COVID-19 and its impact on air transport in Chile
From a health point of view, Chile has so far effectively tackled the pandemic. The infection and fatality curve has tended to flatten out, with nearly 14,000 people having contracted the virus and 200 deaths by the end of April, all thanks to a serious and resolute authority. However, as everywhere, the economic cost to be paid will be very high.
Given our geographical position and territorial distribution, domestic and international air connectivity is a key driver of the national economy.
Before the crisis, the numbers indicated that the airline industry in Chile directly or indirectly contributed 191,000 jobs and 2.8% of Gross Domestic Product. With the pandemic, according to IATA's projections, the income will fall by almost half, 13,703 direct jobs will be lost and 57,000 indirect jobs will be lost.. Scheduled international passenger flights are suspended, and domestic flights by Latam Airlines, Sky Service and JetSmart are operating minimal operations.
Since mid-March there has been an indefinite ban on the movement of people within the national territory, as well as a ban on the entry of foreigners, which has brought passenger airlines to a standstill. without being able to project a restart of its operations.The worst of the pandemic has not yet happened. We have not yet experienced the worst of the pandemic, and it is only on 21 June that our winter begins.
As a country, we have two options: either wait for domestic and international flights to spontaneously resume, or have incentive measures in place We, as the Airline Association, believe that the government should do this, especially considering that there are already other countries in South America, our competitors, that are on the same path.
We have suggested measures such as direct financial assistance, reduction of airport fees and costs charged by the Treasury (such as for air traffic control, parking or lighting), deferment of VAT on fuel, early tax refunds, flexibility in the application of fines and pro-consumer regulations, but unfortunately we are not in the priorities of the government, which has focused on helping individuals and small and medium-sized enterprises.
Given our geographical position and territorial distribution, domestic and international air connectivity is a key driver of the national economy.The airline industry, which is key for tourism, will also be hit hard if the airline industry does not take off again.
