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Aviation lobby group says region’s governments “too conservative” in re-opening borders
November 20th 2020
"The motto of American Express is 'don't leave home without it', but at the moment in the Asia-Pacific the motto is 'don't leave home altogether'," the Association of Asia-Pacific Airlines (AAPA) director general, Subhas Menon, told reporters in a conference call this week. Read More »
"We need to move on from that. There is some cause for optimism, but what we are facing today is the indefinite closure of borders.
"If we are completely risk averse, then this situation will continue indefinitely,” he said, and repeated governments across the region were “too conservative” in their approach to re-opening international borders.
Menon hoped the Hong Kong-Singapore Air Travel Bubble (ATB) would be the first of many in a region that broadly had the coronavirus pandemic "very much under control and contained".
The November 22 start of the Hong Kong-Singapore ATB, which removes quarantine at both ends of the journey, was definitely a big step in the right direction compared with the green lanes, fast lanes and travel corridors of a few months ago, Menon said.
It also would be an example to other countries in the region about how to apply risk assessment to restart travel, he said.
Asia-Pacific carriers lost an estimated US$18.4 billion in the first half of calendar 2020 with full year losses predicted to be US$29 billion. Cash burn for the 12 months to December 31, is estimated at US$3.6 billion a month for airlines across the region.
"In terms of cash in hand, it is dwindling," Menon said. "Basically airlines, you could say, are living from hand to mouth. They are dependent quite a bit on support from their governments and shareholders.”
Asked if the downturn in the market would prompt a round of consolidation in the region, Menon said it would be difficult for airlines to pursue mergers and acquisitions given their focus on survival and cash conservation.
"Consolidation in the usual sense of the word is not going to be a wide spread phenomena," Menon said. "There will be some rationalisation, fleet rationalisation. Airlines are pursuing this of their own accord. They are trying to bite the bullet and control their expenditure."
