Problem Statement

Due to the pandemic of Covid-19 attack on many countries worldwide, for aviation
sector is the most effected due to 60% decrease in the flow of passenger traffic and the
revenues of the airport (Ilia Lioutov, 2020). This pandemic also breaks up the world economy
due to the restriction of movement especially in tourism sector for those who want to travel
around the world. If the pandemic is to longer much more in future, many airport operators
may not sustain more due to descend of number passengers. Most of countries including
Malaysia, has implemented the travel advisories and restriction or total bans to restrict people
for getting infected from the virus if they go to another countries. Thus, the aviation
industries including airlines and airport operator was being bad hit by this pandemic (Laura
Begley Bloom, 2020). Most of airlines were closed and folded due to financial issue or
bankruptcy. According to Malaysia Airport Holding Berhad (Dermot Davitt, 2020), has
increase in the revenues for non-aeronautical side in 2,161.50 million of Ringgit Malaysia in
year 2019. For the presence of this pandemic of Covid-19, Malaysia Airport Holding Berhad
says that the first quarter of 2020 were dropped by 25.4% rather than last year 2019 (FMT,
2020). In Malaysia, most airport has no activity during the first implementation of movement
control order by the government (Royce Tan, 2020). In fact, activity of aeronautical and non-
aeronautical was make the revenues of airport declining sharply for this year. This was a most
serious impact on the airport revenue and also for traffic of the air travel. Lower demand for
travelling will affect the world economy and tend to drive a lowest demand for airlines
industry (IFC, 2020).
In European countries, due to this pandemic and the implementation of lockdown by
the government was make the traffic flow of most airport in Europe falling precisely. For
quarter one of this 2020 years, the declining result of passenger traffic was in 59.5% down.

Figure: European Airports Passenger Traffic in Q1 for years 2020

Source: Airport Council International (ACI)
 Based on the figures, 59.5% is too much decline of the number of passengers travelled
in Europe in last March 2020 due to the lockdown. Most of airport were in suffer and need to
cut cost on all aspect to do the recoveries toward this pandemic. Airport Council International
(Dr. Karsten Benz, 2020), the airport sector is to suffer 60% reduction of cost toward
revenues and unexpected of 104.5 billion decline on the revenue. In addition, this outbreak of
Covid-19 pandemic suddenly has started a descend effect with the decrease of demand of
aviation services and also the number of people at the airport.

Figure: The Gross Domestic Product for year 2020 toward Covid-19 Pandemic
Source: ALG Transportation & Infrastructure (2020)

