December 5, 2020

Coronavirus Airlines flying in Spain cancel 4,400 flights in the second half of March

The sector asks the government for urgent aid to support the sector, basic for tourism on which 13% of employment depends

The airlines they are at the limit of their endurance capacity. The coronavirus it has hit with an unusual force a vital sector for tourism, on which 13% of Spanish employment depends. The escalation of restrictions to curb the pandemic is collapsing demand for flights, which has led to the companies that operate in Spain to suspend 4,400 operations in the second half of March, as the Association of Airlines (ALA) has warned today, which brings together around 80 airlines flying in Spain, including 9 of the 10 with the most traffic. For this reason, the association has asked the government for “urgent measures” to cushion the repercussions of the coronavirus in this sector.

Specifically, ALA has requested that it be provided “the deferral of Social Security and VAT quotas, without deferral cost, as well as the reduction of the terms of reimbursement of the liquidations to return of the VAT during, at least, the temporary period in which the current exceptional situation is maintained. In addition, they request the revision of the regulations for calculating fractional payments of Corporation Tax to reduce their amount by aligning them to the actual settlement and thus mitigate the impact on the companies’ cash flow.

To guarantee the liquidity of the companies, ALA has requested the creation of credit lines of the ICO of fast access and sufficient amount, “Tending to solve currency problems, adapting them in terms of time to the temporality resulting from the current recession situation”. They also want resident grant reimbursements to be expedited.

Reorganization of work

Likewise, and request that it be provided during the exceptional period derived from COVID-19, the implementation of measures that help to make the distribution of work more flexible throughout the year including irregular working hours and distribution of vacation enjoyment as a preferential, but not exclusive, alternative to the rapid approval of temporary employment regulation files, ERTE, derived from the fall in activity and of temporary duration linked to the period in which it is maintained the exceptional existing situation. Likewise, they argue that facilitate optimization of flight schedules (through cancellations or reduced capacity) across the network, not only in the countries affected by COVID-19, so that they can be more easily adjusted to demand.

ALA also wants the Government to make late payment more flexible without penalizing airport and air navigation fees, with a discount, at least in terms of long-term parking fees for planes that are stopped due to cancellations due to COVID- 19, as well as implementing the measures adopted by the EU in Spain.


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