IATA Tells PHL Government to Help Airlines, 548k Jobs to be Affected

The International Air Transport Association (IATA) urges the Philippine government together with those of 7 other countries to step in and help their airlines as the impact of the CoviD-19 on the aviation industry worsens. The Philippine aviation industry is seeing a 47% drop in passenger demand this year compared to 2019.

At the same time, the Philippine aviation industry faces a revenue impact of USD 4.481 million compared to 2019 which may impact 548,300 jobs including those jobs dependent on the aviation industry such as the travel and tourism industry.

Conrad Clifford, IATA’s Regional Vice President, Asia-Pacific said, "The situation is deteriorating.  Airlines are in survival mode. They face a liquidity crisis with a US$61 billion cash burn in the second quarter. We have seen the first airline casualty in the region. There will be more casualties if governments do not step in urgently to ensure airlines have sufficient cash flow to tide them over this period."

“Providing support for airlines has a broader economic implication. Jobs across many sectors will be impacted if airlines do not survive the COVID-19 crisis. Every airline job supports another 24 in the travel and tourism value chain. In Asia-Pacific, 11.2 million jobs are at risk, including those that are dependent on the aviation industry, such as travel and tourism,” Clifford continued.

Other countries that were identified as priority countries where government assistance are needed in support of their airlines are  India, Indonesia, Japan, Malaysia, Republic of Korea, Sri Lanka and Thailand. The IATA is calling for a combination of direct financial support, loans, loan guarantees and support for the corporate bond market and tax relief.

Last April 14, the IATA released an analysis showing that the CoviD-19 pandemic can impact global air passenger revenue by $314 billion where Asia-Pacific airlines will experience the biggest blow of $113 billion in revenue and a 50% decline in passenger air travel demand.

According to IATA, these estimates are based on a scenario of severe travel restrictions lasting for three months, with a gradual lifting of restrictions in domestic markets, followed by regional and intercontinental.

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