Virus cripples travel industry

AUSTRALIA’S response to the global coronavirus outbreak was “on the money” but it was a wait-and-see for the airline industry on when it will recover from crippling suspensions, Virgin Australia board member Sir Angus Houston said yesterday.

American Airlines became the first major airline to this week announce it would be extend suspension of flights to China and Hong Kong till the end of April, citing waning demand from passengers fearful of contracting the disease. Widespread schedule cuts by other airlines, government imposed travel restrictions and health warnings are expected to have a devastating effect on the air industry and tourism.

Leading air transport data consultancy group OAG has already noted airline seat capacity in and out of China has dropped by two thirds, or more than 1.4 million seats; the most significant ever recorded for a country.

But Sir Angus said it was too early to say how badly the broader industry had been affected.

Earlier this month Virgin Australia announced it would cease all services between Australia and Hong Kong citing declining demand in the wake of months of civil protests and “growing uncertainty” over coronavirus.

“We are still flying aircraft around Australia and all the other routes and I believe Qantas is too and we will just have to see how things develop from here.

“Hopefully the steps being taken by authorities in China and the authorities elsewhere in the world will basically keep the thing controllable, it looks like a very serious issue in China but touch wood thus far it’s not so much of a problem in other countries and whether it becomes so remains to be seen,” he said.