BARIG appeals in Corona-crisis: Politics must widely support airlines' efforts to secure liquidity

BARIG appeals in Corona-crisis: Politics must widely support airlines' efforts to secure liquidity

• COVID-19-pandemic poses a high liquidity threat to the aviation industry
• Reimbursement obligation must be temporarily suspended

Frankfurt am Main, March 27, 2020. The unprecedented impact of the quickly spreading Corona-crisis is profoundly threatening the aviation and travel industry in Europe. The Board of Airline Representatives in Germany (BARIG), the joint representation of interests of more than 100 German, European and global airlines, appeals to politicians in Berlin as well as in Brussels to use all available measures to support airlines and the aviation industry in their efforts to secure liquidity.

The reimbursement obligation arising from the EU regulation on air passenger rights poses a substantial challenge for airlines. BARIG, thus, advocates a short-notice temporary suspension of such regulation. Accordingly, BARIG formulated an urgent appeal in a letter to the President of the European Commission, Ursula von der Leyen, as well as to the Directorate General for Mobility and Transport of the European Commission:

The reimbursement obligation under the EU regulation on air passenger rights should be temporarily suspended on short-notice for the duration of the current crisis. Vouchers or wide-ranging re-booking options would be an appropriate solution, which passengers would be free to use at the earliest opportunity or at a later date at their convenience.

Customers' reasonable interests and concerns are to be considered still. As BARIG Secretary General Michael Hoppe explains: "Vouchers may, for instance, be hedged by the respective member states in order to guarantee their value to customers and to increase customer confidence. Some EU countries, such as Belgium, have already agreed to such a state voucher guarantee, while other countries, including the Netherlands and Italy, are in the corresponding preparations. In addition, we are pleased that the Federal Government Commissioner for Tourism, Thomas Bareiß, and the Federal Government Coordinator of German Aerospace Policy, Thomas Jarzombek, are supportive of such a proposal.”

The European Commission has already acknowledged that such a crisis due to the novel Corona-virus could not have been anticipated at the time of the introduction of the EU regulation on air passenger rights, and has accordingly extended the regulation's scope for interpretation. In principle, the regulation is intended to cover the cancellation of individual flights, but not the overall collapse of air traffic. The current exceptional situation requires adequate adjustments.

Michael Hoppe comments: “The European aviation and travel industry at large has almost completely come to a standstill due to the effects of the Covid-19 pandemic. At present, this industry, which employs several million people, generates virtually no revenues, but has significant unavoidable fixed costs. Needless to say, this extreme situation constitutes a serious threat to the industry's liquidity. The EU legal requirements for obligatory reimbursements pose a further serious problem.”

Download

Press releases

BARIG news

BARIG: Corona Crisis Calls for a Shared Sense of Responsibility – Attentive Action Enables Safe Restart of Air Travel

• The flying experience will change in the face of Corona
• Airlines, airport operators, and authorities implement health-protective measures and guidelines
•...

Read on

First Virtual Full Board in 70 Years of BARIG History

A historic moment for the Board of Airline Representatives in Germany (BARIG) - for the first time in the history of the association representing the joint interests of more than 100 German,...

Read on

"An Essential Part of Quality of Life and Mobility:" BARIG Welcomes Plans of the German Federal Government to Gradually Remove Travel Restrictions

• Gradual removal of travel restrictions improves the transport of goods and enables people to reconnect with friends and relatives abroad
• Bilateral arrangements also with...

Read on

Take-off Team Joins Forces: A Proposition for a Coordinated Lifting of Travel Restrictions in the Aviation Sector

The past long weeks of rigid travel restrictions due to the Covid-19 virus have severely affected the entire aviation and travel industry. A ‘take-off team’ consisting of several...

Read on

Ensuring Mobility in Times of Crisis: Trans-modal Concepts of the Public Transport Sector

Whether on land, on the rails, or in the air, a functioning infrastructure and mobility across modes of transport is crucial to the system as it secures the basic supply of goods, economic...

Read on

Joint Efforts for an Industry Restart: The Aviation Sector and Politics Develop Concepts for a Coordinated Resumption of Air Traffic Across Europe

Given the structural significance of mobility, the inevitable resumption of public life and the necessary restart of economic activities is inconceivable without a gradual normalization of all...

Read on

    All news

    BARIG member & partner login

    Please login for full website access.

    BARIG News

    Stay up to date about German aviation news and the BARIG network.

    BARIG news

    Please add your name.
    Please add your email address.
    Invalid Input


    Please make a selection.
    Please make a selection
    Please agree to the use of your personal details
    Invalid Input