Aviation industry is the first industry to get a direct threatening impact of the COVID-19 pandemic spread. As the cases increased in China in January, most of the major aviation companies started decreasing their domestic as well as international flights. With this, most of the international carriers cancelled their service in mainland China at least till April end. China Southern Airlines, China Eastern Airlines, Air China and Hainan Airlines are the major airlines in China that were highly hitted by the spread of COVID-19. In February 2020, the Chinese air passengers fall by around 85% which caused a decline of $3.0 billion in revenue. Looking towards the adverse effect of the virus spread, most of the airlines are planning to sell some part of their asset to decrease their loss due to coronavirus. As per the International Air Transport Association (IATA) estimation China aviation industry has to face a loss of around $29.3 billion in revenue in 2020, due to COVID-19 pandemic. As per the latest analysis it is expected to be more than $113 billion, as it has spread to more than 80 countries. To handle the current situation, the Civil Aviation Administration of China (CAAC) is planning to offer significant subsidies to the airlines.
Moreover, the administration is also planning to give additional funding for international flights. Take off and landing charges have been reduced and government investment on airport infrastructure spending will be increased by around $14.25 billion in 2020. With the increasing spread of coronavirus in the other part of the globe countries are shutting down their airplane operation. For instance, after the outbreak of COVID-19 in the US, the country also bans airplane operations in most of the affected countries. It is expected that by the end of May 2020, a large number of companies can get bankrupt. Due to this, the companies required bail-out packages from the government to survive in the market. All these activities havedisrupted the aviation industry. The tickets have been canceled or rescheduled, the staff has been sent to work from home and airports have been shut down. It has created a deviation from the earlier forecasted number related to the aviation industry which includes annual air-passenger, the demand for new airplanes, their parts, staff and so on. Once the spread of disease brings to a halt, the industry is expected to witness a similar growth as predicted earlier as people will again adopt for international travel to complete their assignments.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/aviation-industry-due-to-covid-19-pandemic
The Report Covers
- Comprehensive research methodology of the global aviation industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global aviation industry.
- Insights about market determinants which are stimulating the global aviation industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Global Aviation Industry – Segmentation
- Passenger Airlines
- Cargo Airlines
- Aircraft manufacturing companies
- Airports managing companies
- Catering & other service providing companies
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