Duty Free & Corona Virus

Part
01
of six
Part
01

Duty Free Alcohol Sales

The total revenue generated by duty-free stores from selling alcohol is found to be $11.3 billion. The market size for India is $314 million, followed by Singapore at $300 million, the United States at $92.3 million, and Spain at $61.64 million, respectively.

Total Global Duty-Free Alcohol Sales

  • In 2018, DFWC reported the global market size of duty-free retail to have surpassed the milestone of $75 billion, registering a growth of 9.3% over 2017.
  • Additionally, ITFWA calculated the market size of global duty-free retail to be about $69.3 billion in 2017.
  • In 2017, the retail sales of wine and spirits comprised about 16.6% or $11.3 billion of the total global duty-free market.
  • According to a recent report by IWSR, the global sales of spirits at duty-free stores reached $9.2 billion in 2018. Further, it is projected to reach $10.4 billion by 2023.
  • In 2018, the top five largest duty-free store operators by revenue were Dufry ($8.69 billion), Lotte Duty-Free ($6.9 billion), The Shilla Duty-Free ($6.2 billion), China Duty-Free Group ($6.1 billion), and Lagardère Travel Retail ($4.7 billion).
  • In 2018, the total volume of spirits sold across global duty-free stores stood at 24.5 million nine-liter cases.
  • Johnnie Walker is the top-selling spirits brand at duty-free stores by volume; it is followed by Jack Daniel’s, Chivas, Absolut, and Hennessy.

Regional Sales

  • Asia-Pacific is the largest market for spirits sold across duty-free stores in the world. In 2018, the region sold spirits worth $3.21 billion, followed by Europe at $3.09 billion, North and South America at $2.07 billion, and Africa-Middle East at $854 million.
  • Europe featured the highest sales volume at 11.23 million cases, followed by North and South America at 5.38 million cases, Asia-Pacific at 5.11 million cases, and Africa-Middle East at 2.77 million cases.
  • According to TFWA, the total duty and tax-free sales in the Asia-Pacific region for wines and spirits segment was $4.2 billion in 2018.
  • According to a report by DFWC, about $12.9 billion was spent on duty-free and travel retail in North and South America. Further, only $1.9 billion was spent on aviation duty-free stores in the US and Canada.

India

  • The Indian duty-free market generated a revenue of more than $500 million in 2019. The arrival sales generate nearly 70% of the total revenue for duty-free retail, while the departure sales account for 30%.
  • It is reported that liquor accounts for more than 65% of the total revenue for duty-free retail in India. Further, the arrivals generate about $220 million, while departures account for about $94 million. Hence, the total market for alcohol sales in India is more than $314 million.

Singapore

  • DFS was the only duty-free operator at Changi airport to offer liquor and tobacco products. The retailer operated 18 stores across the airport and primarily generated its revenue from alcohol sales during passenger transits.
  • In 2018, the total sales for DFS stores at Changi airport were over $430 million. Further, around $400 million was generated in departures, and the balance from arrivals.
  • It is noted that spirits and wines accounted for nearly 68% ($272 million) of sales from departures and almost all the sales from arrivals, i.e., about $30 million. Hence, the total revenue generated by sales of alcohol at Changi Airport was over $300 million.
  • In 2019, the global retailer announced not to extend its lease agreement, and South Korea’s Lotte Duty-Free took the opportunity to gain presence in Singapore.

South Korea

  • The total revenue generated by duty-free stores in South Korea was $13.6 billion in 2017. It is noted that 87% of all South Korean travelers visit a duty-free shop, and 42% visit a duty-free shop to purchase alcohol. Further, about 23% visitors buy some alcoholic drinks from the duty-free shop, registering a conversion rate of nearly 54%.
  • Seoul Incheon is the largest international airport in South Korea; it generated a total sales of $2.4 billion from duty-free stores in 2018. The revenue from liquor and tobacco sales accounted for 23% or $540 million during the period.
  • The average amount spent on purchasing alcohol from duty-free is significantly higher in South Korea at $161 vs. $110 globally.

