Print Friendly, PDF & Email





The coronavirus pandemic has caused probably the most significant impact to the aviation sector. With the world going into a lockdown and airlines being grounded internationally, the sector has come to a standstill.

Aviation Sector:

  • The crucial aviation sector that connects nations across the world is witnessing a flurry of layoffs and pay cuts. Some workers have been asked to go on forced unpaid leaves by aviation companies
  • Each day, there are reports of global airlines announcing furloughs or layoffs as operational strains deepen in the wake of the lockdown.
  • Global aviation activity has sunk over 66 per cent in the wake of the Covid-19 crisis.
  • In India, the decline in aircraft movements has been even more dramatic. With the exception of a handful of cargo and repatriation charter flights.
  • Since the report was prepared before the lockdown 2.0 was announces, the effects on the sector may have amplified.
  • It fears that the situation in the post-virus setup would remain pretty much the same for the aviation sector.
  • From a point of complete suspension of travel, recovery is likely to be slow. Demand will be suppressed due to economic dislocation; slow or even negative GDP growth; broken supply chains; low consumer confidence; and concerns about lingering outbreaks of COVID-19.
  • The sector, is also in urgent need of financial help to support employees.

How severe is the lockdown impact on airlines?

  • Aviation is among the worst-affected sectors amidst the Covid-19 crisis that has taken the scale of a pandemic. According to the International Air Transport Association, airlines globally can lose in passenger revenues of up to $113 billion due to this crisis.
  • Domestic traffic growth is also gradually being affected with domestic travellers postponing or cancelling their travel plans.
  • Cash reserves of airline companies are running low and many are almost at the brink of bankruptcy. Moreover, the crisis could lead to loss of jobs and pay cuts. Some airlines have asked many of their employees to go on leave without pay.

Changes in cargo operations:

  • Reduced passenger traffic may mean stakeholders could set aside more funds for the development of drones and autonomous vehicles to better serve its whole ecosystem.
  • The sector is already well accustomed to using them