Coronavirus (COVID-19) Impact On Aviation Business
The ongoing COVID-19 pandemic has left the world into a difficult place. Not only is it posing a serious threat to human life, but it has also badly affected the world economy and business all over the globe. Among others, the aviation industry has had a significant impact.
By now, each one of us might have seen the shocking images of empty airports caused due to the outbreak of coronavirus, revealing how it has impacted airport operations in many ways. Aviation industry’s revenue generation is directly linked to traffic levels, and as the flight bans and cancellation are leading to fewer flights, there are no means of generating revenue. As per the reports, March 2020 saw 10% of all flights canceled compared to 2019, which gradually increased to over 80% of flight movements being restricted across all regions by April 2020.
Even after the bans have been lifted in certain parts of the world, the number of passengers has been decreasing significantly, resulting in limited flights or even planes flying empty between airports. While the national airlines have suffered less, unsurprisingly, international flights have been most impacted by this global pandemic. This in turn leads to reduced revenues, forcing the airlines to lay off the staff in masses. With airlines such as Virgin Australian already declared bankrupt, many of the world’s airlines could be bankrupt soon.
Looking at the broader side of this economic crisis, it has affected various other businesses which are dependent on the airlines either directly or indirectly. With the continuous decrease in demand, the airline manufacturers and airport operators have been affected dramatically. Many flight schools have been shut down until things become stable, leading to unemployed flight instructors and other support staff. With extended shelter-in-place orders, the aviation fuel industry and other maintenance and support businesses are affected badly as their only source of revenue has come to a halt.
According to business experts and popular economists, this is one of the world's worst crises encountered in the history of the aviation industry. As this pandemic continues to advance, organizations and governments need to come up with solutions that keep the economy up and running while ensuring the safety of its people.
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