From reducing the number of scheduled flights and grounding super-jumbos to operating near-empty planes in a bid to retain valuable airport slots, the COVID-19 outbreak has exacted a heavy toll on commercial aviation in Europe.
Airlines are struggling to keep their heads above the water as passenger numbers dip and concerns rise over the health of carriers operating on wafer-thin margins.
According to the International Air Transport Association (IATA), the global air transport sector stands to lose $113 billion in sales if measures to stem the spread of the coronavirus are not implemented soon.
Issuing a grim outlook, the IATA pointed out that operators could see 19 percent of their businesses disappear due to the pandemic.
Alexandre de Juniac, IATA's director general and CEO, said: "The turn of events as a result of COVID-19 is almost without precedent. In little over two months, the industry's prospects in much of the world have taken a dramatic turn for the worse.
"It is unclear how the virus will develop, but whether we see the impact contained to a few markets and a $63 billion revenue loss, or a broader impact leading to a $113 billion loss of revenue, this is a crisis."
The IATA chief's assessment can hardly be disputed. A crisis is indeed brewing, especially in Europe and Asia.
Lufthansa is considering temporarily grounding its entire fleet of Airbus A380 super-jumbos due to the fall in demand. /VCG
An idea of the scale of the turmoil can be gauged by the fact that airlines are burning thousands of gallons of fuel, flying empty "ghost flights" in a desperate attempt to hold on to highly coveted take-off and landing slots at major airports. Virgin Atlantic admitted to it, recently.
As per the rules in Europe, carriers will have their slots forfeited, if no flights are operated.
In the UK, slots at major airports such as Heathrow, Gatwick, Stansted, London City, Manchester and Birmingham are managed by Airport Coordination Limited (ACL) which expects airlines to use 80 percent of their allocation or risk losing them.
Tim Alderslade, chief executive of Airlines UK, the industry body representing UK-registered companies, stressed that the practice further burdens operators by "seriously affecting their ability to plan ahead."
"It makes no sense whatsoever under these unique and challenging circumstances to force airlines to fly empty aircraft, wasting money and fuel and creating carbon emissions.
"We urgently need a temporary suspension of the rule – as happened during the financial crisis – to allow airlines to respond to demand and use their aircraft efficiently," he added.
The need to address the issue was evident when UK Transport Secretary Grant Shapps in a letter on 5 March urged ACL to suspend the rule for a while.
Ursula von der Leyen, president of the European Commission, said the EU would propose a law allowing airlines to retain airport slots. /Kenzo Tribouillard/AFP
"I am particularly concerned that, in order to satisfy the 80/20 rule, airlines may be forced to fly aircraft at very low load factors, or even empty, in order to retain their slots," he wrote.
"Such a scenario is not acceptable. It is not in the industry's, the passengers' or the environment's interest and must be avoided."
Shapps made a similar submission to the European Union.
Taking note of the situation, the EU assured on Tuesday that it would act "very rapidly" to propose a law through which airlines could keep their slots without operating "ghost flights."
European Commission President Ursula von der Leyen said: "We want to make it easier for airlines to keep their airport slot even if they do not operate flights in those slots because of the declining traffic.
"This temporary measure helps our industry, but it also helps our environment. It will relieve the pressure on the aviation industry and in particular on smaller airline companies."
The legislation, however, would have to go to the European Parliament for adoption and then to the European Council, representing the EU's 27 member states, for approval.
As airlines strive to hold on to airport slots, poor ticket sales and travel advisories have further added to their woes.
Lufthansa is considering temporarily grounding its entire fleet of Airbus A380 super-jumbos in response to the fall in demand.
As airlines strive to hold on to airport slots, poor ticket sales and travel advisories have further added to their woes. /John Thys/AFP
The German airline announced a 50 percent reduction in flight capacity across the group over the coming weeks. The decision would apply to carriers in Switzerland and Austria, too.
"We are examining whether it is possible to place the entire Airbus A380 fleet (14 aircraft) in Frankfurt and Munich temporarily out of service," the company said in a statement last week.
British Airways, Air France, Norwegian, Ryanair and easyJet have also reduced and in some cases even canceled flights, including to Italy – the worst-hit by the coronavirus after China.
The lucrative trans-Atlantic routes, frequented by business travelers, are no exception.
Financial markets have reacted strongly to the outbreak as well, the IATA admitted. Airline share prices have dived nearly 25 percent since the virus began spreading – 21 percentage points greater than the decline that occurred at a similar point during the SARS crisis of 2003.
Juniac, in his statement, sought urgent government aid as beleaguered aviation operators did "their best to stay afloat."
"As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation. These are extraordinary times," he warned.
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