KUALA LUMPUR, April 18 — The Malaysian Association of Tour and Travel Agents (Matta) has urged the government to urgently look into financial support for the national carrier, Malaysia Airlines to ensure its readiness for post Covid-19 period.
This is in response to a suggestion by the Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali on the possible merger between Malaysia Airlines and Air Asia Group, the association said in a statement today.
“The aviation industry sits at the core of the whole tourism ecosystem. Air connectivity is crucial to the nation’s tourism and economy recovery,” it said.
According to Matta president Datuk Tan Kok Liang, countries worldwide were expected to bailout their national carriers, including the Singapore government which has arranged up to S$19 billion (US$13 billion) of funding to support Singapore Airlines (SIA).
“And, Hong Kong has provided a relief package of HK$2 billion (US$258 million) to ease the liquidity pressure of airlines and aviation support services operators.
“In addition, the US government has reached an agreement in principle with US major airlines over the terms of a US$25 billion bailout, while the European Commission has approved approximately €455 million loan guarantee scheme to Sweden, to help the airline industry as it struggles to weather the economic fallout from the Covid-19,” he said.
Tan said the International Air Transport Association (IATA) has also strengthened its call for urgent action from government worldwide to provide financial relief to airlines.
He said it is estimated that Covid-19 will lead to US$314 billion in losses for global airlines, or RM 1.36 trillion, 25 per cent more than previously forecast.
“Without airlines to bring in millions of tourists in and out of Malaysia, there will be no viable tourism industry. They are the first in the long line of the supply chain in the tourism industry that includes airports, road and rail transport, accommodation, food and beverage, entertainment and shopping plus business, education and health services,” he added. — Bernama
