COVID-19 Economic and Financial Measures

The COVID-19 pandemic has had catastrophic impact on global aviation industry. In the global effort to contain the spread of COVID-19, governments have imposed stringent travel restrictions, closed borders, and severely limited the movement of people. These decisions as well as the global economic downturn have had significant impact on the viability of the civil aviation industry worldwide. The immediate and significant consequence of the abrupt and substantial plunge in air traffic is that revenue streams have paralysed creating severe liquidity strain to the industry and risking its operational and financial sustainability. 

Form of economic and financial measures

A basket of economic and financial measures could be considered by States and industry to mitigate the impact of the pandemic on aviation. Non-exhaustive lists of various forms of measures with potential effects and risks are indicated in the following.

State financial and regulatory support
​Industry financial and operational measures

Recommendation by the ICAO Council Aviation Recovery Task Force (CART)

In terms of the support provided by States to the industry, the ICAO Council Aviation Recovery Task Force (CART) recommended that:

Recommendation 10: Member States should consider appropriate extraordinary emergency measures to support financial viability and to maintain an adequate level of safe, secure and efficient operations, which should be inclusive, targeted, proportionate, transparent, temporary and consistent with ICAO’s policies, while striking an appropriate balance among the respective interests without prejudice to fair competition and compromising safety, security and environmental performance.

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