According to a study by the International Air Transport Association (IATA), with the coronavirus epidemic taking the global aviation industry to a halt as many as 29 lakh workers jobs are expected to be at danger in India’s aviation sector during the year 2020.
The coronavirus pandemic is projected to affect over 29 lakh workers in the Indian aviation, and related sectors, the IATA grouping of global airlines said on Friday. The country’s commercial flight services remain suspended until May 3, following the nationwide lockdown to curb the spread of coronavirus infections.
Besides, the pandemic and resulting shutdown have had an enormous effect on economic development, with aviation and tourism among the worst impacted sectors. The International Air Transport Association (IATA) has stated its new projections suggest the country’s effect on the Asia-Pacific region from the COVID-19 crisis has worsened.
Over 29 lakh aviation jobs in India might be affected due to the Coronavirus outbreak
The data reveals that the Indian aviation industry will be the hardest affected among the Asia Pacific countries in terms of employment, with a possible effect on 29,32,900 workers. The study also said the sector’s revenue in India could plunge this year by $11,221 million compared to 2019. Also, the demand for passengers in the country is expected to decline by 47 percent, it said.
Statement by IATA’s Global Vice President
Conrad Clifford, IATA’s Global Vice President for Asia-Pacific, said the region’s airlines would face a liquidity crisis in the second quarter of 2020, with a $61 billion cash burn.
“We’ve seen the region’s first airline loss. There’ll be more casualties if policymakers don’t step in quickly to guarantee the airlines have enough cash resources to hold them through this time,”
Clifford has listed India, Indonesia, Japan, Malaysia, the Philippines, South Korea, Sri Lanka, and Thailand as priority countries that require intervention.
The industry body predicts the profits from global airline passengers owing to the Covid-19 crisis will decrease by $314 billion in 2020, down 55 percent from 2019. Asia Pacific airlines will have the most significant $113 billion decrease in sales in 2020 relative to 2019.
Impact on the Aviation industry market
The market for passengers in the area is expected to decline by the 50% it has indicated. Such forecasts are based on a three-month scenario of extreme travel constraints, with a steady easing of restrictions in domestic markets, accompanied by international and intercontinental travel, IATA said.
Clifford acknowledged that offering assistance to airlines has more economic consequences as employment would be impacted in several industries if airlines do not escape the Covid-19 crisis. Every airline work is helping 24 more in the value chain of travel and tourism, he said.
“In Asia-Pacific, there is a risk of 11.2 million workers losing their jobs, including those who rely on the aviation industry, such as travel and tourism,”
Earlier, in another article, we discussed how startups are bring affected by the COVID19 virus and read several startup stories who are now forced to work from home.
- IATA has also asked for comprehensive steps, including direct financial aid, grants, debt incentives, and corporate bond sector financing and tax exemption.
- The aviation industry could be the most impacted by all other sectors in India due to Coronavirus.
- It is very speculative to see what will be the impact of COVID-19 on the Aviation Industry of India.