Tag Archives: IATA

WTTC has unveiled the second phase of measures to rebuild global consumer confidence to encourage the return of travelling. The latest protocols are designed to enable sectors such as tour operators and convention centres, meetings and events to thrive once again. The extended measures follow the ‘Safe Travels’ guidelines that were launched by WTTC on May 12. Detailed discussions took place with key stakeholders and organisations to ensure maximum buy-in, alignment and practical implementation, to set clear expectations of what travellers may experience in the ‘new normal’. Those relating to airports and airlines have been devised following close consultation with WTTC Members IATA and Airports Council International (ACI), to rebuild trust and provide reassurance that airports and airlines will offer safe environments in which to fly once travel restrictions are relaxed.

Airports Council International (ACI) World and the International Air Transport Association (IATA) have jointly issued a paper laying out a pathway for restarting the aviation industry – Safely Restarting Aviation – ACI and IATA Joint Approach. They have called on governments to ensure new measures introduced for airports and airlines in the wake of COVID-19 are consistent across the world. Any restrictions put in place should be supported by scientific evidence, they added. ACI and IATA are both central members the COVID-19 Aviation Recovery Task Force (CART) being led by the Council of the International Civil Aviation Organization (ICAO). Angela Gittens, Director General, ACI World, said during a webinar conducted by CAPA India on May 29, 2020, that, “Airports and airlines have come together with ICAO and the wider aviation industry to address the biggest challenge ever faced by commercial aviation in restarting a global industry while continuing to halt the spread of COVID-19. There is currently no single measure that could mitigate all the risks of restarting air travel but we believe a globally-consistent, outcome-based approach represents the most effective way of balancing risk mitigation with the need to unlock economies and to enable travel.” The joint approach proposes a layered approach of measures across the entire passenger journey to minimise the risk of transmission of COVID-19 at airports and onboard aircraft, and to prevent aviation becoming a meaningful source of international re-infection. Such measures should be globally consistent and subject to continued review, improvement, and removal when no longer required, to ensure an even recovery.

Sunil B Satyawakta, Director, Civica Travels Pvt. Ltd, and Former Chapter Chairman (UP & Uttarakhand), TAAI, feels strongly that all IATA agents should re-negotiate the terms with IATA. He explains, “I am expecting that our ticket sales will be down at least 50 per cent in the next financial year. Keeping this in mind, we must ask IATA to bring down our bank guarantee and our targets by a minimum of 50 per cent. Normally the amount of financial security is based on an agency’s 20-day average turnover in the last 12 months. The submission deadline for Bank Guarantees is 24 June 2020 for the period 1st July 2020 to 30th June 2021. As the circumstances are unlikely to change in the coming 12 months, we must voice this concern to them before that.”

According to the new analysis by International Air Transport Association (IATA), in 2021 it is expected that global passenger demand (measured in revenue passenger kilometres, RPKs) will be 24% below 2019 levels and 32% lower than IATA’s October 2019 Air Passenger forecast for 2021. This forecast is modelled on the baseline scenario of domestic markets opening in Q3, with a much slower phased opening of international markets. This would limit the air travel recovery, despite most forecasts pointing toward a strong economic rebound late this year and during 2021.

A survey conducted by International Air Transport Association (IATA) at the beginning of April reveals that as many as 47% of air passengers surveyed wished to begin travelling within a month or two (by May or June). The survey, conducted across 11 countries (including India), also revealed that at least 4 per cent still continued being sceptical and did not wish to travel for the foreseeable future. Respondents for the survey were from Australia, Canada, Chile, France, Germany, India, Japan, Singapore, United Arab Emirates, United Kingdom and the Unites States.

