ALTA reiterates its call to States in a critical situation for the global economy

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ALTA reiterates its call to States in a critical situation for the global economy
Tue March 24, 2020

According to the Latin American and Caribbean Air Transport Association, it is in the hands of governments to protect this key industry for the development of the region and multiple companies that depend on aviation

Aviation moves the world, not only connecting people, but driving hundreds of industries through trade, jobs, and connectivity.

In Latin America and the Caribbean alone, travel and tourism as a whole generates 18.9 million direct, indirect and induced jobs and contributes 9.3% of the region's GDP (WTTC data). It is a source of economic and social well-being of great importance.
The global economic crisis as a result of COVID-19 is causing, for the first time since the 2008 crisis, global GDP to be negative and, according to WTTC, one million people lose their jobs in the travel and tourism industry every day. all over the world.
According to new IATA estimates, airlines will achieve losses of $ 252 billion in passenger traffic gains in 2020 with a 38% reduction in global RPK (number of passengers transported per distance traveled). In Latin America and the Caribbean, a 41% reduction in RPK and an increase in losses to 15 billion dollars are estimated.
Compared to the number of flights performed by airlines in the region in 2019, we have already achieved a 65% reduction in international travel to and from the region for the last weeks of March. In some countries the reductions in international flights reach 99% and some of our main hubs such as Tocumen in Panama, Quito and El Dorado in Bogotá are completely stopped serving only humanitarian flights.
Recovery of passenger demand will not be quick and JP Morgan estimated that, if all Latin American airlines cancel 100% of their itineraries for a long time, they will survive between 3 and 10 months maximum.
For this reason, ALTA reinforces its call to the governments of Latin America and the Caribbean about the urgency of implementing temporary measures of critical importance to sustain the airline industry during this crisis and thus make viable the economic recovery of the entire region by reactivating transport. air and tourism once the pandemic is over.
ALTA requests governments to assertively and timely implement the following measures:

Provide financial relief to the industry by injecting cash flow and reducing and / or exempting taxes, fees and charges from airlines, airports, air navigation providers and services associated with the air operation that together would support the return of the flights
Facilitate debt renegotiation, refinancing and lines of credit
Adjust working conditions as a contingency measure and alleviate social charges
Facilitate cargo traffic by streamlining administrative work and reducing costs
Make rules more flexible so that the industry can operate quickly after the contingency has passed.

It is time to act with agility and assertiveness to safeguard jobs immediately, guarantee a vital service such as air transportation of essential merchandise, personal and medical supplies, as well as guarantee the sustainability of an industry that will drive global economic recovery. It is in the hands of the States to protect this key industry for the development of the region and of multiple industries that depend on air transport.


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