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IATA: essential support measures, but only to "sustainable companies"

Branson promises to mortgage his resort villa to save Virgin

Alexandre de Juniac, Director General and CEO of IATA (International Air Transport Association), intervenes in the debate on the future of air transport, returning to the seriousness of the situation and stressing that this is "an emergency. Carriers all over the world are struggling for survival and the entry into controlled administration of Virgin Australia shows that this risk is not only theoretical". AVIONEWS had published the article on the drastic decision made by Sir Richard Branson  founder and majority shareholder of Virgin Group, regarding the Australian company of which it has 10% of the shares. All the shareholders of the airline did not want to introduce new capital into a company that has already totalled over 3.2 billion dollars in debt.

Sir Branson said in a press statement that he was ready to "mortgage his luxurious residence villa on the Virgin Islands to save Virgin". He also complained that the lack of government support for Virgin Australia left Qantas in a monopoly regime.

"Governments will need -de Juniac specified it- economically viable airlines to drive the economic recovery, but many of them won't make it if they run out of money first".

Interesting -AVIONEWS writes it- the reference to "sustainable companies" which implies the need for a selection process so as not to waste the huge financial resources necessary for the rescue operation. In other words, the concept of "leaving no one behind" will not be valid, but rather that of saving air transport companies that can be saved.

AVIONEWS notes that the number of governments that recognize the need for relief measures is growing, but at the same time the crisis is worsening due to the prolongation of the stoppage of flights and the measures to limit the movement of people that will perhaps extend beyond the end of the 2020.

"We thank the governments that have committed themselves to providing the sector with a lifeline and intend to act quickly -IATA's number one specified it-. For the others, it should be remembered that every day counts. Millions of jobs are at stake and it can't wait any longer to provide support". 

In a report published in recent days by AVIONEWS, IATA indicated that 25 million jobs are at risk in the airline industry and tourism as a consequence of the lockdown measures adopted and the vertical collapse of reservations due to the coronavirus.

AVIONEWS recalls that numerous experts say that this blocking period will also negatively affect the future demand for flights for a change in the habits and desires of most of the world's population.

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AVIONEWS - World Aeronautical Press Agency