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* Consolidation delayed by bailouts - IATA chief
* Global airlines seek travel "stimulus" support
* Sector calls for ticket, route subsidies
(Updates with IATA chief's interview comments, details,
background)
By Laurence Frost and Tim Hepher
PARIS, March 17 (Reuters) - The large-scale government
intervention in airlines triggered by the coronavirus crisis
will hold back sector consolidation for up to five years, the
head of global industry body IATA predicted on Wednesday.
Alexandre de Juniac, the International Air Transport
Association's outgoing director general, made the comments in an
interview with Reuters as the organisation called for a new
round of subsidies to weather the COVID-19 pandemic.
"Governments have taken big stakes in many of their national
airlines, so it will be difficult for them to sell this asset to
any foreign actor and explain that to the taxpayer," De Juniac
said. "It will be a factor that will prevent consolidation in
the coming three to five years."
Airline tie-ups already faced obstacles before the crisis,
including ownership rules linked to bilateral aviation treaties.
That has not prevented the emergence of multinationals such as
IAG, Lufthansa and Air France-KLM
that preserve national carriers within their group structures.
Aid has further raised the hurdles by piling up debts,
shielding potential targets and tying would-be buyers' hands. EU
rules bar recipients such as Lufthansa and Air France-KLM from
making acquisitions until bailouts are repaid.
The IATA head, who hands over next month to IAG veteran
Willie Walsh, also urged governments that have already provided
$225 billion in sector aid to support a travel recovery through
new air ticket and route subsidies.
Australia last week announced plans to subsidise 800,000
domestic flights as part of a A$1.2 billion ($925 million)
travel revival package.
"We've already seen some plans by governments to subsidise
tickets, routes and domestic journeys," de Juniac said during a
media briefing later on Wednesday. "I urge governments to
consider stimulus measures."
After a year of partial shutdown, many airlines say they now
need a significant rebound within months to survive - let alone
to fund investment in cleaner aircraft and fuel technologies.
Global airlines are discussing more ambitious climate goals
than their existing pledge to halve net carbon emissions by
2050, de Juniac said, confirming earlier comments to the
Financial Times.
Nonetheless, any wider recourse to public subsidies for air
travel is bound to bring some controversy.
"The new normal is going to mean less flying, especially
corporate travel, and the industry must adjust," said Andrew
Murphy of the campaign group Transport & Environment.
"Public funds should be channelled into developing cleaner
fuels and new plane designs, not subsidising what's still the
most carbon-intensive form of travel," Murphy said.
IATA began preparing to lobby for route subsidies soon after
the pandemic erupted last year, according to internal "key
messages" previously reported by Reuters.
The organisation now expects borders to have largely
re-opened by October, when it plans to hold its annual gathering
in Boston, four months later than first scheduled.
($1 = 1.2965 Australian dollars)
(Reporting by Laurence Frost and Tim Hepher; additional
reporting by Sarah Young in London, Editing by Paul Sandle and
Elaine Hardcastle)
