The COVID-19 pandemic has had a devastating economic impact on aviation industry worldwide, risking its viability and financial sustainability. The Guidance on Economic and Financial Measures summarizes a range of possible measures that can be explored by States and the aviation companies to cope with the economic fallout of the pandemic, alleviate the imminent liquidity and financial strain on the industry, and more importantly, to strengthen the industry resilience to future crisis. It outlines the potential implications and constraints of each measure while being complemented by concrete examples to help decision-making of policymakers and industry leaders in accordance with their unique circumstances and needs.
Key principles of State economic and financial measures
- Principle 1 – Well-defined objectives
- Principle 2 – Data-driven evaluation
- Principle 3 – Broadly inclusive and non-discriminatory
- Principle 4 – Targeted and proportionate
- Principle 5 – Transparency and consultation
- Principle 6 – Striking appropriate balance among all stakeholders
- Principle 7 – Time-bound
State economic and financial measures
State financial support can be provided directly or indirectly for aviation companies to continue their businesses, retain employees, survive from the economic crisis.
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State regulatory support including regulatory relief and operational flexibilities could support companies to sustain businesses and operations under low demand environment.
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Industry financial and operational measures
Industry financial measures help replenish cash reserves and restore balance sheet in the short to medium term as well as to sustain operations under demand reduced environment.
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Industry operational measures help optimize operational efficiency and could usually be implemented immediately before seeking support from external parties.
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Recommendation by the ICAO Council Aviation Recovery Task Force (CART)
With regard to State economic and financial measures, 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.
