Aviation Sector in the COVID-19 Pandemic
- Get link
- X
- Other Apps
Like several other industries, the aviation industry
is also going through its greatest crisis in this COVID-19 pandemic. Travel
restrictions, grounded fleet of airplanes, ticket cancellations have had a
significant impact on the airline business. According to the International Air
Transport Association (IATA), the aviation industry could face losses of around
$84.3 billion and will take at least a couple of years to recover by half of
where it used to stand. Many airlines have been decreasing the salaries of
their staffs and laying off some of the employees.
Apart from the airlines and their employees, aircraft
manufacturing business is also impacted due to the fall in demand. Airbus had
suspended production for several days. Boeing also laid off its employees.
Airlines in India can suffer a loss of around more than $600 million (Air India
excluded). The government of India is planning a rescue package of around $1.6
billion for its aviation sector.
International Air Travel can be a major factor for the
spread of this deadly virus, leading to many countries shutting down their
borders. To control the spread of this virus, almost all flights had been
cancelled. There has been a drop in bookings to affected places and because of
that airfares have also fallen. Many airlines are at the brink of declaring
bankruptcy. Airline operations have resumed now but still there is very low
demand of passengers. Aviation expert Paul Charles says that the government
might not have funds to pull airlines out of this crisis.
Most of the aircrafts flying now are nearly empty with
only around 30% passengers. International air travels can only resume when
countries lift their border restrictions and are open to welcome flights from
other countries. Also, the cash reserves of the airline are low because they
still have to pay the airport charges. Many pilots and cabin crew have no
option but to take an unpaid leave. In India, around 29 lakhs jobs from this
sector will be affected. Forget profitability, there is very little hope in this
sector. The buzzing airports are now quiet and devoid of passengers.
According to reports, this ongoing pandemic crisis is
the worst in the history of aviation. We are yet to see if the airline industry
survives this crisis. If it does, how long will it take to recover and bounce
back to see double digit growth once again?
- Get link
- X
- Other Apps