AFTER earlier asking the government to provide support by removing airport charges, the Air Carriers Association of the Philippines (ACAP) on Thursday sought more State support, by way of government loans, credit lines and guarantees on debt rather than direct cash subsidies.
ACAP includes AirAsia Philippines, Cebu Pacific, Philippine Airlines and their affiliates.
The group recently discussed with senators the financial support requirements for the aviation sector, one of the hardest hit by the lockdowns triggered worldwide by the Covid-19 pandemic, to operate sustainably once the community quarantine period is lifted.
The pandemic has brought air travel worldwide to a virtual standstill, with many airline fleets grounded and getting no firm indication when travel restrictions will be eased.
The International Air Transport Association (IATA) has urged governments to provide airlines with liquidity urgently to help them survive the crisis, warning that many will go under within weeks unless they receive help.
The same sentiment was expressed by Foreign Affairs Secretary Teodoro Locsin Jr., who said, “We lose our airlines to bankruptcy and we’re dead.”
ACAP chairman Ricky Isla said, “Airlines are typically one of the first key indicators of a recovery post any downturn in travel or crisis. These are unprecedented and extraordinary times.”
He said local tourism and hospitality sectors are in dire need of support, noting that governments around the world are already recognizing the importance of the airline sectors “and providing a much needed lifeline to assist the air travel industry, which in turn provides a welcome boost to stimulate the economy.”
ACAP Executive Director and Vice Chairperson Roberto Lim said, “The government is in the position to bring confidence to banks and businesses to lend support to airlines. We ask the government to intervene now rather than later to jumpstart air travel.”
Lim continued: “We support the government in ensuring cash subsidies are allocated to sectors that need it the most. What airlines require are credit guarantees and loans, which will be repaid. Airlines will need time and forbearance to once again generate revenue.”
AirAsia reiterated its support for ACAP’s other important proposals pitched to government to boost the airline and travel industry.
These include the waiver of airport fees for at least a year without interest or penalties; issuance of travel vouchers in lieu of refunds for canceled flights; and the centralization of government guidelines for the aviation sector that include local governments.
For its part, AirAsia has rolled out a number of enhanced safety procedures to ensure the health and well-being of guests and staff amid the pandemic. These include contactless transactions via self check-in kiosks at airports, physical distancing at check-in and boarding queues, mandatory temperature scanning, and mandatory use of face masks.
The carrier said personal protective equipment will be provided for ground and cabin crew “and every flight will be equipped with antibacterial sanitizers compliant with the Bureau of Quarantine (BOQ).”
All AirAsia aircraft, which are fitted with hospital-standard High Efficiency Particulate Air (HEPA) filters, will also be sent for a thorough disinfection after each flight with the use of disinfectant approved by the BOQ and the Civil Aviation Authority of the Philippines.
AirAsia said it complies with advice and regulations from the local government, civil aviation authorities, global and local health agencies, including the World Health Organization.
The airline said it supports ACAP as it actively engages government agencies in developing necessary measures to ensure that the health of the public is protected ahead of a safe and smooth resumption of flights by June 1 subject to regulatory approvals.
Image credits: Nonie Reyes
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