De Juniac sees fresh state role in airlines as short-term measure

IATA DG Alexandre de Juniac expects governments that have taken new shareholdings to help prop up cash-strapped airlines during the crisis will not be long-term investors in the carriers. States have been forced to step in to help airlines survive the sustained grounding of passenger flights, in some cases taking or increasing shareholdings in carriers as a result. “I am not sure the state presence in the capital or shareholding of airlines will last long,” de Juniac said. “They are there for rescue. Are they going to stay for a long period? Or are they going to sell their shares when things get better, as has been the case for General Motors in the US after the financial crisis? I think governments will re-privatise [airlines] and I’m not sure they will use their presence to influence the way the companies are managed.” One area governments may look to exert influence is on heightening efforts over environmental targets. Pressure, particular in Europe, for further measures to tackle aviation’s climate change impact had been gaining momentum in the months prior to the crisis. In some cases, notably for example in French support for Air France, financial aid given during the crisis is conditional on meeting environmental targets. “The requirement to continue or strengthen our environmental commitments – it will be strong, ” said de Juniac.<br/>