Why coronavirus pandemic could kill off airlines
Airlines being a high and fixed cost industry which have been deepened on cash flow have is in great from coronavirus pandemic.Each empty seat of an airplane amounts to a permanent revenue loss. Any curtailment of their revenues and cash flow causes disproportionate harm.The impending threat of a possible closure on a number of airlines, including ones in India, each day of curtailed flight operations perils the entire aviation value chain.
How coronavirus can spread through airplane?
The world is gripped by a new coronavirus that started in China and has since moved into many countries. When an infected person coughs or sneezes, they shed droplets of saliva, mucus, or other bodily fluids. If any of those droplets fall on you—or if you touch them and then, say, touch your face—you can become infected as well.
After all, you can avoid the person who is sneezing in line at any place but you’re more or less left to fate once you’ve strapped on that seatbelt inside a flying metal canister.
There’s also evidence that respiratory viruses can be transmitted through the air in tiny, dry particles known as aerosols.
Impact on airlines due to pandemic
At the moment most airlines are desperately trying to preserve cash. Besides cutting flights, many are asking or forcing staff to take unpaid leave.
The steep fall in the oil price ought to help, but many airlines will only feel the benefit later, having previously locked in purchases at higher prices to hedge against the risk of pricier fuel.
Few airlines have decided to cut back almost 2000 uh jobs once this gets over whereas some have suspended the working members unpaid.
Not every airline will survive the pandemic. Airlines are also asking leasing companies, which have grown rapidly over the past decades and now own around 50% of the global fleet, to show forbearance over payments
The longer the pandemic lasts, the less certain travel patterns are to revert to normal