CORONAVIRUS IS KILLING THE AIR CARRIERS AND TOURISM INDUSTRY

Immediately after this report, the decision for the fight against infection was made in the operational headquarters of Russia to ban direct flights to Italy, Spain, Germany and France. Starting from March 13, charter flights will be allowed to these countries, but tickets for these flights will only be purchased by foreign citizens. Reverse charters from these countries will also be organized, but exclusively for Russian citizens to return back to Russia. We should remind that before this restriction touched flights to China, Iran and South Korea.

Of course, taking into account the collapse of the ruble, the current situation cannot but affect air carriers and tour operators both. Many Russians are aware of the risks of being at the epicenter of infection and canceling trips abroad. This happens due to the compulsory quarantines, introduced for Russians upon arrival from other countries - yesterday's tourists are not happy about the prospect of being locked up for several weeks after their holidays.

Air carriers sound the alarm and state the need to redistribute the freed-up carrying capacity within the country, which will increase competition and reduce the profitability of transportation. “UTair” CEO called the situation a serious challenge for the market and the regulator both.

When it comes to the tour operators, they face the same problems. The top manager of “TUI Russia” said that a current huge decline in sales has been recorded in the tourism market. He expressed concern about the immediate and very real prospects - the industry is facing massive bankruptcy. This can affect tour operators and travel agencies both.