It’s an extraordinary time for the global travel and aviation industries with massive cutbacks at every airline worldwide. Today, the three major airline alliances sent out a joint-release calling on governments and other stakeholders to provide the industry with extraordinary support to, “alleviate the unprecedented challenges faced by the global airline industry amid the COVID-19 pandemic.”
To Point Me To The Plane‘s knowledge, this is the first time that oneworld, SkyTeam, and Star Alliance have issued a joint release like this with all three alliance logos. We’ve seen Delta, American Airlines, and United band together to demand US government action against the middle east three (an alliance abandoned when American announcing its new alliance with Qatar Airways) but this is unprecedented.
The Release
oneworld, SkyTeam and Star Alliance member airlines call on governments and stakeholders for extraordinary support
Monday, 16 March 2020: On behalf of their member airlines, the three global airline alliances oneworld®, SkyTeam and Star Alliance are jointly calling on governments 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 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 impact of COVID-19 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 travel restrictions recently imposed by the US and other governments. US restrictions on passengers from the Schengen Area will place 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 12 March, the three alliances urge governments worldwide to prepare for the broad economic effects from actions 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.
Oneworld Statement
oneworld CEO Rob Gurney said: “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. Governments must implement the measures they consider necessary to contain the spread of COVID-19, and must be prepared for the widescale economic implications that will result from those measures.”
SkyTeam Statement
SkyTeam CEO and Managing Director Kristin Colvile said: “The human and financial impact that the COVID-19 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.
Star Alliance Statement
Star Alliance CEO Jeffrey Goh said: “The unprecedented circumstances triggered by the coronavirus outbreak pose an existential threat not only to the airline industry but more generally to global trade and commerce, and social connectivity. As airlines stretch their limits to manage the crisis, it is equally critical for governments and stakeholders to avoid further burdens and step up with measures, as some have, that will ensure the future of the travel industry.”
Member airlines of the three global alliances have implemented urgent measures to address the impact of COVID-19, such as very significant capacity reductions, cost-saving initiatives, enhanced cleaning procedures and customer support outreach.
While they are responding proactively to mitigate further impact in face of rapidly-changing policy scenarios, 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.
The Upshot
Things are moving faster than ever as the coronavirus spreads. Across the United States, airlines are drastically cutting capacity, while many European carriers are shutting down altogether to wait out the crisis. It’s very likely we’ll see government support for the sector in some form, although whether it will be enough to prevent iconic carriers from going out of business is yet to be seen.
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