Page 6 - World Airnews Magazine April 2020 Edition

FLAREPATH

COUNTING THE COST OF

THE CORONA VIRUS

By Heidi Gibson

CONFERENCES

Meanwhile in an attempt to fill in the dots and in no particular
hat is unclear is just how much the aviation world order, the European Business Aviation Association (EBAA) and

Wwill be aff ected by the Corona Virus pr (COVID-19). National Business Aviation Association (NBAA) have cancelled

What is clear is that billions of US dollars in revenue are set to be the 2020 European Business Aviation Convention & Exhibition or

wiped off the books. EBACE2020. The event was scheduled to take place in Geneva from

The International Air Transport Association flagged up to (US) May 26-28.

$113 billion with the figures rising as the situation changes and Swiss authorities – like many all over the world including South
develops from day to day. Africa have stopped events of more than 100 people.

Recently US President Donald Trump announced a travel ban Another high level aviation event - the SUN ‘n FUN Aerospace

from 26 European countries for one month in an effort to contain expo due to take place in May – has been postponed until May

the spread this means 3 500 flights per week and 800 000 passen- 5-10.

gers will be affected. As far as aviation conferences organisers of the Global Connect-

The World Health Organisation just labelled it a pandemic – as ed Aircraft Summit event, scheduled for June 2-3 in Denver, is

the virus has affected over 100 countries around the world – and under review and organisers will take a decision closer to the time.

countries around the world are scrambling to restrict travel, put
adequate screening measures in place and deal with this nasty AIRLINES

virus. Airlines continue to bear the brunt of the spread as Italy’s airline

Furthermore IATA has repeated its call for relief measures to Alitalia’s closed its Milan operations crippled by the Lombardy

mitigate the outbreak’s impact, such as tax reliefs, reduction in shutdown. Alitalia suspended all operations at Milan Malpensa,

charges and the temporary easing of slot allocation rules. and limited Milan Linate to domestic services, after the govern-

IATA director general Alexandre de Juniac has warned that the ment locked down the Lombardy region.
data released referring to January was just ‘the tip of the iceberg’ Alitalia operates to New York JFK, Tokyo Narita and Rome from

as most of the major travel restrictions in China only kicked in later Malpensa, and multiple European destinations from Linate. The

on in the month. last flight into Malpensa ahead of the suspension was AZ605 from
What is interesting is the two scenarios - one of “limited spread” New York on 9 March.

of the virus and a second of “extensive spread” the association has AFRICA

released.

For the “limited spread” analysis, it took into account existing Turning our attention to Africa the AviaDev or the Aviation

Development Conference due to take place in Antananarivo,

countries with at least 100 confirmed coronavirus cases. These Madagascar has been postponed to September and a number
include China, Singapore, Japan, Italy and Iran. It also estimates of countries on the continent have closed their airports to all

falls in consumer confidence in other markets in North America, passengers from or who have travelled through China, Italy, Iran

Asia-Pacific and Europe. and South Korea.
Of the (US) $63 billion revenue hit, IATA’s assessment shows

Governments have imposed strict quarantines on arrival. Dji-

China accounting for more than a third of this. Markets associated bouti’s Civil Aviation Authority has banned all international flights

with Asia, including China, would account for (US) $47 billion of the – excluding cargo.
total revenue loss.
In its “extensive spread” analysis. IATA has included all coun- The Kenyan government – like South Africa – have closed schools
tries with 10 or more confirmed coronavirus cases. As a whole, and banned events with 100 people or more – just like their Euro-

pean counterparts.

Asia-Pacific will see about (US) $57 billion in revenue loss, with the

bulk made up of countries including China, Japan, South Korea, and Some ports have been shut down, all non essential travel prohib-

Singapore. ited and domestic travel is to be stopped.
While falling oil prices could go some way in Closer to home the SAPFA have wisely decided to postpone
cushioning the outbreak’s impact. The barrel camps. Air shows like FASHKOSH in Stellen-
price of Brent crude oil has fallen from almost bosch was postponed or cancelled and the

$70 at the start of the year to around the $50 Airlines Association of Southern Africa (AASA)
level. has called on passengers to act responsibly.

IATA estimates this could lower fuel costs AASA CEO, Chris Zweigenthal.“ If you are

by up to (US) $28 billion. It notes this would unwell, please don’t fly. Instead, please see a

not “significantly cushion the devastating im- doctor,” said Zweigenthal.
pact” of the outbreak on air travel demand, World Airnews will try to keep you up to

while flagging hedging “will postpone this date. Please go to our Facebook page or web-

impact for many airlines.” site for more information. Q
World Airnews | April 2020
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