Airport media owners' body seeks a 3-month licence fee waiver from the government
In a letter written to the Union Ministry of Civil Aviation, the Federation of Airport Media Owners said that the sector was beset by the slowdown & liquid cash crunch even before the pandemic
Every industry in India has been blighted by the COVID-19 pandemic, which has sent the nation into a lockdown. The ad world is also among the most affected. The industry is now pulling out all stops to ensure that it survives the crisis that has befallen the world. After the News Broadcasters Federation, the Federation of Airport Media Owners (FAMO) is the latest to write to the government for a fee waiver. FAMO has reached out to the Union Ministry of Civil Aviation urging them to waive off licence fees on the asset for a period of three months.
exchange4media received the letter through a highly-placed source in the industry. It stated that the advertising industry was already being battered by the unprecedented economic slowdown and extreme cash liquidity crunch. And now, it has been completely engulfed by the emergence of pandemic COVID-19.
The letter read, “It is an undoubtedly established fact that members of this association could have neither anticipated nor controlled in any manner the emergence of these conditions. The trend of private consumption, which is a substantial contributor to economic activity, has sharply declined. Fresh capital investment, both in manufacturing and services sectors are not forthcoming thereby impacting the growth of manufacturing capacity for a long duration. Exports have continued to be muted and have adversely impacted the domestic manufacturing and economic activity. The actual GDP growth rate has fallen to levels not seen in the past decade. The entire automobile sector is witnessing a prolonged whooping decline in sales, thereby having an adverse cascading impact on steel, automotive and other related manufacturing activity.
The economic impact of the prevalence in respect of the advertising industry has resulted in the occupancy level of sold-out vis-a-vis the contracted advertising inventory dropping as low as 20- 25%. The majority of onboard clients have postponed the payment obligations for an uncertain time limit, thereby compounding the already existing severe liquidity crunch.”
Shashi Chaudhary, the president of FAMO told us, “Due to COVID-19, the authorities should waive off the license fee and should not give license at all for at least three months until June so that they can bounce back.”
It will be interesting to see if the authorities support the association during these trying times.
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