Covid-19 has disproportionately influenced different sectors of the economy. The aviation industry has been significantly challenged, especially after the cessation of movement in and out of most affected areas worldwide. This research focuses on the significant reduction of clients in the aviation industry. It will also explore the related negative outcomes, particularly the loss of jobs and hence income by employees in this industry, the loss of revenue by major aviation firms worldwide, and the indirect and direct effects the reduction in demand has had on related sectors. Through in-depth literature review and secondary research, the paper will also address how such problems can be addressed by ensuring sustainability in the business model. This topic is instrumental in shedding light on the impact of economic destabilization on sectors that provide essential services. The research is also crucial in analyzing the challenge and how resilience can be incorporated into the aviation industry, even when there are significant economic disruptions.
Background
The Covid-19 pandemic has significantly influenced a reduction of passengers in the aviation industry. To contain the spread of the virus, most governments worldwide have intermittently put in place travel restrictions and border closures. These restrictions have, in turn, influenced flight cancellations. Most airlines have had to only deal with cargo, hence the reduced business. The problem is gross because of the influence on revenue. Suau-Sanchez et al. (2020) assert that The International Civil Aviation Organization (ICAO) approximates that in the first six months of 2020, airlines would experience a 58% reduction in seat offers aimed at different customers. A loss of approximately 112 to 135 billion USD in gross operating revenue was also expected. While this issue was a projection made before the extent of the issue was fully known, the problem plummeted as the pandemic affected different countries for the second year.
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It is necessary to research the problem to understand its scope, effects on related sectors, and possible solutions. Additionally, given the vital role of air transport in economic development, it is instrumental to research the topic to understand the chain effects the economy has witnessed due to the impact the pandemic has had on the aviation industry. There are also other related issues that this search sheds light on, for example, employment in the face of an economic crisis (Sobieralski, 2020). As the research helps analyze how output has negatively been affected, it will also shed light on how employees in this sector have experienced job loss and financial difficulties in the wake of the pandemic.
Literature Review
As soon as the spread of the Coronavirus became eminent in early 2020, movement cessation was one of the containing measures put in place by the World Health Organization. Air transport, particularly passenger transport, has been significantly affected (Dube et al., 2021). The declination of passengers had been a significant phenomenon for more than a year now. As new variant viruses continue to defy the steps put in place to manage the pandemic, such as vaccination, different countries are restricting traveling, and others are allowing it under strict regulation, such as testing and putting travelers under 14-day quarantine after they arrive at their destinations. These moves, as well as the fear of the pandemic, have discouraged passengers from traveling. The reduction in business deals has seen many employees in this sector laid down (Sobieralski, 2020). Personal research is aimed at addressing the above dynamics and other related issues.
The trends in literature have changed from research presenting projections of the extent of the problem to research showing statistics of the impact. With over a year of governments' inability to flatten the covid-19 curve, the aviation industry has been able to ascertain its revenue losses through a comparison of the current state with the previous years (Dube et al., 2021). More sources are therefore analyzing statistics and not using speculations.
Some of the gaps in the literature is a significant focus on major airlines in notable continents such as Europe and North as well as South America. The impact is, however, not only confined to these areas but others such as Asia, Africa, and Australia. To a large extent, all aviation firms, both local and international, have been affected differently. Based on this problem, it can be concluded that the Covid-19 pandemic has negatively affected both small and large-scale stakeholders in the aviation industry worldwide.
References
Dube, K., Nhamo, G., & Chikodzi, D. (2021). COVID-19 pandemic and prospects for recovery of the global aviation industry. Journal of Air Transport Management , 92 , 102022.
Sobieralski, J. B. (2020). COVID-19 and airline employment: Insights from historical uncertainty shocks to the industry. Transportation Research Interdisciplinary Perspectives , 5 , 100123.
Suau-Sanchez, P., Voltes-Dorta, A., & Cugueró-Escofet, N. (2020). An early assessment of the impact of COVID-19 on air transport: Just another crisis or the end of aviation as we know it?. Journal of Transport Geography .
