Publish Date: 15-Apr-2020
The 2019 novel corona virus has taken an enormous toll on the global aviation sector with flight cancellations on a daily basis. The outbreak has created massive disturbances in the tourism industry, which accounts for 10% of the Global GDP, as per the World Travel and Tourism Council (WTTC). A majority of airlines have suspended flight services to and from China, imposing noticeable pressures on trade and transport.
In addition to the horrific situation the pandemic has created, it is expected to put tens of thousands of jobs at risk. WTTC has estimated that more than 50 million airline jobs across the globe are on the verge of elimination in the shadow of the global pandemic, COVID-19. The agency also anticipates Asia-Pacific, the world's fastest-growing aviation industry, to be the worst impacted — losing as many as 30 million jobs. In an approach to tackle the deadly novel coronavirus, the WHO has advised alcohol-based hand sanitizers to be installed in lavatories of passenger aircraft and goods carriers.
1. North America:
The WTTC warns that international travel could be impacted by up to 25% in 2020, causing a monthly loss of more than USD 3.4 billion to the U.S. economy. As per The Guardian, a British daily newspaper, the travel arrest has jeopardized the jobs of over 750,000 employees in the U.S. alone. As per World Travel and Tourism Council,
Source: WHO, National Health Commission of the People's Republic of China,& CAPA
2. South America:
Small- and medium-sized aviation-related businesses, manufacturers' associations, helicopters' associations, aircraft operators, and pilots' associationsin South America have appealed governments to save the industry amidst the deadly outbreak.
The British government is involved in talks with the aviation industry as it encountersa massive drop in the number of passengers amidst the coronavirus outbreak.
The COVID-19 has crushed China's civil aviation sector as well as its economy. As the pandemic quickly spread from the epicenter of Wuhan to Japan, South Korea, Thailand, the U.S., Singapore, France, Russia, Spain, Vietnam, Malaysia, Cambodia, Sri Lanka, the Philippines, India, and Canada, countries have shut down theiraerial borders to curb the spread of the virus further.
5. The Middle East:
With a loss of more than 50 million passengers and USD 10 billion in revenue and more than 800,000 jobs facing elimination, Middle Eastern governments have strictly regulated aircraft permitted to land inside their respectiveborders since the virus hit the region.
South Africa canceled its airlines on a temporary basis to deal with the rising spread of the coronavirus. The International Air Transport Association (IATA) revealed thatAfrican airlines recorded losses worth USD 4.4 billion as of March 11, 2020. IATA revealed that international flight bookings in the region reduced to 20% in March and April. Domestic bookings fell by 15% in March and 25% in April. These figures have also dampened the China-Africa trade relations, taking a significant toll on their political ties.
Millions of passengers fly to, from, and within China per year. Global air traffic records a total of 4.3 billion annual air travelers. IATA released a share of losses in aircraft passenger volumes (March) in some of the most impacted countries around the world.
|Countries||Loss In Passenger Volumes|
|The Rest Of APEC||11%|
|The Rest Of Europe||7%|
|The Middle East Excluding Iran||7%|
American Airlines, Air Canada, IndiGo, Air India, JetStar Asia, Korean Air, Austrian Airlines, Lion Air, British Airways, Malaysia Airlines, Qatar Airways, JetStar Asia, Swiss Airlines, and United Airlineswere some of the first airline companies to halt operations to China as soon as the virus hit the country.
1. Guangzhou Baiyun International Airport:
2. Haikou Hainan Meilan International Airport:
As perXinhua Net, the France-based European plane maker Airbus was already facing anet loss of approximately USD 1.47 billion from the last year when it was hit by the effects of coronavirus at the beginning of 2020. The company has garnered another USD 238.9 millionin losses as of March 2020, following flight suspensions by the government.
Boeing announced plans to cancel CEO pay, suspend its entire dividend, and urged virus-related aid from the U.S. government for a sum of USD 60 billion. Along with the colossal losses in revenue, the company is also struck by reputational damage, economic crisis, and high political risk.
Time and again, the world is hit by deadly diseases, which leave their mark on the travel sector, much like any other. IATA calls the coronavirus pandemic "a catastrophe for economies and aviation,"labeling it worse than 9/11, SARS, or the 2008 global financial crisis. some of them include:
1. Severe Acute Respiratory Syndrome (SARS), 2002–2004 (China):
Historical data reveals that the SARS outbreak was at its peak in May 2003. Fears of a global spread massively hampered leisure travel and largely impacted North America and Asia's strong trade links, causing airlines to lose billions of dollars.The SARS outbreak accounted for a drop of 9.4 million international tourist arrivals into China, says the WEF. It also estimates:
Source: IATA Economics
2. Avian Flu, 2005 (China):
The Avian or Bird Flu of 2005 was a significant pandemic threat. The disease had a comparatively milder and short-lived impact on the travel industry, as there was no evidence of its human-to-human transmission. IATA Economics states:
3. Middle East Respiratory Syndrome Corona Virus (MERS-CoV), 2012 (Saudi Arabia):
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