ASG: Covid-19 Tentacles Prove Devastating on Industry

 - April 15, 2020, 12:37 PM

This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation.

Asian Sky Group’s (ASG) recent regional industry survey underscores the harm wrought by the Covid-19 pandemic, with 90 percent of respondents saying their businesses have been affected and 75 percent saying their fiscal goals are now unknown or unachievable. 

In the most recent Asian Sky Quarterly, ASG managing director Jeffrey Lowe, citing the plunges in operations in the Asia-Pacific region, said, “Devastation is the only word that comes to mind,” and added that as the industry in the Asia-Pacific region tries to move forward, indications from the firm’s “Moods and Intentions” survey are that business likely will get worse before it gets better.

One-third of the respondents believe their fiscal goals are unknown, while another 42 percent say they are unachievable. Aircraft management companies showed the most optimism of the respondents. Meanwhile, 40 percent believe the market will bounce back in the second half and 36 percent said they don’t know the outlook for the latter half of the year.

Concerns have been particularly heightened in Greater China. “The severe impact of Covid-19 in Greater China has increased by an average of 7 percent per week through March. There are no respondents now that feel they will not be affected,” he said.  

In addition, those responding “I don’t know” are moving into the “‘I’m being severely impacted” category. “Just surviving will replace any goal for the year and the light at the end of the tunnel will move into 2021,” Lowe said. “Needless to say, the emotions we are all feeling regarding Covid-19 also trickled down and impacted the responses received to our normal survey questions.”