’s a solid investment in the recovery because each airline job saved supports 24 in the broader economy. And a functioning airline industry will be a critical enabler for economies to regain their full power,” said de Juniac.
Government relief has been a critical lifeline. But what relief has been given is quickly running out. Government measures to provide additional financial buffers against failure will be critical, and these must not increase already ballooning debt levels.
The most urgent regulatory relief is a global waiver on the use-it-or-lose-it 80-20 slot rule. The severe uncertainty in the market means that airlines need the flexibility to adjust schedules to meet demand without the pressure of being penalized for not using allocated slots. Airlines cannot afford to fly empty planes when market demand drops. Similarly, they cannot pass up revenue when opportunities open up.
