BUSINESS AS
USUAL?
In late February, Silkway West
Airlines reported maintaining
its scheduled and charter
fl ights despite the challenging
environment thrown up by COVID-19,
with more than 20 weekly fl ights
connecting China to its global hub
in Baku, operated in line with WHO
recommendations.
“We have decided to honour
the loyalty of our BSA (Blocked
Space Agreement) customers
also throughout diffi cult times.
Therefore, we have not followed
the way in cancelling all our
scheduled fl ights by operating just
charters, as we think that in the
long run it will bring us even closer
to our partners,” said the airline’s
President & CEO, Wolfgang Meier.
“It is currently a daily challenge
to manage the imbalances of
the various trade lanes, but we
do count on the understanding
of our partners as this is a really
special situation. And of course,
we are very much focused on our
operations to and from China, but
I shall emphasise that our global
network is up and running. Markets
in North America, Europe, The
Middle East, South Asia, South East
Asia, Japan and Korea are being
served on fully fl edged bases.”
All details in this article were
correct at the time of going to press;
however, owing to the ever-evolving
nature of this topic, some facts and fi gures
may well be subject to change.
MARKET
REPORT
restrictions to cargo airlines. In
February, Volga-Dnepr Group
reported continued operations
of charter fl ights into China,
with fl own commodities
including face masks, sanitiser
gels, pharmaceuticals and
medical equipment in response
to the coronavirus outbreak.
On average, three to fi ve
charter fl ights were being
operated by the Group daily,
with preventive measures
taken to ensure the safety of
personnel, cargo and aircraft.
However, by mid-March the
airline, like so many others,
had reported diffi culties caused
by the spread of COVID-19.
Volga-Dnepr’s Senior VP
Strategic Development
announced the carrier’s
intentions to return fi ve of its
B747s in order to survive the
coming months.
The impact of the
coronavirus and the dynamic
market conditions also
necessitated reformulated
capacity for AirBridgeCargo
from February 4, from
scheduled to charter
operations. With an interim
reduced schedule, some of
ABC’s operational teams
have been transferred to
shift working patterns, and
employees in China are
also being enabled to work
remotely. Flight departments
of all airlines of Volga-Dnepr
Group have received counter
measure briefi ngs, with
personal protective equipment
distributed to all fl ight crews,
while a centralised medical
department has introduced
regular monitoring of all fl ight
personnel and a working group
has been set up to monitor and
respond to the situation at the
Group’s headquarters.
We have not followed the way in
cancelling all our scheduled fl ights
Wolfgang Meier, President & CEO, Silkway West Airlines
Volga-Dnepr noted that it was considering the introduction of
a “Clean Charter” product, to ensure the secure transportation of
cargo during such diffi cult epidemiological conditions as these.
Aviation services group Air Partner launched a similar secure
product for passengers in March, called Air Partner Protect.
On the ground
Depleted cargo and passenger traffi c are also having a major
impact on airports. Frankfurt airport reported feeling the effects
in all areas, from fl ight operations to ground handling, cargo
and retail. To counteract this situation, ground handler Fraport
has been reviewing all major expenditure and responding with
a range of measures to lower costs and adjust staff deployment
to meet reduced demand. Employees in both administrative and
operational jobs have been offered voluntary unpaid leave or
temporary reduced working hours, and any additional staff are to
be hired on an exceptional basis only.
Stefan Schulte, Fraport’s Executive Board Chairman,
highlighted that the epidemic has come at a time when
Germany’s aviation industry is already facing signifi cant
challenges. “In April, an increase in the German aviation tax will
unilaterally strain our industry even more. However, aviation has
survived a number of crises in the last few decades and emerged
stronger every time. We are responding decisively to this diffi cult
situation with our timely countermeasures,” he remarked.
Despite the challenges, the Group managed to achieve all its
fi nancial targets in 2019, growing revenue by 4.5% – but Schulte’s
concern for the future remains. “After many years of strong
growth, the aviation industry now fi nds itself in a severe crisis. At
this stage, it is not yet possible to foresee when the crisis will end.”
Troubles temporary
The virus and its domino effect on aviation and the world economy
will subside eventually, but the question of when and the extent
of the interim damage is the biggest unknown.
Damage to airlines is a short term inevitability, but a
longer term impact is looking increasingly likely, and the
future of the sector hangs in the balance. Many carriers are
already offering free ticket changes and cancellations in an
attempt to retain custom, all the while continuing to
slash schedules and ground aircraft.
As has been said, 2020
looks to be another
tough year for aviation
– but for the global
economy also.
14 April 2020 www.airlogisticsinternational.com
/www.airlogisticsinternational.com