United States of America

  • Hudson caters to over 300,000 daily visitors in 88 terminals, spread across 1,028 stores in the continental US and Canada. The company features concession agreements with 24 of the 25 top airports in the US.
  • In 2018, the company generated annual revenue of $1.92 billion, of which only 5% ($92.3 million) of the revenue was generated from sales of spirits and wines.
  • It is noted that among the leading duty-free retail operators in the US, the largest three companies are owned and operated by Dufry AG, including the World Duty Free Group (WDFG) and Hudson Group.

Spain

  • Aena is the world's number one airport operator with 46 airports and two heliports in Spain. The company manages more than 293 million passengers annually.
  • Aena has leased the contract to operate duty-free stores across 25 airports in Spain to Dufry AG.
  • In 2018, the total revenue generated by duty-free stores was €344.82 million ($385.27 million). Further, the annual report for Dufry AG stated that the revenue generated from sales of wine and spirits stood at 16%. Hence, the total revenue generated by duty-free stores from sales of alcohol at Spain's airports was calculated to be $61.64 million.
Part
02
of six
Part
02

Duty Free Alcohol Sales Trends, Part 1

Some trends surrounding global duty-free alcohol include growth in sales volume which is expected to grow to $3.74 billion by 2026. The preference for whiskey is another factor contributing to the growth of duty-free alcohol sales.

Volume of Sales

  • The global duty-free alcohol sales volume was estimated at $2.94 billion in 2019. According to Allied Market Research, the sales volume of the global duty-free alcohol market is expected to increase to $3.74 billion by 2026.
  • The sales volume is therefore anticipated to increase at a CAGR of 9.4 percent.
  • In 2018, Europe accounted for the highest share of duty-free alcohol sales, due to wealthy Middle-Eastern, Chinese, US, and Russian tourists.
  • The Asian-Pacific is, however, expected to grow at the most, with a CAGR of 6.2 percent by 2026.
  • In India duty-free liquor sales are expected to reach $800 million by 2025, a sharp increase from $200 million in 2017.

Urbanization

  • The trend in duty-free alcohol sales is driven by the rapid growth of urbanization.
  • The rising urban population, particularly in Europe and the Asian-Pacific, is anticipated to witness high growth, which will drive the overall growth of the duty-free alcohol market.
  • Another driver of the trend is the growth of the travel and tourism industry due to changes in lifestyle, tourism promotion, and the increase in frequent fliers and passengers.
  • The improvement in the world’s economy and the growth of disposable income are other key factors that are driving the increase of duty-free alcohol sales.
  • Companies at the forefront of the trend include Diageo, Bacardi, Ricard, Heineken, and Brown-Forman.

Alcohol Preference

  • The sales of Whiskey accounted for the largest share of the duty-free alcohol market due to growth in the global consumer base.
  • The Whiskey segment contributed to more than a third of the global duty-free liquor sales in 2019, which is expected to continue between 2019 and 2026.
  • The top three brands that dominated the duty-free alcohol sales in 2018 were all whiskeys, namely Johnnie Walker, Jack Daniel’s, and Chivas.
  • The whiskey consumer base is increasing across the globe.
  • The preference for whiskey is driven by the reputation of the spirit. Whiskey is identified as a premium product and a key indicator of taste and sophistication
  • The trend is also driven by the high demand for Irish Whiskey from millennials.



Part
03
of six
Part
03

Duty Free Alcohol Sales Trends, Part 2

The duty-free business model is evolving as consumer demographics and purchase patterns change. Liquor brands are trying to attract these consumers with personalized and enhanced shopping experiences and by providing exclusive and premium products. Meanwhile, the coronavirus outbreak had a profound impact on duty-free shop sales, including alcohol brands. However, some analysts believe this trend will be short-lived.

