The airline industry today asked governments for “continued financial support” To avoid the looming “job catastrophe” in the aviation industry: 4.8 million jobs are threatened by the fall in travel demand derived from the pandemic and 80% of salary replacement schemes (ERTEs) will be exhausted before the end of the year .
The International Air Transport Association (IATA) and the International Transport Workers’ Federation (ITF) have warned this through a joint statement, that have asked governments to open borders without quarantines nor restrictions on mobility in a safe manner, implementing a coordinated system of test at origin for travelers.
Air travel has fallen more than 75% (August 2020 compared to August 2019) and, according to Air Transport Action Group estimates, there are almost five million jobs at risk. The planes are on the ground, activity at airports is minimal and the manufacture of aircraft has come to a standstill.
All airlines face historic losses, They are burning the liquidity they have and have most of their staff in a situation of ERTE or similar. Just yesterday the low-cost airline Norwegian announced losses of more than 600 million this year and the company will go bankrupt if it does not receive public aid, something that the Norwegian Government has denied.
Last week it was the Spanish Government that approved the rescue of the Spanish Air Europa, to which it will give 475 million to prevent it from going bankrupt.
In Spain the air sector is one of the few that can still take advantage of the ERTE by force majeure, which has been extended until January 31. The sector asks that they be extended until Easter 2021, as they foresee that the reactivation of the activity will not take place before.
UNPRECEDENTED CATÃ ?? STROFE
“Aviation is facing an unprecedented job catastrophe. Airlines have cut their costs, but they only have 8.5 months of cash left under current conditions. Tens of thousands of jobs have already been lost and if governments do not provide more financial assistance, it is likely to increase to hundreds of thousands, “the two organizations said in a statement.
“By the end of the year, almost 80% of wage replacement schemes will be exhausted, Without urgent government intervention, we will witness the biggest jobs crisis the industry has ever seen, “said Stephen Cotton, ITF Secretary General.
IATA Director and CEO, Alexandre de Juniac, has asked governments to implement a test system to give security to passengers and thus eliminate quarantines.
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