Impact of COVID-19 on Aviation Sector: Challenges and Opportunities

This report discusses the impact of COVID-19 on the aviation sector, with a focus on British Airways and EasyJet. It highlights the challenges faced by these companies, such as job losses and reduced revenue, and the opportunities presented, such as transit cargo of medicines. The report also explores how Hofstede's dimensions can help overcome challenges and how decision making bodies can positively influence the global economy.

WHY CORONAVIRUS COVID19
PANDEMIC MAY BE A MAJOR
BLOW TO GLOBALISATION AND
IN PARTICULAR TO THE
AVIATION SECTOR

Contents
INTRODUCTION...............................................................................................................................3
Impacts of covid-19 on the aviation sector and most importantly on these companies......................3
The issues, challenges presented by the Coronavirus pandemic to the Aviation companies/sector. . .4
What are the possible opportunities presented by the Coronavirus pandemic for selected Aviation
companies?........................................................................................................................................4
How the issues/challenges presented can be overcome with the help of Hofstede’s dimensions?.....5
How the positive influences of different decision making bodies within the global economy can
help overcome the challenges?..........................................................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES....................................................................................................................................8

INTRODUCTION
This report focuses and emphasizes on the issues and topics that have created issues in
the sector of aviation because of which they had to go through high losses, shut down their
operations and lose half of their staff. It is important for them to make sure that they find
viable opportunities at times like this so that they can maintain the viability of business.
Companies selected for this report in aviation sector was British Airways and Easy Jet.
British Airways is the flag carrier airline of the United Kingdom. It is headquartered in
London, England, near its main hub at Heathrow Airport. The airline is the second largest UK
based carrier, based on fleet size and passengers carried, behind EasyJet. Hofstede culture
chosen for this report were is uncertainty avoidance, power distance index, individualism vs.
collectivism. This report also highlights how with the help of different bodies such as IMF
and World bank they can get support and stand on their feet back.
Impacts of covid-19 on the aviation sector and most importantly on these companies
Impact of covid-19 on companies such as British Airways, EasyJet have been affected
on a high level. Due to the pandemic brought down by virus the air traffic that these
companies used to get will now be half of it as travel has been restricted in many countries
which is making it difficult for them to sustain their operations. Due to this many of the
people who were a part of this sector be it from ground level to higher level has lost their jobs
(McNamara and Newman, 2020). It is assessed that companies such as these may have to fire
half of their workforce this is a drastic impact on this sector as well as the companies that
maintains their operation in it. Role of the job is not important any one can lose it which will
make things difficult as this sector operates and concerns the system of transport on a global
level. This states that even direct aviation jobs are at risk and that cannot be saved until
everything has come back to normal. This has even left an impact on the GDP of the country
as they have already seen a loss of $500 million. Due to ban on travel businesses that are
concerned with export and import of goods are also facing issues as they are facing
difficulties in sending and receiving their lots. As per the analysis of market it has been
predicted that due to the conditions going on and rise of mutants they will lose many
international travellers and they will have to start sustaining their operations on domestic
tourism and its rides (Karim, Guha and Beni, 2020).

The issues, challenges presented by the Coronavirus pandemic to the Aviation
companies/sector
No one ever thought that the sector of aviation will be impacted to this level because
of the pandemic and the fear brought down by it which made things difficult and made this
sector grounded for a whole lot of time. This sector was believed to be worst hit at the time of
pandemic which created a lot of issues for them. One of them is the level of fear it has
generated in the hearts and minds of people. As now people fear that they will have to sit
with strangers who may be carrying the disease which can be easily transmitted to them. On
the top of that companies have to provide them with PPE suit kits which is adding more costs
to their infrastructure. Due to this many of the people have also stopped considering this
option of travel. This situation will likely to be continue till next year until all the people are
vaccinated with both of doses. If the crisis of disease has not happened this year then it won’t
be a case for them of failure instead this sector would have seen high growth (Janczuk and
Czapski, 2020). This has created challenges for both travel and tourism sector as they have to
see losses on a high level. It will take at least 3 to 4 years in order to return to their same level
of growth which will be very slow and challenging (He and Harris, 2020).
Market distortions-
Airlines have suffered high amount of losses in revenue from the pandemic which is
keeping on threatening the chances of their survival of companies such as British Airways,
Easy Jet etc. even at the current situation they are receiving support from the government so
that they can earn their position in the market back (Rogerson and Rogerson, 2021).
Drop in commercial revenues-
This has been a severe issue as the fear due to pandemic is not leaving the minds of
people. Due to that there are many areas in which sector of aviation has suffered. For instance
they had to reduce the power of economy, lose their job, salaries were cut down to half. This
is the reason why in order to bounce back and gain their pace they are working on taking the
help of digital platforms.
What are the possible opportunities presented by the Coronavirus pandemic for selected
Aviation companies?
Currently the opportunities for aviation sector and the companies operating in it will
be to move and deal in transit cargo of medicines across the world. This will not be much for
them but at least this can keep their operations going on.

