On Tuesday, April 28, the International Transport Workers’ Federation (ITF) and the International Air Transport Association (IATA) called on governments across the world to support the aviation industry by protecting 25 million jobs and sustaining air transport services.
The economic situation facing the aviation industry is severe with global air passenger demand down by 80 percent. Airlines are facing a liquidity crisis, threatening the viability of millions of jobs directly and indirectly dependent on aviation, including jobs in the tourism and hospitality sectors.
In a joint statement, ITF and IATA called for governments to ensure that the protection of health workers caring for those with COVID-19 is prioritized to provide immediate financial and regulatory support for airlines in order to maintain the sustainability of terms and conditions for air transport workers and to assist the industry to restart quickly by adapting regulations and lifting travel restrictions in a predictable and efficient manner.
IATA’s Director General and CEO, Alexandre de Juniac, said airlines were facing the most critical period in the history of commercial aviation. “Some governments have stepped in to help, and we thank them. But much, much more is needed,” the chief executive said.
“Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses. And when the world is ready to start travelling again, the global economy will need aviation at its best to help restore connectivity, tourism and global supply chains. That will require a harmonized approach with industry, workers, and governments working together,” de Juniac added.
ITF’s General Secretary, Stephen Cotton, said the federation and the IATA had a shared goal to ensure a sustainable future for the aviation industry. “In order to achieve this, we need urgent action now. It is crucial that governments understand the importance of the aviation industry in rebuilding the global economy and support the industry,” he said.
Cotton said further that “Bold decisions are required to invest in the future of airlines and protect the jobs and livelihoods of the transport workers who will lead the economic recovery when COVID-19 has been contained. Workers and the industry have joined forces, we invite more governments to join us in a coordinated approach to keep the industry and its essential supply chains moving.”
The statement by both global lobbies was issued a day after the Airline Operators of Nigeria (AON) called for intervention funds at less than five percent subsidy and waivers to keep the distressed carriers afloat.
During the course of the weekend, Nigeria-based Arik Air cut workers’ April salaries by 80 percent, while 90 percent of the workforce was made to proceed on vacation without pay, thereby proving the severity of the situation at hand.
Chief Executive Officer of Arik Air, Capt. Roy Ilegbodu said after careful deliberation and analyses, management decided to implement an 80 percent pay cut for all members of staff across the entire organization for the month of April 2020.
He further disclosed that commencing from May 1st, 2020, no less than 90 percent of staff will proceed on leave without pay until further notice, adding that this position will be reviewed on a monthly basis and communications on further developments will be shared by its Human Resources department as the situation evolves.
Based on an assessment done by IATA, the global aviation industry could lose $63 billion in revenue due to the ongoing pandemic, more than double the $29.3 billion indicated in its initial assessment published in February. A broader impact could lead to losses of as much as $113 billion, depending on how the virus outbreak develops, as the industry’s prospect dims across the world.
