How can the global Aviation Industry weather the coronavirus storm some airlines are hoping to resume summer flights and are facing all turbulence a minus a lot what is the Airline Industry needed to recover from the pandemic this is inside story. Hello and welcome to the program on imran khan its described as the biggest crisis in aviation history with borders closed to limit the spread of Coronavirus Airlines are forced to ground their fleets costing them billions in lost revenue every single month so bad lines are hoping to resume flights and restore links as countries begin to ease their lockdowns but many places such as the u. K. Are making it mandatory for travelers to spend 2 weeks in quarantine when they land British Airways easyjet and ryanair a challenging the government ruling in court saying its irrational ineffective and will cost thousands of tourism jobs wont because it has no scientific basis for it all to its not quarantine because you allow people right you know for to go on to live on the Ground Transport its only because peoples youre going to move out of holes and they can be on both wars to be sure the local supermarket when theyre not cornered me but hes going to do devastating damage to this is coming to britain during the peak of the tourism season though i know. Britains government defended the policy as being the right thing to do most brits understand that weve sacrificed a lot weve stayed at home weve been fighting this virus getting the our number below one what we dont want to do is you know end up sort of essentially re importing it either by people coming here or brits going abroad and coming back so i think the idea of a quarantine is the right thing to be doing and i know that it has broad public support the International Air transport association has a bleak forecast says 2020 will be the worst year in the history of aviation where their line is set to lose 84000000000 dollars thats 230000000. 00 every day africas already struggling carriers are amongst the hardest hit south African Airways which hasnt made a profit and 9 years is being run by administrators they are seeking one and a quarter 1000000000. 00 payout to repay debt and restore services in asia hong kongs Cathay Pacific received a 5000000000. 00 bailout from the government after suffering huge 1st quarter losses. Middle Eastern Airlines emirates as he had cattle airways recently announced job losses and pay cuts of up to 50 percent. Lets introduce the panel in kenyas capital nairobi rafael coochie special envoy to africa on arab Political Affairs at the International Air transport association in San Antonio Texas travel and aviation rights have been a wilson and in the spanish capital madrid diego omaeda a International Aviation law expert as well as an accident investigator welcome to you all lets begin in the spanish capital madrid would you go only dont do you think that easy jet ryanair and British Airways have a case that needs to be heard can they take the British Government to task over this hello thank you thank you very much yeah i mean when he starts all we can hear is that its absolutely understandable what theyre doing because this type of measure the government of laws are implementing their british are disproportionate the effect that these measures are going out on the industry and yeah landslides its not so its absolutely normal that theyre trying to challenge these type of measures. For example when you think about the different roads that governments are being theyre comparing for example of education you need bali or in spain where we are supposed to be opening our own dear in the lane you can break. The u. K. Certainly not a big challenge the this isnt. It is very hard to say if they are going to succeed or knobs of course im an expert in polish or i think the governments an obligation to look up to or the public well so its understandable that theyre making the story for their paper it relates to situations. You know the same damn going to take this case because courts d will rule on a very specific point which will be well are always seem to leave the restrictions of mobility of us in years. In the u. K. And its very difficult as yet accepting they came over to take over that responsibility and stand 8 more hours in the u. K. Or out you know of the day so i think that they have. Case and but understand that if you see it or at least we are now very early stage be able to get that from my perspective and i think will be the 1st of many cases lets bring in been a wilson head who is in San Antonio Texas the American AirlinesAmerican United except have all been under a lot of pressure even be full covert 19 came along they were complaining about subsidies given by the middle east governments to middle east and airlines that were unfair competition to use the words of the white house but now with covert 9 saying that is the way do you think that adelines will get together and bring pressure not just on the Us Government on all governments is this what needs to happen now and are you saying any signs of that. Well i think that the airlines are in a difficult position on the one hand they need to fly you know our airlines are publicly traded so they. Are stocks and bonds to keep things afloat and they pass injures in those seats but they also have to balance that with the need to keep those passengers say so these are things that are colliding and i think somewhere some at some point somethings going to have to get so i could see airlines trying to bear pressure to just make things a level Playing Field to make sure that there are rules and regulations in place that can be followed and that passengers are saying. Well lets take the african continent for