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Impact Of The Covid-19 Pandemic On The Aviation Industry Assignment Sample

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1. Introduction - Impact Of The Covid-19 Pandemic On The Aviation Industry

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1.1 Background

The disastrous and unprecedented effects of global COVID-19 pandemicon the airport sector and the overall air transport sector, as well as the ensuing travel restrictions, are already well documented. In the second half of 2020, the pandemic effectively stopped activity at airports across the world, ending a decade of a steady as well as rapid growth in passenger traffic. In this way, the overall number of travellers dropped significantly from 2019 to a level that had not been witnessed by airports around the globe since 1997 (Airport council international, 2022).

Figure 1: Global aviation industry effects of the coronavirus

(Source: Statista, 2022)

In the above figure, it has been depicted that the number of air passengers worldwide reached 2.2 billion while the loss of revenue of the global airline industry reached 70 billion due to the outbreak of the coronavirus pandemic in 2020 (Statista, 2022).

1.2 Rationale

The main issue identified is related to the reduced efficiency of the aviation industry. This is an issue as it is affecting the global employment rate. This is an issue now as about 41.7 million people in the world lost their job in the aviation sector due to the outbreak COVID-19 pandemic (Airport council international, 2022).

1.3 Significance of the Research

This study is significant to analyse the reasons for the slowdown of the aviation industry. Moreover, the strategies to recover the losses in the aviation sector can also be determined in this study.

2. Aims and objectives

The aim of this study is to analyse the impact of the COVID-19 pandemic on the global aviation sector.

The objectives are highlighted below.

  • To analyse the behaviour of travellers during the pandemic
  • To evaluate how COVID-19 affected the aviation sector
  • To determine the available recovery strategies for the global aviation sector

3. Literature review

3. 1. The COVID-19 pandemic's effects on the aviation sector

Since 58% of visitors use airplanes to get where they are going, the decrease in air travel has also had a big detrimental influence on that industry. The advantages of air travel for tourism to the GDP will be reduced by roughly $630 billion because of the termination of 26.4 million jobs(Airlines, 2022). However, the larger tourism industry is also negatively impacted. The pandemic may lead to a drop in international tourism of 850 M to 1.1 B, a drop in tourist-related export earnings of $910 B to $1.2 T, and a loss of 90 M to 130 M direct jobs in the sector.

Figure 2: Global aviation industry effects of the coronavirus

(Source: Statista, 2022)

In the allow figure it has been depicted that due to the outbreak of COVID-19 pandemic, annual revenue of global aviation industry decreased to 373 billion U.S. dollar in 2020 (Statista, 2022). Moreover, aviation-related jobs could see a 45 M to 42 M (-52.5%) decline. As compared to the pre-COVID state, there are currently 43% fewer direct aviation employment, which amounts to 4.8 million fewer people working in airlines, airports, air traffic management, and manufacturers. After the closing of borders in March 2020, over 39,200 special repatriation aircraft returned nearly 5.4 million citizens to their homes.(Airport council international, 2022). In needy areas, 1.5 M tonnes of cargo, principally medical supplies, were delivered by around 46,400 special cargo planes at the height of the pandemic response.

3. 2. The impact of COVID-19 on airport traffic: slow recovery but increased optimism

As per the view of Kumar &Nafi(2020), for airports, airlines, and their business partners, COVID-19 continues to be an existential threat. The global travel market is still substantially below pre-COVID-19 levels despite enormous vaccination efforts. The level of collaboration undertaken by national governments throughout the world and a number of stakeholders continues to have a significant impact on how quickly the recovery proceeds (Melas &Melasova, 2020). Even though the international travel industry is still mostly in decline, an increasing number of nations are taking steps to gradually reopen their borders to visitors who have received the necessary vaccinations, which has given rise to some optimism and suggested a possible true route to recovery.

However, the recovery is not uniform. Domestic passenger markets are rebounding considerably more quickly than those in other countries. Regional disparities also exist in the recovery. As stated by Strauss et al. (2020), the return of COVID-19 and the reinstatement of travel bans in the region severely slowed the early success of the Asia-Pacific region, which had been fuelled by the fast recovery of the CDPM (“Chinese domestic passenger market”). The Global passenger market is not anticipated to significantly improve until the second half of 2022, even though several countries in the Asia-Pacific region are beginning to reopen to visitors who have received vaccinations.

