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Effect of Corona Virus on Airline Company

Following deadly noble corona virus outbrake, many travel agencies and airline companies are now mid-criticism by travelers over wrecked travel plans and concerns about whether or not travelers can get their travel fee rebate. Due to a number of people make a call to companies which people utilized as travel agencies to get airline ticket or make a hotel reservation, all lines seems too busy to answer all calls at their single ring; according to one from my friends, it took more than an hour to talk with a personel at call center. Amid this chaos,  I have a thought; the effect of Corona Virus on airline company  is immense on its growth in the long run?

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One of the busiest airpot: San Francisco Airport<SFO>



 

FACT

United Airlines annoucned that it cut some of its flight that has become less demand than it used to be, fearing the desease causing  pneumonia like symptom, Corona Virus spread. This service reduction ended up in waivering travelers' trip plans, but many people show their understanding this decisions as precaution of the increase and the fact of the matter is that an increasing number of people are cancelling their flights or postponing them. Any other U.S career including Delta Airlines and other airlines such as Lufthansa also decided service reduction to specific regions including China, Korea and Japan. South Korea based career, both Korean Airlines and Asiana Airlines, suspected most of thier flights from or to other countries until at lease at the end of March, and offered employees to take unpaid leaves. Every airline company probably think it is even wise to get their aircrafts grounded rather than flew with the small number of passenges. The effect of virus is significant  on transport industries as such,.

 

DOWNSIZE

Still, in this situation, not all flights are halted.  Most airlines companies owing narrow-bodies can fly as ususal, downsizing aircrafts. U.S based careers have either Boeing737 or A320 or equivalent size of aircrafts or both. In Europe, major career usually have airbus A320 as Europe is also known as the home of Airbus, an airliner manufacturar. In Asia region, it differs from each company though, b737 or A320 are major types of fuselages of narrow body. Downsizing an aircraft size means a lot; airline can operate a short-to-intermadiate-range flight with less fuel, workforce, and cost. However, those does not owe enough aircrafts to be downsized have no choice but cancel itself or reduce whole flights in a long run. 

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parallel landing of b737(back) and a320(front)

 

Division

Even if the downsizing strategy is possible, it does not necessarily mean that it would pay off because overall demand will plumment compared to previous months or year. Then, we probably have one question: "how airline can survive in this worst situation?"

On twitter, once I search the word "Korean Air " or "Asiana Airlines", which are struggle to operate flights and swamped by rebating flight-ticket fee, I can find many people say "they're gonna be bancrupt." "How can they beat the worst scenario?"

 

I personally think it is less likely to happen because airline usually can also paly a role as "shipment of cargoes."

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Nippon Cargo Airlines, one of major cargo companies based in Narita, Japan



Fedex and UPS are not only world top freighter companies but there are far more airlines that can fanction as both for passenger and cargoes. Korean Airlines, Cathay Pacific, and Asiana Airlines and so forth operate huje freighter aircrafts B747, known as Jumbo jet. 

As far as Korean Air cargo is concerned, it has ranked in 6th, closing in on Catahy Pacific cargo which stands at 5th out of 25. Meanwhile It is no doubt that Fedex retained 1st place followed by Emirates. 

 

Concerning Spreading the Corona Virus and the catastrophe by Diamond Princess, cargo ships are said to have suspended their cruise. This suspension effect are now bouncing toward air-cargo indutry, and cargo division should be working at the core of airlines' management. 

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Lineup of Korean AIr Cargo B747-400F aircrafts

Although the fact is that entire demand are reducing and some demands are increasing on the other hand, i still cannot expect what will happen next to airlines industory. As one of aviation geek, I will investigate now and future, perusing a lot of resources available on the inernet. For those who's going for travel, hope your safe trip. For those who's cancelled your plans, that should have been wise choice.