The International Air Transport Association (IATA) would like to extend its thanks to the Brazilian government for its support for the aviation industry which is being massively disrupted by the COVID-19 outbreak.
“Aviation is going through an unprecedented crisis. The predicted losses in revenue for the industry have been calculated at around US$113 billion. Airlines across the globe are being forced to slash capacity and are taking other emergency measures to reduce costs, while doing their best to maintain the vital task of linking the world’s economies. We would like to extend our thanks to the Brazilian Government for having considered our industry in the overall relief measures announced,” said Peter Cerdá, IATA’s Regional Vice President for the Americas.
The measures announced by the Brazilian Government yesterday include:
- Postponing by six months the payment of air navigation fees by airlines for the months of
March, April, May and June.
- Allowing for the deferment of airport concession fee payments by private airport
operators to 18 December 2020.
- Permitting airlines more flexibility in the timeframe of refunding tickets for canceled
Moreover, the government has indicated that it is preparing a special credit line to support airlines’ financial liquidity during these extraordinary circumstances.
Furthermore, in response to a request from IATA, the Brazilian Civil Aviation Authority (ANAC) had already agreed to waive the minimum 80% slot usage rule for airlines until the end of October 2020.
“Once the COVID-19 outbreak is under control, the global economy will need to rapidly rebuild. Air connectivity will be essential for that to happen. But without help now, airlines will be in no fit state to restart operations. Many airlines may not exist at all. Assistance now will keep essential cargo services going, preserve as many jobs as possible, and ensure that supply chains and
tourism can recover quickly,” said Cerdá.
Aviation plays a vital role in Brazil’s economy, supporting US$18.8 billion of the country’s GDP along with 840,000 jobs (full value of aviation report can be found here).