If you look up now a days you will find empty sky, well guys take a guess how many planes you think are flying in the sky on an average day is it 10,000 20,000 or 50,000 well the number is actually over a hundred thousand that number has recently fall by more than half and continue to fall and the level of empty sky is unprecedented time in aviation history stock markets and down trend in global economies. Every single country is feeling the heat of hard economic impact of coronavirus.
Economic Impact Causes Empty Sky
With the UAE, India and Pakistan recently joined a flight ban and closed the country you see a significant reduction in air traffic, empty sky all over the region. Emirates Airline and any half fleet grounded there are just a handful out era 380 flying at the moment airplane are supposed to fly in the sky but currently there are more planes on the ground this is really unprecedented
Here are lots of pictures are circulating on internet let’s take a look at these pictures says American airlines have send their planes to Tulsa Oklahoma you can see planes are parked everywhere on the taxiway run ways their triple 777 and also 737 max were in storage they’re devastated the airline industry here is evidence dozens of Southwest Airlines planes now sit idle at the Southern California logistics Airport in Victorville.
Delta also has several jets parked there and today LAX reported air traffic is down about 85 percent from this time one year ago. All over the world first we have any hot grounder fleet in there Abu Dhabi base including all the a380s next we move onto Europe Asia and South America are the same with a lot airplanes on the ground and sky empty is a result.
These planes are grounded and airlines have canceled most of their flights the airport terminals have became empty the airports are losing out of revenues from loss of traffic business traveler are no longer traveling the airline lounges have also became empty the food served in the lounge are now wrapped around to promote hygiene of course with very low demand most flights are running empty at the moment.
These are the recent pictures sent in by travelers social distancing is also now happening inside the air plane a lot the airline now an allowing passenger to be reseeded on more or at least to be reseeded with the gate agents help to keep a distance from each other airlines like Air New Zealand are mandating social distancing on board
The airlines currently a Manning seat maps and implementing seat restriction to allow customer just spread out were appropriate these not only bad news during crises like this there are also a few rare pieces good news happening in aviation a 51 year old DCA have recently flown to Italy to help supporting the fight of covid-19.
Where he unloaded 68 baths few hospital and 20 tons of medical equipment including a respondent we II care units while passenger flights and their numbers are falling the air cargo businesses are so much in demand right now they play a crucial role in time of crisis like this you will see a lots of cargo planes currently carrying a lot of medical supplies to all over the world to keep the world’s infrastructure intact let’s take a look at some of the cargo flight operations right now.
The first one is the American Airlines they haven’t been operating a whole cargo fly since 1984 when they last retire there’s some 4/7 freighter but now they’re back in operating cargo flight between US and Europe using the triple 7 300 we’re seeing a lots of airline not only carrying cargo in the Bali space but they are also packing up all the cargo supplies inside a passenger cabin.
Airbus has transported 2 million face masks from China to Europe using their A330 800 craft within Europe than they used to a 400m to transport these much-needed supplies around Soviets by Volga to near per Airlines this is a very special transporter that the design of this is you don’t need any ground infrastructure to support this airplane carries all the stuff they need to offload and unload the cargo in time like
Volga and the peer group has been work around the clock to carry life-saving supplies and medical supplies around the world however when many countries border have now been closed carrying cargo isn’t a very easy task and his member renew cost to the government to take urgent measure to ensure the vital air cargo supply lines remain open efficient and effective.
The higher officials said we still seeing example cargo flight filled with life-saving medical supplies and equipment ground to do cumbersome and bureaucratic process these delays are endangering lives all government need to step up to keep the global supply chains open with so many airline currently drastically reducing their flight schedule.
Empty sky due to passengers planes but One sector in the aviation industry is booming at the moment which is private aviation they’re very busy operating a lots of VIP flights repatriate flights and also medical emergency flights around the world with a lot of airline now reduce and cut out a schedule may be the only viable option is chartering a private jet to reach your final destination.