Maximizing the value of predictive maintenance regimes-
Apart from that it will be difficult for them to maintain and improve the infrastructure
of airport bit it will surely help them in the long run. Focus needs to be on areas such as
safety, performance and savings. If they avoid it in order to preserve their resources of cash
they will face difficulties in future. It is necessary for them to plan the things that are
concerned with maintenance as that way they will be able to carry out their activities in a
more sorted manner.
Accelerating the creation of seamless passenger journey-
This concept is not new yet necessary for the sector of aviation in order to achieve
growth. They can develop an d bring changes into the method which does not involve
touching things or physical contact on so many levels. If that happens they will be able to
remove the fear that public have of transmitting the disease. With this focus must be given to
another potential area that is important and will be appreciated by every traveller possible. It
will be helpful and easy for them if they remove the need of paper documents while traveling
and accept the identity or security check through facial recognition (Gössling, Scott and Hall,
2020).
Restoring traveller confidence-
International travel will remain closed for long period of time but travel on a domestic
level will tend to continue and in order to maintain and attract people back to their services. It
is important for companies such as British Airways and Easy Jet to assure safety to their
audience. In order to do that they will have to take responsibility in their hands and make
them and focus on the aspect of health screening for which modifications will be required in
order to meet up to these goals. They need to take help of technology in order to come across
a challenge and use devices that keeps them alert of someone’s symptoms that are related to
this. This will prevent them from transmission of disease.
How the issues/challenges presented can be overcome with the help of Hofstede’s
dimensions?
Individualism vs Collectivism-
This aspect of index focuses on the degree to which society and people are integrated
into groups. If the society follows the approach of individualism on a high level will be less
effective as they will think of either themselves or their family first which is not required at

times and situation such as these. For it to win and make it possible for overcoming a
challenge it is necessary for them that they work with the approach of collectivism as in order
to get protection from this disease it is important that societies accept this and adapt this form
of medium in their own pattern. If people start to support each other and stop being careless
then it can make a change for them to protect themselves and overcome the challenges put by
it (Felbermayr and Görg, 2020).
Uncertainty Avoidance-
In order to overcome challenges, put by pandemic it is necessary that people start to
face things with some discipline and stop ignoring or avoiding things. In order to move ahead
from this situation, it is necessary that society adapt this dimension on a high trait so that
every thing is followed as per the law or guidelines given by government which will help
them to keep things under control. With the help of that airline companies such as British
Airways and Easy Jet have a chance to maintain and survive in these conditions of market.
Power Distance Index-
In situations like this which is brought down by pandemic on the aviation sector it
will be very difficult for them to overcome it. Still it needs to be made sure that power is
given equally at times like this so that everyone has a fair chance of getting security and
safety which will keep everyone safe. If isolation is done in any factor or area then they won’t
be able to achieve their goals and objectives.
How the positive influences of different decision making bodies within the global economy
can help overcome the challenges?
Positive influences are made by different bodies such as IMF, WTO or World bank as
they advises their policies on finances to promote stability of economy. This is done by
focusing on reduction of vulnerable factors and boost up growth on sustained level so that
standard of living can be maintained on high level through which aviation sector will be able
to happily get customers back. Apart from that these bodies also support companies in all the
areas so that they can sustain their operations. It is provided in terms of resources or technical
assistance so that everything is facilitated for companies at the time of balance of payment
crisis. If the economic stability is promoted by these bodies, then markets will remain more
certain which will be better for companies as they will be able to take decisions for growth on
the basis of that (Elliott, Schumacher and Withagen, 2020). This way they will be able to stay
away from causes such as high amount of inflation, foreign exchange fluctuation etc. with the

help of these bodies companies can improve their capacity to develop and overcome their
challenges.
CONCLUSION
From the above studies it can be concluded that aviation sector has been badly
affected due to which they have been not able to manage their cash flow and that is why half
of staff is fired and many of the people are getting half salaries. Companies such as British
Airways and Easy Jet are trying out their best in order to maintain their business from
domestic travel for the time being everything is normal. In order to survive they are seeking
support from the bodies of government so that they can survive in these crucial times.
Strategies is being formed and planning is being done as per the Hofstede culture of
dimensions so that they can make changes and assure people that they will be safe during
travel. This will help them to overcome from such challenges.

REFERENCES
Books and Journal
Elliott, R.J., Schumacher, I. and Withagen, C., 2020. Suggestions for a Covid-19 post-
pandemic research agenda in environmental economics. Environmental and Resource
Economics, 76(4), pp.1187-1213.
Felbermayr, G. and Görg, H., 2020. Implications of covid-19 for globalization. KIELER
BEITRÄGE ZUR, p.3.
Gössling, S., Scott, D. and Hall, C.M., 2020. Pandemics, tourism and global change: a rapid
assessment of COVID-19. Journal of Sustainable Tourism, 29(1), pp.1-20.
He, H. and Harris, L., 2020. The impact of Covid-19 pandemic on corporate social
responsibility and marketing philosophy. Journal of business research, 116, pp.176-182.
Janczuk, M. and Czapski, G., 2020. The Impact of the Coronavirus Epidemic on Air
Transport in Poland. Postmodern Openings/Deschideri Postmoderne, 11(2).
Karim, K., Guha, S. and Beni, R., 2020. Globalism after COVID-19 Pandemic: A Turning
Point in the Separation of Social and Economic Aspects. Voice of the Publisher, 6(2), pp.7-
17.
McNamara, K.R. and Newman, A.L., 2020. The Big Reveal: COVID-19 and Globalization's
Great Transformations. International Organization, 74(S1), pp.E59-E77.
Rogerson, C.M. and Rogerson, J.M., 2021. Looking to the past: The geography of tourism in
South Africa during the pre-COVID-19 era. In Urban Tourism in the Global South (pp. 39-
75). Springer, Cham.