\n<\/p>\n
\n
<\/p>\n
JOHANNESBURG\/LONDON\/MUNICH\/NEW YORK\/PARIS\/SAO PAOLO\/SINGAPORE \u00a0–\u00a0Media OutReach<\/a>\u00a0– 6 July 2021 –\u00a0<\/b>The sudden halt
“The grounding of
\u00a0<\/p>\n
In Asia Pacific, airlines
\u00a0<\/p>\n
1.\u00a0\u00a0\u00a0
\u00a0<\/b><\/p>\n
Earlier this year,
\u00a0<\/p>\n
Major airlines have
\u00a0<\/b><\/p>\n
However, the return of sightseeing flights in
\u00a0<\/p>\n
2. “Air rage” incidents on the rise<\/b><\/p>\n
\u00a0<\/b><\/p>\n
Unruly behavior of airplane passengers is increasingly a concern,
\u00a0<\/p>\n
This trend, however was not a
\u00a0<\/p>\n
3. Perils from
\u00a0<\/b><\/p>\n
Although
\u00a0<\/p>\n
The risk of shunting or ground incidents also increases,
\u00a0<\/p>\n
Aircraft in storage typically undergo regular maintenance to ensure they
\u00a0<\/p>\n
4. Pilot shortage brings risks<\/b><\/p>\n
\u00a0<\/b><\/p>\n
Odd as it
\u00a0<\/p>\n
“In less regulated countries, shortages
\u00a0<\/p>\n
Some airlines are building their own
\u00a0<\/p>\n
5. New
\u00a0<\/b><\/p>\n
A number of airlines have shrunk their fleets or retired aircraft over
\u00a0<\/p>\n
“Newer generation
\u00a0<\/p>\n
6. Robust
\u00a0<\/b><\/p>\n
Although passenger travel has been devastated by the pandemic, other
\u00a0<\/p>\n
A Singaporean
\u00a0<\/p>\n
7. Business
\u00a0<\/b><\/p>\n
Pre-Covid-19 business travel traffic amounted to $1.5trn a year or around
\u00a0<\/p>\n
However, what
8. New routes
\u00a0<\/b><\/p>\n
Over 1,400 new air routes are scheduled for 2021<\/a> \u2013 more than double those added in 2016 \u2013
\u00a0<\/p>\n
China\u00a0has one
\u00a0<\/p>\n
“This development
\u00a0<\/p>\n
9. Insect infestations
\u00a0<\/b><\/p>\n
There
\u00a0<\/p>\n
Covid-19 claims impact<\/b><\/p>\n
The
\u00a0<\/p>\n
“Covid-19
\u00a0<\/p>\n
AGCS
Pilot problems, “air rage” incidents,
reactivation risks and even insect infestations are among challenges facing
aviation sector. Post Covid-19 aviation landscape \u2013 new routes
to soar; new generation aircraft bring benefits but higher repair costs; air
cargo to continue strong performance. Direct Covid-19 claims impact limited. Slips
and fall incidents at airports declined but large …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/16085"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=16085"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/16085\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=16085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=16085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=16085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nimposed on the aviation industry by the Covid-19 crisis hit the sector hard. In
\nApril 2020, two-thirds of the global commercial aviation fleet sat idle on the
\ntarmac, while passenger traffic was down 90% year-on-year<\/a>. Today, the aviation industry is slowly
\nrebounding, led by domestic travel. As more aircraft return to the skies, a new report<\/a> from aviation insurer Allianz Global
\nCorporate & Specialty (AGCS)<\/a> highlights some of the unique challenges
\nairlines and airports face as they restart operations \u2013 ranging from “rusty”
\npilots to insect infestations. It also identifies a number of ways in which
\nCovid-19 is reshaping the sector, driving long-term changes in fleet
\ncomposition, flight routes and passenger demand<\/a>.<\/p>\n
\n
\n
\n
<\/p>\n
\nworldwide fleets during the pandemic has represented an unprecedented event for
\nthe aviation industry,” says Dave Warfel, a Regional Head of Aviation at AGCS.