Addressing concerns from member agencies regarding refunds/credits from airlines/ IATA due to the impact of Covid2019 as customers are demanding refunds from travel agents, TAAI has said, “With reference to the unilateral decision of the airlines to give credit notes and no cash refunds, we have made it very clear to all concerned that, cash refunds are required due to the global pandemic situation. It is the right of the passenger to get back his amount paid in stipulated time. Cancellation charges shall not be borne by the traveller due to the cancellation of flights/ lockdown situations/ banning of flights by government of India as well as of other countries, etc.” In an official statement by TAAI to its members, it was written, “We are in daily communications with the Indian Prime Minister’s office(PMO), Ministry of Civil Aviation (MoCA), Director General of Civil Aviation (DGCA), Ministry of Tourism (MOT), Ministry of Finance (MoF), Ministry of Commerce and Industry (MoCI), Niti Aayog, IATA Global Head Quarters, IATA-India, all airlines individually including Low Cost airlines in India. We are working in support with, all associations of travel, tourism & hospitality trade under UFTAA, FAITH, CII and other leading trade bodies. Our concerns have been voiced not only in our communications but also in mainline media being TV channels & newspapers, trade media as well as social media.” The TAAI team urged its members to be patient, claiming that the as Govt. of India, is prioritising the requests of citizens, industries, trade, travellers, etc. and are actioning to the best of their abilities, with timelines. “Their main objective right now is to ensure the health safety of all persons and providing proper medical …

An official statement by IATA has said that travel agents can make payment settlements later without penalties, in the wake of the global crisis of COVID-19. The statement read “For travel agents, we’re allowing settlements to be made a bit later, without penalties. While remittance periods have been kept in accordance with BSP Calendars, we are taking a flexible approach and preliminary figures confirm this, showing that default rates in 2020 are a bit below the year-ago period—despite the stresses on the system in 2020.” In addition, recognising the fact that it may be difficult or impossible to get audited financial statements, or arrange a financial guarantee, “IATA is offering to extend deadlines for these statements by up to a month.”

According to the latest data provided by International Air Transport Association (IATA), the airline industry could be staring at an estimated $35 billion of ticket refunds. This, clubbed with significant fixed and semi-fixed costs of which many cannot be avoided over a short period of time, can amount to the airline industry using up to $61 billion from its cash reserve in the second quarter (Q2) of 2020. This comes after IATA’s impact assessment released earlier, which showed that the industry was looking at a net loss of $39 billion in Q2 2020.

The International Air Transport Association (IATA) has published new analysis showing that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30th June 2020, while posting a quarterly net loss of $39 billion. The analysis is based on the impact assessment released by IATA, under a scenario in which severe travel restrictions last for three months. In this scenario, full-year demand will fall by 38 per cent and full-year passenger revenues drop by $252 billion compared to 2019. The fall in demand would be the deepest in the second quarter, with a 71 per cent drop. Revenues are expected to fall by 68 per cent. This is less than the expected 71 per cent fall in demand due to the continuation of cargo operations, albeit at reduced levels of activity. Variable costs are expected to drop sharply—by some 70 per cent in the second quarter—largely in line with the reduction of an expected 65 per cent cut in second-quarter capacity. The price of jet fuel has also fallen sharply, although we estimate that fuel hedging will limit the benefit to a 31 per cent decline. These changes to revenues and costs result in an estimated net loss of $39 billion in the second quarter.

According to the International Air Transport Association (IATA)’s latest analysis, the annual passenger revenues will fall by $252 billion if severe travel restrictions remain in place for three months. That represents a 44 per cent decline compared to 2019. This is well-over double IATA’s previous analysis of a $113 billion revenue hit that was made before countries around the world introduced sweeping travel restrictions. Sharing his remark, Alexandre de Juniac, Director General and CEO, IATA said, “Failure to act now will make this crisis longer and more painful. Some 2.7 million airline jobs are at risk. And each of those jobs supports a further 24 in the travel and tourism value chain. Some governments are already responding to our urgent calls, but not enough to make up the $200 billion needed,” he said. In urging more government action, de Juniac demanded Direct financial support by government to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19, loans, loan guarantees and support for the corporate bond market by the Government or Central Banks and rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies.