International News
CHIEF MELBOURNE AIRPORT URGES PEERS TO PREPARE FOR A POST-COVID BOUNCE
The fall is part of an aviation global shock that has seen airlines dramatically cut back capacity as demand has plummeted.
The head of Australia’s Melbourne Airport has urged airports to play a stabilizing role in the COVID-19 crisis that will help the aviation industry bounce back quickly when the time comes.International passenger numbers at Melbourne Airport slumped 17 percent in February and management is bracing for worse to come. Sydney Airport recorded a similar drop.The fall is part of an aviation global shock that has seen airlines dramatically cut back capacity as demand has plummeted.
But shocks pass and Melbourne Airport chief executive Lyell Strambi says his airport will continue to build so it is ready for an expected rebound after the crisis.“We’ve seen major disruptions to the travel industry many times before, from the loss of Ansett to 9/11, from SARS to the global financial crisis,’’ said Strambi, a former senior airline executive.
“In every case, travel takes a hit, and in every case – once the immediate crisis has passed, the industry comes back stronger than it was before.“Therefore, notwithstanding these – hopefully – short term pressures, we’re continuing to build.”Strambi said Melbourne Airport had been working hard to catch up to the enormous growth in passenger volumes over the past decade.He said new gates, taxiways, baggage systems and runways would still be needed when the industry rebounded.
“None of our infrastructure pipeline can be done incrementally – you can’t build just the first 20 percent of a baggage carousel – and in order for airline businesses to recover on the other side of this issue, we need to support every single flight that every single airline wants to operate when they’re ready,” he said.“We are very much in the midst of some short-term pain, but the aviation sector as a whole is resilient and it will emerge and thrive when consumer and business demand returns.“Until that time we are focusing on operating safely and sustainably in the short term, which is the support the whole Melbourne Airport community needs – whether that’s our people, our partners or the millions of passengers who are still traveling.”
The global response to COVID-19 saw 150,000 fewer overseas travelers passing through the airport’s doors in February as global travel demand slumped.Travel bans on China were the main contributor to the dramatic decline, but restrictions on other countries also took their toll.Domestic traffic dropped 5.2 percent for the same period, down 100,000 passengers compared to the same period last year, and overall traffic was down 8.8 percent.
“These are unprecedented circumstances buffeting our customers, and we are keenly aware that all our airline customers are hurting as a result of diminished passenger demand,’’ Strambi said.“That’s why we are working with every single airline to understand how we can best support them at this time.“February’s drop in passenger numbers was significant, but we expect that to be amplified even further in March – and possibly again as we head towards the Australian winter.”
Strambi said every passenger lost by an airline produced an impact felt many times over throughout the sector and at the airport.“Airport operators charge agreed fees to airlines on a per-passenger basis, meaning that airlines don’t pay landing or terminal fees on any empty seat,’’ he said.“The passenger who doesn’t fly also doesn’t catch a SkyBus, or an Uber, or a taxi.“They don’t buy a coffee or a book, grab a meal or pick up a souvenir. And that’s compounded even further when airlines start canceling services and reducing their staff on the ground – removing daily customers from airport restaurants and bars and cafes in addition to the lost passenger traffic.
“Just as we’re working with every airline to identify ways to work together to ease the pain right now, we’re also doing likewise with every retailer, every kitchen, every transport operator.”
The airport chief noted Melbourne Airport was particularly fortunate to have a strong balance sheet and a supportive board going into “this turbulent period”.