Because of empty sky the private aviation companies are high in demand at the moment a lot of people prefer to use private jets to be distance away from other passenger to fly privates but more so we are seeing private jets play a crucial role carrying a lot of cargo and much-needed supply and also taking very sick citizens going back home. with the Jets the private jet operator has came out offering free government one-way empty lake on their flight the government need to use their plane to carry medical supplies,
Thomas floor Vista jets founder and chairman said we know we don’t normally offer repatriation flights or transportation medical equipment but ultimately we are a logistics company and we are here to help the global community as much as we can we are in despite together.
Now we will be going to 2nd part of our discussion keeping empty sky 1st on discussion was very necessary as this one industry linked with so many other industries in chain and aviation alone is billions of $ industry and always contribute to economic growth. Now the economic impact of coronavirus effects on regional markets, retail markets local and international stocks and global economy.
Today we’re going to talk about why the coronavirus pandemic has had an affect on markets and economies what it means for that is global economies now the coronavirus pandemic is the outbreak that’s been happening primarily in China but cases have been popping up all over the world at this point unfortunately the cases and the death toll continues to rise stock markets that have been affected have included both US domestic equity as well as international equity.
it’s affected bond markets commodities currencies this virus has basically it’s created fears in all of those different markets so, for example, government bond prices have gone up because a lot of people are putting money into those bonds because they think hey government bonds are safe things are looking risky.
Economic Impact of Coronavirus
Let’s pile into that, on the other hand, you have oil taking a hit on its price because people think well travel is being restricted a lot of airlines and countries are restricting travel to China.
So that’s going to bring down demand for fuel which is going to bring down oil prices and that has had an effect on energy bonds which have taken a hit you have other markets that have taken hits like currencies and countries that do a lot of business with China copper prices now people are saying perhaps steel prices will be affected because you could see a slowdown in construction in China basically there is nothing that this virus hasn’t affected so far.
impact on Global Economies
I want to talk about how concerned do we need to be well the short answer is nobody really knows because we don’t know how long and how big of an effect this virus is going to have now the most recent virus that people are comparing this one to was the SARS virus which took place in China is well in the early 2000s
There’s a lot of reasons why though that virus differs from today’s coronavirus pandemic and I think the primary reason is that China’s economy is much larger than it was back then China has the second-largest economy in the world and that is why people are so concerned about the global effects of the coronavirus pandemic because basically when people are staying in they’re not going out to eat they’re not going shopping a lot of US multinationals have shut down stores in China like Starbucks and McDonald’ s all of that is contracting their economy.
When people aren’t spending money and doing things that stimulate it and the other aspect of that is that yes Chinese consumers buy a lot from external countries but also a lot of countries have at least part of their supply chain manufactured in China so Apple for example has come out and said you know this coronavirus pandemic is probably going to have an effect on our products on our supply chain.
Which is basically just another way of saying a big event that you don’t expect that has a negative consequence on the prices of assets and that is a theory that some people have as to why it’s really hard to understand risk in markets because for example the financial crisis of 2008 is considered an exemplary Black Swan event because nobody really saw it coming and the ability to pray that kind of crisis into your portfolio is very difficult to do.
Here’s where I want to give a little bit of positive news we have four prior big illnesses and the effects on their market so the red box refers to the basically the time of the crisis right and then the blue box is one-month post-crisis and the green box is three months post-crisis and the measurement is the percentage change in each of these markets over time so this one refers to China.
We’re using the MSCI indices so as you can see from the MSCI indices in each of these regions obviously three of them are countries one of them is a continent but basically during the outbreaks markets fell one month and three-month post-outbreak things recovered will that happen with coronavirus pandemic I don’t know and really nobody knows but it’s important to remember that these are real people and they’re not just numbers being affected by this virus.
Well I hope you have our blog helpful and informative “Empty Sky is symbolic” terms represent employment to millions of families. I hope a very best for every one and expecting you are currently staying safe at your home and this is probably the only time I’m asking you not to travel because we are all together in this fight. I am so proud of all of us how far we have came and I have so much faith believe how far we can.
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