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UPDATE 2-Mideast, African governments failing to protect airlines - IATA

Published 23/04/2020, 12:54
© Reuters.

(Adds comments on African airlines)
By Alexander Cornwell and Omar Mohammed
DUBAI/NAIROBI, April 23 (Reuters) - Middle Eastern and
African governments are failing to take the action required to
protect their airlines from the economic crisis caused by the
new coronavirus pandemic, the International Air Transport
Association (IATA) said on Thursday.
Several states have stepped in to help their airlines that
have seen travel demand decimated by the global outbreak, such
as the United States, Singapore and Australia, though few in the
Middle East have made their intentions clear.
IATA, which represents 290 global airlines, has been
consulting with African and Middle Eastern governments,
regulators and stakeholders on how to revive air travel as some
countries start to slowly ease lockdowns.
However, IATA Vice President for Africa and the Middle East,
Muhammad Albakri, said the association was not satisfied with
Middle Eastern state efforts to support their airlines.
"We have not seen the desired movements and decisions of
governments and decision makers to ... put on the table the
economic stimulation packages and the rescue packages, financial
packages necessary to keep the airlines in the region alive,"
Albakri said on a call with reporters.
IATA wants to see Middle Eastern governments "prioritise
aviation and announce specific rescue measures for the airlines
and aviation industry in line with other nations," he said.
The industry body also warned African airlines were on the
verge of collapse unless governments urgently stepped in.
“Air Mauritius has entered voluntary administration, South
African Airways and SA Express are in business rescue, other
distressed carriers have placed staff on unpaid leave or
signalled their intention to cut jobs. More airlines will follow
if urgent financial relief is not provided,” Albakri said.
Estimated revenue losses for Middle Eastern carriers from
the outbreak have risen to $24 billion, compared with $7.2
billion on March 11, while estimated African losses have
stretched to $6 billion from $4 billion, IATA said.
Few Middle Eastern governments have said whether they would
prop up the region's airlines, which are mostly state-owned.
Dubai has promised new funding to state carrier Emirates,
but has not disclosed details, while Qatar Airways has said it
would eventually seek government support.

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