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Covid-19 (Coronavirus) Case Study Solutions

Solution 1:

The world is facing a health epidemic of enormous proportions. The outbreak of COVID 19 has forced most countries to seal its borders and impose travel restrictions. This lockdown has caused a significant impact on the global economy, especially in the aviation industry. Airlines had to respond to the increasing domestic and international travel restrictions by reducing the frequency or cancelling flights. Other factors, such as flight slot regulations, forced several airlines to fly empty planes. The reduction in flights and lower passenger traffic has resulted in dwindling revenues for airlines, forcing them to lay off their employees. The measures undertaken by the government and the response from the individual airlines will influence how the crisis pans out. It is also apparent that the pandemic is here to stay and, with it, the fear of travel. Thus, passenger traffic is projected to remain low even when the restrictions are lifted. It is not clear how long the effects will last and how soon the industry can transform and recover. Business experts point out that in order to survive, airlines may have to reduce the size of their fleets and bring in more fuel-efficient aircraft.

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