SYDNEY: Airport passenger traffic in the Asia-Pacific region is expected to take a 24 percent hit in the first quarter from the coronavirus, leading to a $3 billion decline in airport revenue and placing pressure on growth projects, an industry group said on Monday.
Airports Council International (ACI) Asia-Pacific said the cancelation of flights had led to lower airline landing and parking charges, a decline in passenger and security charges and a drop in retail spending that was hurting airport operators.
“Unlike airlines, who can choose to cancel flights or relocate their aircraft to other markets to reduce operating costs, airport operators manage immovable assets that cannot be closed down,” Stefano Baronci, Director General of ACI Asia-Pacific said in a statement.
“They are faced with immediate cash flow pressures with limited ability to reduce fixed costs and few resources to fund capacity expansion efforts for longer-term future growth,” he said.
The International Air Transport Association (IATA), which represents airlines, last week called for rules governing airport slots to be suspended immediately in light of the disruption to flight schedules caused by the coronavirus epidemic that first broke out in China in December.
Takeoff and landing slot rules mean airlines must fill at least 80 percent of their slots in any given season, or risk losing their allocation next time round.
ACI Asia-Pacific said it was sympathetic with the airlines’ needs to avoid flying empty planes simply to retain airport slots, but it said it wanted an evidence based, market-by-market review rather than blanket permission to cut flights without the risk of losing slots.
It said the IATA proposal would give airlines the freedom to cancel flights to and from congested airports not necessarily linked to the coronavirus outbreak, jeopardizing the ability for countries to stay connected with the world, which in turn would have knock-on effects on their economies.
IATA last week said the coronavirus epidemic could rob passenger airlines of up to $113 billion in revenue this year.
Coronavirus: Airport passenger traffic in Asia-Pacific to post first-quarter decline
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Coronavirus: Airport passenger traffic in Asia-Pacific to post first-quarter decline
- Coronavirus outbreak to cause a $3 billion decline in airport revenue, place pressure on growth projects
- IATA last week said the coronavirus epidemic could rob passenger airlines of up to $113 billion in revenue this year
IsDB, Uzbekistan sign financing agreements in AlUla for transport, education sectors
ALULA: Islamic Development Bank Group President Muhammad Al-Jasser and Uzbekistan’s Deputy Prime Minister and Minister of Economy and Finance Jamshid Kuchkarov signed financing agreements to support key infrastructure and social development projects on the sidelines of the Second AlUla Conference on Emerging Market Economies.
The two sides also held talks to expand cooperation between the IsDB and Uzbekistan, focusing on accelerating high-impact initiatives aligned with Uzbekistan's national development priorities.
The first agreement covers a $70 million phase of the IsDB’s total $192 million commitment to rehabilitate the 4R40 Dashtabad–Zaamin–Bakhmal–Galyaaral road.
The financing will support the reconstruction of 143 km of the regional highway and the rehabilitation of 30 km of local and rural roads in Jizzakh Region.
The project aims to ease traffic congestion, improve road safety for more than 200,000 people, enhance access to markets and social services, and boost economic and tourism potential.
The second agreement formalizes a $94.06 million phase of the IsDB’s total contribution of $160.25 million to the SmartEd project.
The initiative includes the construction and equipping of 58 new educational institutions and the addition of 2,431 classrooms to existing schools across Uzbekistan.
It seeks to establish a comprehensive competency-based education system benefiting approximately 72,930 students annually, while providing specialized training for more than 36,115 teachers and administrative staff.
Al-Jasser reaffirmed the IsDB's commitment to supporting Uzbekistan’s development through results-focused cooperation, according to a statement.
Kuchkarov welcomed the continued partnership, highlighting the importance of sustained investment in connectivity and human capital to ensure long-term, resilient growth, the IsDB release added.
In December, the IsDB approved a new package of projects totaling approximately $1.36 billion to support 12 member countries, including Uzbekistan.
The Islamic development finance institution allocated a total financing of $110 million for photovoltaic solar and battery storage projects at the Samarkand I and Samarkand II facilities, enhancing the capacities of the national grid.
