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The impact on commercial aviation by the coronavirus

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  1. #1

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    The impact on commercial aviation by the coronavirus

    We know passenger travel has essentially grounded to a halt globally due to the outbreak. This no doubt is going to have an adverse impact on the airline industry. A plane makes money for the airlines by being in the air flying from A to B. A plane sitting on the tarmac does nothing but burn cash for the airline. But just how much of an impact has this coronavirus had on the industry? Sam Chui, the aviation geek, has provided a very illuminating insight to this situation:



    While the major airlines will likely get a bailout. The smaller ones may go under. So the question is, which airlines do you predict will go under as this outbreak drags on?

    Last edited by Coolboy; 31-03-2020 at 03:07 PM.
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  2. #2

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    Well, SIA, arguably one of the best run and most profitable airline, has just does some rights and bond issues underwritten by Temasek, so for the rest without a goddad sitting with cash to spare, how can they survive ?!


  3. #3

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    with smaller airlines going out. there will be a huge sale of second hand planes. how will boeing and airbus survive?


  4. #4

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    Whichever company that gets bailed out should have major stipulations. No stock buyback options in the the future, capped ceo salaries and payment return on future profits.

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  5. #5

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    I don't believe that the demand will drop off in the long term. There is still plenty of money going around so some will fall then later new ones will reemerge, some will be bought out by those in better financial position. As always, catastrophes open up opportunities for those who are better prepared. Governments will also likely protect national carriers as they often have done in the past.

    Still going to be a lot of hurt for regular folks working in the aviation industry losing their jobs, pensions, seniority etc. I could see management taking the opportunity to get rid of the older more expensive staff with benefits while restructuring.

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  6. #6

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    Quote Originally Posted by Coolboy:
    While the major airlines will likely get a bailout. The smaller ones may go under. So the question is, which airlines do you predict will go under as this outbreak drags on?
    Hong Kong Airlines.
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  7. #7

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    Quote Originally Posted by MatthieuTofu:
    Hong Kong Airlines.
    Financially they are certainly on weak foundations to begin with. Yet HK Airlines has survived certain failures before with last minut injection of cash. I suspect Beijing, indirectly, will rescue HK Airlines behind-the-scenes.

  8. #8

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    The small companies will go bust. The big companies will be rescued


  9. #9
    Quote Originally Posted by Coolboy:
    Financially they are certainly on weak foundations to begin with. Yet HK Airlines has survived certain failures before with last minut injection of cash. I suspect Beijing, indirectly, will rescue HK Airlines behind-the-scenes.
    i thought they are owned by the province of Hainan now. They will be fine.