4. Methodology

An interpretivism philosophy will be used in the study, which will enable researchers to obtain factual and practical information about the “impact of the COVID-19 pandemic on the aviation industry” (Pallavi, 2020). Moreover, for researchers to understand and explain the data they have collected through their research, this is of utmost importance. Additionally, this research study will employ an inductive research methodology because it is highly effective, beneficial for researchers to pay close attention to the data of the global aviation industry, and supports the development of important ideas.

This strategy is advantageous since it allows for flexible information collection on strategies to improve aviation performance. As per the view of Patel & Patel (2019), the inductive technique encourages investigation and starts with a particular observation or inference. As one of the best designs for doing secondary research, the explanatory study design aimed to be used in this study.

Moreover, by giving more precise information about transport mobility, passenger travel behaviour, and global aviation recovery, this study design helps researchers comprehend the research problem in depth (Patel & Patel, 2019). Researchers in design can anticipate the reason behind a process as well as future events with the use of explanatory study. This study design's emphasis is on articulating and obtaining a deeper knowledge of the recent aviation problem.

Furthermore, for the research, secondary data will be collected. This is because gathering secondary information for the research may be done more quickly and easily for the researchers than gathering primary data can. As a result, this study methodology helps researchers save time while also substantially reducing costs.

Secondary research techniques can be used to gather a variety of facts and information regarding different aspects of aviation affected by COVID-19. Additionally, because numerous researchers and academics have undertaken research in this field, the information would be qualitative in nature. In order to boost the reliability and correctness of this research study, it could be extremely effective and advantageous for researchers to gather a broad variety of information and data on the aviation sector in addition to employing the findings of prior researchers. In order to make the current research study more cost-effective, a secondary qualitative analysis will be used (Kalinga, 2019). In this approach, a number of themes would be developed by reading various publications and journals from reputable and authentic databases including ProQuest and Google Scholar.

In order to maintain ethics, all the in-texting will be done authentically and data will be collected from articles published in the last 5 years containing complete and relevant information. These are regarded as authentic and trustworthy databases that provide trustworthy journals and papers. These resources are useful for gathering a significant amount of knowledge and information from pre-existing research.

5. Expected outcome

The results of this study will be effective to recommend the aviation sector the most effective strategies for their financial recovery. On the other hand, the precautions that can be taken in the future in this situation will also be evaluated which can help the aviation sector prevent future losses.

References

  • Airlines. (2022). The impact of COVID-19 on aviation. Retrieved from: https://airlines.iata.org/news/the-impact-of-covid-19-on-aviation [Retrieved on 8th October 2022]
  • Airport council international. (2022). The impact of COVID-19 on the airport business—and the path to recovery. Retrieved from: https://aci.aero/2022/02/24/the-impact-of-covid-19-on-the-airport-business-and-the-path-to-recovery-4/ [Retrieved on 8th October 2022]
  • Kalinga, E. A. (2019). Research Methodology Adopted in Developing TanSSe-L System. Tanzania Journal of Engineering and Technology38(1).
  • Kumar, S., &Nafi, S. M. (2020). Impact of COVID-19 pandemic on tourism: Perceptions from Bangladesh. Available at SSRN 3632798.
  • Melas, D., &Melasova, K. (2020). The early impact of COVID-19 pandemic on the aviation industry. Acta Avionica22(1), 38-44.
  • Pallavi, S. (2020). Research Methodology perspective in Management concept and implication for future trend. Studies in Indian Place Names40(40), 372-377.
  • Patel, M., & Patel, N. (2019). Exploring Research Methodology. International Journal of Research and Review6(3), 48-55.
  • Statista. (2022). Coronavirus: impact on the aviation industry worldwide - statistics & facts. Retrieved from: https://www.statista.com/topics/6178/coronavirus-impact-on-the-aviation-industry-worldwide/#dossierKeyfigures [Retrieved on 8th October 2022]
  • Statista. (2022). Revenue of commercial airlines worldwide from 2003 to 2022. Retrieved from: https://www.statista.com/statistics/278372/revenue-of-commercial-airlines-worldwide/[Retrieved on 8th October 2022]
  • Strauss, A. T., Cartier, D., Gunning, B. A., Boyarsky, B. J., Snyder, J., Segev, D. L., ... & Massie, A. B. (2020). Impact of the COVID?19 pandemic on commercial airlines in the United States and implications for the kidney transplant community. American Journal of Transplantation20(11), 3123-3130.
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