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AN EXPLORATORY STUDY OF THE IMPACT OF CORONA VIRUS ON THE AVIATION

INDUSTRY: A CASE STUDY OF NAMIBIA

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILMENT

OF

THE REQUIREMENTS FOR THE DEGREE

OF

BACHELOR OF SCIENCE IN MILITARY SCIENCE AERONAUTICAL (HONOURS)

OF

THE UNIVERSITY OF NAMIBIA

BY

HAOSES BLANCHE

201614081

APRIL 2021

MAIN SUPERVISOR: DR. PAUL W. KIBURU

CO-SUPERVISOR: MR. FILLIPUS ANGULA


ABSTRACT

This proposed research paper is a timely examination of the novel Corona Virus (COVID-19)
that is currently ravaging the entire world. The main objective of this proposed research is to
explore the impact of this pandemic on the aviation sector in Namibia and also examine potential
recovery pathways for the global aviation industry following the severe negative impacts of the
pandemic. The negative impacts include significant reductions in passenger number resulting in
flights being cancelled or planes flying empty between airports, reduction in revenues for airlines
and many airlines forced to lay off employees and declare bankruptcy etc. The methodology
adapted in this proposed research study is qualitative research. This will include the use of
rigorous procedures in collecting and analyzing data appropriate to qualitative research method,
such as ensuring the appropriate sample size. The use of journal publications, government
official documents, health authorities’ data and internet materials will be part of secondary data
collection. When primary data is collected, research ethics will be observed.

Keywords: COVID-19, pandemic


Table of Contents
ABSTRACT................................................................................................................................................2
CHAPTER 1 INTRODUCTION.................................................................................................................5
1.1 Background of the study....................................................................................................................5
1.2 Problem statement.............................................................................................................................5
1.3 Objectives of the study......................................................................................................................6
1.3.1 Main Objective of the study........................................................................................................6
1.3.2 Specific Objectives of the study..................................................................................................6
1.4 Significance of the study...................................................................................................................6
1.5 Limitation of the study.......................................................................................................................7
1.6 Delimitation of the study...................................................................................................................7
CHAPTER 2 LITERATURE REVIEW......................................................................................................8
2.1 Introduction.......................................................................................................................................8
2.2 Economic impact of COVI19 on aviation sector during lockdown....................................................8
CHAPTER 3 RESEARCH METHODOLOGY.........................................................................................10
3.1 Introduction.....................................................................................................................................10
3.2 Research Approach..........................................................................................................................10
3.3 Population and Sample....................................................................................................................10
3.4 Sampling..........................................................................................................................................10
3.5 Data Collection................................................................................................................................11
3.6 Data Analysis...................................................................................................................................11
3.7 Research Ethics...............................................................................................................................11
References.................................................................................................................................................12
List of Abbreviations

COVID-19 Corona Virus

IATA International Air Transport Association

ICAO International Civil Aviation Organization

MoHSS Ministry of Health and Social Services

SARS Severe Acute Respiratory Syndrome

WHO World Health Organization


CHAPTER 1 INTRODUCTION

1.1 Background of the study

The novel corona virus, also known as COVID-19, has taken the canter stage among the aviation
sector’s vulnerabilities since the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003,
the avail influenza H5N1 pandemic in 2006, and the swine influenza H1N1 pandemic in n2009
(Sadi and Henderson, 2000; Chung, 2015). COVID-19 has taken the entire world by storm,
spreading like a wildfire. Pneumonia of unknown cause was detected in Wuhan, China and was
first reported to the World Health Organization (WHO) country office in China 31 December
2019. WHO has consequently declared the virus as a global pandemic. Since then, the world has
confronted significant challenges on all spheres of human endeavor: political, social, economic,
demographic among others (WHO, 2020).

Apart from its clear threat to humanity in terms of health, life and safety, COVID-19 poses
significant economic and financial risk to businesses employment likelihood. It is in reference to
the latter that governments all over the world have therefore been taking important steps in
attempt to curb the spread of the virus. This steps range from severe restrictions of human
movement in terms of lockdowns, closing down of internal and international borders in a bid to
prevent the spread of infections and in order to manage the health concerns of those who have
been infected. According to (IATA, 2020), 25 million aviation jobs and 100 million travel and
tourism jobs across the world are in danger. That is not all; the growth recorded in the aviation
industry in the last 7 years would potentially be lost as a result of COVID-19.

Namibia recorded its first confirmed COVID-19 on 13th March 2020 and since then, Namibia has
had several hundred sporadic cases recorded (MoHSS, 2020). The Namibian Government has
issued several Directives and Orders to assist in containing the spread of the virus. Included is
the COVID-19 Regulation 2020 which imposed significant restrictions on the movement of
persons and non-essential goods all over the country especially the Khomas and Erongo regions.
The cancellation of flights has in turn caused massive reduction of revenues for airlines and has
forced many airlines to lay off employees, Air Namibia being one of them. Thus, this proposed
research study tends to look at the impact of corona virus on the aviation industry in Namibia,
and the effects on passengers and employees in the aviation industry.

