It seems a while I've been away from this blog. Well, because of COVID-19, everyone has to stay at home, hence, I've more time to spend on updating this blog (besides my current work). COVID19 or known as Corona Virus Disease 2019 is a disease that originates from Wuhan, China since Dec-19 that has been spreading and affected many countries around the world. At the moment, the worst country affected by this disease are China (of course), Italy, Iran, and South Korea (Now, USA' cases surpassing China as 29Mar20). On top of that, the numbers of cases are increasing including the USA, UK and etc.
In order to control the spread of this COVID-19 outbreak, several countries have imposed travel bans. restricted movement order or lockdown. Thus, with these restrictions have affected the respective country's economy and subsequently has impacted many areas/ businesses including Airlines
Image from Asia NikkeiAirlines around the world are impacted by all these restrictions. Several carriers such as Malaysian- based carriers:AirAsia is ceasing all its operation, Effective 28MAR until 21APR21, According to the Edge Market on " AirAsia, AirAsia X suspend flights, ground most planes; pay cut for top executives". Meanwhile, its long-haul unit, AirAsia X had similarly approached by temporarily ceased its operation the same as AirAsia. Malindo Air, the third largest airlines Malaysia announced to suspend its all international operation during Malaysia's Restricted Movement Order (RMO). Malaysia Airlines, on the other hand, is still operating with limited flights on selected routes.
Extracted from the Edge Market Malaysia on "" AirAsia, AirAsia X suspend flights, ground most planes; pay cut for top executives". (Thank you theedge for the information).
Singapore Airlines, the largest airline in South East Asia is ground most of fleet (138 of 147) and on top of that, cuts about 96% of its capacity in Apr-20. Besides of that, the airline has moved by cutting salary of its executive-level. However, the airline's parent company, Singapore Airlines Group has secured SGD 19 billion of funding to help the airline group to survive during the COVID-19 outbreak.
Qantas is one of the airlines that reacts faster to counteract with this outbreak. The largest airline in Australia has stood down 20,000 employees, cut all International flights (except LHR operation) grounded 150 aircraft including widebodies - B747s, B787s, and A380s and reduced significantly on its domestic capacity.
Images for financial timesOther carriers such as American Airlines, KLM and accelerate to phase out old/aging-aircrafts in order to survive during this outbreak.
According to several newspapers/online, most of the European carriers have temporarily ceased their operation due to low demand, travel restriction, closing respective country's border and etc in order to stop this virus spreading across the European continents. For example, AirBaltic, Austrian Airlines, and LOT Polish.
Images from Baltic times
In order to combat this outbreak/crisis, below are my suggestions/proposals - but the airline needs to evaluate it.
1. Preserve Cash.
2. Seeking government funding;
3. Phasing out old aircraft;
4. Operates domestic flight (subject to government's approval/RMO);
5. Redeal with lessor on the leased aircraft(s);
6. Deferral the aircraft's delivery;
7. Consolidate operation/hub;
8. Cut salary especially top management with highly percentage;
9. Salary reduction for employees;
10. Standoff employees if this last resort but please never and ever not consider to fire them. we need them during recovering and loss -talent;
11. Redeal with airport authority regarding airport charges and related-aviation fees;
12. to operate cargo business and operated on commercial -passenger aircraft;
13. to operate charter service especially rescue flights (if any)
14. Cost-cutting initiatives - cut unnecessary services/redeal with vendors (unless if required)
15. from 10. Reduce man-power especially at operation - to manage cost.
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