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European aviation groups call for government bailouts

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European aviation groups call for government bailouts

The European Regions Airline Association (ERA) and Airlines for Europe (A4E) sent an open letter to EU Transport Ministers ahead of the EU Transport Ministerial Meeting of 18 March 2020 calling for government help to the aviation sector.

The ERA and A4E joint letter called for the European Commission and member states to give special consideration to airlines given the critical need for cash due to the enormous cut in passenger revenues.

“In order to ensure the survival of airlines in Europe and to help drive the economic recovery of the industry once restrictions related to the virus are lifted, a comprehensive package of measures is urgently required, whereby European airlines call on EU governments to co-ordinate their response, preserving the European aviation single market and its benefits in the long run.,” said the letter.

The joint letter to EU Transport Ministers, said that the ongoing wide-ranging cancellations are unavoidable and “manifestly caused by circumstances beyond airlines’ control,”. As such it was appropriate for European transport authorities to declare that Covid19 constitutes  ‘extraordinary circumstances’ and therefore relieves airlines of the requirement to make compensation payments. It also called for an extension of the “use it or lose it”, slot rules by the EU beyond the current June 30 end date.

Finally, the ERA and A4E have called for the deferment of ATC charges and aviation taxes at EU or national level to aid in the sector’s future recovery. “Further to this, any fiscal burdens should be postponed or suspended until the industry is back on a sound operational and financial footing. EU and national measures should ensure liquidity for airlines, via guarantees or credit facilities for instance, as they will be instrumental in ensuring a swift recovery of the European economy at large,” said the joint letter.