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dailykhaleej · 4 years

Text

Saudi Railway Company resumes work post-lockdown

DUBAI: Saudi Arabia’s airline {industry} is stirring again to life as Gulf nations ease the restrictions carried out to curb the unfold of the coronavirus.

The Kingdom has introduced a timetable for the resumption of home flights by way of nationwide carriers from Sunday.

About 100 flights are as a consequence of take off in a phased return to regular, Minister of Transport Eng. Saleh bin Nasser Al-Jasser mentioned on Saturday.

The Kingdom’s Common Authority for Civil Aviation (GACA), of which Al-Nasser can be chairman, earlier mentioned it had accomplished operational preparations to regularly raise the suspension.

In accordance with the Saudi Press Company, GACA has issued a vacationers’ information that features precautionary measures for airports and security guidelines that passengers should observe.

Nevertheless, specialists warning that these developments shouldn’t be mistaken for full restoration, including that the airline {industry} faces an uphill battle to return to regular operations and sound monetary well being.

Saudi Arabia halted worldwide flights from March 15 and home flights from March 21 in response to the outbreak of COVID-19 infections.

THE NUMBER

$7.2 billion

The revised 2020 KSA airline income, a 35% 2019-2020 income distinction.

The suspension affected not solely airways but additionally airport operators, airport on-site enterprises akin to eating places and retail companies, plane producers, and air navigation service suppliers.

Within the Gulf Cooperation Council bloc, shutdowns have imperiled the livelihoods of 1000’s of nationals and expatriates.

Given the rising position that air journey and tourism was enjoying as a part of Saudi Arabia’s financial diversification plans, the pandemic has proved a traditional double whammy.

Predictably, the Worldwide Air Transport Affiliation (IATA) — the commerce affiliation for the world’s airways — has known as for industry-specific monetary aid measures from the Saudi authorities.

IATA measures the financial impression of an occasion by jobs, spending generated by airways and their provide chain, commerce flows, tourism and funding ensuing from customers of all airways serving the nation, in addition to the connections to different cities by way of the identical airline that make these flows attainable.

Individuals wait at a terminal at Saudi Arabia’s King Abdulaziz Worldwide Airport in Jeddah on December 12, 2019. (AFP/File Photograph)

“All provide a different but illuminating perspective on the importance of air transport,” the affiliation acknowledged in a report entitled “The Importance of Air Transport to Saudi Arabia.”

The Kingdom launched aid measures for the personal sector within the wake of the pandemic, however IATA estimates that revenues generated by airways within the Saudi market will drop by $7.2 billion in 2020 — 35 % beneath their 2019 ranges.

“In response to the impact of COVID-19, the Saudi government has introduced broad economic relief measures in excess of $32 billion in financial support for the private sector,” IATA mentioned in an announcement.

“It has also provided support for air transport by suspending the airport slot use rules for the summer season and extending licenses and certifications for crew, trainers and examiners.”

IATA added: “We urge the government to build on this and implement specific financial relief measures for aviation to ensure that the sector will be capable of driving the recovery.”

A passenger walks previous empty verify in counters for Saudia airways at Dulles Worldwide airport in Dulles, Virginia on March 12, 2020. (AFP/File Photograph)

Among the measures beneficial for Saudi Arabia by IATA embrace direct monetary help to passenger and cargo carriers; monetary aid on airport and air site visitors management fees and taxes; and the discount, waiver or deferral of government-imposed taxes and charges.

Muhammad Al-Bakri, IATA’s regional vp for Africa and the Center East, believes the urgency of airline industry-specific aid measures can’t be overemphasized.

“Given the industry’s role in social and economic development, it is important the government prioritizes aviation and provides urgent financial relief,” he mentioned.

Muhammad Al-Bakri, IATA’s regional vp for Africa and the Center East. (Provided)

“Earlier than the disaster, Saudi Arabia was shifting at full velocity and reaching tangible leads to modernization, infrastructure growth and financial development.

“Fully supporting the air-transport sector now means a stronger recovery for the Kingdom.”

An image taken on June 6, 2017 reveals a Saudi man strolling previous the Saudi Airways headquarters within the capital Riyadh. (AFP)

Linus Bauer, aviation advisor and visiting lecturer at Metropolis College of London, mentioned that the general capability within the Gulf area, together with Saudi Arabia, has shrunk by 3.53 million weekly departure seats year-on-year.

In Could 2019, there have been 1.32 million weekly departure seats within the Kingdom. One yr later, a very sharp decline was recorded, which touched 97,156.

