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RESEARCHES ABOUT THE AIR TRANSPORT SECTOR CURRENT ISSUES INCLUDING NEW RULES
IMPLEMENTED AND TRENDS
Issue # The impacts of COVID-19 on the global airline industry: An event study approach (nih.gov) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7451055/ The impacts of COVID-19 on the global airline industry: An event study approach This study examines the short-term impact of the 2019 novel coronavirus (COVID-19) outbreak on 52 listed airline companies around the world by using event study methodology. The results demonstrate that airline stock returns decline more significantly than the market returns after three major COVID- announcements were made. Overall, investors react differently during the three selected events. The strongest overreaction is noted in the post-event period of the World Health Organization's and President Trump's official announcements. Moreover, the findings confirm that traders in Western countries are more responsive to recent information than the rest of the world. The findings call for immediate policy designs in order to alleviate the impact of the pandemic in the airline industry around the globe. The 2019 coronavirus (COVID-19) pandemic as the newest global risk has disrupted business operations in all industries. The airline industry is one of the first industries that was affected from the event because the disease is easily passed among people. To date, there is no official medical treatment for the disease, causing a tremendous panic for world citizens. Thus, governments around the world have prohibited cross-country transportation. The market value of the airline business has shrunk since then. Ultimately, this incident motivates us to study the impact of COVID-19 on the performance of the airline industry around the world.
New Rules implemented Keeping You Safe Always (philippineairlines.com) https://www.philippineairlines.com/en/ph/home/covid-19/newnormalexperience PAL redefines the normal flying experience amid COVID- As we fly you to your destination, we're adding more safety measures to protect you. In line with the highest standards, here is what you can expect to ensure that you enjoy a healthy, safe, and clean environment on your next PAL flight. This list may be updated regularly. It is the passenger’s responsibility to find out and to comply with all travel requirements that apply for his or her route or destination country. PHILIPPINE AIRLINES: New Travel Guidelines Before, During & After Flight | The Poor Traveler Itinerary Blog https://www.thepoortraveler.net/2020/05/philippine-airlines-flight-quarantine/ Philippine Airlines New Travel Guidelines PHILIPPINE AIRLINES: New Travel Guidelines Before, During & After Flight Earlier this June, the country’s flag carrier resumed operations of selected domestic and international routes for essential and business purposes, as Metro Manila and much of the Philippines have been put under a more relaxed General Community Quarantine (GCQ). If you’re flying with Philippine Airlines soon, it is important that you are familiar with the new guidelines that have to be observed at the airport and inside the aircraft. Here’s what to expect!
This page contains the travel rules and requirements for each province, city, or municipality in the Philippines. Please note that there may be multiple travel requirements for each destination on national and provincial levels. We would also like to remind passengers that these rules are subject to change by the issuing local government authority and are issued for passengers’ and the public’s safety. As these requirements may change at short notice, the advisories below are meant only as a guide. Trends The Philippine Airlines (PAL) has recently developed a new in-flight entertainment feature app. They can connect to their internal Wi-Fi server in order to watch movies, TV shows, read magazines and get real time updates of the status of the flight. PHILIPPINE GOVERNMENT ISSUES RESTRICTIONS ON INBOUND TRAVEL – UPDATE (philippineairlines.com) https://www.philippineairlines.com/en/aboutus/newsandevents/advisory-covid19-17mar21- PHILIPPINE GOVERNMENT ISSUES RESTRICTIONS ON INBOUND TRAVEL – UPDATE Travel Advisory No. 156 as of 17 March 2021 07:00 PM The Philippine government has limited the maximum number of passenger arrivals from international flights to 1,500 a day for all airlines combined into Manila for the period beginning 8:00 AM of March 18 up to 8:00 AM of April 19; and has temporarily suspended the entry of Foreign Nationals and Returning Overseas Filipinos who are non-OFWs beginning 12:01AM of March 20 up to April 19, 2021. The restrictions are part of a series of pandemic control measures announced by the authorities.
