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RESEARCH: INTERNATIONAL FLIGHTS ARE PREDICTED TO RECOVER IN 2023

THE National Air Carriers Association (INACA) and Padjadjaran University (Unpad) White Paper study estimated that the international aviation industry will recover longer than domestic flights. The international aviation industry is expected to only rise in 2023.

According to Unpad Aviation Law and Aircraft Financing expert and researcher, Prita Amalia, in her written statement, she stated that based on the results of the studies that have been carried out, the recovery of the aviation sector is predicted to begin to improve in early 2022 for domestic flights and the end of 2023 for international flights.

“The study was conducted to find out what policies and regulations are needed to support the recovery of the aviation sector. The results of the study refer to the discussion of external parties in the group discussion forum (FGD) which will be held from February to April 2021,” she said.

Prita explained that this study considers health aspects related to vaccine regulation and distribution. In addition, the study looks at the economic stimulus aspect regarding government support for the air transportation sector and regulations on restrictions on the movement of aircraft passengers and flight capacity.

“Government support in the form of policies and regulations is needed as a strategy for the recovery of the aviation sector, such as fiscal assistance to reduce operating expenses,” she noted.

Data from the International Civil Aviation Organization (ICAO) shows that in 2020 there will be a decrease in the number of passengers by 59-60% for global flights. Meanwhile, The International Air Transport Association (IATA) calculated that the decline in airline revenue last year reached 54.7% year on year.

Meanwhile, General Chairperson of INACA Denon Prawiraatmadja detailed that the movement of aircraft transportation in 2020 would drop 43 percent from the previous 2.1 million to 1.2 million. Meanwhile, passenger movements decreased by 70% from 91.6 million to 35.4 million. A 65% decline in performance also occurred for cargo transportation, from 1.1 million tons to 429 thousand tons.

Denon hopes that the INACA study can help decision makers move quickly. This will assist the government, airlines and other aviation stakeholders in developing strategies and interventions to restore the aviation sector during and after the COVID-19 pandemic. [sources/photo special]