“It clearly shows the severe impact of the current crisis on Saudi Arabia’s air-transport sector,” Bauer mentioned.

“By the end of this year, a capacity loss of 25 percent is forecast. In a pessimistic scenario, the impact could be as high as 35 percent.”

The Kingdom has introduced a timetable for the resumption of home flights by way of nationwide carriers from Sunday. (AN Photograph/Basheer Saleh)

Consequently, Saudi carriers are dealing with a scarcity of liquidity, making it unimaginable for them to outlive with out stimulus packages from the federal government.

IATA figures from 2018 counsel that the Kingdom’s air-transport sector, together with airways and their provide chains, was supporting an estimated $20.2 billion share of Saudi Arabia’s GDP, with spending by overseas vacationers accounting for a further $16.2 billion.

In complete, 5.6 % of Saudi Arabia’s GDP was supported by revenues from the air-transport sector and overseas vacationers arriving by air.

Additionally in 2018, primarily based on IATA’s 20-year passenger forecast, the air transport market in Saudi Arabia was projected, below the “current trends” state of affairs, to develop by 126 % within the following 20 years.

This might have resulted in a further 54.eight million passenger journeys by 2037.

“If met, this increased demand would support approximately $82.3 billion of GDP and almost 1.2 million jobs,” IATA acknowledged on the time.

——-

PANDEMIC’S GULFWIDE IMPACT

As the worldwide airline {industry} struggles with the shock of COVID-19, many Gulf carriers have resorted to job cuts and discount in wages.

Kuwait Airways introduced its choice to put off as many as 1,500 expatriate staff as a part of a “comprehensive plan” to take care of the pandemic’s financial impression. With a complete of 6,925 staff and a fleet of 30 aircrafts, the airline has struggled amid the regional and worldwide downturn in air journey.

n this file photograph taken on March 13, 2019 A Kuwait Airways Boeing B777 plane prepares to land at Kuwait Worldwide Airport in Kuwait Metropolis. (AFP/File Photograph)

Abu Dhabi’s Etihad Airways laid off a whole bunch of staff in mid-Could and warned workers to brace for additional cuts, in keeping with DailyKhaleej. The airline has grounded scheduled passenger flights and quickly minimize wages by as a lot as 50 %, regardless of plans to restart flights from mid-June.

Air Arabia, the one listed service within the United Arab Emirates, laid off 57 staff in early Could as a consequence of journey disruptions attributable to the pandemic. The Sharjah-based airline, which has about 2,000 staff, has, together with different UAE carriers, suspended scheduled operations since March.

Qatar Airways introduced final month it might minimize near a fifth of its workforce. The airline employs greater than 46,000 workers, that means the layoffs might impression about 9,200 staff.

As for Emirates, claims made that it’s planning to chop round 30,000 jobs haven’t been confirmed. What is understood is that the Dubai-owned flag service is planning to renew flights to over a dozen locations between Could 21 and June 30.

——-

In accordance with IATA Direct Information Options within the 2000s, an industry-sponsored world airline-market information initiative, the Center East was the biggest marketplace for passenger flows to and from Saudi Arabia, adopted by Asia-Pacific and Africa.

The restoration of a rustic’s airline {industry}, in keeping with Bauer, could have loads to do with the scale of its home journey market.

Nations that lack massive home journey markets, he mentioned, are prone to recuperate extra slowly from the disaster precipitated by the pandemic and will open up first to vacationers from close by nations within the Center East.

The Kingdom has introduced a timetable for the resumption of home flights by way of nationwide carriers from Sunday. (AN Photograph/Basheer Saleh)

“Having a large and diverse domestic market can be considered one of the competitive advantages for carriers,” he mentioned.

In the post-COVID-19 period, Bauer mentioned that “an increase in demand for domestic feeder services for long-haul flights can be expected, driven by the fast-changing customer behavior of health-conscious passengers and the economic advantages associated with flying efficient, twin-engine long-range aircraft with lower cabin density.”

He sees such components doubtlessly opening up new market alternatives for main opponents of Gulf carriers which have the benefit of huge home markets.

“At the end of the day, the kick-off of regular long-haul services largely depends on the ongoing travel bans, restrictions and entry regulations imposed by countries or markets that Gulf carriers serve,” Bauer mentioned.

