impact on covid-19 pandemic on aviation sector: …
TRANSCRIPT
Recommending a StrategyFurkan Ozdemir Directorate General of Civil
Aviation (Assistant Aviation Expert)
IMPACT ON COVID-19 PANDEMIC ON AVIATION SECTOR: TURKEY AS A CASE STUDY
2/38Table of Content
Year 2020 results and 2021 outlook: World total passenger traffic
4
The COVID-19 impact on world scheduled passenger traffic for year 2020
(estimated actual results), compared to 2019 levels:
– Overall reduction of 50% of seats offered by airlines
– Overall reduction of 2,699 million passengers (-60%)
– Approx. USD 371 billion loss of gross passenger operating revenues of airlines
The COVID-19 impact on world scheduled passenger traffic for year 2021
(preliminary estimates), compared to 2019 levels:
– Overall reduction of 33% to 39% of seats offered by airlines
– Overall reduction of 1,845 to 2,190 million passengers (-41% to -49%)
– Approx. USD 275 to 323 billion loss of gross passenger operating revenues of
airlines
5/38
World passenger traffic evolution 1945 – 2021*
41 to 49% decline in world total passengers in 2021* vs. 2019
60% decline in world total passengers in 2020
5Source: ICAO Air Transport Reporting Form A and AS plus ICAO estimates.
6/38
offered by airlines
gross operating revenues of
– Overall reduction of 17% to 20% of
seats offered by airlines
million passengers (-24% to -
gross operating revenues of airlines 6
International passenger traffic (2020, vs.
2019)
offered by airlines
gross operating revenues of
2019)
seats offered by airlines
million passengers (-66% to -76%)
– Approx. USD 218 to 254 billion
loss of gross operating revenues
of airlines
Year 2020 results and 2021 outlook: International and domestic passenger traffic
7/38
Source: ICAO estimates
Estimated impact on passenger traffic and revenues by region for 2020
10
88billion
8/38
Europe and Asia/Pacific accounted for around 70% of the world international traffic in 2020
Number of international passengers by region (2020 vs. 2019, based on from/to State)
2020 shar e
Source: ICAO longterm traffic forecasts, ADSB and estimates
9/38
since March 2020
Source: ICAO ADSB operation data
In contrast to the fall in passenger traffic, cargo flights surged with the increased cargoonly operations using passenger aircraft
100
10/38
209 out of 271 international
destinations
international traffic
East Africa
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
1 2 3 4 5 6 7 8 9 10 11 12
MONTHS
Europe 69.716.828 24.939.611 (64,2%)
Total 86.323.401 29.832.815 (65,4 %)
Passenger numbers by Regional
TRNC 1.653.674 377.790 (77,2%)
France 1.552.952 573.452 (63,1%)
Ukraine 1.498.517 711.792 (52,5%)
Italy 1.219.300 279.736 (71,1%)
Netherlands 1.128.654 349.703 (69,1%)
Israel 1.101.568 261.987 (76,2%)
Iraq 1.072.819 164.450 (84,7%)
Iran 992.007 188.308 (81%)
2020.
2020 by making bilateral
17/38
Taxes
The pressure on demand has been slightly eased by reduction of VAT rate to 1% from 18% in domestic flights for a temporary period of three months.
Employment
Turkey initiated the implementation of short time working allowance in
order to mitigate the adverse effects of the pandemic crisis.
Government Strategy
Government Strategy
18/38Human Resources
Domestic
Staff
instead of dismissal.
Government Strategy-2
5 Million USD debt related to the license and extension
payments of the enterprises belonging to the airport,
terminal and ground services has been postponed.
1,5 Million USD debt related to the license and
extension payments of balloon enterprises has been
postponed.
DGCA made a 50% discount in the 2020 Service tariff.
The validity period of the licenses of all licensed
aviation personnel has been revised.
About 30 Million Euros of debt of our airlines to
EUROCONTROL has been postponed
Government Strategy-2
The right to change and lay off
The passenger can get the refund of the
unused ticket from the air transport operator
two months after the flight bans are lifted.
With the regulation on passenger rights, 750
Million Dollars of uncontrolled exit from airlines
arising from ticket refund was prevented
Directorate General of Civil Aviation
Government Strategy-2
22/38
Digitalization
Turkish Airlines has founded Technology Company in order to provide digital transformation
Produce new application in order to facilitate the transportation
Cargo flights
Turkish Airlines founded an independent company as Turkish Cargo to determine a grand Cargo strategy.
Turkish Airlines transformed some aircrafts in order to meet the demand
Pegasus Airlines operates only belly Cargo, but after the pandemic Pegasus transformed its operational model.
