Singapore has recorded the highest number of grounded flights on the back of the Cover-19 pandemic, media reports said. In fact, the pandemic has led to $160 billion worth of insured aircraft to be grounded. This is according to a report published by Gallagher, a global insurance brokerage and risk management firm.
With that, Singapore has 205 flights stationed while Hong Kong has recorded 178. Madrid has 158 idle planes and New York has only 40 planes stationed at the moment. In fact, New York is one of the busiest airports in the world.
Bruce Carman, chief underwriting officer at Hive Aero, said in the report, “There will be airline failures, meaning unpaid premiums and bad debt Carman added that airlines are likely to seek refunds of their premiums due to the huge drop in passenger numbers.”
More recently, it was reported Singapore Airlines is facing challenges as it is the major carrier to ground its aircraft, with a few flights in operations. This points to the fact that the airline will slash flight capacity by 96 percent until April.
Singapore Airlines is one of Asia’s largest international carriers.The airline said in a statement that it is uncertain whether it would resume normal operations soon. It is reported that Asia’s airlines might lose $60 billion in revenue from slashing flight capacity because of the pandemic.
The number of flights operating globally have been dramatically reduced with at least 65 airlines slashing their flight capacity to at least 95 percent, media reports said. This implies that the aviation industry might face a financial crisis.