In the United Kingdom, for example, the four companies that manage ground operations at airports have reported that they are close to collapse, which endangers thousands of jobs.
There are more than 25 thousand jobs in danger of stopping, so that major airlines such as Swissport, WFS, Dnata or Menzies cannot continue to operate for more than a few weeks under the conditions of this crisis. Large airlines require financial support and assistance from governments.
Why this negative effect? Because of the coronavirus, passengers stopped traveling by plane. Even those who had already booked a flight, canceled their journeys for fear of being infected with coronavirus or simply because some states no longer allow travel.
The airlines mentioned that so far they have managed to handle all the financial crises, but this time it would be different, because it is a global crisis, which will probably last several months from now.
In order to survive, the airlines are taking over everything that can be transported at this time, especially freight transports and individually charge each service they offer. It is the only way they can withstand at least for a short period and keep the employees in the system and bear all the related expenses. But this source of transport revenue also begins to decline, the demand is decreasing.
As a result, airline operators are warning that they have lost about 95% of their revenue in recent weeks.
The aviation sector is extremely important to a state’s economy and can rely on an unprecedented range of measures designed to help companies in times of crisis.
Unfortunately, in most states globally the measures are still tightening and it is not yet known when the coronavirus pandemic can be stopped, so that normal air traffic and life can resume. Most likely, this crisis will last several months.