According to the International Air Transport Association, 25 million jobs are at risk in airlines and associated businesses such as travel and tourism.
A third of the world’s 26,000 passenger jets remain grounded, parked in deserts or lined up in rows along the tarmac, aviation data provider Cirium says.
Amid all the gloom in May, Changi was voted the world’s best airport for an eighth consecutive year, according to a ranking by Skytrax. Changi Airport in 2019 opened Jewel, a shopping and entertainment complex with 1.5 million square feet of stores and attractions including a rainforest, hedge maze, and the world’s highest indoor waterfall.
But the annual report revealed a grim picture of a world-class hub reduced to a fraction of its normal business from the early days of the pandemic.
To conserve cash, the company has implemented salary cuts of as much as 30% for management and staff, and recommended no dividend payout for the year. It has also suspended the construction of a fifth terminal for at least two years.
Profit plunged 36% to S$435 million ($319 million) due to an impairment charge by the Tom Jobim International Airport in Rio de Janeiro, which it holds a 51% stake, and worsened by the collapse in international travel. The Jewel shopping and entertainment complex helped boost revenue 2.6% to S$3.1 billion in the period.
Travel recovery is “highly dependent on how countries around the world manage border controls, the relaxation of air travel
requirements and the development of viable medical treatments for the virus,” it said.
Changi has facilitated cargo flights to enable global supply chain flow, especially of vital commodities like food and medical supplies. To assist in the battle to contain Covid-19 in Singapore dormitories housing foreign workers, some of the airport’s infrastructure for emergencies, such as casualty clearance stations, were converted into isolation facilities with infrastructure and amenities.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.