Affected by the Coronavirus, The Aviation Industry is Experiencing a Downturn

Indonesia National Air Carriers Association hopes that the government will provide incentives for the aviation industry amid an epidemic of coronavi..

Illustration - The Indonesia National Air Carriers Association (INACA) hopes that the government will provide incentives for the aviation industry amid an epidemic of coronaviruses.

Because, if not given incentives and relief, the domestic aviation industry is threatened with layoffs to its employees.

INACA Chairperson, Denon Prawiratmadja said, since the beginning of March 2020 there has been a drastic reduction in the number of passengers. 

Therefore, all airlines have reduced the number of flights, both routes, and frequency by up to 50 percent or more.

"It is predicted, if the completion of the Covid-19 pandemic is increasingly uncertain, this will make the aviation industry worse off even some of it will not operate due to bankruptcy," Denon said in a press release on Thursday (3/26/2020).

Denon added, to reduce the losses suffered, in recent times, a number of airlines have taken steps to anticipate. 

Among others by choosing the option to close operations and lay off or terminate the employment of employees for both pilots, cabin crew, technicians and other supporting employees.

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On that basis, he asked the government to provide incentives for the aviation industry

"What we expect is the postponement of PPh payments, suspension of import duties on spare parts, suspension of airport fees and navigation managed by BUMNs, implementation of discounted airport fees managed by the Ministry of Transportation, and an extension of the period of time for simulator training and health checks for flight crew," said Denon.

Denon estimates, if no incentives are provided, then certain employee layoffs will occur as a rescue effort.

"The impact is not only on the aviation industry itself, but also on its supporting industries both downstream and upstream such as aircraft repair shops, ground handling, and travel agents involved. "For this, INACA is looking forward to a positive response from the Government that is quick to avoid the inevitable surge in housing and layoffs," he said. * 

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Penulis: Lia Sisvita Dinatri
Editor: Lia Sisvita Dinatri
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