CURRENT ISSUES:
Air travel is the most cost-effective means of connecting the islands and boosting economic activity. Now, airlines in the Asia Pacific region are focused on two things: short-term survival and figuring out how to adapt to the post-COVID-19 industry landscape. For the time being, the first is clearly the most pressing concern, but airlines must not lose sight of the bigger picture. Airlines are trying to secure new funding and postpone as many short-term aircraft deliveries as possible, with many aircraft parked and international traffic stagnant. The pandemic has made the traffic and demand growth assumptions that underpin airline plans obsolete, forcing them to conduct business reviews as they recognize the need to streamline their operations. Some business models and markets are doing better than others in the Asia-Pacific region. Governments provide a crucial lifeline in many cases. Despite encouraging signs in some markets, the actual disruption to the airline industry may take several years to play out. NEW RULES IMPLEMENTED: In pre-flight, the major airlines are now taking seriously their requirements that passengers wear face masks during boarding and on the aircraft (unless they are under the age of two, in most cases), as well as in areas across the airports they serve, such as customer service counters and gates. The only way you can take off your mask is to eat or drink, which experts recommend you do as little as possible. They've said that passengers who refuse to wear masks onboard will be denied boarding. IN-FLIGHT: As air traffic grows, empty middle seats are becoming less common, and passengers may be forced to fly alongside strangers. CLEANING: All airlines have announced that they will use hospital-grade disinfectants in their aircraft cleaning procedures. FOOD: For the time being, galleys have been largely phased out. Snacks and drinks are packaged in a sealed bag. Only a limited quantity of bottled water will be available for purchase on Frontier flights. On flights between 900 and 2,199 miles, in the main cabin. PERSONAL PROTECTION: Customers are required to wear face masks on all domestic flights. WEARING MASKS OFF THE PLANE:
Aviation industry analysis Regional review The COVID-19 pandemic is having an enormous impact on the aviation industry, affecting passenger traffic, air cargo demand, airport workforce and incoming revenues. The coronavirus pandemic has impacted every region of the world, with cases and sadly deaths, continuing to rise daily. The World Health Organization’s (WHO) recommended approach to contain the virus has been to lockdown the population in affected areas. As the disease spread, these lockdowns extended beyond towns and cities, to countries and entire regions. Borders have been closed by governments and quarantine restrictions placed on foreign travel. Entire fleets have been grounded, primarily during the first quasi-global lockdown in March/April 2020, but also periodically throughout the year to the latest December/January lockdowns, mainly in the UK and Europe, in response to soaring cases. However, the situation in China and some parts of Asia-Pacific, has been more positive. The Chinese government was the first to lockdown its population when the disease was first discovered in Wuhan in December 2019. That swift and severe response seems to have brought the disease under control and travel is returning. Domestic travel in China in particular has been recovering steadily during the second half of 2020 and into the new year. Source: (https://www.internationalairportreview.com/topic_hub/covid-19/) (https://assets.kpmg/content/dam/kpmg/ie/pdf/2021/01/ie-aviation-industry-leaders-report-route-to- recovery.pdf) The economic impacts of the Philippine air transport industry In 2017, the Philippine air transport industry directly generated Php 32.7 billion of gross value added (GVA) in real terms, equivalent to 12.4% of the GVA of the transportation and storage sector, and 0.21% of GDP. Among the transportation industries, air transport ranked second to land transport in terms of GVA contribution. IATA (2016) reported that the air transport’s share to Philippine GDP in 2014 was roughly 3.5% due to its direct, indirect, induced and catalytic effects. The Philippine air transport industry supported 1.4 million jobs including 69,800 direct air jobs and 1.2 million jobs from the wider economic benefits- tourism, productivity and trade. By 2035, the industry is expected to generate 3. million jobs and contribute US$ 23 billion to Philippine GDP. Air transport is a vital support to the tourism industry. In 2017, the Philippine Statistics Authority, drawing from the Philippine Tourism Satellite Accounts, reported that the industry contributed Php 1. trillion to the Philippine economy, equivalent to 12.2% of GDP. The employment in tourism accounted for 13.1% of national employment. Air transport moved 99% of the 6.6 million international tourists who spent Php 448.6 billion during their stay in the country. Adding airline receipts amounting to an
estimated Php 68.6 billion, international tourism ranked as the 4th largest export revenue earner of the Philippines, next to electronics and semi-conductors, overseas remittances, and information technology and business process management. While the share to total trade volume is a meager 0.5%, air transport moved at least 52.5% of the dollar value of merchandise trade shipments in 2017. Air transport supported the mobility of overseas Filipino workers and their families, who contributed around US$ 28 billion to the economy in 2017. In terms of multiplier effects, based on the 2006 Input- Output Tables of the Philippine Statistics Authority, every peso increase in the final demand by consumers, government or shippers for air transport services translates to an additional Php 2.49 to the Philippine economy. Source: Rodolfo (2017) as updated by the authors Source: (https://www.phcc.gov.ph/wp-content/uploads/2020/03/PCC-Issues-Paper-2020-01-The-State-of- Competition-in-the-Air-Transport-Industry-A-Scoping-Exercise_v2.pdf) Thoughts 2020 was a year like no other for the aviation industry. The fact that at the beginning of 2021 most airlines are still in business is testament to the strength and importance of the industry but mainly due to the substantial levels of support the industry has received from governments, their banking relationships, the deep and robust capital markets, and importantly from their leasing companies, which have become an even-greater source of support. Heading toward the one-year anniversary of the COVID-19 pandemic crisis, although the vaccination programmes around the world have given hope that an end is in sight, there is still much pain to be borne. Many countries have travel restrictions in place, via testing and quarantine requirements, which is keeping international travel depressed for the short- term. The next two quarters will be pivotal for the survival of many airlines, and with more failures, the pressure increases on their partners - leasing companies, banks, suppliers and manufacturers. The recovery once it comes will be difficult for all of us, which is why so many airlines and companies have sought to raise such eye-watering amounts of capital while the markets were so robust in 2020 to build those fortress balance sheets to help them survive the recovery period. Given the challenges the industry faces, the many experts that contributed to this report remain optimistic for the return in demand, with complete faith that the fundamentals of the air travel market that has shown such rapid growth over the past decade – a growing middle class, focus on experience, that desire to travel – remain once the externally imposed barriers to travel are lifted. Source: (https://assets.kpmg/content/dam/kpmg/ie/pdf/2021/01/ie-aviation-industry-leaders-report-route-to- recovery.pdf) IMPLEMENTING RULES AND REGULATIONS
the tourism spot to tourist in the world; Good and tight quarantine should be provided at the entry and out point in the world; Tourist should be behaved in a good manner and never used abused words to them; Always give honor to tourist in the world on the tourism spot. Good and honest staff should be appointed in the tourism industry for running the system. By all world government good policy should be prepared for tourism enhancement. https://www.futuretravelexperience.com/2021/01/13-trends-that-will-drive-the-air-transport-industry- recovery-in-2021/ https://linchpinseo.com/trends-airline-industry/ https://www.bcg.com/publications/2020/seven-trends-reshape-airline-industry
