The new crown epidemic will lead to a reshuffle of the global civil aviation industry
(Source: CGTN China International Television 2020-4-24)
April 24,Professor Yang Hangjun, w88 casino of International Economics and w88, w88 casinoIn a live Skype interview with China International Television's "Asia Today" column, he said: The COVID-19 epidemic has had a huge impact on the global economy, and the civil aviation industry is undoubtedly one of the industries most severely affected by the epidemic. According to the latest estimates from the International Air Transport Association (IATA), the epidemic will cause the global civil aviation industry's passenger revenue in 2020 to drop by US$314 billion compared with 2019, and will put approximately 25 million jobs in the aviation industry and its related industry chains at risk. All airlines around the world, regardless of size, have experienced a sharp contraction in passenger demand due to the impact of the epidemic, and have taken many response measures, including canceling a large number of flights, allowing employees to take minimum salary or unpaid leave, and massive layoffs.Professor Yang HangjunI believe that this epidemic will reshuffle the global civil aviation industry. A large number of airlines will go bankrupt, reorganized or be merged this year and next year. It is likely to take two to three years for the global civil aviation industry to return to normal.
Professor Yang Hangjunsaid that the main problems currently facing the global civil aviation industry are cash flow shortages and continued sluggish passenger demand. In order to help their respective airlines get out of trouble, many countries have introduced some relief measures, including tax exemptions, airport user fee reductions, prepaid air tickets to inject liquidity into airlines, etc. However, looking at the current epidemic situation, these measures are not enough. Greater direct financial support from governments is needed to keep important airlines afloat. More importantly, the government needs to introduce measures to boost market confidence and allow aviation demand to recover quickly and steadily. Only in this way can the cash flow problem of airlines be truly solved. At present, the epidemic in China has been basically controlled, and China has the second largest domestic civil aviation market after the United States, which provides more favorable conditions for the recovery of China's civil aviation industry.