According to the figure, for the first time for this 2020, the world economy and gross
domestic product is about to be precisely downturn rather than 2009 crisis (ALG
Transportation & Infrastructure,2020). Even in Asia, United States or Europe, the airlines and
airport industry tend to have the financial impact to cover the cost even though the number of
passengers were decrease. After this pandemic of Covid-19 are to slow down, the airport
operator and airlines need to determine the factor to do some plan recoveries. The post of
Covid-19, we must follow the new normal to save the aviation industries. Zero income of
gaining the revenue such as passenger service charge, aeronautical and non-aeronautical
activity in the airport has a bad effect to be sustain in this Covid-19 pandemic. Previous
research has recognized the negative effect of these Covid-19 pandemic toward aviation and
airport managements. However, this impact can be recovered with some contingency plan
due to post Covid-19 of better airport management and gaining revenues. Thus, this
qualitative historical study is needed in order to find a solution based on the other researcher
or any article related toward the post of Covid-19 of Airport in future. We hope that this
research study could help the global airport operator or aviation sector to lessen the burden of
Covid-19 pandemic.
9.0 Data Analysis
The data that we gather for this research study is from any related article, other
researcher studies toward this Covid-19 global pandemic to future airport management. The
data analysis for our research study will be done in two steps. The first step, we search for an
article, scholar, journal, or any related news over the internet regarding the post of Covid-19
to the airport industries worldwide. The second way that we analyze the intensity of the
related finding to find a best way to implement to save the airport industries and for aviation
too.
9.1 Air Industry Review – Creating a seamless airport experience after Covid-19
Global pandemic of Covid-19 was suffered most of the Europe’s biggest airports in
United Kingdom, Italy, and Germany. Before this pandemic, Heathrow, Frankfurt and Milan
Airport is the busiest airport with the biggest number of people travelling around the world.
According to Adele Berti (2020), airport operator needs to plan about the recoveries plan
neither in short nor long term for future. We need to adapt a new normal due post of Covid-
19 to the airport management systems. With the presence of artificial intelligence (AI)
technologies can be used to the airport in future to prevent the diseases for being spread.
9.1.1 Adoption of Facial Recognition and Thermal Scanner
Due to the Covid-19 pandemic, the health screening for the passenger before them
enter the airport areas is compulsory with the check of the temperature and to record from
where their comes. Most of airport need a staff to keep the flow of passenger to be check and
recorded. With these technologies, the health screening might be use with the robotic thermal
scanner or surveillance camera with the facial recognition to record the information of
passenger based on their passports, so it easy for airports operator to save the cost to hired
people to do the health screening.
9.2 ACI – The airport survival strategy during and post Covid-19
Most people worldwide a fear to travel and the restriction by the government is
having a big impact toward the airport operational cost due to drastic fall of people travelled.
All of the cost including the management expenses is cannot be covered if the zero-revenue
last longer. This fixed cost will never be changed and need to be pay as well as the airport
need to be survived for post Covid-19 pandemic. According to ACI (2020), there were few
methods to make the airport operator to survive in this critical era. The first one is close
partially the activity inside the terminals such as aprons, runways, air bridges and other areas
in the terminal to save the cost with the very limited services. Second is the airport operator
need to focus more how to raise a capital and liquidity such as government tax reliefs. Third
is about to negotiate with the government to do some recovery plan such as government relief
plan to give financial assistance toward the management of airport. Then, the airport operator
needs to replan the budget for next upcoming years to cut the any cost that would burden the
airport management. Lastly, the airport needs to convince people more on the domestic travel
with the reasonable price to make people fly to travel inside their countries.

