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Precautions and Support Packages During COVID-19 for Aviation Companies
Abstract
The aviation industry is one of the most strategic industries because of economic, logistic, and defense reasons. The aviation sector, however, is a low-profit industry while requiring high investment and operating costs. This situation hinders the sustainability of the aviation industry by causing the sector to be adversely affected by any size of local or global crisis. The recent COVID-19 pandemic showed how vulnerable the sector is. Although almost all the countries have prepared support packages for the aviation sector, several companies have ceased their operations or filed for bankruptcy. For the rest that continue to operate, the trade-off between ensuring the operations and maintaining competition during and after the COVID-19 pandemic is challenging because of several political and economic factors. This chapter discusses the conditions of the aviation sector during the COVID-19 pandemic, its effect on the aviation sector, and the support packages created by states for the aviation sector to survive.
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