The Struggle of the Aviation Industry during the COVID-19 Pandemic
By Geraldina Brilliani Prasetya
The spread of COVID-19, also known as the coronavirus, has had a tremendous impact on various sectors, especially on the pace of the world economy. This condition raises business threats at all levels so that several business sectors are in crisis. Based on data from Bloomberg, central banks in 50 countries face this condition by cutting interest rates, one of which is The US Federal Reserve. In theory, this policy was made by the central bank so that loans are cheaper and can stimulate the economy.
The aviation industry is the sector that most affected in this pandemic situation. The corona pandemic has caused the global airline industry to lose more than $ 469 trillion in passengers this year. It is logical if the company experiences difficulties, due to reduced or even zero revenue, while the operating costs of the aviation industry continue. Although empty of visitors, airlines still have to clean the airport and aircraft areas regularly and thoroughly to ensure they remain sterile from viruses and must carry out longer riding procedures to keep passengers separate from each other. To be sure, it will increase the flying time to be longer.
According to OAG Aviation World Wide data, global flight capacity continues to decline from January 6 to March 23 compared with 2019 in the same period. Even in Indonesia, throughout April there was no demand for plane ticket reservations at all. The decline in global flight schedule capacity is due to the policies of countries in the world that prohibit travel into or out of their territory. The International Air Transportation Association (IATA) states that more than 100 countries implement the policy of the ban, including domestic air travel from one region to a certain area. Last March, IATA estimated that global aviation industry revenue could drop $ 252 billion, or 44 percent, from 2019 and the loss of the global aviation industry due to loss of passengers of US $ 29.3 billion in 2020 with the highest loss in Asia Pacific of US $ 27, 8 billion. If the coronavirus outbreak lasts longer than the SARS outbreak, then airlines will have more difficulty surviving. Flitch Ratings Managing Director Josef Juniac said he had asked several governments to waive airline fees. He thinks that this request can increase the likelihood of government bailouts for airlines. While demanding Aviation Arista Amadjati Aviation Observer airlines need to get intensive as a follow-up to the temporary suspension of domestic and international flights, especially trips to and from China. With the government's policy to cancel and freeze visas on arrival for Chinese citizens to Indonesia will have a major influence on regular and rental airlines.
President Director of PT Angkasa Pura I said the potential loss reached Rp 40 billion per month only from the Bali-China flight route which has 38 routes per day with an estimated 6800 passengers. Especially at this time, there is a temporary ban on umrah from Indonesia to Saudi Arabia which has the potential to eliminate 80 thousand flights per month (based on data from the Indonesian Association of Muslim Hajj and Umrah Entrepreneurs). The decline in the aviation business can have a direct impact on the tourism sector which is the biggest contributor to foreign exchange aside from oil and gas. Based on data from the Central Statistics Agency (BPS), from all foreign tourists visiting, tourists from China made 2.07 visits to Indonesia in 2019 by spending the US $ 1,400 per visit. This condition could cause Indonesia to lose foreign exchange from Chinese tourists amounting to the US $ 2.8 billion according to the Coordinating Minister for Maritime Affairs and Investment Luhut B. Panjaitan. Nevertheless, currently, it is still operating normally.
In anticipation of the spread of the coronavirus, passengers must wear masks and always ensure disinfecting sterilization. This regulation already applies to world countries such as Canada, the United States, and Indonesia. Even German airline passengers Lufthansa will be forced to wear masks that cover their nose and mouth. Indonesia also applies a similar protocol by ensuring that all public areas and public transportation are clean and sterile from viruses by spraying disinfectants. Also, PT Angkasa Pura provides isolation space if there is someone who is indicated to be exposed to the COVID 19 virus. The passenger experience will be very different from cabin crews wearing protective clothing, passengers will wear gloves and masks, with disinfectant-sterilized cabins before departure and the crew offers hand sanitizer every half hour, while in Business and First Class, only packaged and covered food will be distributed.
In 2020, air travel will feel different from the days before the corona pandemic. The problem that arises then is how to maintain an effective distance on the plane while the distance between seats is very close. Should the middle seat on the plane be left empty? According to Irish Airlines CEO Ryanair, Michael O'Leary, the middle seat does not provide effective social distance, so emptying the middle seat will be in vain. If Ireland enforces such regulations, the government must pay for the middle seat, or the plane will not fly. So far there has been no evidence of infection in the aircraft or an empty middle seat can reduce the risk of transmission of the virus. But many airlines such as the Lufthansa Group from Germany, including Eurowings, are currently blocking the middle seat to prevent transmission of the virus. While the Asian company Haeco proposed to replace the row of seats with rows of cargo stored in the cabin. This will not only create longer distances but also provide better aircraft payloads at times like now when the demand for cargo capacity is greater than seating.
The existence of this pandemic creates an economic crisis in all aspects. Since one of the country's biggest average income comes from the tourism sector, this certainly is a challenge for the global aviation business that is experiencing a significant loss of visitor losses. The existence of social-distancing regulations, making aircraft seats with minimal distance impossible to be occupied. While blocking the middle seat cannot be sure to prevent transmission of the virus.
I think it will be more effective if the airline creates a "Glassafe" design on the cabin as promoted by an aviator from Italy. This design features a plexiglass hood on the head to shoulders on each seat like an old public telephone booth. The concept of the seat, named "Janus", has a 180 º center seat and faces the rear of the plane, fenced off from its neighbors by a plexiglass glass wall. This arrangement can minimize physical contact and the spread of the virus because it is protected by barriers. This idea can be a breakthrough for airlines throughout the world. Indeed, this requires more effort to make it happen, but there is no harm in changing the strategy to start the journey again.
References
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Ridhoi, Muhammad Ahsan. "Turbulensi Bisnis Penerbangan di Pusaran Pandemi Corona." katadata.co.id. Maret 23, 2020. https://katadata.co.id/telaah/2020/03/27/turbulensi-bisnis-penerbangan-di-pusaran-pandemi-corona (accessed Mei 4, 2020).
Spaeth, Andreas. "Social-Distance Flying the New Normal?" dw.com. April 30, 2020. https://www.dw.com/en/social-distance-flying-the-new-normal/a-53287730 (accessed Mei 5, 2020).
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