The International Air Transport Association (IATA) said earlier this week that the global aviation industry needs measures and relief packages from governments with a scale of 150 – 200 billion USD to survive Covid-19.
`If we want to maintain an aviation industry that is resilient enough to face the crisis and provide the resources to ensure a timely recovery, governments need to act quickly and strongly,` IATA Director Alexandre
Disinfection staff on a LionAir plane on March 17.
IATA’s warning was issued in the context that officials of various countries are actively researching proposals to rescue aviation.
De Juniac said IATA was pleased with the response of governments when they called for help.
IATA Chief Economist Brian Pearce said that currently only 30 airlines in the world have reasonable debt and revenue.
According to IATA, only 79 airlines in the world have enough cash to maintain operations for 1.5 months.
`Firms demand a variety of measures, from complete rescue through loans, loan guarantees to tax and fee reductions. Even when the crisis passes, they will not be able to recover and governments
He also predicts the pandemic has the potential to reshape the industry.
On Monday, US airlines affected by Covid-19 also proposed a rescue package of up to 50 billion USD to the government.
