Global Loss in Aviation $ 314 Billion

global damage in aviation billion dollars
global damage in aviation billion dollars

KPMG Turkey was to evaluate the effects of the logistics sector coronavirus outbreak. All over the world in air, land and sea traffic, indicating that the stop and the passenger transportation Transport Sector Leader of KPMG Turkey locked Suggest Yavuz, said that the biggest loss of income experienced by the airline. Öner, "IATA predicts the global loss of airline companies from Covid-19 as $ 314 billion," he said.

KPMG investigated the effect of Covidien-19 logistics sector in Turkey, he has made assessment about the period after the outbreak. Transport Sector Leader, KPMG Turkey Yavuz Öner, "one of the main causes of the outbreak of the global macroeconomic collapse Covidien-19 take the right path, was the deterioration of the global supply chain network. The cessation of activities in China, which is considered as the raw material factory of the world, started from the global trade volume and affected the capillaries of almost every economy. ”

Öner stated that many countries around the world have taken the strongest blow with the suspension of road, air and sea passenger traffic, and said:

“Almost zeroing of the flights hit the industry. The loss of income is too large to allow companies to survive without government support. The International Air Transport Association (IATA) predicts airline companies' losses from the Covid-19 pandemic to $ 314 billion globally. According to IATA's April 2020 Survey, 86 percent of industry representatives do not anticipate recovery before 6 months. Moreover, the prolongation of this process means that the burden on the airline companies becomes even heavier. This is the main reason why US airlines have expressed SOS requests for government support. ”

suggest; "April data DHMİ Turkey flights decreased 4 percent in the first four months Overall, 32 percent decrease in passengers being reported. Turkey in the context of combating the epidemic of Sabiha Gokcen Airport to use for a temporary period has been stopped and a limited number of domestic flights recalling that only THY authorized, "in this case means a big challenge for other airline companies," he said.

Hard year at sea

Covidien-19's impact assessment according to KPMG Turkey was faced a similar load the maritime transport. The Baltic Dry Index, which is a very important indicator for world trade, registered the lowest level of the last four years in March this year, as COVID-19 slowed the demand for dry cargo transportation. As of April, the index recovered somewhat with the resumption of some companies, but it did not achieve a significant recovery. Öner, “Moody's, the international credit rating agency, has changed the outlook for the global shipping industry over the next 19-12 months due to Covid-18 from stable to negative. In parallel with weakening production and trade activities, the demand, which has decreased significantly for container and dry cargo shipping, will bring down the profits of global shipping companies in 2020 before interest, depreciation and tax. ”

Post-Covid period

Öner commented on the post-global quarantine as follows: “The name of the game has changed as 'protection of the supply chain' for companies operating in both manufacturing and services sectors. Everyone, from retail companies to automakers, who are turning to online sales, is reviewing their supply chains to avoid operational disruptions. Companies that know which ring is broken or endangered in the supply chain are rapidly minimizing the damage they will encounter, and those who do not take precautions face huge costs.

After the virus is brought under control and life returns to normal, we will continue to practice many of the practices we have learned and adapted in this process. Regardless of the goods or services we receive, the main point of our satisfaction will be the activity in the supply chain. Therefore, the challenges of the sector today are the areas where the most important investments for the future should be made. No matter how manufacturing and consumer purchasing behavior changes, the logistic process behind this will be the key to the future of companies. ”

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