USA warns that AIRLINES are “worse on September 11”

From the sector they demand that governments take charge of providing aid to airlines, which suffer the brake on global traffic

The United States Secretary of the Treasury warned on Tuesday that the coronavirus pandemic may be even more devastating for airlines than the consequences of the September 11, 2001 attacks in New York.

“This is worse than September 11 for the air transport industry”Mnuchin said, when many airlines leave their planes on the ground because of border closures imposed from Europe to Asia, from the United States to Latin America, to try to stop the covid-19 infections.

On Monday, the airlines requested $ 50 billion in aid from the federal government to weather the storm.

They ask governments for help

The International Air Transport Association (IATA) asked the governments of the different countries for measures to ensure the operational continuity of the airlines, with the aim of sustaining connectivity once the coronavirus pandemic stops. and the world needs an airline industry that keeps moving.

Speaking to Télam via video conference, IATA CEO Alexander De Juniac said there are measures “that will be useful, such as reducing charges airlines face at airports,” although he cautioned that “against the scale of the current crisis, this alone is not going to save the airline industry from financial danger. “

“On March 5 we estimate that industry revenue could impact up to $ 113 billion as a result of what we think would be the worst case scenario. We could not have anticipated developments in the past few days with massive restrictions to travel and without a clear understanding of how long they will remain in effect, “said the executive.

De Juniac indicated that There are companies that have already felt the impact and had to cease operations, and others that are in a “very delicate” situation..

Among the measures suggested he listed “direct financial support to carriers to offset reduced revenues and support liquidity due to travel restrictions imposed as a result of Covid-19; loans, loan guarantees and support for the corporate bond market for part of the Government or the Central Bank. “

“Tax relief along with a temporary exemption from taxes on fines and other levies imposed by the government,” he added.

The IATA head admitted that “there is no one-size-fits-all solution. Therefore, we will write to governments around the world to alert them to the dire situation in the industry and get them moving, under the circumstances of their country.”

In this sense, De Juniac explained that “Given the broad economic impact of this crisis, governments should focus on airlines. It is because connectivity is crucial. The world will overcome this crisis. And when you do, you will need a functioning air transport sector. Without financial aid it is not guaranteed. “

“In normal times, airlines carry around 35% of world trade. And each job in air travel supports 24 others in the travel and tourism value chain, representing almost 70 million jobs,” he said.

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Written by Argentina News

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