Friday, February 21, 2020

Air India suspends China, HK operations till June 30

Air India suspends China, HK operations till June 30


Air India suspends China, HK operations till June 30

National passenger carrierAir India has extended thesuspension period for itsDelhi Shanghai and Delhi-Hong Kong services tillJune 30, owing to the out-break of deadly Coronavirus(COVID-19).Earlier, Air India had can-celled its flights to Shang-hai from January 31 to Feb-ruary 14 and to Hong Kongfrom February 7 until March28.Many international airlineshave either reduced or sus-pended their operations toChina. According to the Interna-tional Air Transport Asso-ciation (IATA), COVID-19 isexpected to cause a 13 percent full year loss of passen-ger demand for carriers inthe Asia-Pacific region.Considering that growth forthe region's airlines wasforecast to be 4.8 per cent,the net impact will be an 8.2per cent full-year contrac-tion compared to 2019 de-mand levels, the IATAsaid."In this scenario, thatwould translate into a $27.8billion revenue loss in 2020for carriers in the Asia-Pa-cific region - the bulk ofwhich would be borne bycarriers registered in China,with $12.8 billion lost in theChina domestic marketalone," IATAsaid in astatement."In the same scenario, carriers outside Asia-Pa-cific are forecast to bear arevenue loss of $1.5 bil-lion, assuming the loss ofdemand is limited to mar-kets linked to China."Consequently, the totalglobal lost revenue willcome to $29.3 billion andrepresent a 4.7 per cent hitto global demand.The new virus, which is ofthe same genre as SARSof 2003, was first reportedin WHO Disease outbreaknews on January 5 inChina's Wuhan. Till nowit has progressivelyspread across many coun-tries.However, the new virushas spread at a muchfaster pace than the 2003SARS epidemic.AIn a bid to curb the spreadof the virus, Chinese au-thorities have closedtransportation servicesacross many parts of thecountry, includingWuhan.