9.3 CAPA Centre for Aviation – Restoring airports revenues post Covid-19
 Based on our finding on this article, CAPA (2020), has planned a full recoveries plan
in airport management. The cost will continue to increase because the airport needs to cover
up the new normal adoption which is to apply standard operating procedure such as social
distancing or any sanitize and health checking equipment in the airport. To be sustain in the
market, airport operator needs to restore their strategies to gain revenue and the capital. For
CAPA, there were few numbers that airport need to implement which is trying to collaborate
with the government and any bodies such as tourism toward financial support. Besides,
airport need to change their process in the terminal design due the new standard operating
procedure to break the Covid-19 chain to apply safer environment of shopping and also when
boarding. With the contactless and touchless design in the airport process such as process to
check in, baggage drop, when purchase at the retail shop and also when waiting at the lounge
will give more impact so it can prevent the spread of Covid-19 in the airport.
9.4 World Bank Blogs – Rebalancing Airport PPPs, even as the Covid-19 winds still
blow
This article by Jeff Delmon and Andy Ricover that we found in the World Bank Blog
website (2020), most of sector were suffer due to hit of Covid-19 pandemic but not worse
like the aviation industry with the zero-revenues during the lockdown imposed by the
government worldwide. Entire aviation industries including airport management need to plan
a business model to recover this pandemic situation. One of the charges which is airport
Public-Private Partnership (PPP) between the public and private sector will raise more
additional cost. The reduction of PPP costs would help the airport to lower the burden of
higher cost due to Covid-19 travel restriction. In addition, government needs to help the
airport to relief the burden of raising cost and debt by lending financial helps or reduce the
taxes. Moreover, airport need to seek for the financial helps from other source even from the
government. With the good planning of recoveries strategies by the airport operator, it might
be a change to survive with the emerge of post Covid-19 for future airport.
9.5 Philip Villard ACI – Waiving the airport fees of concession to relief airports
financial stress for the Covid-19 pandemic crisis
Article written by Philip Villard in Airport Council International website (2020), the
flow of passenger in airport tends to be lower and it will cause the decreasing airport revenue
will lead to the financial crisis. As we know, airport have their two way of source of income
which is the passenger service charge (PSC), for usage of airport facilities including airlines
companies for airside use. Then, the most revenues are from the non-aeronautical activities
such as food & beverages, retail, and duty-free shops. With the reduce of airport revenues, it
will suffer to bear the fixed costs of maintenance and operational of airport management such
as managing runways, aprons, or terminal buildings. Therefore, due to the higher concessions
fees charges by the authorities, these fees need to be postponed for a while so it can relief the
financial burden and support recoveries plan until the Covid-19 pandemic lesser.
9.6 International Air Transport Association – ACI and IATA call for urgent financial
assistance to protect jobs and operation.
Based on this article from International Air Transport Association (2020), the
financial crisis for airlines and airport operator were in the critical situation. The recoveries
plan needs to be done to survive and safe the airport industries. Air Transport Association
IATA and Airport Council International ACI, give a suggestion that the airport need to seek
for financial support during this uncertain time of Covid-19 pandemic. Financial assistant by
the government might be helping to reduce the financial crisis of airport and it will lead to
economic recoveries if the number of passengers travelled has increase. Besides, IATA and
ACI to do the recoveries plan by the taxation relief such as concession fees and other
government charges. Then, by seeking of fund in other sector or direct financial fund lend by
the government to maintain liquidity of financial.
10.0 Result and Findings
After we are collecting the relevant data such as article and journal over the past
researcher, we interpret the data as the result of future airport of post Covid-19. The data
collected via the internet due to the pandemic of Covid-19 and we are able to find only over
the internet. With the finding will resulted the suitable recoveries plan based on the analysis.
As mention by the International Air Transport Association (IATA) and Airport Council
International (ACI) with their suggestion is more about the financial aids for the airport
operators. Sudden effect of this Covid-19 pandemic will increase the operational cost of
airport. With this complicated time, it is too hard for airport industry to continue their
businesses if the financial crisis problem persists. Our suggestion, airport operator need to
seek a financial from the government is the best way. Thus, government also can give a relief
to support the aviation industry for waives the tax, interest, and any related government
charges. Philips Villard mention that fixed cost is the concession charges need to pay by
airport operators. The government need to take an action to reduce or waives the concession
such as rental fees in the land of the airport. So, with the plan, it can help the airport operators
to reduce the operational cost and continue to survive. Then, with the travel restriction
imposed by the government, the airport can collaborate with the tourism sector and
government to promote domestic flight. In fact, if the airport operator can give best price for
domestic flight, it can make the people eager to use the air transportation to travel in their
countries. According to Site Minder (2020), domestic tourism can contribute a big impact to
rebuild the economies and act as indicator of airport operator to gain more revenues. With the
total lockdown in some countries, tourism sector can help airport operator before the
international flight will be back to operate. Every people are eager to travel even though it is
for a domestic only. With effective recoveries strategies, it can reduce a bit of the financial
burden of airport operator to this crisis. Likewise, the government, tourism sector and also
airport operator need to play a vital role to fight with his financial crisis. Airport also need to
change the landscape environment at the terminal to adapt a safety measure by implement at
modern technology such as biometrical solutions. This technology is more relevant to use
during this pandemic due to contactless operation in the terminal. Biometric technologies like
contactless check in counter, self-baggage drop, facial recognition passport control in counter
of immigration and custom department. These technologies will help the airport terminal to
automate all process to give passenger to move safely and securely movement when their
want to travel, work or shopping experience in the terminal.
11.0 Conclusion
As we know, aviation industry is the most rapid worldwide transportation for
connecting people around the world. For airport, it can generate for the global economic
growth by building international trading and the tourism sector. Today, every people are
about to travel around the world with the air transportation. With this unpleasant of Covid-19
pandemic were infected around the world, airport is the most burdened sector with the lowest
number of passengers travelled. With the rising cost of the operational management in the
airport, with this financial crisis, the airport may not be able to survive in future. We suggest
that the airport industry must develop a sustainability plan to recover the crisis. In this critical
time, all aspect needs to go through to save the world economy from the Covid-19 pandemic.
If the airport is about to resume their operation, the aviation activity will grow up and every
people will continue to travel abroad so this will increase the world economy by the support
of tourism activity. We know that Covid-19 will never be gone from our worlds, but we must
fight to break the chain of this viruses with the all safety procedures in the new normal
practices even we found the vaccines (WHO, 2020).
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