Airline alliances call for aviation sector support
The three major airline alliances have called on governments and stakeholders to take action to alleviate the unprecedented challenges faced by the industry amid the Covid-19 pandemic.
oneworld, SkyTeam and Star Alliance are supporting a request by the International Air Transport Association for regulators to suspend slot usage rules for the northern summer season as the airline industry suffers from extraordinary reductions in demand.
The alliances also welcomed the moves in recent days by some regulators who have suspended slot regulations temporarily and urge others to follow suit promptly.
They also request that regulators consider extending the suspensions for the entire operating season.
The impact of COVID-19 on the airline industry is significant, with IATA estimating up to US$113 billion in revenue losses for global passenger airlines.
The impact is expected to have a ripple effect through the value chain that supports the airline industry.
The forecasted revenue loss scenario does not include travel restrictions recently imposed by the US and other governments.
United Sates restrictions on passengers from the Schengen Area will place pressure on the US-Schengen market, valued at over US$20 billion in 2019.
The alliances also call on other stakeholders to provide support.
For example, airport operators are urged to evaluate landing charges and fees to mitigate the financial pressure faced by airlines due to a severe decline in passenger demand.
oneworld chief executive, Rob Gurney, said: “During such times of difficulty and uncertainty, it is important that the airline industry works even closer with stakeholders to mitigate adverse impacts from the virus and collaborate in areas within our control.
“Governments must implement the measures they consider necessary to contain the spread of Covid-19, and must be prepared for the widescale economic implications that will result from those measures.”
Together the three airlines represent almost 60 airlines around the world that contribute more than half of global capacity.
SkyTeam chief executive, Kristin Colvile, added: “The human and financial impact that the Covid-19 outbreak is having on the aviation industry is unprecedented.
“SkyTeam, with its alliance partners, and on behalf of member airlines, is urging all involved institutions and industry stakeholders to face these extraordinary times with exceptional measures.
“This includes action such as slot relief, airport and overflight fees reduction.”
Member airlines of the three global alliances have implemented urgent measures to address the impact of Covid-19, such as very significant capacity reductions, cost-saving initiatives, enhanced cleaning procedures and customer support outreach.
Star Alliance chief executive, Jeffrey Goh, concluded: “The unprecedented circumstances triggered by the coronavirus outbreak pose an existential threat not only to the airline industry but more generally to global trade and commerce, and social connectivity.
“As airlines stretch their limits to manage the crisis, it is equally critical for governments and stakeholders to avoid further burdens and step up with measures, as some have, that will ensure the future of the travel industry.”
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