Duty-Free Shops are Suffering the Effects of the Coronavirus

  • In 2019, insiders and experts were optimistic about the growth of the industry, driven by millennials and Chinese middle-class consumers. Market reports, as recent as October 2019, expected the market to flourish, despite political uncertainties such as Brexit and the China-USA trade war. However, the narrative changed in the first months of 2020, and as the Wall Street Journal observed, duty-free shops and airport retailers are now "under siege from the coronavirus."
  • The Asian hubs are the most affected, and duty-free shops are suffering from the loss of foot traffic. The Moodie Davitt Report, a travel retail intelligence service provider, reported that airport retail at some major Asian hubs had plunged 60% to 70% due to the coronavirus.
  • Martin Moodie, chairman of the report, claims that this is the greatest crisis the travel retail sector has ever faced, even worse than SARS, the Gulf Wars, and significant financial crises. It is not surprising, considering how much the airport retailers relied on Chinese travelers.
  • In February 2020, a survey was conducted with over 1,000 international travelers from the UK, the US, Australia, and Asia, who are regular duty-free shoppers, to discover how their habits have changed. More than one-third stated that they would spend less time in a store, not purchase if they needed to wait in line, and would be less likely to touch or pick items.
  • With the growing number of consumers who want to go straight to the departure gate to reduce their exposure, the crisis is growing to a point where transport authorities in Singapore and Thailand began to offer rent relief to airport retailers to help reduce costs and protect jobs. Hong Kong's airport authority is expanding an earlier relief package as well, expected to reach $205 million.
  • Some analysts are comparing the recent outbreak with the 2013 SARS, albeit some claim is not a perfect comparison. If the coronavirus mirrors a pattern similar to the SARS outbreak in 2003, the reduction in liquor companies' earnings could be significant but probably short-lived, experts predict.
  • During the SARS outbreak, spirit volumes in the travel retail channel in the Asia Pacific fell by 1.6% in 2003 but rose again in 2004 by 5.9% and 5.2% in 2005. Cognac and Scotch, critical categories for the Asian travel retail market, also suffered. Cognac fell by 7.3%, and Scotch fell by 1.5% in 2003, but picked up in 2004, with volumes increasing by 7% and 6%, respectively.
  • For instance, Remy was hit with a 23% decline in quarterly global cognac sales between April and June 2003, which was then succeeded by a rebound in the subsequent quarters. Likewise, Pernod and Diageo's impact from SARS was offset entirely within a year.
  • Moody's analysts noted, however, that during the SARS outbreak, the market was not as reliant on the Asian market as it is today.

Companies being Affected by the Coronavirus

  • Moody's report predicts that Europe's most prominent spirits companies could take massive hits in the next months from the outbreak, due to the loss of duty-free sales and supply disruptions across China.
  • UBS found that the brands Brown-Forman, Diageo, Pernod Ricard, and Rémy Martin are "most exposed" to a dip in travel retail. "We expect the coronavirus to compound recent weakness in Asia Duty-Free that resulted from unrest in Hong Kong," the UBS analysts wrote.
  • Duty-free shops, in general, are taking the hits. Lotte Duty-Free is taking steps to protect its employees and customers, and created an emergency response committee. China Duty-Free Group has closed its successful CDF Mall in Haitang Bay, which was one of the world's most famous duty-free locations, generating $1.98 billion in sales in 2019.