example we have in nairobi rough hill and we are in a position where just just concerning the consulate of the moment we in a position in about a years time we may only see hof the airlines that are flying at the moment because of this crisis well that this. Probability of considering to fund that until now with all of the peers that are going on from various Industry Group in for governments in africa to support airlines and indeed to have industry very little is forthcoming from governments by well support to the industry as we speak now as you probably away about full airlines have gone into voluntary either here or. As and occasional m. R. Issue just and and. Receivership as indication of us upcoming with some of can express and coming now so we went to see the most likely many of sage instances unless of course governments come to bail out airlines and get them back some liquidity to be able to continue their operations. Let me just bring in diego here in madrid is there any appetite from the governments to bail out the airlines in the way that they need to be bailed out with those huge sums yeah i dont know is no use if you dont know what go on or inside of the state that has been something that has been suggested maybe you can even when they were made. The recommendation is about the use of voters of the holy refund of its but the government has not taken any leadership in that respect in the end of making any move at least of these moment but i will son in san antonio that has been a frustration between the airlines and the governments for a very long time the governments of the suggested that the airlines have simply railroaded them in many cases when it came to subsidies when it came to landing rights when it came to the way the airlines are run is there any appetite to want to help them now when they are in real trouble is that a question of the you know almost the boy that cried wolf well the u. S. Government has helped the air arrives there is 50000000000. 00 and loans and grants Different Airlines to help down survive and theyve had to ground. And for a low balance very furloughs and layoffs our. Crew workers so you have the money is already there and its going to last through the end of september and what happens after that thats what everyone is watching but thats really the question than a its a its this isnt this is now the new normal i mean were not going to get back to normal i think it was the impact it was out resolved as had we probably wont get back to normal until 2023 so all were a point now where we should be thinking that this is the this is now the new normal so its not about bailouts anymore its about restructuring of the entire Airline Industry. Absolutely all 3 Airlines Major airlines here in United States have said just that theyre going to come out of this and theyre going to come out of this mall or so thats going to lead to fewer jobs in the industry thats going to me fewer flights to some of the medium and small cities that are used to Getting Service now and were just going to see a regular and meaner Airline IndustryGoing Forward its not going to be like it was at its peak in 2001000 rough sawyer of wanting to respond well to responds yes i think were going to emagine out of these this crisis with that with a much more. Strong line in best 3 that are small ephesians and 4 costs more on profitability and delivering the poll monday that the hoth. But before we get they the Airline Industry because all operations have literally been grounded it would be important for governments to at least give the initial injection for these airlines to get out of this crisis best before and it can then get themselves restructured and move forward to go saying the end of cheap lines weve seen the end of low Budget Airlines are we seeing the end of people getting on a front a full on a friday night because they can because it was cheap is that 110. Yeah thats its very hard to say but if you think about how good industry was evolving in the last few years its true that we were seeing that many up in my area last were taking some of the approach that the cheaper one store where the locals tell us where they can store the barrier between their large are typically all their lands and the and it will cost at last it was not existing as he used to be probably easier by all of the. We will we will need the help from the government in this thing we also have some so much distance to be enhanced by our government in that any more copies of the European Union and the Commission Report rolled pleat year for example with the case of the boy chairs that there was mentioning for that is a very key. He us backs that they need to buy and the survival of our lives or not we very much depend on the big asian reimburse to get the bus in years if they are forced or in both money to all the passengers then im sure that the lot of airlines will will run in the way but we are now talking about restructuring and i think all 3 of you agree that the airlines are going to come out of this a very different industry than the home we being used to seeing but what does restructuring actually look like rochelle i want to begin with you always i mean particular and the continent in africa i mean cargo is very very important is called are going to become increasingly much more important for commercial airlines who perhaps on in that sector right now. Yes cowboy is becoming more and more important unfortunately for africa many of the airlines ill prepared to take advantage of the kabul traffic guarantee because as india previous struck as many of them did not we did not consider that kabul of prescience as a call on integra part of their Business Model so they focused too much on passing at the expense of cotton so now the crowd who deposit your business has disappeared and kabul has he may they dont they do not how they have create demand to be able to support that so we how it was seen and a number of airlines quickly conveyed some of the passenger. Into combo freight as so that b. Can operate can take advantage of the kabul business but when for what africa would need a lot more cowbell that business because of the pace of development if you recall before comment 93. 