Bad news in particular for the travel industry continues to roll out – OAG says there are some 4.5 million fewer seats this week than seven days earlier. “Cumulatively weekly capacity is now being reported at some 15% below the week of January 20 when we started tracking changes in response to COVID-19.”
As well as waiving change fees, airlines keep coming up with new incentives. Emirates for instance allows you to keep your Skywards tier status with “80% of your usual travel requirements. You also enjoy 20% more Tier Miles on your trips until 30 June.”
Air New Zealand may shed up to 3700 jobs with the CPA declaring most airlines will be bankrupt by the end of May. Austrian Airlines will temporarily suspend regular flight operations until March 28 and most carriers operating A380’s have grounded them including Air France.
Routes Digest says Ryanair expects “the majority” of its fleet will be grounded while Finnair and SAS are among the latest airlines to stop almost all flights. Virgin Australia seems to be a rare exception due to the fact that local services account for 88% of the carrier’s passengers. The airline said demand is rising on some of its domestic legs according to Routes Digest.
Israel is as we know in lockdown – and it would seem this has helped kept coronavirus numbers under control. No deaths have been reported. Interestingly, Israel’s Health Ministry has fast-tracked approval for multiple possible treatments for the novel coronavirus “that will hopefully help shorten the recovery time and reduce complications for those infected with the virus.”
The South China Morning Post says Hong Kong’s battered tourism sector hit a new low amid the coronavirus epidemic in February when arrivals slumped to 199,000 – the daily average in the first half of last year. The Tourism Board’s latest statistics showed a drop of more than 96 per cent year-on-year for the period, after the government rolled out measures from February 8 to stem the spread of Covid-19 by closing all but three border checkpoints with mainland China. There are grave fears that premium carrier Cathay Pacific will not survive in this unprecedented aviation climate.
How are Australian travel agencies faring? No direct information is available however here is a look at Australian businesses in general.
In mid-March over 60% of Australian businesses report being affected by the COVID-19 coronavirus, up a massive 45% points from a month ago according to a special Roy Morgan Snap SMS Survey. Analysing the results in more granular detail shows 17% of businesses report being affected ‘A great deal’ by COVID-19 coronavirus (up 15% points from a month ago), 31% have been ‘somewhat’ affected (up 23% points) and a further 12% (up 7% points) have been affected ‘A little’. New modelling suggests that the Australian national death toll from the virus could be about 50,000 if just 20 per cent of Australians contract the respiratory illness; this could rise to 150,000 if 60 per cent of Australians are infected.
In France, President Emmanuel Macron has announced that beginning at noon Tuesday, movement would be restricted throughout the country, with only food shopping and trips to doctors allowed.
US president Trump is linking the virus to a possible recession.
There was one positive remark in this sea of gloom. SKAL International president Peter Morisson said he was “heartened to see the encouraging health and economic recovery news from China, “that I believe hopefully shows that the world is on a path to recovery.”
This may take some time, he added.
Written by: Ian McIntosh
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