Personalized, Digital and Enhanced Shopping Experiences

  • The duty-free business model is evolving. New consumer profiles are bringing new purchase patterns that need to be addressed. Companies that wish to thrive in this market need to be innovative, agile, and pursue customization and enhanced shopping experiences to find success.
  • Duty-free shops used to be the place consumers would find lesser-known or luxury brands at lower prices than traditional stores. However, technology, geopolitical disturbances, and e-commerce changed that scenario. Erik Juul-Mortensen, the former president of the Tax-Free World Association, stated in 2018 that the travel retail industry has "never before faced so many challenges to its operating environment on a global scale."
  • His words were corroborated by his successor, Alain Maingreaud, who said that despite the growth, the global duty-free market is facing many threats, including the "increasingly draconian policies around the sale of alcohol and tobacco products."
  • With consumers becoming increasingly tech-savvy and prices no longer being as attractive as they once were, the duty-free liquor industry is attempting to draw more consumers by providing enhanced and luxurious shopping experiences, with better service, convenience, exclusivity, and high-end product merchandising.
  • Consumers are also integrating their shopping experiences at duty-free shops with third-party online platforms, such as Alibaba's pre-travel duty-free platform, WeChat, Jessica's Secret, among others. Kian Gould, the CEO and Founder of AOE, believes that integrating these third-party vendors into retail travel ecosystems will change the industry.
  • Mark Childerhouse, the Director at Pioneer Group, states that personalization and making high-end shopping and attainable luxury for travelers are the biggest trends in airports for 2020. He further adds that shops need to focus on delivering experiences that are either super convenient or a luxurious experience. For reference, airports accounted for three-fourths of the global duty-free liquor market revenue in 2019.
  • For example, Mumbai Duty Free trains its front staff at arrival and departure terminals to take feedback from customers on a list of questions to collect data and accordingly devise marketing strategies. Another duty-free shop trying to improve customers' experience is the Munich Airport, which recently introduced smart checkouts, allowing customers to pay for items using their smartphones.
  • While travelers plan their purchases before arriving at the duty-free store, they may still be undecided when it comes to specific spirit purchases, particularly Armagnac, brandy, and Cognac. The TFWA estimates that around 33% only make their mind when they are in the store, which makes the experience even more important.
  • The Quarterly Global Shopping Monitor 2019 showed that the new approach is generating positive results. The global customer satisfaction index has been increasing over the last two years, and 45% of the duty-free consumers that interact with staff (48%) made a purchase. The service level loses only to value for money in terms of impacting overall satisfaction, while the atmosphere/design of the shop was ranked forth.
  • The desire to attract millennials may be the secondary driving force behind this trend. Overall, millennials are less likely to make purchases at duty-free shops than their older counterparts, except Chinese millennials, whose conversion rate is one point higher than younger and older generations.
  • Chinese millennial travelers have a conversion rate of 52%, the highest among the eight nationalities examined by a recent study. Japanese millennials come in second place (35%), followed by Russians (30%), British (23%), French (22%), Brazilians (20%), Germans (14%), and Americans (11%), who have the lowest purchase rate.
  • The study shows that communication touchpoints, experience, and staff interaction are critical for these consumers, as well as planning and price comparison. The researchers concluded that millennials are more demanding than other age groups, so the brand message must be consistent across all touchpoints and media, and unique retail experience is vital to engage them.

Companies at the Forefront of the Trend

  • Hoping to understand its consumers and provide better shopping experiences, Pernod-Ricard conducted extensive market research to uncover the buying behavior of duty-free shoppers.
  • The liquor giant accounts for 25% of all wines and spirits purchases made by international travelers. It considers eight markets particularly strategic for the group: China, SAR Taiwan, South Korea, Russia, India, the UK, the US, and Brazil. Extensive fieldwork, including personal interviews and home visits, was conducted to analyze these shoppers.
  • The company used insights from the Global Travel Retail (GTR) organization to segment its consumers in four different groups: discerning value explores, quality seekers, pragmatic deciders, and bargain catchers.
  • It also found out that these consumers' decision-process is different from what it was before. In fact, only one third decides what they will purchase in the store, while one third decides at the airport, and one third makes their decisions before pre-trip.
  • The findings informed a "comprehensive new traveler-centric digital strategy that delivers tailored content at specific micro-moments when these travelers are most receptive to brand messages." They motivated the company to shift its digital spending to reach consumers and influence decisions pre-trip, as well as discovering new ways to engage millennials. The brand is also focused on improving the in-store experience and increasing brand ambassador presence at priority airports.

