Ref. Ares(2020)3785397 - 17/07/2020
Ref. Ares(2020)2336455 - 02/05/2020
Phone call between Alexandre De Juniac, IATA DE and CEO, and Commissioner Vălean, 16 March 2020
Summary report
Participants: Alexandre De Juniac, Monique De Smet (IATA)
Commissioner Vălean, Gaëlle Michelier (CAB Vălean), Magnus Gislev (MOVE.E.1)
Under the circumstances of the Covid-19 crisis, Mr De Juniac and Commissioner Vălean agreed that it
was better to do a call than a meeting and to postpone discussions on issues other than the Covid-19
response.
Mr De Juniac first informed the Commissioner about the situation of IATA members in Asia and Europe:
Complete unknown situation. Economic and financial consequences for airlines the worst in the
last 20 years. Borders being closed everywhere.
Some Asian members are running out of cash: South Korean, Chinese. However, Japanese and
Australian still doing all right.
Two good points in Asia: (1) Almost every country providing support in the form of cash, credit
facilities, credit lines: Korea, China, Indonesia, Singapore, Malaysia, (2) China slight movement in
right direction in terms of load factors, but still far from normal.
In Europe, all carriers are struggling. The Polish, Czech airlines and Air Baltic are all in shut-down
and strained for cash. Alitalia likely to be nationalised. Small and medium-sized carriers could
die. The 3-4 biggest carriers in Europe have cash reserves.
The Commissioner asked about the US. M. De Juniac: The US carriers are cutting almost all their
international operations, but these are comparatively of less importance in the US. However, there are
also more and more domestic travel restrictions, e.g. for civil servants.
The Commissioner asked about the consequences of shutdowns and IATA’s approach in respect of
differences between business models of carriers. M. De Juniac: In IATA we are discussing how to manage
cash with them. Important to ensure fair competition. Other carriers would be paying for any defaults.
That is why IATA approaches cash measures on a case-by-case basis. Legacy and smaller carriers all need
support, while small and medium-sized carriers have more immediate concerns. IATA tries to help all.
The Commissioner referred to EU developments as regards a possible support package and State Aid
rules.
M. De Juniac called for a general support plan and made the following remarks in relation to the role of
the Commission:
1.
Slot revision: This action is very helpful and a model for others. Thanks to the team working on
it. However, it should last until the end of the summer period.
The Commissioner explained the reasons for choosing June, recalled that it would be assessed on a
monthly basis starting from 15 April and that proceedings for revising were very simple. She invited him
to keep in contact.
2.
Regulation on passenger rights: Compensation packages are big burden, should not be required
in this situation.
The Commissioner explained that the Commission was in the process of publishing guidelines to address
the compensation burden.
3.
Financial support: Any financial package would be welcome. IATA looking at different models
including bailouts but especially credit lines to the banking system and state guarantees repurchased by
the European Central Bank.
The Commissioner informed him that her Commission colleagues were working on this, looking at
various financial instruments and partners. She assured him that the aviation sector was high on the
agenda. She recalled that the crisis would lead to cash flow problems for many. She asked if IATA had
any position paper on financial support. Mr De Juniac replied that IATA was working on that.
The Commissioner concluded the call by referring to the guidelines on passenger rights– to be published
within the coming two days – to the communication by EVP Vestager later in the day and by inviting IATA
to let us know if something else arises.
