Malaysia says aviation firms may need three years to recover from Covid-19

KUALA LUMPUR, Nov 12 (Reuters): Airlines in Malaysia could take three years to bounce back from the coronavirus pandemic, depending on the outbreak in the country and abroad, the transport ministry said.

Transport Minister Datuk Seri Wee Ka Siong said earlier this week that in the Malaysian Aviation Commission's (MAVCOM) revised projections for passenger traffic this year, it expects passenger numbers to shrink as much as 75.6% to 26.6 million, compared with the 109.2 million passengers recorded in 2019.

"In this regard, airlines are expected to need a period of three years to fully recover the situation from the impact of the COVID-19 epidemic, subject to the of the outbreak in the country and abroad," Wee said in a written parliamentary reply dated Monday.

Airlines globally have taken a hit from the pandemic as governments shut borders and grounded flights to contain the spread of the virus.

MAVCOM first revised lower its 2020 passenger traffic forecast in June, expecting a contraction of as much as 50.3%, to 54.3 million passengers.

Wee said passenger demand had fallen from 280,321 a day in January to 59,378 a day in September, adding that the ministry continued to work with the Tourism Ministry and airlines to increase the public's confidence to use aviation services to revive the domestic tourism sector.

For international tourism, he said the ministry "welcomes the government's efforts to implement the concept of travel bubbles to some countries such as Singapore, Brunei, Thailand, Vietnam, New Zealand, Australia, South Korea and Japan".

Malaysia's national carrier Malaysia Airlines and the long-haul unit of AirAsia Group Bhd, AirAsia X Bhd , have both cut staff and announced restructuring plans.

AirAsia Group has also lowered its market recovery expectations.

The Malaysian arm of Indonesia's Lion Air, Malindo Air has also launched a retrenchment exercise. - Reuters
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Aseanplus News

Asean News Headlines as at 7pm on Thursday (Feb 25)
Supporters of Myanmar military coup rampage in Yangon (Update)
Fatal abuse of Myanmar maid: Singapore govt to review three areas to ensure it doesn't happen again
Indonesia hunts for missing after mine collapse kills six (Update)
One week with no new Covid-19 cases in Brunei
Laos ministry seeks to reduce number of child workers
New Zealand and Vietnam boost agricultural ties
Indonesia starts mass vaccination for journalists
US applauds improving labour conditions in Cambodia
Philippines logs 2,269 new Covid-19 cases, total reaches 568,680

Stories You'll Enjoy