00 some of the fastest developing economies in the world and Infrastructure Development and they invest ment in manufacturing was picking up significantly again also because the africa union is pushing ahead with the african Continental Free Trade Area which is to facilitate intra africa trade among countries out of kabul capacity would be needed to be able to support the movement of goods and services out ironic ones but i will son in san antonio how did the American Airlines restructure what does their restructure look like is a cargo is it Something Else documents perhaps i dont know what do you think it might be can they restructure. Well all 3 of the major carriers have Cargo Operations on back kind of built and where they do work at they are what were seeing is the grounding the fleets American Airlines grounding at 757 and some of these planes are that are grounded temporarily will come back but a lot of them while were also seeing routes being restructured smaller and medium sized cities are either going to see reduced service or theyre going to lose their service because again at smaller fleets youre not going to be able to serve all of the cities that you served before that 19 pandemic pandemic so youre again youre going to see airlines coming out of this leaner and meaner degen is an interesting point isnt it theres only so much you can restructure theres only so much use an airline has called people rainy what else can you do yeah its very difficult believe you d have to look at different opportunities and it may be trying to marriage weve. Both services trying to to offer some services they maybe launching different campaigns 2 to 2 theyve got suspects in years 2 was the city hotel chains or trying to find services outside of the view or scope of the of the transportation in order to survive in these partnerships were going to buy it in the next one to 3 years the other big challenge of course for the Airline Industry is this is simply right now is this idea of social distancing we i have seen and lines running almost hof empty flights because of that when people say next to each other which is great to pass and just as we absolutely honest that middle saying economy a complete nightmare for everybody but its not profitable for the airlines day let me begin with you and i will come to all 3 of you but they had to let me begin with you. How do you deal with other than by putting up the prices so high that line once again like in the fiftys becomes a luxury. Its a great question i am not sure he does the going to be implemented does not only see that this is going to be implemented in spain actually this week we have a flight of between that greed in a boat in the in the Canary Islands where one of the passengers was asked and then they have to do all the rest of us in just the best in all of them were negative groups but all the other geishas of the industry about the theres of the air of a war going thats really true so these type of daisy that im sure that were going to see more and more often in the if you chair weeks well how to make their way things stand it is not needed it yourself you still seem to need me a lot but i will soon is it time. To get back to the fiftys way of travel where it was very expensive where there were fewer people on a flight where the service was much better where it was actually an event to go on a fly or we heading that way. I hope not im of an age where i i was i flew on the airlines before deregulation so i actually remember that Wonderful Service but i also remember that flying was for the very rich normal people like me i only was able to do it because my father was in the air force and they paid for it but normal people couldnt fly so i hope that we dont go back down that road but i do think were going to start seeing higher prices because all of this is expensive social distancing on a plane costs money. Cleaning the planes that cost money so the money has to come from somewhere and Airlines Sell tickets so its highly likely that the passengers will start to bear the brunt of the costs were keeping flights safe and claim rochelle kitchin be i mean your conversations with the a fellow members of i oughta what do you when you have those conversations and you look to the future what sort of an industry are you seeing. Well what we see is that in the immediate 10 were likely to see a punch way of measures by different governments some insisting on social distancing on board this saying that its not necessary but when for what we see an industry way and airlines will be allowed to carry passing us like they used to be before you can feel all your seats for what im debt should not be in there in the Long Distance future this is because we need to keep transport continuously affordable and be able and that ive been at all and accessible to us many people as we want to use it rather than constrain it by high prices and make it a present of us a few who cant afford to even listen to what everybody else has had to say and safety is clearly a big part of what it what you to cross investigator was in a number of air crashes recently is that any way that you can see that covert one saying the increased Safety Measures the increased look at P