Affluent Travelers and Premium Brands

  • A recent report showed that consumers mostly prefer to buy premium brands of liquor at airports. This preference has resulted in premium brands moving faster.
  • The previously mentioned research conducted by Pernod Ricard discovered that in travel retail, such as duty-shop purchases, consumers are more likely to trade up and explore different parts of the range. For instance, a consumer seeking a Ballantine's 17 is more likely to purchase a Ballantine's 21 in a duty-free shop than in a conventional store.
  • The premiumization trend is driven by the increase in millennial passengers with more disposable income than before, especially Chinese consumers. Traditionally, brown spirits have dominated the market. However, vodka brands are trying to gain the market by launching super-premium products to target a rise in affluent luxury spirit buyers. Premiumization is also driving the sales of Gin in duty-free shops.
  • It is not only Chinese consumers. Indian consumers are also developing a taste for premium liquor brands, which in the country are mostly sold in duty-free shops. 8 Recently, the Commerce Ministry proposed that only one bottle per person would be allowed at duty-free shops, which caused an uproar in the industry.
  • Liquor companies are also launching products exclusive for duty-free shops. Pernod Ricard only sells some of its products in India through duty-free shops, while other brands have launched limited editions that can only be found in these stores.

Companies at the Forefront of the Trend

  • Bacardi recently launched a series of premium rum cocktail demonstrations at Schiphol Airport to encourage shoppers to make their own drinks at home, as well as offering prizes and personalized bottles.
  • Hendrick's focuses on premiumization and craft, originality and exclusivity. It offers travelers in-store promotions and experiences where consumers can engage with the brand.
  • In 2018, Greenall's Gin Brand launched two premium, artisan-inspired products for global duty-free stores. 19
  • To attract affluent travelers, the Dubai duty-free shop underwent massive renovations recently. The store entrance now features a Champagne wall designed by Moët Hennessy, while other liquor categories gained luxurious displays.
Part
04
of six
Part
04

Coronavirus and Air Travel: North America

Due to the coronavirus outbreak, about 45% of luxury passengers in the US are canceling trip plans up to April, and 10 Canadian airports have employed more signage to alert travelers of symptoms and guide them to resources. Also, all three US airlines that serve China have canceled flights into late April and are waiving cancellation and change fees for China and South Korea due to a dramatic decline in demand.

Canceled Trips by Luxury Passengers

  • According to Jack Ezon, managing partner and founder of the US-based luxury lifestyle and travel planning company, Embark, about 45% of the company's high-net-worth clients have been canceling trip plans up to April. However, the clients have rebooked about 50% of those canceled trips to things that they feel more comfortable with, such as canceling a family trip to Amsterdam and rebooking them to Nashville.
  • Ezon added that beyond April, just 2% of travelers are canceling their journeys, as they are writing off the outbreak as "a bad cold."

Extra Signage in Canadian Airports

  • As of February 28, 2020, 10 Canadian airports have employed more signage in English, French, and simplified Chinese to alert travelers of symptoms and guide them to resources. These include the three airports that are most likely to receive visitors from China — the Toronto Pearson Airport, the Vancouver International Airport, and the Montreal-Pierre Elliott Trudeau International Airport.
  • Also, at these airports, new electronic kiosks have been provided, at which international travelers will be required to answer screening questions. Upon arrival in Canada, travelers who are not showing symptoms will be given handouts with advice, while border services officers will detain those showing symptoms. The border services officers will then contact a PHAC quarantine officer for a more detailed assessment.

