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Chinese aviation industry goes into free fall amid coronavir...
16-03-2020 16:27
Chinese aviation industry goes into free fall amid coronavirus
Chinese aviation industry goes into free fall amid coronavirus

Aviation industry in China is expected to suffer the most amid the coronavirus outbreak. China’s aim to become an international aviation hub is no longer possible as it will take the country a couple of years to eliminate negative consequences of the coronavirus in the industry. Chinese citizens are not eager to travel anywhere while more than 70 countries have introduced travel restrictions and stiffened visa requirements for travellers from China. Local airlines have to offer substantial discounts for flights while the government has to hand out subsidies, in order to maintain the total air traffic. According to Aviation Worldwide, of the 2.9 million scheduled seats returning to the Chinese market, all but 3 thousand are on domestic services. Thus, a trip from Shenzhen to Chongqing costs only 100 yuan, or $14, which is about 5 percent of the standard price of 1,940 yuan, or $276. The coronavirus has had an adverse impact on China's aviation industry. Previously, the Chinese government planned to make China one of the world’s leaders in the quality of service for air passengers. However, today it is hardly possible. It will take a lot of time for the industry to recover as local air carriers have suffered great financial losses.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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