Russian incursion on Ukraine has imposed many heavy challenges in front of global aviation industry, since the war has begun many flights has to opt for other alternative routes which is causing the aviation industry to bear the burden of extra operating cost. Sky rising cost of Aviation Turbine Fuel is breaking the back of airline operating firms all around the world, Let’s discuss the key factors this industry may face due to this Russian-Ukrainian clash.
Russia has allegedly banned airlines from 36 countries, including 27 EU nations, as a response to sanctions imposed on the country for the Ukraine invasion.
Russian airspace is important for many flights as it has an exclusive benefit due to geography thus it provides a crucial Asia-Europe corridor and airlines saves money and fuel. For example flights from the U.S to Asia often use routes over the North Pole and then fly down over Russia into China, Japan, Singapore and towards South Asian Countries. The sudden war has pushed airlines to concern long routes, which in-turn will cause them bear extra cost on fuel.
Increased Oil Price
As the world considers ways to sanction Russia, the Russian fuel supplies is being threatened. Rising crude price will have a direct impact on airfares for both international and domestic. Increasing fuel cost will result in higher ticket price resulting 46% of the customers who were planning air travel are likely to either take and alternative mode of travel while 14% are likely to wait for airfares to drop to book their travel.
Airlines manufacturing industry require Titanium and Russia produce it in huge quantity
Titanium being one of the strongest metal because of its strength and weight ratio, is a vital element with respect to the production of aircraft across the globe. Russia is the third-largest producer of titanium in the world and contribute 15% to 20% of total global titanium production which means that a cutoff in this supply could slow the production lines for aircraft and engine manufactures. A shortage in titanium could come from manufacturers refusing to buy it, to put pressure on the Russians. Or it could come from the Russians cutting off supply in retaliation for other sanctions placed against them.
Customers are being afraid to travel Europe
Summer 2022 was looking to be strong for both domestic and international traveler to Europe after a two years of restrictions of covid pandemic dilemma. This may still happen however a war in Europe no doubt will make at least some people to re-think their travel plans. The reason is the geography, countries adjacent to Russia and Ukraine like Poland, Romania and even those who share their borders with neither of them but has indirect involvement in this war for example France, Britain and Germany may be seen as risky for summer 2022 travelers if tensions escalates.
The aviation industry has faced two years of significant challenges, and it is unfortunate that as the pandemic begin to decline, they get no rest before dealing with more trouble.