IATA demands government support to prevent 'employment catastrophe'
By Abigail Townsend
Date: Tuesday 10 Nov 2020
(Sharecast News) - Governments must provide ongoing financial support for the aviation industry if mass job losses are to be avoided, the industry has warned.
In a joint statement, the International Air Transport Association and the International Transport Workers' Federation called for urgent action to prevent "an employment catastrophe" with up to 4.8m jobs potentially at risk.
As well as financial support, the IATA and ITF also want governments to replace quarantining with pre-departure Covid-19 testing.
They said: "It is clear that air transport is in a prolonged crisis. Governments need a clear and coordinated strategy to rebuild aviation, comprising immediate financial support, replacing quarantine requirements with systematic testing of passengers, and working with employers and trade unions to support the industry's long term recovery."
Covid-19 has rocked the aviation sector. Planes were grounded and borders closed during lockdown and demand has collapsed. According to IATA, which does not believe the sector will return to pre-Covid levels until 2024, demand was down more than 75% in August year-on-year.
Governments around the world have already provided $160bn of financial aid. But IATA and ITF said: "Despite this help, revenues are expected to close the year over 62% down, and airlines continue to burn through cash at the rate of $300,000 a day.
"Without immediate action from governments to further support the industry, the situation will trigger a massive jobs crisis."
Alexandre de Juniac, director general of IATA, said: "Aviation faces an unprecedent employment catastrophe. Tens of thousands of jobs have already been lost, and unless governments provide more financial relief, these are likely to increase to the hundreds of thousands."
Stephen Cotton, general secretary of ITF, said: "By the end of the year, almost 80% of wage replacement schemes will run out; without urgent intervention from government we will witness the biggest jobs crisis the industry has ever seen."
Geneva-based IATA represents 290 airlines comprising around 82% of global traffic. The ITF is a global federation of around 700 transport unions.
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