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

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).