Tuesday, 29 September 2020

Foreign Affairs News The Leading News Portal
Opinion
1 Sep 2020

Restart Of Flights Would Take Up Global Economy

Arun Ranjit
Arun Ranjit
Nepal Airlines aircraft
Nepal Airlines aircraft

Not only the one area or particular place. Covid-19 damaged whole world. There is no space in the world where corona virus don’t exist. The virus reached all the nook and corners, infected the people without any discrimination of rich and poor, black and white, male or female, old or child of the world.

It has so far claimed 25,644,319 people infected. Of which nearly 854,861 lives have been claimed around the world. In Nepal alone, near about 39,460 people have been infected and death toll reach 228.

World Health Organization (WHO) has even been saying that corona virus cases could be growing more. Thus, has also been warned that the precaution should be taken very seriously every time.

The aviation industry has been one of the worst hit by the pandemic, with the coronavirus grounding entire fleets and halting traveling for airlines and passengers.

Since the Nepal government enforced lockdown in early March to prevent the spread of COVID-19 pandemic, according to the Ministry of Culture, Tourism and Civil Aviation, “the loss could be estimated beyond 45 billion Nepali Rupees until August.

Nepali government has lifted lockdown since June 10 and again after ongoing two weeks prohibitory orders in the Kathmandu Valley till September 2.

However, from today–September 1st the international flights have been opened but restriction in domestic and long-route bus services have yet to open.

Tribhuvan International Airport. Photo: aviationnepal.com

As the international flights can bring only diplomats, expatriates, INGOs staff and Nepali passengers with making hold to the tourists the tourism sector has yet facing “dying”.

 The tourism industry is vital to economic growth. Thus, the hospitality industry including travel industry too are rewarding.Top of Form

With the opening of aviation industry around the world for tourists and travelers, traveling would have said revitalizes amid the easing of COVID-19 around the world.

Anyway, after all now the world needs to grow the economy. Post Covid-19 crisis needs to restart the global economic activities in a gigantic task, as majority of nations around the world have already locked down, fighting the highly contagious coronavirus.

The COVID-19 pandemics has had a significant impact on the aviation industry due to the resulting travel restrictions as well as a slump in demand among travelers.

Significant reductions in passenger numbers have resulted in planes flying empty between airports and the cancellation of flights, which in turn massively reduced revenues for airlines and forced many airlines to lay off employees or declare bankruptcy. Thus, almost all the airlines of the world have axed thousands of jobs.

Ensuing crisis is the worst ever encountered in the history of the aviation industry. Whenever that may be restarting the global economy will be severely constrained in almost all sectors, if there wouldn’t have a viable aviation industry to rely on. 

The COVID-19 pandemic is having an enormous impact on the aviation industry along with many areas affecting passenger traffic, air cargo demand, airport workforce and incoming revenues.

Aviation 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.

There is no doubt that in view of the current severe blanket of travel restrictions, the airline industry is in its deepest crisis ever.

A pessimistic scenario drawn by International Air Transport Association (IATA) had estimated a revenue loss of US $ 113 billion for the global air transport industry. IATA sees a 38% fall in global demand and a US $ 252 billion loss of passenger revenue.

Where international passenger traffic is allowed, the air transport industry is mostly repatriating people to their home countries as governments permit. And airlines are also delivering vital goods – medicines and equipment to fight the virus or the most time-sensitive products, feeding global supply chains.

The industry led by IATA has been asking governments to provide a lifeline of financial support. A liquidity crisis is coming at full speed. Revenues have fallen off a cliff. And no amount of cost cutting can save the day if no cash is coming in the door. Without financial relief airlines will go bust.

Clearly, airlines are desperately trying to survive in the most difficult times imaginable.

According to the IATA sources, the COVID-19 crisis will see airline passenger revenues drop by US $314 billion in 2020 which nears 55% decline compared to 2019.

Full-year passenger demand (domestic and international) is expected to be down 48% compared to 2019.

The COVID-19 outbreak is having a major impact on the international aviation industry.

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