Interjet Airline
(Photo: Twitter)
Mexico's Interjet Airline announced last month that it would be suspending international fights

Mexican airlines are currently running at only 15 percent of their capacity because of the COVID-19 pandemic. This, according to the International Transport Association (IATA), is a situation that can result in bankruptcy if there is no forthcoming support from the government.

IATA Vice President in Americas, Peter Cerdá said on Monday, during a virtual press conference that "Mexican stand to lose" nearly $5.3 billion in income from march to May, as an outcome of a rapid decline in demand for air travel.

Also, if the government does not offer any financial support for the airline industry, some carriers are reported to be at risk of failure and, eventually, closure.

This, Cerdá said, would then stance a threat to the connectivity of Mexico with the rest of the world. Almost 97,000 direct and 437000 indirect jobs, the IATA official added, would be at risk of collapsing if there is no assistance from the federal government to the airline sector amid this current crisis.

Request for Assistance Remains Unaddressed

During the virtual press conference, Cerdá also disclosed, the association has already sent the authorities of the federal a letter on four occasions to formally ask for support for the airlines' sector. Still, it has not received any response yet.

The official explained that they "don't see any support from the Mexican government for the airlines." He also claimed that the authorities have also demonstrated a lack of leadership.

Moreover, Cerdá emphasized that the financial support for the industry is specifically essential because Mexico relies on tourism for a considerable percentage of its GDP.

In connection to this, the IATA leader also said, Governments of nations that rely less "on the tourism revenue have already announced packages" in support of their airlines.

Essentially, IATA, which is representing around 290 airlines globally, is seeking discounts as well, on the fees and taxes Mexican airports are charging airline companies so they can park, take-off and land their aircraft. 

Prediction for the Sector

Also, during Monday's virtual press conference, the IATA official forecasted that the airline sector is going to be very different at the COVID-19's end that it was at the beginning.

He suggested that the airport project of the government at the Santa Lucía Air Force Base needs to be put on hold because the demand for air travel will stay low in for months, not to mention, the sector won't be able to recover fully for years.

Meanwhile, the government, for its part, said that the airport project, as well as its other major infrastructure projects, will help generate 2 million jobs by year-end, and therefore contribute to the reactivation of the COVID-19-hit economy.

Late last month, Mexcian airline, Interjet announced it would suspend its international flights because of the "falling demand and the closure of restrictions and borders" which the different countries imposed, intended at controlling COVID-19 from spreading fast.

In addition, the company said in a statement that it is continuing operations of its national routes in Mexico.

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