Comprehensive Analysis: COVID-19's Impact on the Aviation Industry

This report provides a comprehensive analysis of the impact of the COVID-19 pandemic on the aviation industry. It examines the operational changes implemented, such as reduced occupancy, enhanced sanitization, and contactless interactions, as well as the financial repercussions, including unnecessary expenditures, government penalties, and reduced revenue. The report also explores the future of the aviation industry, highlighting the need for improved medical facilities, potential opportunities like private aircraft utilization, and the importance of cost reduction strategies. The report concludes that the COVID-19 pandemic has forced the aviation industry to adapt and implement changes to ensure its sustainability and achieve its desired targets, referencing various academic journals and online resources.

Impact of COVID-19 pandemic
on aviation industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Operational-.................................................................................................................................3
Financial-.....................................................................................................................................4
Future of aviation industry-.........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCE...................................................................................................................................6

INTRODUCTION
The sudden spread of COVID-19 has affected tourism industry and mostly the aviation industry
which tend to provide travelling options to the customers. Evaluation of significance of COVID-
19 pandemic on aviation industry is done in this report with the analysis on the significance on
finance, operations and future working of the aviation industry.
MAIN BODY
Operational-
The aviation industry have to implement several changes in its operational working through
which which it make sure that the spread of COVID-19 is minimized and because of which have
implemented several improvisations. Following are different improvisations which are
influenced due to the spread to COVID-19.
In flight reduce occupancy- The aviation industry have to implement several improvisations in
its operations and one of the prime factor for this improvisation is the establishment of changed
sitting arrangement, providing customers new sitting arrangement with social distancing (Nicola
and et.al, 2020).
Reduced maintenance of aircraft- Since during lockdown the aircraft's were not in the state of
operation and because of which were not provided required level of scheduled maintenance for
long time due to which after the time segment of lockdown the aircraft have to go through full
inspection which is a time consuming process and also very expensive.
Sanitization and cleanliness- Organizations have to pay high level of attention on cleanliness and
sanitization because of the COVID-19 pandemic through which the staff have to be provided
additional training accordingly (Dube, Nhamo and Chikodzi, 2021).
Contact less interaction- The industry also have to ensure that the time segment to which
customers are making engagement with the organization is contact less and due to which have to
implement several technological advancement in the working.
Improved inter-relationship between operational areas- in order to ensure proper maintenance of
customer's health and other health related aspects aviation industry have to improve the inter
departmental working with different branches so that high work
Reduced staff- Since the industry was restricted for continuing its operations for several months
due to corona pandemic because of which was not being able to provide salary to its employees
and therefore have to take strict steps like reducing staffs for ensuring its sustanibility.

Financial-
The spread of COVID-19 has affected travelling all across the globe and because of which the
aviation industry was being stopped from operations and is not being able to achieve required
sales for its services. Following are the areas at which the COVID-19 has affected the aviation
industry.
Unnecessary expenditures- Companies tend to implement several cost reduction efforts for
ensuring its sustanibility, which contains steps like reducing staffs, minimizes the expenditures
made unnecessary lighting and many more steps are being taken through which returns can be
increased (Zhang, Hu and Ji, 2020).
Warehouse charges makes a significant contribution on increasing expenditures because
the company has to ensure that aircraft is having a proper shade and because of which has to pay
for the land consumption rents and other associated factors.
Government penalties- Organizations operating in the aviation industry have to ensure following
of government developed rules and regulations because of COVID-19 and if the company is not
being able to improvise its working according to the legal legislations then it has to face financial
penalties. This will make significant impact upon company's cash flow within the market and
resulting a negative impact upon its market share and reduced shares pricing.
Flight on low occupancy- The aviation industry is not able to regain its strong economic growth
because the company has to reduce the level of seat occupancy to half so that social distancing
can be establishes within the flight because of which the revenue collection is also reduced
(Ozili, and Arun, 2020).
Additional charges on aircraft maintenance- During the process of lockdown due to COVID-19
pandemic aircraft were not in operations, however before taking them to operation company has
to take them for maintenance to ensure flight security which has increased expenditures.
Unable to repay loan taken for development- Aviation industry often have to take loans so that it
is able to improve the customers experience and for which has to take loans and due to this
suddenly raised COVID-19 companies are being able to repay the taken loans which has affected
their goal achievement capabilities.
Future of aviation industry-
The aviation industry often tend to analyse its present market conditions and implement
improvised working changes accordingly so that it is able to achieve a better performance. Due

to this factor the aviation industry is highly influenced to make improvements in its working so
that if pandemics like COVID-19 are repeated then minimum negative impact upon market
growth and market share is being established.
Improvement in medial facilities- The COVID-19 has enforced the aviation industry to improve
its medical facilities which are provided to the customers so that in worst case scenarios the
specific customer is being treated separately. However this will also increase expenditures and
will have huge amount of cash requirement.
Opportunities- The industry can influence its customers to utilize the private organizational
aircraft's apart from using commercial aircraft's so they can achieve high level of security from
the COVID-19. Through this company can also establish premium pricing so that high profit
margin can be achieved (Forster and et.al, 2020).
Economic trade- Apart for commercial trading the airlines can also be utilized for fast
transportation of goods between places, because the cost consumption in travelling goods is very
low as compared to commercial flights because of the reduced staffs and because of which
amount of cash requirements is also low with high returns.
Identification of cost reduction ways- The industry was also tend to ensure that it is able to
reduce the expenditures established in the efficient travelling between places and because of
which the COVID-19 pandemic has provided an opportunity to the company for implementing
several cost cutting measure by which level of investment can be reduced but also provide high
returns.
CONCLUSION
From the evaluation in this report it can be analysed that COVID-19 has affected organizational
working in different factors and because of which companies operating in the aviation industry
are forced to analyse and implement changes in their working so that it can ensure that it is able
to achieve its desired target.

REFERENCE
Books & Journals
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 pandemic and prospects for recovery
of the global aviation industry. Journal of Air Transport Management. p.102022.
Forster, P.M. and et.al, 2020. Current and future global climate impacts resulting from COVID-
19. Nature Climate Change. 10(10). pp.913-919.
Nicola, M. and et.al, 2020. The socio-economic implications of the coronavirus and COVID-19
pandemic: a review. International journal of surgery.
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Zhang, D., Hu, M. and Ji, Q., 2020. Financial markets under the global pandemic of COVID-
19. Finance Research Letters. 36. p.101528.
Online
Eckenrode, J., Navigating financial services services sector performance post COVID-19, 2021
[online]. Available through: <https://www2.deloitte.com/us/en/insights/economy/covid-
19/covid-19-financial-services-sector-challenges.html>