The Kingdom has introduced a timetable for the resumption of home flights by way of nationwide carriers from Sunday. (AN Photograph/Basheer Saleh)

That mentioned, the airline {industry}’s pivotal position in preserving nations linked and economies flourishing just isn’t prone to be diminished by the pandemic, say insiders.

“The shape and size of the industry may change as a result of this crisis. But aviation will remain a critical support for vast sectors of the economy,” Alexandre de Juniac, IATA director-general and CEO, mentioned in a current teleconference with journalists.

“The sooner we can safely reconnect the world, the more jobs can be saved. And, combined with economic stimulus packages, a reconnected world will be a solid foundation for economic recovery,” Juniac added.

————

@CalineMalek

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dailykhaleej · 4 years

Text

How Saudi Arabia’s air transport sector can overcome the coronavirus setback

DUBAI: Saudi Arabia’s airline {industry} is stirring again to life as Gulf international locations ease the restrictions applied to curb the unfold of the coronavirus.

The Kingdom has introduced a timetable for the resumption of home flights by nationwide carriers from Sunday.

About 100 flights are on account of take off in a phased return to regular, Minister of Transport Eng. Saleh bin Nasser Al-Jasser mentioned on Saturday.

The Kingdom’s Common Authority for Civil Aviation (GACA), of which Al-Nasser can also be chairman, earlier mentioned it had accomplished operational preparations to regularly elevate the suspension.

In accordance with the Saudi Press Company, GACA has issued a vacationers’ information that features precautionary measures for airports and security guidelines that passengers must observe.

Nonetheless, specialists warning that these developments shouldn’t be mistaken for full restoration, including that the airline {industry} faces an uphill wrestle to return to regular operations and sound monetary well being.

Saudi Arabia halted worldwide flights from March 15 and home flights from March 21 in response to the outbreak of COVID-19 infections.

THE NUMBER

$7.2 billion

The revised 2020 KSA airline income, a 35% 2019-2020 income distinction.

The suspension affected not solely airways but additionally airport operators, airport on-site enterprises resembling eating places and retail companies, plane producers, and air navigation service suppliers.

In the Gulf Cooperation Council bloc, shutdowns have imperiled the livelihoods of 1000’s of nationals and expatriates.

Given the rising position that air journey and tourism was taking part in as a part of Saudi Arabia’s financial diversification plans, the pandemic has proved a basic double whammy.

IATA measures the financial affect of an occasion by taking a look at jobs, spending generated by airways and their provide chain, commerce flows, tourism and funding ensuing from customers of all airways serving the nation, in addition to the connections to different cities by the similar airline that make these flows potential.

Folks wait at a terminal at Saudi Arabia’s King Abdulaziz Worldwide Airport in Jeddah on December 12, 2019. (AFP/File Picture)

“All provide a different but illuminating perspective on the importance of air transport,” the affiliation said in a report entitled “The Importance of Air Transport to Saudi Arabia.”

The Kingdom launched aid measures for the non-public sector in the wake of the pandemic, however IATA estimates that revenues generated by airways in the Saudi market will drop by $7.2 billion in 2020 — 35 p.c under their 2019 ranges.

“It has also provided support for air transport by suspending the airport slot use rules for the summer season and extending licenses and certifications for crew, trainers and examiners.”

IATA added: “We urge the government to build on this and implement specific financial relief measures for aviation to ensure that the sector will be capable of driving the recovery.”

A passenger walks previous empty examine in counters for Saudia airways at Dulles Worldwide airport in Dulles, Virginia on March 12, 2020. (AFP/File Picture)

A few of the measures really helpful for Saudi Arabia by IATA embrace direct monetary assist to passenger and cargo carriers; monetary aid on airport and air visitors management expenses and taxes; and the discount, waiver or deferral of government-imposed taxes and costs.

Muhammad Al-Bakri, IATA’s regional vp for Africa and the Center East, believes the urgency of airline industry-specific aid measures can’t be overemphasized.

“Given the industry’s role in social and economic development, it is important the government prioritizes aviation and provides urgent financial relief,” he mentioned.

Muhammad Al-Bakri, IATA’s regional vp for Africa and the Center East. (Equipped)

“Earlier than the disaster, Saudi Arabia was shifting at full velocity and attaining tangible leads to modernization, infrastructure growth and financial development.

“Fully supporting the air-transport sector now means a stronger recovery for the Kingdom.”

