Global airlines should be allowed to give delayed refund vouchers to passengers affected by cancellation of flights due to the global spread of Covid-19, the International Air Transport Association (IATA) said on Wednesday. In April this year IATA had said that around $35 billion worth of refunds were due by the end of the second quarter.

Addressing a global media conference, Alexandre de Juniac, Director General and Chief Executive Officer of IATA, said such a move would help airlines save precious cash and also ensure passengers looking for a refund get their money back. IATA represents the interests of around 290 airlines globally that comprise 82 per cent of global air traffic.

While the CEO’s remarks were in response to a specific question on what is happening in Europe, the refund and voucher rules are likely to be applied globally.

The Director General said IATA is eager that airlines start flying again and is making proposals to various governments. He added that IATA is against the proposal to quarantine arriving passengers. In the recent past, Britain became the latest country to propose quarantine for people arriving there. “International travel cannot restart under such conditions. Our top priority is to restart,” he said.

Addressing the conference, Brian Pearce, IATA’s Chief Economist, said leisure travel is likely to take some time to recover due to a variety of reasons, including a recession.

Officials added that the Covid-19 effect on air travel is likely to last for a number of years.

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