1.2 Problem statement


Since the beginning of 2020, more and more countries across the globe shut down borders and
limit domestic travel as a response to the novel corona virus outbreak. Thus, cancelling almost
all flights to control the spread of the virus that has affected the entire airline industry globally.
According to The Namibian (2020), FlyWestair stopped all its flights and retrenched 60 staff
members. This episode had a negative impact on FlyWestair since they rely on their own funding
to run the airline. On the other hand, the now liquidated national airline, Air Namibia also placed
a temporary ban on all its flights as of 27 March 2020. In as much as these measures were to
combat the further spread of COVID-19, airline activities are still relatively low. Hence, this
proposed study attempts to look at both the negative and positive impacts of COVID-19 in the
aviation industry in Namibia.

1.3 Objectives of the study

1.3.1 Main Objective of the study


The main objective of this proposed study is to explore the impact of corona virus (COVID-19)
on the aviation industry in Namibia.

1.3.2 Specific Objectives of the study


 To determine the negative and positive effects of COVID-19 on FlyWestair.
 Assess the current measures the airline operators have put in place to curb the spread of
COVID-19.
 To outline measures that the aviation industry needs to put in place to mitigate the
negative impact of COVID-19.

1.4 Significance of the study

The findings of this study will be useful to aviation managers or budget allocators of aviation to
help with implementing risk reduction measures and management during the priof of the
pandemic. Furthermore, the study may aid the aviation industry in predicting the long-term
effects of COVI19 on the aviation industry and how to efficiently sustain the affected industry.
The study may be used as a basis or future studies and may as well contribute to the body of
knowledge in literatures.
1.5 Limitation of the study

1.6 Delimitation of the study

The scope will have to be narrowed down to a certain section of the target population. In this
case, research would be limited to FlyWestair.
CHAPTER 2 LITERATURE REVIEW

2.1 Introduction

Literature review is a written and systematic summary of the research which is conducted on a
particular topic. It thus summarizes the background and context of the research. According to
Boswell & Cannon (2009), literature review shows the gap between the researcher’s curiosity
and knowledge of the subject area.

According to Kangueehi (2007), “State-owned enterprises in Namibia play crucial role in the
provision of important goods and services to all people as well as in the promotion of economic
growth for the development of the country and improving the standard of living to citizens.
Article 98 of the Namibian Constitution prescribes the economic order of Namibia, which shall
be based on the principles of mixed economy. This type of economy has its main objective of
securing economic growth, prosperity and human dignity for all Namibians”.

According to Aizenman (2004) and Schaur (2006), in terms of the significance of air
transportation to the economy, believe that air transportation is more reliable and faster to handle
international demand volatility. This is because air transportation takes hours rather than weeks
compared to other forms of transportation. Air transportation shipping provides real option of
smooth demand shocks for businesses or organizations. An efficient air transport action system
and shipping modes helps in quality improvement of the air transport system and also elevate
international and domestic trade, business and economic process of a nation.

Several studies have been conducted on consumer choice and preferences in airline travel and
many studies have investigated the factors that influence decision making related to airline
choice. However, the significance of each factor differs among travelers and depends mainly on
their socio-demographic characteristics like income, age, gender tend to exert an important
impact on the significance of service quality dimensions.

2.2 Economic impact of COVI19 on aviation sector during lockdown

FlyWestair made history on October 23, 2020, when it became Namibia’s first privately-owned
airline to operate a scheduled passenger route between Windhoek Hosea Kutako International
Airport and Johannesburg O.R Tambo International Airport.

Any economy relies on transportation to facilitate trade and the transfer of goods and supplies
from manufacturers to consumers. The Namibian government recognizes the value of
transportation infrastructure growth and has invested in it over the years (rail, road, maritime and
aviation). Namibia has been able to position itself as a preferred gateway and trade facilitator for
the South African Development Community (SADC) as a result of these investments (Fransman,
2017). Since approximately 80% of Namibia’s total imports are from South Africa (Savage et el,
2012), South Africa plays an important role in Namibia’s transportation and logistics

Due to the COVID-19 outbreak, the Namibian government has imposed restrictions on non-
essential travel to COVID-19 affected countries, including the indefinite suspension of tourism,
work visas, and immigrant visas. The travel restrictions have resulted in mass production
shutdowns and supply chain disruptions due to port and airport closures, despite the fact that
there was no mention of preventing the import and export of goods from any country into
Namibia (only the entry of people from the severely affected countries was prohibited. As a
result of COVID-19, countries closed their borders and quarantined a portion of their population,
limiting travel.
CHAPTER 3 RESEARCH METHODOLOGY

3.1 Introduction

The chapter outlines the overall methodology which will be used in this proposed study. This
include approach, population, sample, sampling techniques, data collection, data analysis and
research ethics.

