It is a critical time for the government to give a helping hand to the airline sector across the globe, as the pandemic increases its toll on the vulnerable industry. Due to the global Coronavirus outbreak, which has claimed more than 20,000 lives and infected over 40,000 people globally (according to W. H. O), countries have placed restrictions on movement, especially traveling in and out of the country.
As a result of these restrictions, the number of passengers has reduced drastically since most planes now fly empty between airports. This has led to the cancellation of many flights, and a lot of countries have been placed on lockdown.
Due to the resulting travel restrictions caused by the pandemic, the aviation industry has recorded a massive decrease in demand among flying travelers. Also, as passenger flights are being canceled, the cost of sending cargo by air lately has increased exponentially.
These restrictions and lockdown, as expected, has caused a high number of economic meltdown in the world, therefore affecting the aviation industry. As the health crisis continues to put pressure on the industry, airlines in the United States of America have asked the government for more than $50 billion in aid.
It should be noted that not only the airlines are affected since the aviation industry also includes airports and aircraft manufacturers. The aviation industry, therefore, is currently being faced with liquidity and cash flow crises due to the movement ban, as they are the first in line when it comes to traveling by air. This has also increased the price of sending cargoes and goods for people that have to ship in goods (from countries like China), to sell in their own country.
This development will, in turn, affect not only the aviation industry but also the workers who are at risk of losing their jobs and contracting the deadly virus. Other businesses such as hotels and resorts, restaurants, and tourist centers would be greatly affected as well, as tourists and visitors can’t fly at this crucial time.
Now, apart from cash flow crises, the impending recession and possible loss or death of infected staff (s), the aviation industry also faces the threat of going extinct. The industry needs to stay relevant after the outbreak ends. There is a crucial need for additional support to protect jobs and ensure the public continues to rely on the aviation industry after the crisis.
In summary, the airline sector needs help and support from the government at this critical time, so that they can continue to provide services, now and when the outbreak ends. The ultimate goal, after all, is to get people traveling around the place by air again and connect the world, yet again. For this to happen, the aviation industry needs to stay alive, really.