All Major US Passenger Carriers Suspend Flights to China

  • Due to the coronavirus outbreak, airlines around the globe have canceled over 200,000 flights, mainly to, from, and within China. These include all three US airlines that serve China — Delta Airlines, United Airlines, and American Airlines, who have all canceled flights into late April due in part to a dramatic decline in demand.
  • Apart from their suspension of flights to mainland China and Hong Kong, all three major US passenger carriers are waiving cancellation and change fees for China and South Korea due to the decline in demand.
  • The US is also restricting inbound flights from China or other countries with US passengers that have been to China within the preceding 14 days to 11 major airports in the US for enhanced screening.
Part
05
of six
Part
05

Coronavirus and Air Travel: Europe

Coronavirus, or COVID-19, is reported to have currently spread to 77 countries in the world, with Europe being the hardest hit after Asia. Airlines, passengers and airports have altered their behavior in response to this with airlines carrying out massive flight cancellations, and airports and passengers have also taken extra safety precautions in dealing with the impact of Coronavirus.

Flight Cancellations

Extra Airport Safety Measures

Extra Safety Precautions by Passengers

  • Passengers from the UK have been canceling their travel plans in areas with confirmed cases of Coronavirus. This is a pattern that has replicated across Europe and the world over, with IATA predicting that COVID-19 will cost the aviation industry more than $29 billion in 2020.
  • The adorning of facial masks has been experienced among travelers in the UK, Germany and across other areas with COVID-19 infections in Europe despite growing evidence that masks may not be able to prevent Coronavirus infections.
  • Travelers are also very reluctant to make travel bookings. Since the outbreak of COVID-19, France has experienced a 30-40% decline in inbound tourism, particularly from China where flight reservations to Paris are reported to be down by a whole 80%. IATA predicts that the aviation industry as a whole will experience a full-year passenger demand loss of approximately 13%.
Part
06
of six
Part
06

Coronavirus and Air Travel: Asia

Since the outbreak of Corona Virus (COVID-19) in December 2019, the Air travel industry in Asia has seen a major decline, the first since the 2008 financial crisis. This has prompted a change in the behavior of passengers, airports, and airlines as stakeholders are taking measures to control the spread of the virus. Airlines in the APAC region are expected to lose a total of $27.8 billion in 2020, with a $12.8 billion loss in China alone. Passengers are less willing to travel and airlines are trying to cut costs even as they count losses.

AIRLINES ARE TAKING PREVENTIVE MEASURES


AIRLINES ARE CUTTING COSTS

AIRPORTS ARE IMPLEMENTING RESTRICTIONS AND PREVENTIVE MEASURES

  • Across various airports in Asia, health inspections, including medical surveillance, temperature checks, and longer custom and immigration procedures are being implemented. The affected airports include Beijing Capital International Airport (ZBAA), Shanghai Pudong International Airport (ZSPD), Shanghai Hongqiao International Airport (ZSSS) and Shenzhen International airport (ZGSZ) airports among others.
  • Several Asian countries/cities have also banned or placed restrictions on the entry of nationals of countries affected by COVID-19. Hong Kong, Japan, Singapore, and North Korea have all placed restrictions on the entry of non-nationals who have been to the affected areas in the last 14 days.
  • The Hong Kong City Airport Authority has stated that Hong Kong airports will be "stepping up" on cleaning and disinfection. Planes arriving from Wuhan will be parked at a different terminal and constantly disinfected by a cleaning contractor.
  • Airports in India and Indonesia are increasing surveillance measures, including "screening international passengers with thermal scanners."

AIRLINES AND PASSENGERS ARE CANCELLING FLIGHTS

  • Since the first confirmed case of COVID-19, more than 200,000 flights have been canceled to and from China and other affected regions, "70 airlines have canceled all international flights across mainland China."
  • According to the International Air Transport Association(IATA), due to the outbreak of COVID-19, a 13% reduction in flight demand throughout 2020 is expected.
  • Japan Airlines Co. has reduced its number of flights to China, South Korea, and Taiwan.
  • Nippon Airways Co. has "temporarily suspended" all its flights to Wuhan and Chengdu.
  • Emirates Airlines has canceled numerous flights to Iran, Bahrain, and most of China.
  • It is expected that Chinese airports will face a 30% drop in passengers.
Sources
Sources

