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The International Air Transport Association (IATA) has requested for financial support to the airline industry affected by the Covid-19 in Asia Pacific countries. If such restrictions continue for three months, it is estimated that passenger demand in major Asia Pacific states will drop by 34 to 44 percent in 2020.
After this it gradually starts to pick up speed. Cambodia 34, Vietnam 34, Philippines more than 36 percent are estimated to reduce the number of passengers.
Similarly, it has been estimated that Thailand will decrease by 40%, Nepal by 37%, Pakistan by 40%, Republic of Korea by 40% and Sri Lanka by more than 45%.
If such a ban lasts for three months, the Asia-Pacific region will lose 37 percent of the total number of passengers this year alone, resulting in a loss of $88 billion in revenue. Due to the different demand of each passenger, the total result may be the same. Airlines are now fighting for their survival. At such times they need financial relief.' Conrad Clifford, Regional Vice President, Asia-Pacific, ITEA said.
According to a recent analysis by the IATA, the airlines will have a net loss of USD 39 billion by the end of the second week of June 30, 2020. Potential ticket refunds have a cash burn impact of US$35 billion. If there is no relief, the situation at that time could result in a loss of US$ 61 billion.
Australia, New Zealand and Singapore have announced substantial packages to support their aircraft industries. But India, Indonesia, Japan, Malaysia, Philippines, Republic of Korea, Sri Lanka and Thailand have not yet taken an effective decision on this matter. Clifford said.
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