Measures
23/38Results
Maintenance and Training Facilities 277 316 %8,76
Ground handling and Self Handling Companies
40 39 -2,5%
1425 1496 %4,8
Personnel Number 295.547 290.127 -1,9%
THANK YOU
IMPACT ON COVID-19 PANDEMIC ON AVIATION SECTOR: TURKEY AS A CASE STUDY
2/38Table of Content
Year 2020 results and 2021 outlook: World total passenger traffic
4
The COVID-19 impact on world scheduled passenger traffic for year 2020
(estimated actual results), compared to 2019 levels:
– Overall reduction of 50% of seats offered by airlines
– Overall reduction of 2,699 million passengers (-60%)
– Approx. USD 371 billion loss of gross passenger operating revenues of airlines
The COVID-19 impact on world scheduled passenger traffic for year 2021
(preliminary estimates), compared to 2019 levels:
– Overall reduction of 33% to 39% of seats offered by airlines
– Overall reduction of 1,845 to 2,190 million passengers (-41% to -49%)
– Approx. USD 275 to 323 billion loss of gross passenger operating revenues of
airlines
5/38
World passenger traffic evolution 1945 – 2021*
41 to 49% decline in world total passengers in 2021* vs. 2019
60% decline in world total passengers in 2020
5Source: ICAO Air Transport Reporting Form A and AS plus ICAO estimates.
6/38
offered by airlines
gross operating revenues of
– Overall reduction of 17% to 20% of
seats offered by airlines
million passengers (-24% to -
gross operating revenues of airlines 6
International passenger traffic (2020, vs.
2019)
offered by airlines
gross operating revenues of
2019)
seats offered by airlines
million passengers (-66% to -76%)
– Approx. USD 218 to 254 billion
loss of gross operating revenues
of airlines
Year 2020 results and 2021 outlook: International and domestic passenger traffic
7/38
Source: ICAO estimates
Estimated impact on passenger traffic and revenues by region for 2020
10
88billion
8/38
Europe and Asia/Pacific accounted for around 70% of the world international traffic in 2020
Number of international passengers by region (2020 vs. 2019, based on from/to State)
2020 shar e
Source: ICAO longterm traffic forecasts, ADSB and estimates
9/38
since March 2020
Source: ICAO ADSB operation data
In contrast to the fall in passenger traffic, cargo flights surged with the increased cargoonly operations using passenger aircraft
100
10/38
209 out of 271 international
destinations
international traffic
East Africa
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
1 2 3 4 5 6 7 8 9 10 11 12
MONTHS
Europe 69.716.828 24.939.611 (64,2%)
Total 86.323.401 29.832.815 (65,4 %)
Passenger numbers by Regional
TRNC 1.653.674 377.790 (77,2%)
France 1.552.952 573.452 (63,1%)
Ukraine 1.498.517 711.792 (52,5%)
Italy 1.219.300 279.736 (71,1%)
Netherlands 1.128.654 349.703 (69,1%)
Israel 1.101.568 261.987 (76,2%)
Iraq 1.072.819 164.450 (84,7%)
Iran 992.007 188.308 (81%)
2020.
2020 by making bilateral
17/38
Taxes
The pressure on demand has been slightly eased by reduction of VAT rate to 1% from 18% in domestic flights for a temporary period of three months.
Employment
Turkey initiated the implementation of short time working allowance in
order to mitigate the adverse effects of the pandemic crisis.
Government Strategy
Government Strategy
18/38Human Resources
Domestic
Staff
instead of dismissal.
Government Strategy-2
5 Million USD debt related to the license and extension
payments of the enterprises belonging to the airport,
terminal and ground services has been postponed.
1,5 Million USD debt related to the license and
extension payments of balloon enterprises has been
postponed.
DGCA made a 50% discount in the 2020 Service tariff.
The validity period of the licenses of all licensed
aviation personnel has been revised.
About 30 Million Euros of debt of our airlines to
EUROCONTROL has been postponed
Government Strategy-2
The right to change and lay off
The passenger can get the refund of the
unused ticket from the air transport operator
two months after the flight bans are lifted.
With the regulation on passenger rights, 750
Million Dollars of uncontrolled exit from airlines
arising from ticket refund was prevented
Directorate General of Civil Aviation
Government Strategy-2
22/38
Digitalization
Turkish Airlines has founded Technology Company in order to provide digital transformation
Produce new application in order to facilitate the transportation
Cargo flights
Turkish Airlines founded an independent company as Turkish Cargo to determine a grand Cargo strategy.
Turkish Airlines transformed some aircrafts in order to meet the demand
Pegasus Airlines operates only belly Cargo, but after the pandemic Pegasus transformed its operational model.
Measures
23/38Results
Maintenance and Training Facilities 277 316 %8,76
Ground handling and Self Handling Companies
40 39 -2,5%
1425 1496 %4,8
Personnel Number 295.547 290.127 -1,9%
THANK YOU