AVIATION INDUSTRY UNDER SEVERE LOSS UP TO $113 billion
COVID-19 has made the globe its hub. Almost, all industries are under lock. The world is changing as of changing trends. The economies of the world are getting shuffled. Countries that have spent billions of dollars on their weapons are in the state of war with this invisible enemy.
The paramedic staffs mainly are frontline defenders but their weapons are not appropriate. A perspective is generated that more than needed wealth is being spent on military matters and the health sector is always been ignored.
As of the rule of Economics, when demand of any product increases, supply should increase if not, a shortage can be experienced. Similarly, we can see this in this scenario. Demand for kits, drugs, etc is increased and these aren’t mostly available for the developing countries. These are the armors for the soldiers of this biological war.
Developing countries are in a state of panic as of developed countries health system has collapsed. Till now 25,52,157 coronavirus cases are confirmed, 1,77,230 deaths have been reported and 6,88,412 patients have recovered. 210 countries are in the web of coronavirus.
COVID-19 has effected many businesses but, here the “aviation industry” is being discussed. Quarantine, isolation, sanitization, hydroxychloroquine, etc are the words being used over and over these days. People aren’t meeting each other and aren’t even shaking hands. Social distancing is being practiced. No tourism/travel policy is being implemented. The airline industry is mainly dependent upon traveling which is banned these days.
According to IATA, airlines could lose up to $113 bn on the back of COVID-19. IATA said adding the collapse of Flybe is proof that “urgent action” is needed to protect the industry. Airline share prices have decreased by 25% since the outbreak which is six times greater than the point in the 2003 SARS outbreak.
Airline in the main target of the storm:
Norwegian
Finnair
Cathay Pacific
Lufthansa
Wizzair
Easyjet
IAG
Virgin Atlantic
Southwest Airlines
United
Japan Airlines/All Nippon Airlines
Air China/China Eastern/China Southern
Approximately, the combination of trip cancellations and the country’s specific restriction on international flights cost the industry $880 billion.
Nearly all countries have some type of travel advisory in place, with many encouraging people to avoid unnecessary travel even before COVID-19 was officially considered a pandemic by the WHO.
The earliest impacts were felt in February 2020, as flight capacity in and out of China dropped around Lunar, New year. A 71% drop in flights in February 2020, was recorded as compared to the same date in 2019.
Meanwhile, in Europe, Italy had a 22% drop in flights with an official announcement of the lockdown of March 9, 2020. 74% of flight rates to and from Italy are fallen.
On March 11, 2020, the U.S stopped its flight operations with the 26 European Schengen states. Initially, Ireland and England were exempted to be in the lists of no flight operations, but afterward COVID-19 got severe and these states were added.
On March 17, 2020, U.S- Canada borders were closed in order to control the pandemic. Only essential movement is encouraged. Many airlines worldwide face the threat of bankruptcy in the coming months, if these trends continue.
CONCLUSION:
COVID-19 pandemic has caused a lot to the world. The world is changing, the trends are changing. Every industry is facing crises. But, some industries have the roots upon the factors being lockdown. A new system(model), SOP’s should be introduced. Global bodies should give them a space to save their industries from bankruptcy. Ending with hope folks that this pandemic will end soon!