The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

EFFECT ON AFRICAN COUNTRIES 325 That is, more or less, what has happened in China, this year, as Chinese carriers were struck first. At the peak of the outbreak, in mid-February, around 70% of flights were grounded, according to OAG, a travel data firm. Now that infections are stabilising in the country, Chinese passengers are getting back in the air, tempted by significant discounts, and the latest data suggest that capacity is now down by 43% compared with a year ago. Few airlines, though, serve a vast domestic market like China’s, being surpassed only by American airlines. The European Union’s single aviation market looks large, but is fragmenting as the Member States put up barriers, for example, Denmark and Poland have already barred most non-citizens from entering. Asian airlines that rely on traffic to and from China, but not within it, are still reeling. On the one hand, Cathay Pacific, based in Hong Kong, has cut capacity by 65% in March and April, anticipating even more cuts in May; on the other, Korean Air has lopped 80% of its schedule. Like BA’s Mr. Cruz, it warns that a prolonged disruption presents an existential threat. Chinese airlines can also count on generous government support as most of the big ones are state-owned (China Eastern and China Southern) or could be, through a possible nationalisation (speculation regarding Hainan Airways’ parent company, HNA). Beijing has already promised bail-outs to make up for their losses, estimated to be around 3 billion dollars in February alone.

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