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Challenges faced by the airline industry due to covid-19.

Author: 
Dhwani Bangera
Subject Area: 
Social Sciences and Humanities
Abstract: 

This research paper focuses on how the aviation sector has faced huge concerns as countries struggle to keep COVID-19 from spreading by increasing restrictions, banning flights from certain countries with a higher positivity rate, airlines incurring massive losses. This study also provides deep insight on how the unemployment rate in the airline industry differs from previous unemployment rates making more and more people unemployed as the travel and tourism sector provided one out of every ten jobs in the world. Furthermore, this study looks into one of the greatest issues confronting the aviation sector i.e. huge drop in cash reserves as planes remain grounded for extended periods of time owing to lengthy travel bans in countries throughout the world. Many airlines were on the verge of bankruptcy as their financial reserves deplete due to the countrywide lockdown. During the lockdown, Indian airlines lost about 75-90 crore each day. As flights remain grounded for an extended length of time, the question of whether passengers will choose air travel arises, the reason for this is because the passenger’s conduct has changed as a result of the COVID-19, travel bans and restrictions imposed, and also accompanying various crisis, resulting in a significant decrease in demand for aviation activities.

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