Audio Interview

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Economic Impacts of COVID-19 on Civil Aviation

Effects of Pandemic on the Aviation Industry

Air transport represents a small share of international economy but is closely linked to the activities of other sectors, specially airports, aircrafts manufacturing and employment of staff members collectively considered as the “aviation industry”. The aviation industry is a key enabler of many other economic activities in any country.

The dramatic drop in demand for passengers air transport due to Covid 19 pandemic and containment measures is threatening the viability of many airlines in both the air transport sector and the rest of the aviation industry, with many jobs at stake and loss of revenue of governments relying on tourism sectors.

Analysis

Airline Industry is governed by the ongoing situation in the region/country wide or a global crisis like the recent Covid-19. some of the significant facts such as the coronavirus epidemic impacting the airlines industry currently  has not left any airline untouched, and this had brought to a halt the international scheduled passenger services.  The recent forecast is that airline traffic will be roughly half the levels seen in 2019 as national lockdowns limited the likelihood of an only gradual return to normal as recession compounds the health crisis.  Against this backdrop and with limited cash resources remaining, airlines, regulators and governments are having to look at unprecedented moves like major lay-offs, discontinuing partnerships to keep the industry afloat.

We have seen that many international, award winning airlines have been impacted. The financial year for many started in the middle of a lockdown, with most passenger aircraft grounded and a global ban on travel. Apart from cargo movements, the skies were quiet and across the globe we were dealing with mass cancellations of flights and holidays due to COVID-19.

Intended Audience

The impact of the Covid-19 is wide spread across lot of industries but it specifically affected this industry as it provides the only rapid worldwide transportation network, which makes it essential for global business. It generates economic growth, creates jobs, and facilitates  international trade and tourism.

Source: Aviation Benefits Report, 2019

The air transport industry supports a total of 65.5  million jobs globally. It provides 10.2 million direct jobs.  Also the passenger traffic globally would benefit from viewing this information and statistics.

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