The aviation industry of the Asia-Pacific region will be the hardest hit by Covid-19, with airlines of this region likely to lose $29 billion in 2020. This is more than a third of the $84.3 billion industry losses globally, as per the International Air Transport Association (IATA).
The global body has estimated that India could see over 30 lakh job losses in aviation and sectors dependent on aviation as its airlines could see a 49% drop in passenger demand; this could result in a decrease of 93 million passengers and a revenue fall of $11,610 million in the same period.
“The Asia-Pacific region was the first region to feel the brunt of the Covid-19 crisis. The region’s airlines will see passenger demand (measured in revenue passenger kilometres, RPK) collapse 53.8% this year, while capacity (in available seat kilometres, ASK) will be reduced by 39.2%,” the IATA said.
Conrad Clifford, IATA regional VP for Asia Pacific, said: “2020 is the worst year in aviation history and airlines are in survival mode. The carriers in Asia-Pacific will experience the largest losses at $29 billion. That’s a loss of $30.09 per passenger. In this bleak outlook, the priority is for the region’s governments to facilitate the restart of air connectivity in line with the International Civil Aviation Organization’s Take-off guidance and principles.”
“It will take a few years for the industry to get back to 2019 levels of activity. In the interim, governments will need to continue providing financial relief and assistance to airlines as well as flexibility in slot usage. We are also working with airports and air navigation service providers to identify areas of cooperation with a view to reducing costs for airlines,” Clifford added.
In fact, the Indian airlines have cut jobs and salaries, and renegotiated contracts with vendors to survive the crisis. Excluding market leader IndiGo, Indian airlines will need to raise a minimum of $3.5 billion to survive the grounding as estimated by the aviation consultancy firm from India earlier.
India, however, grounded domestic aviation for a two-month period from 25 March to 25 May. Though domestic services were allowed to resume in a limited capacity, international flights continue to remain grounded at least till 31 July.