\n“Airlines have worked tirelessly to maintain their fleets and train their crews
\nduring this long period of inactivity and, as insurers, we take a keen interest
\nin working with them to understand their plans to return to service. Challenges
\nwill no doubt emerge as the industry readies for takeoff again. Although it is
\nhard to predict in exactly what shape the aviation industry will return, one
\nthing is for certain \u2013 it will have changed.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nhave fared the worst in the world according to latest International Air
\nTransport Association (IATA) data released in June. The region experienced the
\nsteepest traffic decline for the ninth consecutive month, with capacity down
\n86.3%. Singapore Airlines is facing its second consecutive annual loss
\namounting to a net loss of 4.3 billion as of March 2021, largely because
\nunlikely other countries it does not have domestic travel. Meanwhile, AirAsia
\nX, the long-haul affiliate of Malaysian Air Asia Group and Thai Airways are in
\nbankruptcy courts to negotiate time to restructure their debts. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n<\/b>“Rusty”
\npilots and the return of sightseeing flights<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ndozens of pilots reported making mistakes, such as taking multiple attempts to
\nland, to NASA’s
\nAviation Safety Reporting System<\/a>, with
\nmany citing <\/strong>rustiness<\/a> as a factor on returning to the skies<\/strong>. In September
\n2020, an Indonesian flight veered off the runway during landing as the pilots had
\ndid not have the opportunity to fly an aircraft in months. \u00a0Airlines (and other operators) are well
\naware of the potential for pilot “rustiness” and continue to take steps to
\nmanage and mitigate these risks. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ndeveloped different training programs for pilots re-entering service, depending
\non the length of absence. “At a time of
\nsuch unprecedented activity, it is comforting to know that the risk management
\nprocesses that made airline travel safer than any form of travel prior to the
\npandemic will continue to drive an unparalleled travel safety environment in
\nthe post Covid-19 world,” says Warfel. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ntourism destinations could lead to an uptick in risk for smaller leisure
\naircraft, including helicopters, particularly if there is an influx of new
\npilots unfamiliar with the routes and terrain. There have already been a number
\nof fatal accidents involving sightseeing flights in recent years.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nparticularly in the United States. In a typical year there are around 150 reports of
\npassenger disruption on aircraft. By June 2021 there had been 3,000 according
\nto the Federal Aviation Administration<\/a> \u2013 the majority
\ninvolving passengers refusing to wear a mask. The report notes that unruly passengers may later claim they were
\ndiscriminated against by the airline in these cases even when in the wrong \u2013 a trend
\ninsurers need to stay on top of.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nconcern in Asia as countries such as Hong Kong, Singapore and South Korea have
\nimposed a blanket requirement for everyone to wear masks as long as they are in
\npublic and not only for air travel. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nparked fleets<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\na large proportion of the world’s airline fleet have been \u2013 and are still \u2013 parked
\nduring Covid-19, loss exposures do not disappear. They change. Parked fleets
\nare exposed to weather events. In Asia the challenge lies in aircrafts being
\nexposed to extreme weather events particularly in countries such as Hong Kong,
\nJapan, Taiwan and the Philippines that are prone to strong storms. The risk
\nlies in moving groups of aircrafts without causing damage. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nwhich can bring costly claims. There
\nwere a number of collisions at the start of the pandemic as operators transferred
\naircraft to storage facilities. More are likely when aircraft are moved again
\nahead of reuse.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nare ready to return. However, never has the industry seen so many aircraft
\ntemporarily put out of service and the report notes that smaller airlines may face significant challenges
\nwhen reactivating fleets, given it will be an unprecedented process.
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nmay seem given the impact of Covid-19, the global aviation industry faces a
\npilot shortage in the mid to long-term. <\/b>The tremendous increase in air
\ntravel pre-pandemic \u2013 annual
\nair passenger growth in China alone was 10%+ a year from 2011<\/a> \u2013 meant pilot
\ndemand was already outstripping supply. More than a quarter of a million are
\nrequired over the coming decade<\/a>. Moreover, the pandemic has forced many airline
\ncompanies to lay off pilots as seen in Cathay Pacific cutting 600 pilots to ease
\nits financial burden. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ncan lead to pilots operating commercial aircraft with limited qualifications
\nand low overall flying time,” says Warfel. “Pilot fatigue is also a known risk
\namong existing pilots that must be properly managed. Fortunately, there is a
\nlot of industry expertise and resources available to assist airlines in
\nbuilding proper fatigue management systems.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\npilot pipelines by establishing flight schools. Given the nature of training,
\nflying schools are prone to accidents and claims are becoming more expensive
\nwith rising values of aircraft and increased activity. Landing accidents are
\nmost common, but insurers have also seen total losses. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ngeneration aircraft bring safety improvements but higher costs<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nthe past year, <\/b>as the
\npandemic hastens a generational shift to smaller aircraft, given the
\nanticipated reduced number of passengers on aircraft in the short-term future.
