The Shutdown of Air and Cruise May Cost More than £40BN in the UK
The Shutdown of Air and Cruise
According to the Industry prediction, the total shutdown of European air and cruise because of the deadly COVID-19 outbreak will cost around hundreds of billions of pounds.
The IATA (International Air Transport Association) predicts that the European airlines will lose approximately $89 billion in revenue. Since the previous prediction was a month ago, the expected revenue loss has soared by one-sixth. The International Air Transport Association also reports that the overall negative GDP impact in Europe is around $452bn, and according to its estimation, 6.7 million jobs are at risk.
The new analysis is based on the scenario of serious travel restrictions that have been lasting for three months with a slow lifting of the restrictions in domestic markets.
It has been estimated that £21.1 billion revenue can be lost with 140 million less journeys, and it will risk around 661,200 jobs as well as $50.3bn in contribution to the United Kingdom economy.
What Can Happen?
The estimation represents more than £600 damage pre person to the UK economy. Previously, the busiest airport in Europe is now operating only one runaway. After the UK, Germany will face the next revenue loss, but fortunately, the loss is only two-thirds compared with the UK.
Similarly, Italy, France, and Spain will also face a heavy loss as there can be around $115bn in economic damage that can take place between them.
IATA is now calling for the rights rules of the European air passengers that are known as EU261. The regional vice-president of the IATA, named Rafael Schvartzman, said that as air and cruise face an exceptional liquidity crisis, they need the European government regulatory and financial support desperately. The world would depend on the airlines to renovate the global economy again. A successful proceed of all the industries would be important.