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  • PT Angkasa Pura II Prepares 3 Scenarios in the Middle of the Covid-19 Pandemic


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PT Angkasa Pura II Prepares 3 Scenarios in the Middle of the Covid-19 Pandemic

22 Apr 2020

WARTAKOTALIVE.COM, JAKARTA - Covid-19 global pandemic is an extraordinary challenge for the global aviation industry.

General Airport Council International (ACI) Director Angela Gittens in her publication on April 3, 2020, said aircraft passenger traffic in the world in 2020 was initially estimated to reach 9.5 billion passengers, up 4.39 percent compared with 2019 around 9.1 billion.

However, looking at the developments due to the Covid-19 global pandemic, this estimate is believed to have not been reached, based on the realization of the First Quarter / 2020.

The passenger traffic in the world in January was 6.9 percent lower than the initial estimate, then in February it was 22.9 percent lower and March lower by 53.1 percent.

Cumulatively, aircraft passenger traffic in the world during January-March 2020 was 28.3 percent lower (equivalent to 620 million passengers) compared to initial estimates.

Seeing these conditions, ACI estimates that the number of aircraft passengers in the world in 2020 is only about 5.9 billion passengers or 38 percent corrected (equivalent to 3.6 billion passengers) compared to the initial estimate of 9.5 billion passengers.

Impact in Indonesia

The national aviation sector was also quite affected by the Covid-19 pandemic. The Indonesia National Air Carriers Association (INACA) on March 26, 2020 revealed that the number of airplane passengers since last month had dropped dramatically and in line with that the national airlines reduced the number of flights, both routes and frequencies, up to 50 percent or more.

Meanwhile, Minister of Finance Sri Mulyani told the APBN KITA conference on Friday 17 April 2020, revealed that during January - February 2020 there were 12,703 flights canceled at 15 major airports in Indonesia, consisting of 11,680 domestic flights and 1,023 international flights.

Furthermore, the Minister revealed that the air service sector lost revenue of Rp207 billion, of which Rp48 billion came from flights to and from China.

The downward trend in passenger traffic and aircraft movement in the middle of Covid-19 is also felt in airports managed by PT Angkasa Pura II.

PT Angkasa Pura II President Director Muhammad Awaluddin said the number of aircraft passengers at the company's 19 airports this year was initially estimated at 93.92 million passengers.

"But then the Covid-19 global pandemic ensued, and by looking at existing trends and considering the situation, conditions, developments in the industry and regulatory policies, it is estimated that the number of passengers will not reach 93.92 million passengers," Muhammad Awaluddin said, in his official statement, Wednesday (4/22/2020).

"We have determined that there are 3 scenarios as a basis for implementing the strategy in the midst of this pandemic. The scenario is the Best Scenario, Bad Scenario and Worst Scenario, "continued Muhammad Awaluddin.

Muhammad Awaluddin explained that in the Best Scenario the estimated number of airplane passengers at 19 airports reached 68.22 million passengers or 27 percent lower than the initial estimate, while the Bad Scenario could be as much as 63.49 million passengers or 32 percent lower than the initial estimate, and in the Worst Scenario the number of passengers is likely to be 57.80 million or 38.45 percent lower than the initial estimate.

Estimates of the number of passengers based on the 3 criteria above are based on the end of the pandemic, the aviation industry's recovery speed and the normal period marked by economic conditions that have stabilized.

In facing the Covid-19 challenge, PT Angkasa Pura II has established a risk mitigation strategy, namely Business Continuity Management which consists of 3 phases, namely Business Survival, Business Recovery, and Business Sustainability.

The company is currently conducting a Business Survival phase with objectives including labor protection, cost leadership, selection of investment priorities and optimizing the company's cash flow. (*)

Editor: Ichwan Chasani