Letters | Coronavirus pandemic has clipped wings of global air travel

The aviation industry had been on a 20-year high before Covid-19 struck. Now it faces a wave of bankruptcies and job losses

The domino effect for related firms will change the face of aviation forever

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Rows of aircraft sit grounded at Hong Kong airport on March 14. Ensuring planes are flight-ready once demand for air travel picks up will be a monumental logistical and financial task. Photo: Robert Ng

Published: 8:00am, 2 May 2020Updated: 8:00am, 2 May 2020

The rapid and global spread of Covid-19 has dealt a stunning blow to the airline and aerospace industries. The advent of the virus has hastened the death of the Boeing 747 and the Airbus 380. Delta is losing US$60 million a day. With about 40 large and mid-size airlines now having cash-flow challenges, an aviation consultancy estimates that, by the end of this month, up to half of the 800 airlines around the world could face technical insolvency.

Leasing companies contracted to the major airlines could also face bankruptcy as the crisis drags on. The domino effect will result in a cataclysmic set of events that will change the face of aviation forever (“US$2 trillion loss estimated for aviation-related industries worldwide”, April 2).

After the September 11 terrorist attacks, revenues from the airline industry fell by US$23 billion, nowhere near the forecast loss of US$314 billion this year due to the coronavirus. When the oil war between Russia and Saudi Arabia subsides, how will airlines cope with new higher oil prices?

Prudent investors will be hesitant to buy stocks in the airline industry, as 60 per cent of the fleet – 16,000 passenger aircraft – is parked while others prematurely head for the metal graveyard to be broken up.

Once aircraft are mothballed, bringing them back on stream after the crisis is over is a monumental logistical and financial task. Ensuring they are flight-ready will require time, skill and the necessary clearance from global aviation authorities.

Recent figures have laid bare the unprecedented collapse of global aviation. The United Arab Emirates, a global aviation hub, grounded all passenger flights from March 24. Hundreds of thousands are set to lose their jobs, including pilots, cabin crews, mechanics and many others associated with the airline industry.

.css-sioo19{color:#c79a00;}Letters | Coronavirus pandemic has clipped wings of global air travel

Letters | Coronavirus pandemic has clipped wings of global air travel