Asian aviation: recovery hampered by slow vaccination/border controls

While other parts of the world are beginning to open up to international travel, in most of the key Asia-Pacific markets there is very little progress in restoring cross-border air traffic flows. This represents a major headache for Asian airlines anxiously waiting for revenue opportunities that could help spark recovery.

European countries have been removing some international travel restrictions as their COVID-19 vaccination rates have reached high levels – although progress is lumpy and largely uncoordinated.

But in the Asia-Pacific region, vaccination rates have generally been much slower. New waves of more infectious strains have also made Asian governments more cautious about opening borders, and in many cases even the gains made in domestic markets have eroded due to heightened restrictions.

Vaccination programmes are crucial to airlines’ recovery hopes, as they are widely considered the best avenue for resuming travel. When countries reach herd immunity vaccination levels of 70% or higher, their governments will have more options for removing restrictions.

A cross-section of leading Asia-Pacific aviation executives discussed these issues during the Jun-2021 edition of CAPA Live. They outlined the scale of the challenges faced by airlines and airports, and provided some insights into their short term prospects.

Summary:

• Vaccination rates remain low in Hong Kong, limiting recovery opportunities.
• Japan’s vaccination program is also slow, although the Japanese government is planning expansion.
• Malaysia’s domestic travel restrictions likely to remain through Oct-2021.
• Singapore’s traffic is still at minimal levels, despite better vaccination rates.
• Asia’s success at pandemic response is threatened by vaccination progress.