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August 24, 2020updated 22 May 2021 3:06pm

Employees affected as airlines implement measures to minimise the impact of COVID-19, finds Poll

The COVID-19 pandemic has severely impacted the aviation industry, forcing airlines to temporarily ground their fleet.

The COVID-19 pandemic has severely impacted the aviation industry, forcing airlines to temporarily ground their fleet. The aviation industry is set to lose between $352bn and $390bn over the full year 2020 due to the coronavirus pandemic, estimates the International Air Transport Association (IATA).

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Verdict has conducted a poll to identify the major steps airlines and other aviation companies are taking in response to the effects of COVID-19.

Analysis of the poll results shows that a majority 79% of the businesses have taken one step or another in response to the effects of the pandemic, most of which affect employees, while it is business-as-usual for 21% who responded that no measures have been taken.

Majority of the actions directly affect employees in the industry, the biggest of them being pay cuts (16%) followed by headcount reduction (15%) and initiation of staff leaves (8%).

Flight route suspensions were initiated by 12% of the respondents.

Impact on aircraft orders and supplier contracts is relatively lesser, with 5% of the respondents withdrawing or deferring aircraft orders and 4% suspending non-essential and re-negotiating supplier contracts.

Quick financial support was needed by 18% of the respondents, including 12% applying for government aid, 4% needing to draw additional finance to meet financial commitments and 2% negotiating with banks for a payment holiday.

Actions taken in response to Covid-19

The analysis is based on 335 responses received from readers of Airport Technology, a Verdict network site, from 07 May to 21 August.

Steps airlines have taken to overcome the impact of COVID-19

Despite pent-up demand, consumer confidence in aviation remains low due to health risks and concerns over job security. Further, corporate or business travel remains constrained as companies are under financial pressure and opting for video conferencing in place of in-person meetings.

The IATA estimated in April that more than 25 million jobs in the industry are at risk due to the impact of the coronavirus pandemic. More than 400,000 jobs have been lost or employees furloughed in the industry with more expected as recovery remains sluggish, according to the latest data from Bloomberg.

Airlines including Emirates, Qatar Airways, and Air Canada are either deferring or cancelling purchase of new aircraft. Boeing has an estimated 784 cancellations or uncertain orders, while Airbus reported cancellation of 302 orders as of July.

The support provided to the aviation industry by various governments varies between 1% and 25% of the 2019 revenues of airlines, according to IATA’s estimates. North America provided the highest aid of 25%, while Latin America accounted for the lowest aid of 0.3%.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
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