The ability of Asia-Pacific airlines to recover from the disruption of the Coronavirus pandemic may be more challenging when compared to previous epidemics, owing to lower growth rates in the regional economies, says Alton Aviation Consultancy at the Singapore Airshow 2020.
Coronavirus struck during a time of seasonal peak travel demand in China, with Chinese New Year significantly increasing movement to and from the region. This timing has only exacerbated the impact of the virus and there is currently no clear end to the restrictions.
Adam Cowburn, managing director at Alton says: “The scale of global restrictions and flight suspensions has been faster and more significant than experienced during the SARS period in 2003, and the promise of recovery in the near-term is certainly not guaranteed. At the time of the SARS outbreak in 2003, the Chinese economy was growing close to 10.0 percent, cushioning the negative impact on air travel. Coronavirus comes at a time when the Chinese economy is estimated to grow at a more modest 6 percent, and with the aviation industry intrinsically more connected globally today, air travel is less likely to remain as resilient.”
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