Aviation sector is facing problems such as slump in demand, liquidity crunch, job losses, etc. due to COVID-19. Experts are sure that they are unsure about when airlines will recover to pre-pandemic level. Complete Coverage: Coronavirus
Crux of the Matter
Turning to Paper Planes? According to the International Air Transport Association (IATA), global air revenue is likely to fall by $314 billion due to slump in demand. As the international borders are closed, almost 17,000 out of 28,000 passenger planes in the world are parked in the hangar. This halt in the operations has put 25 million jobs at risk. In the USA 95% fall in demand for flights has been observed in comparison to the last year. According to an IATA survey, 40% of customers have estimated a 6 months period to have a safe flight.
Laudable effort under Lifeline UDAN. 392 flights fly 736 tons of medical & essential cargo over 3,89,100 kms. 155 flights by @IAF_MCC 135 flights by @airindiain 94 flights by @allianceair 8 flights by @IndiGo6E & @flyspicejet@PawanHansLtd has flown 1.99 tons in hilly regions. pic.twitter.com/rgGKpr8BqF — Hardeep Singh Puri (@HardeepSPuri) April 27, 2020
Low oil prices may help airlines in managing costs if flight services resume. Airlines have also expedited the retirement process of old high fuel consuming airplanes due to slowdown in the aviation sectors. Average jet fuel demand in the world is 8 million barrels per day which will see a fall of 2.1 million barrels per day on average by the end of 2020.
What Boeing President David Calhoun Said “Air travels will take years to return to the pre-pandemic level. Post pandemic, business sizes will be smaller and the demands of customers will be different. To keep the aviation industry alive, measures like reducing operating cost, suspension of dividend payments, deprioritizing investment strategies, etc. have been taken by Boeing. Despite a 25$ billion package by the US government to support aviation companies, it will take years to reach normal operations.”
We have seen the first #airline casualty in #AsiaPacific. There will be more if governments don't step in urgently to support airlines. 11.2 million jobs, including travel and tourism, are at risk across the region. These are the priorities 👇 Read more: https://t.co/QxnTvoNnzd pic.twitter.com/4fVxSGxVAo — IATA (@IATA) April 26, 2020
Further airplane manufacturing companies like Boeing and Airbus have warned that to return to the normal stage of operation, the aviation sector will take time till 2023 or 2024.
Curiopedia
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