Impacts on Aviation Sector due to the War between Russia and Ukraine by Darshana Khandelwal #Cancellation of Flights #OneWorld #Higher Fuel Prices Mean Higher Ticket Prices #Re-Route Or Cancel Flights #Airline Alliances

Impacts on Aviation Sector due to the War between Russia and Ukraine

by   Darshana Khandelwal

    #Cancellation of Flights


#Higher Fuel Prices Mean Higher Ticket Prices

#Re-Route Or Cancel Flights

#Airline Alliances   

Nobody could ever think that the sudden outbreak or Conflict between two countries could affect the various sectors in this manner due to which there will be a much increase in the prices and impacts on the global economy.

Due to the war between Russia and Ukraine the Aviation Sector has been hit hard and has been impacted in the following ways

·   Cancellation of Flights

Ongoing war between Russia and Ukraine has created many difficulties. As the passengers who wanted to travel Asia from the United States prefer routes over the North pole then fly down over Russia into Singapore, China and Japan. So due to this war there is the possibility that flights could get canceled or re-routed and this is becoming a major issue among the travelers as this is resulting into delaying their essential work, covering extra distance and paying extra charges for the tickets.

·   Rise in the Prices of fuel means high prices of the tickets

There is a rise in the prices of fuel due to the conflict. In the Aviation sector fuel tends to be considered as the highest expense on the basis of labor cost. As per the study it has been recorded that due to rising fuel prices and changing the routes there will be an increase in some international air fare by over dollar 120 each way. In this way the passengers will restrict traveling through flights and they will start using the other means of transport for traveling and it will be a huge loss to the Aviation Sector.

·   Production of Titanium which is the major need of Airlines

One of the significant metals named as ‘Titanium’ is being used in engines and aircraft mainly due to its strength to weight ratio. As Titanium is being exported by Russia and a cutoff in the supply of this metal would result in slower production lines for manufacturing engines and aircrafts as this is relatively light in weight as compared to the other metals.

Impact on Aviation Sector due to the War between Russia and Ukraine


#Higher Fuel Prices Mean Higher Ticket Prices

#Re-Route Or Cancel Flights

#Airline Alliances   

The World is in panic as the Russian attack on Ukraine continues.

For Airlines around the World, the war comes at a time when the industry was feeling positive about improving demand and the reopening of many markets for both Business and leisure Travel. Here are five important ways this war could affect them:

Higher fuel prices mean higher ticket prices

Russia's fuel supplies are threatened as the World considers ways to approve them, with the most certain consequence being higher fuel costs. Markets hate uncertainty, so oil prices are likely to rise - even before any shortfall in supply is realized. Fuel is an Airline's first or second largest expense, depending on labor cost and fuel price. A rise in an Airline's fuel costs, as if they are recovering from a multi-year demand destruction, could deal a severe blow to the most fragile companies. Even Airlines with lots of cash did not plan to cover the rapid rise in energy costs, thinking instead that it was needed for an uncertain demand recovery.

Rising fuel costs would mean higher ticket prices or further delays in profits for most Airlines. The strong demand environment for leisure Travelers is due in many cases to low fares. Even beginning marketing students know that raising prices when demand is in doubt is a risky, if not foolproof, strategy. Forcing Airlines to this position could otherwise potentially result in rapid heat damage.

Avoiding Russian Airspace will reroute or cancel Flights

It's hard to imagine how important Russian Airspace is to many Flights when we look at 2D flat maps. The UK and Russia have banned each other from flying over their country. As other countries put pressure on the Russians, it is unlikely that Russia can be restricted to others as well.

Flights from the Americas to Asia often use routes to the North Pole and then Flights from Russia to China, Japan, Singapore, and more. European and Middle Eastern Airlines can use Russian Airspace for their routes to Asia and Australia. An Airline like FinnAir will need to change a significant number of its Flights due to its proximity to Russia. Qantas has already decided to avoid flying over Russia, even though Russia has not banned them from doing so.

Airline alliances will have to be restructured

Russian Airlines are partners in two of the three major Airline alliances. SkyTeam, operated by Delta and Air France/KLM, hosts national Russian carrier Aeroflot in its partner mix. On 25 February, Delta decided to unilaterally terminate its marketing relationship with Aeroflot. This prompt action will protect Delta from allegations of indirectly supporting this Russian offensive. SkyTeam as a group must decide whether Aeroflot can continue as a member, and their legal ability to do so may depend on their contractual relationship with SkyTeam.

one World

OneWorld, operated by American Airlines and British Airways, has Russian carrier JSC Siberia Airlines, known as S7, as a partner. They will also have to decide whether to put this carrier in a Worldwide alliance because Russia is isolated from the rest of the World.

Customers with tickets purchased through Alliance on Aeroflot or S7 may have trip interrupted or canceled as a result of any possible alliance reorganization. In addition, these carriers were added as partners in the alliance, especially because they served certain geographic areas that would not otherwise have been reached in the alliance. One of the advantages of Airline alliances is being able to fly anywhere in the World somewhat seamlessly. The removal of Aeroflot and the S7 will make it more difficult for some routes, and Delta's initial cutoff of marketing with Aeroflot is already affecting some customers.

Customers more apprehensive about European Travel

Summer 2022 Domestic U.S. Travel and the U.S. Traveling from Europe seemed very strong for both. It may still happen, although a war in Europe will undoubtedly force at least some people to rethink their Travel plans. The View's co-host Joy Behar received criticism when she lamented that her summer trip plans to Italy could be marred by the Ukraine war. Despite her sleazy and insensitive remarks, the underlying concern is real and many people are probably re-evaluating whether this summer is a good time to Travel to Europe.

The results may vary slightly depending on the geography. Countries adjacent to Russia, especially those that were former members of the USSR, will be seen as those most at risk for summer 2022 Travelers. Large holiday destinations such as Spain, France, Germany and the UK can still drive significant amounts of time, but these too could be at risk if tensions escalate or, worse, more countries begin to infiltrate.

Darshana Khandelwal 

#Aviation Sector #Ukraine #Airlines #Russia #Conflict

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