The Aerospace Industry & Covid — Will It Even Survive? — Omar Kaddouha
The Covid-19 crisis has had a severe impact on various business sectors, aerospace and aircraft manufacturers being one of them. While the second wave of the virus keeps surging, several countries can only predict the impact it shall leave behind. In this post, we want to find out if the aerospace industry will survive the pandemic.
The Virus’ Impact on Industry’s Revenue Intake
Several months after the impact of the first wave of the virus, various airports are under huge pressure. Alongside other Asian countries, China tried its best to keep the virus from spreading to other parts of the world, but it still did.
Airport revenue generation depends on the traffic levels. However, we have seen many countries ban flights, which means that the revenue intake has plummeted significantly over the months. The United States, for example, were one of the first ones to enforce travel restrictions from China.
This is bad news since the cost of operating and maintaining flights has remained the same. It is also impossible for airports to close down and lay off all their workers, so they keep counting losses as the virus blankets the entire globe.
The Impact on Passenger Traffic
Before the virus got severe, some airports were making real progress in terms of profits, but that has changed.
To combat the spread of the virus, travel bans were imposed, which led to a drop in passenger numbers on domestic travel as well as business travel. Many countries, while doing all they can to stop the virus spread, have either cancelled or reduced air connectivity and as you can image, this and still is having a long term effect on the aviation industry with thousands of employees having to be furloughed or even sacked due to the loss of income caused by the covid-19 pandemic.
At this rate, the regulators and the industry must find the best ways to come up with relief measures. This includes devising a recovery plan that would work best for each airport across the globe. According to Airports Council International (ACI), all new measures must be evidence-based, and a balanced approach needs to be employed.
Will Aerospace Survive the Pandemic?
With the virus being quite unpredictable, 2020 has been quite a complex year, not only for the aerospace industry but for many other sectors. At the moment, some countries have indeed resumed business as usual. But under strict measures to keep the virus at bay.
As long as the virus is still here with us, it will not be easy for the aerospace industry to spring back to life. Some countries lost a significant number of lives and are loath to lift flight bans.
While this might not be the best time to make conclusive statements, indeed, the aerospace industry cannot go down forever; once the virus is tamed, policies will be put in place to ensure that things get back to normal. It might take time, but that is how it will work to ensure international air transport and can be a thing once more.
The Bottom Line
The aerospace industry, according to Omar Kaddouha, is the hardest hit. As long as the flight cancellations remain upheld, they keep losing a great deal of money, which might take many years to recover as they try to deal with the current financial crisis around the world.
Leisurely travel will no longer be the same, especially in the short term, but when things get back to normal, passengers might have to pay a little more for flights as a way of recovering the losses incurred amid the pandemic, but that will not happen for too long as air travel demand will once increase in line with government advice.