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Dhaka Tribune

International airlines appeal for tax relief support

Without urgent relief from the government, many airlines will not be around to lead the recovery stage

Update : 31 Mar 2020, 10:51 PM

International airline companies have appealed for tax relief or financial emergency support from the government as they fight for survival amid the dramatic loss of air travel demand caused by the Covid-19 crisis. 

They made the appeal at a videoconference about the coronavirus situation on Tuesday.

Representatives from the civil aviation authorities of 33 countries, including Bangladesh, India, China, USA, Australia, New Zealand, International Air Transport Association (IATA), local-international airlines participated in the conference organized by Thailand.

The participants said that airlines were fighting for survival in every corner of the world due to travel restrictions and lockdown, but they were continuing cargo services despite the health risks posed to their crews.

They are incurring a huge loss which is difficult to overcome. Therefore, flight management authorities were demanding tax relief, including ground-handling charges, from Bangladesh for the three months since the global coronavirus crisis began.

Air Vice Marshal M Mafidur Rahman, chairman of the Civil Aviation Authority of Bangladesh, told Dhaka Tribune: “Every sector has been affected by the novel coronavirus.

“Considering the situation, airlines have asked for some benefits and we have conveyed the request to the Ministry of Civil Aviation and Tourism; they will take the decision,” he added.

M Mafidur Rahman said: “Cargo flights are being operated in all countries, including Bangladesh, amid the coronavirus pandemic. 

“So, the international forum asked us to conduct coronavirus related health check-ups on airport control tower staff, flight engineers, pilots, crews of cargo flights and whoever arrives at the airport in order to curb the spread of coronavirus. We assured them we are taking all necessary precautions.”

Meanwhile, the International Air Transport Association (IATA) said that in a matter of days, the crisis faced by the airlines had worsened dramatically.

“They are 100% behind governments in implementing measures to slow the spread of Covid-19. But without urgent relief, many airlines will not be around to lead the recovery stage. At this moment some 2.7 million airline jobs are at risk,” says IATA.

IATA appealed to governments or central banks for direct financial support, loan guarantees, support for the corporate bond market and tax relief for passenger and cargo carriers.

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