Asia Pacific air cargo providers stay connected during COVID-19 Pandemic

Amid border closures, shutdowns and lockdowns, Asia Pacific air cargo carriers are striving to maintain critical air connectivity. At the same time, airlines are seeking regulatory assistance in streamlining operations, scheduling flights and obtaining crew clearances.

Still, major challenges to restoring air cargo service on the Pacific Rim remain substantial.

“The current crisis is taking an enormous toll on Asian economies and people’s livelihoods across the region,” says The Association of Asia Pacific Airlines (AAPA) Director General, Subhas Menon.

The AAPA has been appealing to governments for support by granting the necessary flexibility on relaxing slot constraints, curfews on operating hours as well as by expediting approvals and exempting crew from quarantine requirements where necessary. 

“Worldwide demand for air cargo declined by 19% in March 2020 compared to the same month last year but is holding up relatively well despite economic disruption in many economies following measures aimed at slowing the spread of COVID-19,” observes Menon. “Goods being shipped by air cargo include significant volumes of pharmaceuticals, medical protective equipment, and food supplies. Airlines have increased the number of services operated by dedicated freighter aircraft to partially compensate for the loss of bellyhold capacity resulting from the drastic cutbacks in passenger services.”

 A number of Asian airlines have also been operating additional air cargo services using passenger aircraft adapted to carry cargo both in the bellyhold as well as in the cabin in the absence of passengers. 

“The current crisis is taking an enormous toll on Asian economies and people’s livelihoods across the region,” says Menon who adds that aviation has always been a key driver of economic and social development.

“Nowhere more so than in the Asia Pacific region, will air cargo services play such an important role in the overall recovery effort for the industry,” he concludes. 

Brian Pearce, chief economist for the International Air Transport Association (IATA), says that China and South Korea – countries which have been successful in controlling the disease within their own borders – are now “doubling down” on international flight restrictions because they don’t want to risk importing a second outbreak.

“Governments re-opening their economies must have confidence that the disease is also under control in the countries they do business with,” he warns.

Furthermore, he cautions against the easing of lockdown measures in the Asia Pacific.

“As far as we have seen, this does not include a re-start for aviation,” he says. “And, individual country decisions cannot enable the restoration of international air services when other markets remain closed.

According to IATA, the air cargo industry has never seen a downturn this deep before with traffic plummeting globally by 48% year-to-date.

“In other words, half our business disappears,” says Pearce. “That’s catastrophic. That impact is then amplified throughout the economy. If airlines lose one job, another 24 disappear somewhere in the value chain. That was behind our analysis last week when we said that some 25 million jobs are at risk.”

That is also why IATA continues to ask Pacific Rim governments to make the viability of airlines a priority. Direct financial aid; loans; loan guarantees and support for the corporate bond market by governments or central banks are among the measures asked for in finding a solution.

And finally, there’s tax relief, concludes Pearce:

“I encourage these nations to move quickly. This industry will run out of cash soon, so support of any kind will be a lifeline.”