3.2 Research Approach

According to Borg and Gall (2013), a research approach is a plan and the procedures for the
research. It is that span the steps from broad assumptions to detailed methods of data collection,
analysis and interpretation. This proposed research study will use qualitative method approach.
Exploratory studies are not appropriate for quantitative testing. Qualitative research involves
collecting and analyzing non-numerical data and is used to gather in-depth insights into a
problem or generate new ideas for research. Some of its advantages is its flexibility, natural
settings, meaningful insights and generation of new ideas.

3.3 Population and Sample

According to Creswell (2013), a research population is generally a large collection of individuals


or objects that is the main focus of a scientific query. A sample refers to subset of population
which meets the inclusion criteria for enrolment into the study (Burns & Grove, 2005). For this
proposed study the target population are the passengers and workers at FlyWestair.

3.4 Sampling

For the proposed study, systematic sampling is intended to be used whereby sample size will be
drawn from a larger population The sample size for this proposed study will include 10
passengers and 10 workers of FlyWestair. Qualitative studies include at least 20-30 participants.
3.5 Data Collection

Data collection instruments will be questionnaires and interviews. The questionnaire is planned
to contain both open-ended and closed-ended questions. The questionnaire will be divided in
three sections, the first section showing the demographic data, while the other two sections will
be designed to determine the overall impact of COVID-19 in the aviation industry in Namibia.

This data collection method is ideal to capture the objectives of this proposed study. Therefore,
the questionnaire and interviews will be designed in such a way that everyone participating is
able to understand and answer the questions that will be designed. The proposed study will
collect both primary and secondary data. Secondary data will be obtained from sources such as
websites, books, journals and other published reports relevant to the study.

3.6 Data Analysis

Wang (2014) stated that data analysis techniques are beyond the reach of some most managers
and practitioners. The questionnaires carried out with the respondents will be summarized to
make notes using Microsoft Word. These notes will be closely studied to discover recurring
patterns and identify the main ideas the communicate.

3.7 Research Ethics

The goal of ethics in research is to ensure that no one is harmed or suffers adverse consequences
from research activities. Respondents will be given the freedom to voluntarily participate in the
research and will be free to withdraw from the research at any time without any negative or
undesirable consequences to themselves. Personal details will not be collected to enhance
confidentiality and privacy for the respondents. The study will comply with the University of
Namibia research ethics policy. The ethical rights of the population will be respected, and
gatekeeper permission/consent will be respectively obtained from the University of Namibia.
References

Aizenman, J. (2004). Endogenous pricing to market and financing cost. Journal of Monetary
Economics, 51(40), 691-712.

Borg, R., & Gall, D. (2013). Quality Research Methods for Social Sciences (2nd ed). London,
UK: Pearson Educational Company.

Boswell, C., & Cannon, S. (2009). Introduction to nursing research: Incorporating evidence-
based practice (2nd ed). Burlington: Jones & Bartlett Learning.

Burns, N., & Grove, S.K. (2005). The Practice of Nursing Research: Conduct, Critique and
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Chung, L.H., 2015. Impact of pandemic control over airport economies: Reconciling public
health with airport business through a streamlined approach in pandemic control. J. Air
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Clifford, S., & Woody, F. (2003). The definition and meaning of research and its criteria.
Kalapet: Pondicherry University Press.

Creswell, J.W. (2013). Research design: A qualitative, quantitative, and mixed-method


approaches. Thousand Oaks: Sage Publications.

Fransman, L. (2017, September 28). Opportunity for growth through the Namibian Logistics
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IATA (2020). International Air Transportation Association. Airline debt threatens recovery.
Retrieved 31st May, 2020 from: https://airlines.iata.org/news/airline-debt-threatensrecovery.

IATA (2020). International Air Transportation Association. Air passenger demand & capacity
evaporate amid COVID-19. Retrieved from
https://www.iata.org/en/iatarepository/publications/economic-reports/airpassenger-
monthlyanalysis---mar-2020/

Ministry of Health and Social Services (2020, June). COVID-19 Pandemic in Namibia.

https://en.wikipedia.org/wiki/COVID-19_pandemic_in_Namibia.

Sadi, M.A., Henderson, J.G., 2000. The Asian economic crisis and the aviation industry: impacts
and response strategies. Transport Rev. 20 (3), 347-367.

Savage, C.J., Fransman, L., & Jenkins, A.K., (2012). Logistics in Namibia: Issues and
challenges. Polytechnic of Namibia: Namibia.

Schaur, G. (2006). Hedging price volatility using fast transport. Department of Economics,
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WHO (2020). World Health Organization Rolling Updates on Corona Virus disease (COVID-
19), Updated 01 June, 2020. Retrieved on 3rd June, 2020 from:
https://www.who.int/emergencies/diseases/novelcoronavirus-2019/events-as-they-happen

WHO (2020). World Health Organization estimates 190,000 people could die of Covid-19 in
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