The Malaysian Association of Tour and Travel Agents (MATTA) calls the government to urgently look into financial support for the national carrier, Malaysia Airlines to ensure the aptness post-Covid-19 period.

The MATTA statement is in response to the suggestion by Dato’ Seri Mohamed Azmin Ali, Senior Minister of International Trade and Industry on the possible merger between Malaysia Airlines and Air Asia Group.

MATTA President Datuk Tan Kok Liang said, “Countries worldwide are expected to bail out their national carriers. For instance, the Singapore government has arranged up to SGD19 billion (USD13 billion) of funding to support Singapore Airlines (SIA) through the coronavirus crisis. And, Hong Kong has provided a relief package of HKD2 billion (USD258 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 USD25 billion bailout, while the European Commission has approved approximately a EUR455 million loan guarantee scheme to Sweden, to help the airline industry as it struggles to weather the economic fallout from the Covid-19.”

“The International Air Transport Association (IATA) has also strengthened its call for urgent action from the government worldwide to provide financial relief to airlines. It is estimated that the Covid-19 will lead to losses for global airlines amounting up to USD314 billion (MYR 1.36 trillion), 25% 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.”

“Airports in Malaysia registered a decline of 27.6% with 18.4 million passenger movements. International and domestic passenger movements decreased by 32.4% and 22.4% respectively. Aircraft movements declined by 11.9% in Q1 2020 over Q1 2019. International and domestic movements declined by 17.5% and 8.2% respectively over Q1 2019.”