From Part 01
From Part 03
From Part 05
From Part 06
Quotes
  • "This month, due to the travel disruption caused by the virus outbreak, Hong Kong's Cathay Pacific Airways' CEO appealed to 27,000 employees to take three weeks of unpaid leave to reserve cash as it battles a fall in demand caused by a virus outbreak. The carrier said it planned to cut about 30 percent of capacity over the next two months, including about 90 percent of flights to the Chinese mainland."
Quotes
  • "Special quarantine and health inspection procedures have been enforced in China and other locations in Asia and around the world in an attempt to prevent the spread of the virus. As of 0200Z/1000LT on 23 January 2020, all public transportation including flights have been suspended in Wuhan and Wuhan Airport (ZHHH) was subsequently closed. In Shanghai Pudong Airport (ZSPD), effective 28 January 2020, all crew and passengers on international business flights will clear Customs & Immigration procedures in Terminal 1. The complete procedure will be longer than usual due to the latest CIQ requirement. "
  • "For all arrivals/ departures, crew and passengers are subjected to temperature checks. Health Declaration Forms are also required for international arrivals in ZBAA and ZGSZ. New health inspections are also being enforced at Beijing Capital International Airport (ZBAA), Shanghai Pudong International Airport (ZSPD), Shanghai Hongqiao International Airport (ZSSS) and Shenzhen International airport (ZGSZ) airports."
  • "Hong Kong residents returning from Korea (except Daegu and Gyeongsangbuk-do) will be required to undergo medical surveillance for 14 days. Quarantine orders will be issued under the Prevention and Control of Disease Regulation (Cap. 599A) to Hong Kong residents returning to Hong Kong who have been to Daegu and Gyeongsangbuk-do in Korea in the past 14 days and arrange them to stay in quarantine centre for quarantine. (Duration of quarantine centre = Last day leaving Daegu/Gyeongsangbuk-do + 14 days.)"
Quotes
  • "Hong Kong city’s Airport Authority said planes arriving from Wuhan — roughly a two-hour flight away — will be parked at a designated area and that a cleaning contractor will disinfect the terminal where passengers are arriving from the city, the capital of Hubei province. Cleaning and disinfection in the airport will also be stepped up as a whole, it said. Flag carrier Cathay Pacific Airways Ltd., in response to complaints from its cabin crew union about risk of “catastrophic” infection, on Wednesday said staff could wear protective face masks on flights to China if they wanted. The airline is also waiving rebooking, rerouting and refund charges for all tickets issued before Jan. 21 for travel to or from Wuhan between Jan. 21 and Feb. 15."
  • "In South Korea, Korean Air Lines Co. is providing hazardous-materials suits for crew on planes and plans to disinfect aircraft flying to Wuhan daily, as opposed to monthly, while Tway Air delayed plans to launch a new route from Incheon to Wuhan, Yonhap News reported, citing a company official. The country confirmed its first infection on Monday."
  • "North Korea: The county has temporarily closed its borders to all foreign tourists as a precaution against the virus, according to travel agent Young Pioneer Tours."
  • "Singapore: Changi Airport is increasing surveillance on all passengers from China, rather than just those arriving from Wuhan. Low-cost carrier Scoot said it’s made arrangements to distribute a health advisory to all passengers arriving from Wuhan. Disinfectants, hand sanitizers and surgical masks are being supplied on all China flights."
  • "Mumbai’s Chhatrapati Shivaji Maharak International Airport has increased surveillance measures. Delhi Airport staff are checking inbound passengers from affected areas, it said in a statement."
  • "Indonesia: Airports and airlines have been asked to take precautionary measures such as screening international passengers with thermal scanners. Airlines must provide health documents and manifests after landing, Director General of Civil Aviation Polana Pramesti said in a statement."
Quotes
  • "Airlines have already canceled more than 200,000 flights, mostly to, from and within China because of the virus. Now they are mulling other changes and scrambling to keep up with changing restrictions."
Quotes
