Coronavirus has affected all most all sectors of the economy. From tourism to agriculture to industrial to aviation all sectors are struggling in this crisis. It is predicted that the recession due to coronavirus will be worst since 1930’s. The economic downturn will be worse than 2008-2009 global financial crisis.
All international and domestic flights cancelled
In the wake of coronavirus, all international and domestic flights were cancelled. All international flights to and from the country are cancelled from 22 March. Domestic flights have also been suspended since March 25. Also, there is no consensus right now as to when these flights can start.
Ajay Singh, chairman and managing director of private airline company SpiceJet, said that the airlines have suffered the most due to the restrictions imposed in the wake of the corona virus. Their revenue is reduced to zero. They also demanded to bring aircraft fuel to GST and provide additional credit for aircraft fuel. Experts involved in the discussion suggested allowing domestic flights as soon as possible after the lockdown opens. He said that the government could take measures to promote ‘nearby tourism’. This will help the tourism and transport industry to get back on track.
Why the crisis of aviation can further deepen?
A survey released by International Air Transport Association, 40% of the people will not travel by air for the next 6 months due to the fear of coronavirus. Airlines was the main medium of transmission of coronavirus to the people. 4% of the people said they wont ever travel by air.
Revenue loss of $1,112 million
The sanctions imposed in the wake of Corona virus ‘Covid-19’ will cause a revenue loss of $ 1,122 million to Indian airlines this year and more than 29 lakh people will be unemployed.
According to the report released by the International Air Transport Association (AITA), if the stringent restrictions on passenger air service remain for three months, then compared to the year 2019, the number of passengers in the country will fall by 8.98 crores i.e. about 47 percent. This will result in a revenue loss of $ 1,122.1 million to the airline companies. Also, employment of 29,32,900 people will be lost.
The report, released for the Asia-Pacific region, has predicted that India will experience maximum jobs loss, while India will be ranked third behind Japan and Australia in terms of revenue loss. Airline earnings are expected to decline by $ 2,200 million in Japan and over $ 1,400 million in Australia.
- Number 1 : loss in Japan – $2,200 million
- Number 2 : loss in Australia – $1,400 million
- Number 3 : loss in India – $1,122 million
AITA had earlier said in a report released on April 14 that the number of passengers in India would fall by 36 percent, causing a revenue loss of $ 884 million and loss of employment of 22.47 lakh people.
Converse Clifford, vice president of AITA for the Asia-Pacific region, said the situation has worsened since the previous report. Airline companies are struggling to save themselves from perishing. Many airlines are on the brink of destruction. If they don’t get help from the government that will near total annihilation.