ETRC joins call for urgent support to help members impacted by Covid-19

By Andrew Pentol |

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Julie Lassaigne, Secretary General, European Travel Retail Confederation.

Following recent requests for support to help contend with the Covid-19 crisis, the European Travel Retail Confederation (ETRC), Airports Council International Europe, the Airline Catering Association (ACA) and Airport Services Association (ASA) have sent a joint letter to the European Commission, seeking ‘urgent supporting measures.’

The purpose of this letter is to complement specific support measures proposed in open letters to the European Commission sent by ETRC, ACI Europe and ACA and ASA (joint letter). These were sent on 17 March, 16 March and 17 March respectively.

Written on behalf of Olivier Jankovec, Director General, ACI Europe, Fabio Gamba, Director General, ACA & ASA and Julie Lassaigne, Secretary General, ETRC, the letter comprises various measures which the trade associations believe should be adopted by EU/EEA Member States and Switzerland to support travel retailers.

The first measure on the table is the promotion of a European Aviation Relief Programme which is fully coordinated with EU/EEA States and Switzerland and industry stakeholders.

Secondly, the trade associations are urging the European Commission to implement comprehensive, inclusive and non-discriminatory support to the entire aviation ecosystem. This is alongside the the Commission’s ‘comprehensive supporting measures to airlines.’

Assuming current travel restrictions and flights bans are lifted towards the end of April and a gradual recovery in demand for air transport ensues, ACI’s predicts a loss of more than 700 million passengers at Europe’s airports in 2020 as a result of the pandemic.

€14BN HIT IN LOST REVENUES

This represents a decrease of -28% in passenger footfall compared to a business-as-usual scenario and €14bn hit in lost revenues for Europe’s airport operators alone. This is not taking into account the inevitable losses incurred by other airport service providers.

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The ETRC has joined Airports Council International Europe, the Airline Catering Association and the Airport Services Association in seeking urgent support from the European Commission during this turbulent period for our industry.

The letter said: “For now, the fact that air traffic has nearly come to a stand-still across most of Europe means airport operators and other service providers are also facing operational and business continuity issues. These operational and business continuity issues are becoming more acute by the day.”

In addition to the need for minimum operational capabilities, the associations believe airport operators and service providers must be in a position to restore full operations when travel bans are withdrawn and air traffic restarts.

“Airport operators and service providers, together with their staff, are as important as airlines and their staff in the delivery of air connectivity,” the letter emphasised.

A third request is that EU and national supporting measures do not benefit one player at the expense of another in the aviation ecosystem.

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Other associations not represented in this letter, including The Association of Asia Pacific Airlines have recently called on governments to implement emergency relief action amid the coronavirus (Covid-19) outbreak.

“In this regard, while we welcome an immediate waiver on the airport slot usage rule, its extension at this stage for the full summer season to the benefit of airlines risks not meeting that requirement. Indeed, should the recovery happen before the summer season, the waiver will allow airlines to cancel flights for commercial or operational reasons no longer motivated by the Covid-19 pandemic.

“This would not just impact the revenues of airport operators and service providers, but the recovery of air connectivity and thus the wider economy.”

In summary, the associations point out that the proposed measures must be tailored to the specific situation of airport operators and service providers.

The associations also emphasise that all requests for support have the same objectives. The aims of the proposals are to address operational and business continuity risks before they materialise and to allow airport operators and service providers to prepare for the recovery.

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