  • "The International Air Transport Association (IATA) announced that the Covid-19 outbreak is expected to result in 13% full-year loss of passenger demand for airline operators in the Asia-Pacific region. The loss is expected to cause a revenue loss of $27.8bn in 2020 for the carriers. Majority of the impact is projected to be on those carriers registered in China, who are expected to lose $12.8bn in the domestic market."
  • "All passengers arriving in Malaysia are being screened for symptoms of coronavirus. Airline operators are also issuing Health Alert Card (HAC) to passengers to indicate their health status. Malaysia Airlines has cancelled many of its flights to Shanghai, Beijing and Hong Kong."
  • "Thailand is implementing thermal screening at all of its 28 airports managed by the Department of Airports (DOA), which has directed to use thermal scans and thermometers. Thermal scanning is being performed at the U-Tapao Rayong-Pattaya International Airport managed by the Royal Thai Navy as well. Hygiene measures are being implemented at all airports and tourist destinations."
  • "The Ministry of Civil Aviation, India, announced multiple preventive measures against the Wuhan coronavirus initially at 11 airports including Chennai, Vishakapatnam, Bengaluru, Bhubaneswar, Hyderabad, Cochin, Delhi, Mumbai, Amritsar, Kochi, and Kolkata. Thermal screening was extended to 20 airports with the infection spreading to other countries quickly and thermal cameras have been installed and airport signage being displayed at all the airports. Arriving passengers that travelled to Chinese cities such as Wuhan in the preceding 14 days and having symptoms of the viral infection are being asked to provide a self-declaration, while international passengers from China and Hong Kong are being screened at the pre-immigration areas of the airports. "
  • "Taiwan has temporarily closed e-gates at airports to foreigners, including those with Alien Residence Certificates (ARCs), in order to ensure effective screening. Foreigners that visited China, Hong Kong, and Macau in the last 14 days are disallowed entry into the country."
  • "The United Arab Emirates has banned all flights to Iran, where coronavirus cases have spiked. Major airports in the UAE including Abu Dhabi and Dubai have started thermal screening of passengers on direct flights from China. The Imam Khomeini International Airport in Iran has also started health screening for patients."
Quotes
  • "Airlines in the Asia-Pacific region will lose $27.8 billion in revenue in 2020 due to the COVID-19 crisis, an industry body has estimated."
  • "With global demand for flights falling for the first time since the 2008 financial crisis, demand in the region is expected to contract 8.2 percent from the previous year, a downgrade from a 4.8 percent projected increase before the outbreak of the new coronavirus took hold in China, according to the International Air Transport Association. The bulk of revenue loss will be borne by airlines operating in China, with $12.8 billion to be lost in that domestic market alone, the IATA said Thursday."
  • "Japan Airlines Co. has reduced the number of flights it operates from Japan to South Korea and Taiwan through late March, and has made further cuts to services to China. All Nippon Airways Co. has temporarily suspended services from Narita Airport to the Chinese cities of Wuhan — the center of the outbreak — and Chengdu."
  • "Cathay Pacific asked employees to take three weeks of unpaid leave to help it weather the crisis."
Quotes
  • "Emirates is asking staff to take unpaid leave for up to a month at a time, adding that many employees wish to exercise this option. Emirates has already canceled flights to Iran, Bahrain, and most of China. "
  • "Cathay Pacific has canceled more than three-quarters of its weekly flights in March."
  • "China’s airports are projected to face a 30% drop in passengers in 2020."
  • "Hong Kong Airlines will cut 400 jobs and reduce its daily operations by 63% starting February 11 and continuing until March. It has also asked its ground staff to take a minimum of two weeks unpaid leave per month, or switch to working three days a week between February 17 and June 30."
  • " China Airlines has replaced tablecloths, napkins and head pads with disposable alternatives. Cathay Pacific is servicing a hot snack in economy rather than a tray service, and serving business-class courses all at once"