March 17, 2020

( ATLANTA) –  In alignment with leading airlines and associations, APEX (Airline Passenger Experience Association) today expanded its call for government action calling for a quarter-trillion dollars (USD $250 billion) of global government support for the airline industry in response to COVID-19.

Fully backing A4A’s proposal for $50 billion in US airline support alongside $150 billion more as proposed by IATA, APEX emphasized that both global airlines and key airline suppliers will need support to weather the COVID-19 crisis. APEX proposed that four out of every five dollars of global government support should go directly to airlines with the remaining one dollar held for airline suppliers.  For the United States alone, an additional $12.5 billion will be required by airline suppliers to successfully weather the COVID-19 crisis.

“Our world must immediately respond to protect its global airline industry with a quarter-trillion dollars in retroactively rebated taxes and emergency loans to its airlines and suppliers,” APEX CEO Dr. Joe Leader stated.  “Airlines need this support for safety, security, and survival against the unprecedented passenger shutdown triggered by COVID-19.”  

APEX alerted its members and worldwide community of the specter of a global recession and potential global depression.  The economic definition of a depression includes any reduction in global GDP of more than 10%.  From the effects of COVID-19, the global airline industry has already passed this critical 10% mark.  To protect airlines, APEX recommended the following actions be taken by governments and organizations globally:

$250 Billion in Global Airline Industry Support against COVID-19

  1. Immediate tax rebates by global governments of previously paid airline industry taxes in the form of grants totaling $125 billion
  2. Immediately accessible no-interest medium and long-term loans to provide medium and long-term liquidity totaling $125 billion
  3. World Bank should provide needed liquidity in the form of matching grants and ample loans to governments in need
  4. Amounts allocated to each country should be based approximately on country share of global GDP calculated alongside aviation market share appropriately

APEX’s IFSA (International Flight Services Association) Government Affairs team will work alongside A4A in Washington, A4E in Brussels, and IATA elsewhere where appropriate in full support of their efforts.  Leveraging global offices with team members, APEX’s IFSA Government Affairs team also stands ready to support its airlines and suppliers globally.

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