Three global airline alliances call on governments and stakeholders for extraordinary support

On behalf of their member airlines, three global airline alliances oneworld, SkyTeam and Star Alliance have jointly called on governments around the world and stakeholders to take action to alleviate the unprecedented challenges faced by the global airline industry amid the COVID-19 pandemic. 

The three global alliances, which represent almost 60 airlines around the world that contribute more than half of global airline capacity, are strongly supporting a request by the International Air Transport Association (IATA) for regulators to suspend slot usage rules for the northern summer 2020 season as the airline industry suffers from extraordinary reductions in passenger demand. 

The alliances welcome the moves in recent days by some regulators who have suspended slot regulations temporarily and urge others to follow suit promptly. They also request that regulators consider extending the suspensions for the entire operating season. 

The COVID-19 impact on the airline industry is significant, with IATA estimating up to US$ 113 billion in revenue losses for global passenger airlines. The impact is expected to have a ripple effect through the value chain that supports the airline industry. 

The forecasted revenue loss scenario does not include recent travel restrictions imposed by the US and other governments. US restrictions on passengers from the Schengen Area will put pressure on the US-Schengen market, valued at over US$ 20 billion in 2019. 

To alleviate the immense pressures faced by airlines in the current operating environment, and in support of IATA’s statement on March 12, the three alliances urge governments worldwide to prepare for broad economic effects from action taken by States to contain the spread of COVID-19, and to evaluate all possible means to assist the airline industry during this unprecedented period. The alliances also call on other stakeholders to provide support. 

For example, airport operators are urged to evaluate landing charges and fees to mitigate the financial pressure faced by airlines due to a severe decline in passenger demand. 
“During such times of difficulty and uncertainty, it is important that the airline industry works even closer with stakeholders to mitigate adverse impacts from the virus and collaborate in areas within our control,” oneworld CEO Rob Gurney said.

“oneworld, SkyTeam and Star Alliance member airlines call on governments and stakeholders for extraordinary support to contain the spread of COVID-19, and to be prepared for the wide scale economic implications that will result from those measures.” 

According to SkyTeam CEO and Managing Director Kristin Colvile, the human and financial impact the COVID19 outbreak is having on the aviation industry is unprecedented. 
“SkyTeam, with its alliance partners, and on behalf of member airlines, is urging all involved institutions and industry stakeholders to face these extraordinary times with exceptional measures. This includes action such as slot relief, airport and overflight fees reduction,” Colvile said.

Star Alliance CEO Jeffrey Goh said, “TBD Member airlines of the three global alliances have implemented measures to address the impact of COVID19, such as capacity reductions, cost-saving initiatives and customer support outreach.

 Member airlines have also offered flexible booking policies and enhanced cleaning procedures, to ensure that customers may book flights and travel with confidence. 
“While airlines are responding proactively to mitigate further impact from COVID-19, it is imperative they are supported by governments and stakeholders who can play a vital role in alleviating the unprecedented pressures faced by global airlines amid these extremely challenging times.”