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Bizav Demand Dip Deepens As Covid-19 Closes Factories

Those looking for silver linings in the dark clouds over business aviation this week found themselves squinting to see any. If the Covid-19 pandemic’s repercussions for the industry still seemed ambiguous at the end of last week, there is now little doubt that the sector’s engines are spooling down and the industry is bracing for a period of inactivity. The only remaining questions seem to be for how long this might last and whether it could prove to be more than just a temporary interruption to what until now has been a rising tide for business aviation.

For now, the prospect of restrictions on domestic U.S. flights seems, mercifully, to have been averted. But elsewhere, the past few days have brought more worrying signs, such as business aircraft factory closures at Bombardier and Embraer, on the heels of Textron’s earlier furlough announcement.

In the UK, Harrods Aviation announced the temporary closure of its FBOs at London Luton and Stansted Airports, and London City Airport has closed at least until the end of April. The British Business and General Aviation trade group on March 26 warned that by the end of the month the country’s entire business aviation fleet will likely be grounded.

More discouragingly, there are signs that Asia is bracing for a second wave of coronavirus cases and taking steps to block new sources of infection by further restricting travel from other countries. From March 26, the Chinese government was effectively closing its border to all foreign travelers, bringing the crisis full circle from early February when it was Chinese citizens who found themselves persona non grata in a world that then largely saw the outbreak as a local problem.

As demand for passenger repatriation flights began to tail off towards the end of this week—an activity complicated by the need to navigate tightening government restrictions—operators found themselves increasingly shifting to cargo-carrying roles and flights in support of emergency medical operations. Charter broker Chapman Freeborn yesterday reported a surge in demand for aircraft to move humanitarian cargo and medical supplies. However, according to the European Business Aviation Association, some were adversely impacted by overly-rigid interpretation of rules by some national authorities, even though these missions are permitted under most current travel bans.

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