Economic Policy Implications of the COVID-19 Pandemic in Air Transport

Abstract

global air transport passenger traffic has been particularly affected by measures to combat COVID-19. Since February 2020, both the number of global passengers and passenger flight kilometers has decreased worldwide — in Western Europe by about 80 % by the end of 2020. These developments have caused financial losses for both airlines and airports worldwide, critically threatening the existence of a large number of these companies. As the industry is of great economic importance, special government support measures could contribute to the economic recovery of the aviation industry. However, not only should certain companies be supported, but the support measures should be linked to defined and transparent criteria.