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Coronavirus: AAPA calls for government action as Asia Pacific aviation in crisis

Coronavirus: Asia-Pacific, AAPA

With Asia still reeling from the coronavirus pandemic and the draconian travel measures put in place over the past two months, AAPA is calling for immediate government action.

The association says air travel in the Asia Pacific region has ground to a halt as a result of the travel bans, border closures, lockdowns, quarantine and isolation orders imposed by governments, with airlines facing revenue shortfalls of upwards of $60 billion this year as a result of sharp falls in demand.

In addition, consequently, many of the airline industry workers are now unable to work and are facing the threat of a loss of their livelihoods, the association notes.

Urgent measures required

AAPA believes now is time to consider holistic global measures to pave the way for the aviation industry to survive the crisis. With airlines taking tough but necessary steps to deal with the current crisis by sharply reducing operations and costs whilst trying to preserve jobs, carriers are also actively seeking additional financing from banks and financial institutions.

Such measures will, however, not be sufficient to guarantee the survival of the aviation sector, the association says. Governments can help by rapidly implementing emergency relief measures such as:

  • Suspension of payroll taxes, deferment or reduction in income taxes, extension of payment terms, waiver of ticket taxes & other government levies, taxes, dues and charges for 2020.
  • Direct financial support for reduced revenues and liquidity support due to travel restrictions.
  • Extension of interest-free loans or loan guarantees, and support for corporate bond markets either directly or to commercial banks to extend credit for affected companies.
  • Direct financial support for individuals facing loss of livelihoods.

AAPA urges all governments to take immediate action to address the societal impact of the coronavirus pandemic.

Find out more about the Association of Asia Pacific Airlines.

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