An image taken on June 6, 2017 reveals a Saudi man strolling previous the Saudi Airways headquarters in the capital Riyadh. (AFP)

Linus Bauer, aviation marketing consultant and visiting lecturer at Metropolis College of London, mentioned that the general capability in the Gulf area, together with Saudi Arabia, has shrunk by 3.53 million weekly departure seats year-on-year.

In Could 2019, there have been 1.32 million weekly departure seats in the Kingdom. One 12 months later, a very sharp decline was recorded, which touched 97,156.

“It clearly shows the severe impact of the current crisis on Saudi Arabia’s air-transport sector,” Bauer mentioned.

“By the end of this year, a capacity loss of 25 percent is forecast. In a pessimistic scenario, the impact could be as high as 35 percent.”

The Kingdom has introduced a timetable for the resumption of home flights by nationwide carriers from Sunday. (AN Picture/Basheer Saleh)

Consequently, Saudi carriers are dealing with a scarcity of liquidity, making it unattainable for them to outlive with out stimulus packages from the authorities.

IATA figures from 2018 recommend that the Kingdom’s air-transport sector, together with airways and their provide chains, was supporting an estimated $20.2 billion share of Saudi Arabia’s GDP, with spending by overseas vacationers accounting for a further $16.2 billion.

In complete, 5.6 p.c of Saudi Arabia’s GDP was supported by revenues from the air-transport sector and overseas vacationers arriving by air.

Additionally in 2018, based mostly on IATA’s 20-year passenger forecast, the air transport market in Saudi Arabia was projected, beneath the “current trends” situation, to develop by 126 p.c in the following 20 years.

This is able to have resulted in a further 54.eight million passenger journeys by 2037.

“If met, this increased demand would support approximately $82.3 billion of GDP and almost 1.2 million jobs,” IATA said at the time.

——-

PANDEMIC’S GULFWIDE IMPACT

As the world airline {industry} struggles with the shock of COVID-19, many Gulf carriers have resorted to job cuts and discount in wages.

Kuwait Airways introduced its resolution to put off as many as 1,500 expatriate staff as a part of a “comprehensive plan” to cope with the pandemic’s financial affect. With a complete of 6,925 staff and a fleet of 30 aircrafts, the airline has struggled amid the regional and worldwide downturn in air journey.

n this file photograph taken on March 13, 2019 A Kuwait Airways Boeing B777 plane prepares to land at Kuwait Worldwide Airport in Kuwait Metropolis. (AFP/File Picture)

Abu Dhabi’s Etihad Airways laid off a whole lot of staff in mid-Could and warned employees to brace for additional cuts, in response to DailyKhaleej. The airline has grounded scheduled passenger flights and briefly minimize wages by as a lot as 50 p.c, regardless of plans to restart flights from mid-June.

Air Arabia, the solely listed service in the United Arab Emirates, laid off 57 staff in early Could on account of journey disruptions brought on by the pandemic. The Sharjah-based airline, which has about 2,000 staff, has, together with different UAE carriers, suspended scheduled operations since March.

Qatar Airways introduced final month it could minimize near a fifth of its workforce. The airline employs greater than 46,000 employees, which means the layoffs may affect about 9,200 staff.

As for Emirates, claims made that it’s planning to chop round 30,000 jobs haven’t been confirmed. What is thought is that the Dubai-owned flag service is planning to renew flights to over a dozen locations between Could 21 and June 30.

——-

In accordance with IATA Direct Knowledge Options in the 2000s, an industry-sponsored world airline-market knowledge initiative, the Center East was the largest marketplace for passenger flows to and from Saudi Arabia, adopted by Asia-Pacific and Africa.

The restoration of a rustic’s airline {industry}, in response to Bauer, may have rather a lot to do with the dimension of its home journey market.

Nations that lack giant home journey markets, he mentioned, are more likely to get better extra slowly from the disaster precipitated by the pandemic and should open up first to vacationers from close by international locations in the Center East.

The Kingdom has introduced a timetable for the resumption of home flights by nationwide carriers from Sunday. (AN Picture/Basheer Saleh)

“Having a large and diverse domestic market can be considered one of the competitive advantages for carriers,” he mentioned.

He sees such elements doubtlessly opening up new market alternatives for main opponents of Gulf carriers which have the benefit of huge home markets.

The Kingdom has introduced a timetable for the resumption of home flights by nationwide carriers from Sunday. (AN Picture/Basheer Saleh)

That mentioned, the airline {industry}’s pivotal position in maintaining international locations linked and economies flourishing is just not more likely to be diminished by the pandemic, say insiders.

————

@CalineMalek

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0 notes