\n
<\/p>\n
\n
<\/p>\n
\naircraft bring safety and efficiency benefits,” say Axel von Frowein, a
\nRegional Head of Aviation at AGCS. “However, new materials such as composites,
\ntitanium and alloys are more expensive to repair, resulting in higher claims costs.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nperformance by air cargo and trend will continue<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\naviation sectors have performed more robustly, such as cargo operators. In April 2021, Asia Pacific
\nreported its best month for international air cargo since the pandemic\u00a0began<\/a>, thanks to rising business confidence, e-commerce and congestion at sea
\nports, while Latin America to North America freighter capacity grew by almost a third
\nin May 2021 compared to the same two week period in 2019<\/a>. The report expects air cargo to continue to perform strongly. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nlow-cost airline, Scoot has re-configured their regular passenger cabins to
\nallow aircrafts to carry extra cargo, while Singapore Airlines continues
\nto capture more vaccination shipments as production ramps up and the demand for
\nexports increase.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ntravel \u2013 boom or bust?<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n1.7% of global GDP<\/a>. With many airlines dialing back expectations
\nin the short-term, the report asks whether those days are over. New ways of collaboration, such as video
\ncalls, proved to be effective and more companies are aiming to reduce business
\ntravel to improve their carbon footprint. Therefore, while there will be initial
\nsurge once lockdowns end, many airlines are preparing for a long-term paradigm
\nshift in traveling, with business travel expected to be slow to pick up.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nspeaks for a possible uptick is that some areas of business aviation have
\nproven resilient during the pandemic. Companies that had aircraft continued to
\nuse them while many that had never purchased or chartered an aircraft before
\ndid so for the first time. Many charter companies thrived. <\/p>\n
\n
\n
\n
<\/p>\n
\nmultiply in Europe and Asia Pacific<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ndriven by Europe (over 600) and Asia Pacific (over 500), with regional airports
\nset to be the main beneficiaries. Growth in China’s domestic market alone
\nhas seen over 200 new routes added \u2013 almost the same as the US.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nof the largest domestic tourism markets in the world. The Ministry of Culture
\nand Tourism estimated there will be more than four billion trips made across
\nChina in 2021, a market worth\u00a0just over USD$500 billion. The demand for
\ndomestic alternatives, possibly exceeding pre-pandemic levels is not surprising
\n— especially as China is home to\u00a055 UNESCO World Heritage Sites<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nreflects the desire of some airlines to experiment in uncertain times,
\nparticularly smaller ones,” says von Frowein. “New routes means less congested
\nairspace and congestion at airports which can have a positive impact on risks
\nsuch as ground handling incidents. However, flying new routes can bring a
\nheightened risk environment.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\naffecting instrument accuracy<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nhave been a number of reports<\/a> of unreliable airspeed
\nand altitude readings during the first flight(s) after some aircraft have left
\nstorage. In many cases, the problem was traced back to undetected insect nests
\ninside the aircraft’s pitot tubes, pressure-sensitive sensors that feed data to
\nan avionics computer. Such incidents have led to rejected takeoffs and turn
\nback events. Contamination risk increases if storage procedures are not
\nfollowed. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nreport also notes the aviation industry has seen relatively few claims directly
\nrelated to the pandemic to date. In a small number of liability notifications,
\npassengers have sued airlines for cancellations\/disruptions.<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nhas not been a direct driver of aviation claims over the past year,” says
\nCristina Schoen, Global Head of Aviation Claims at AGCS. “As a result of the
\nsignificant reduction in commercial airline travel during the pandemic we saw
\nfewer attritional claims than we would during a typical year. However, the
\ninsurance sector was not immune to larger losses during the course of the
\npandemic, with different regions seeing tragic accidents, emergency landings
\nand hull losses to name a few. As air travel begins to return to pre-pandemic
\nlevels we expect claims volume to rise accordingly.”<\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nanalysis of more than 46,000 aviation insurance claims from 2016 to year-end
\n2020 worth more than EUR 14.5bn (US$17.3bn) shows collision\/crash incidents
\naccount for over half the value of all claims. Other expensive causes of loss
\ninclude faulty workmanship\/maintenance and machinery breakdown.
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"