Calls for aid for the travel industry in Europe were reiterated last week as agency lobbying organizations, aviation associations and workers’ unions appealed to regulators and national governments.
Groups representing Europe’s aviation industry and other companies, including Airlines for Europe, Airports Council International, ECTAA and EU Travel Tech, united in their call to European Union institutions and member states.
The bodies are asking for three measures to help the air travel ecosystem, including rapid financial support from member states and “organized consultation procedure” to enable the most recent information to be exchanged and critical issues considered.
A statement says that the sale of tickets has “come to nearly a complete stop” and points out that the air travel ecosystem accounts for 12 million jobs and €800 billion in economic activity in Europe.
The calls come on top of repeated pleas for help addressed to IATA, which has been strongly criticized in recent weeks for sticking to the Billings & Settlement Plan payment deadlines at the same time as delaying refunds.
IATA added its own plea to the EU, in an open letter to travel agents from its chief executive, Alexandre de Juniac.
He calls on regulators to "ease requirements for cash refunds to allow airlines to issue vouchers instead.”
The letter details that a third of the global fleet is grounded with revenue expected to be down 44% in 2020 compared with 2019.
De Juniac says: “This would remove the pressure that is currently on agents to issue cash refunds at a time when airlines are making decisions based on their own need to preserve cash.”
He adds the industry has estimated its liability in terms of refunds at $35 million and argues that airlines need to “keep their remaining liquidity to pay salaries and face their fixed costs.”
While IATA is allowing settlement from agents to be made "a bit later" without penalties, this will be of little comfort to the agency community which has been expressing its despair at the precarious financial situation for some weeks.
Separately, a statement from the European Travel Agents’ and Tour Operators’ Association and UNI Europe, a workers’ union, called for a “strong signal” to the travel industry and “ambitious measures” to help workers and businesses survive.