As the COVID-19 outbreak spread, a severe decline in demand across all entities has been observed. The aviation industry is one of the most impacted industries during this lockdown because of the Covid-19 pandemic. The airline industry is very crucial for the North American country’s economy and the recent ban on a domestic and international flight across the region is bringing down both airline company’s revenue as well as countries economy. For instance, Canada’s Prime Minister announced travel restrictions that will limit travel to Canada, Until further notice. In order to protect the citizen from the outbreak of COVID 19, the country has declined the travel of any passage to Canada, even if the passenger has a valid visitor visa or electronic travel authorization (eTA). The impact of this pandemic on the North American aviation industryis anticipated to last longer and the recovery is anticipated to low.
However, for the recent situation airline companies are taking decisive action to their financial position in the market. Several airlines have the necessary decision to reduce the immediate effects of the outbreak. The actions include capacity and are implementing cost reductions and cash flow initiatives across the organization, and many more. The aviation companies are working collaboratively with the various federal agencies and administrations to maintain the health and safety of the passengers for now and for future recovery plans. The federal agencies that are participating with North America airline companies to ensure the safety of travelers across the region include CDC, HHS, DOT, DHS, and other federal agencies.
The government is also playing an important role in steering the North American aviation industry. The government is providing the necessary liquidity support to the aviation companies and aid them with the process of recovering from hampered operations during the pandemic. For instance, in April 2020, several US airlines asked the government for a $50 billion bailout to aid the companies in recovering from the fall in travel rates. Additionally, some of the aviation companies also asked for $29 billion in federal grants, with $25 billion for passenger airlines and $4 billion for cargo carriers to the government. The airlines are also trying to seek up to $29 billion in low-interest loans or loan guarantees. The aviation companies aredemanding federal excise taxes on fuel, cargo, and airline tickets to be suspended through the end of next year.
Apart from this, many airlines in order to be partially functioning are removing their middle seat facility. The removal of middle seats in airplanes will let them follow the social distancing rule and aid them with the urgent need to slow infection rates while operating. However, this solution is not inthe long run as it is not economically for the aviation industry. To operate sustainably the aviation companies are required to fly in its full capacity with all seats booked.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/impact-of-covid-19-on-north-america-aviation-industry
The Report Covers-
- Historical market growth estimation in North America aviation industry per-COVID-19 pandemic
- Deviations in North America aviation industry growth rate due to COVID-19 pandemic
Verticals Affected Most
- Passenger Airlines
- Cargo Airlines
- Aircraft manufacturing companies
- Airports managing companies
- Catering & other service providing companies
To learn more about this report request a free sample copy @ https://www.omrglobal.com/request-sample/impact-of-covid-19-on-north-america-aviation-industry
Company Profiled
- Airbus SE
- Alaska Airlines, Inc.
- Allegiant Air LLC
- American Airlines, Inc.
- Delta Air Lines, Inc.
- Frontier Airlines, Inc.
- Hawaiian Airlines, Inc.
- JetBlue Airways Corp.
- Southwest Airlines Co.
- Spirit Airlines Inc.
