LAGOS – Fifty per cent of global airlines may not close shop post-COVID-19 pandemic if governments’ did not grant them palliatives to remain in business, the International Air Transport Association (IATA) has warned.
The international body also observed that airlines globally are burning cash and accumulating debts without operations due to the crisis.
Funke Adeyemi, IATA’s Director, Advocacy and Strategy, Africa stated this at a virtual meeting organised by stakeholders in the industry, with the theme: ‘Flying into Turbulent Skies, Safely Navigating Covid-19 Headwinds – Survival Strategies for Nigerian Aviation.’
ABUJA DOCTOR REVEALS HOW MOST NIGERIA MEN ARE NOW OVERCOMING TERRIBLE BEDROOM PERFORMANCE DUE TO THIS BRILLIANT DISCOVERY. DONT BE A VICTIM!
Adeyemi, however, said that IATA was working strongly to get governments all over the world to grant the needed financial assistance to the global airlines.
She warned that analysis carried out by IATA indicated that if by the end of July, airlines did not get financial supports in the form of direct cash injection; about 50 per cent of the carriers globally would go bankrupt.
According to Adeyemi, IATA had already estimated that for 2020, the airline sub-sector would record a loss of about $400billion, adding that this was an industry just trying to maintain a balance from a very high cost and tiny margin before the pandemic.
She said: “I am talking globally now because this thing has affected all airlines. That means African airlines and Nigerian airlines as well, are in this situation too.”
“This a real cataclysmic event in aviation, the airlines are burning cash even though they are not flying, they still have to spend, maintain their aircraft, maintain so many of their machinery and there is still a lot of money still being burnt and we estimate that about $60billion a quarter.”
According to her, IATA had sent out letters, some personally written by its Director-General to Heads of States, calling for assistance for the airline sub-sector to survive.
Source : independent.ng