Airlines remain grounded

Ever since the terrorist attacks in the United States on Sept. 11, 2001 until later this year, airlines are expected to lose –in keeping with their own estimates- some $25 billion. Assad Kotaite, president of the International Civil Aviation Organization (ICAO) explained the war in Iraq and the spread of SARS have knocked carriers off the air into a financial crash landing.

According to ICAO’s stats, these two factors could generate losses for the sector for a walloping $10 billion this year alone. Added up to the beating taken by the airlines on the wake of 9/11, by the end of 2003 that figure could jump to $25 billion.

As to the Severe and Acute Respiratory Syndrome (SARS), Mrt. Kotaite pointed out the Pacific Belt has been hit harder than any other region on earth.

”In this area, airlines are operating with 35 to 40 percent less passengers than they usually do,” he said.

The ICAO President warned airlines cannot come out of the financial pouring rain unless their respective governments are willing to bail them out.

”We call upon governments to support their own airlines because they are a key player for the world’s economic development and global integration,” he expressed.

From a number of possible actions, Mr. Kotaite suggested states to put some taxes, like the ones levied on airport usage and immigration services, temporarily on hold.

For their part, air companies “should get an all-out makeover, lay off part of their employees and stave off capacity overload,” the ICAO President explained. “I think in time these measures could bring airlines back to their normal operational level,” he concluded.