Covid-19 impact: Is consolidation the way ahead for GCC’s aviation industry?

Covid-19 impact: Is consolidation the way ahead for GCC’s aviation industry?

Covid-19 has devastated the global aviation industry along with the tourism and hospitality industry. Even though domestic travel resumed in many nations (in Saudi Arabia, US and China, among others) and flying restrictions eased (e.g. intra-Europe ights, UAE's Etihad and Emirates are each flying to over 50 destinations), 42 per cent of all global commercial airlines fleets are still grounded, according to research by Cirium.

It is little wonder that the International Air Transport Association (IATA) forecast a 55 per cent decline in traffic levels this year. According to IATA, airline passenger revenues are expected to drop to $241bn in 2020, a 50 per cent decline compared to 2019. This is likely to be an underestimate.

Covid-19 has generated the deepest recession in advanced economies since the great depression. Its deadly waves are