With over four million Covid-19 cases, India is now the second nation worst hit by the pandemic, rendering its residents among the least welcomed by overseas destinations and adding to the woes of India’s struggling outbound agents.
Indian travellers have been barred by most countries, including Malaysia which imposed a ban on September 1.
Outbound travel agents told TTG Asia that even if the Indian government were to allow scheduled international flights to operate, outbound possibilities would remain low.
K Vijay Mohan, managing director of India’s Holiday World added that the Indian outbound demand was also challenged by tougher travel requirements today. “Thailand will only allow in passengers who stay in the country for a minimum of 30 days, while Indonesia has further delayed her reopening till the year-end,” he elaborated, adding that most Indians would not be travelling overseas any time soon.
Stifled travel demand has forced some Indian outbound travel agents to seek revenue elsewhere, with some turning to the domestic tourism market or looking outside of the travel and tourism industry.
A travel agent, who has requested for anonymity, told TTG Asia that he is now dealing in household cleaning products which are in great demand today.
“What else is one supposed to do when there is hardly any chance of outbound sentiments improving in the near future?” he rued.
Mohan said: “It is a very challenging time for outbound travel agents who have had no income for the last nine months. Majority of them thought in March that things would open up come September. But now, things are still closed and may remain so for the whole year.
“To make things worse, the central government will be collecting five per cent income tax at source (TCS) from travellers buying an outbound tour package beginning October 1.”
Naveen Manchanda, president of the Indian Association of Travel and Tourism Experts, said: “If the government doesn’t announce a bailout soon, a large number of outbound travel agencies will be wiped out.”
Singapore Airlines (SIA) Group will cut around 4,300 positions across its three airlines – SIA, SilkAir and Scoot – as coronavirus continues to batter the global aviation industry.
However, the potential number of job cuts may be reduced to about 2,400 in Singapore and across overseas stations, due to a number of measures that the airline has taken since March, including a recruitment freeze, natural attrition, and a voluntary release scheme for cabin crew.
“This decision was taken in light of the long road to recovery for the global airline industry due to the debilitating impact of the Covid-19 pandemic, and the urgent need for the group’s airlines to adapt to an uncertain future,” it said.
The group reiterated that it expects to operate at less than 50 per cent of its capacity at the end of the financial year as compared to pre-Covid levels. Industry groups have also forecast that passenger traffic will not return to previous levels until around 2024, it added.
“Relative to most major airlines in the world, the SIA Group is in an even more vulnerable position as it does not have a domestic market that will be the first to see a recovery,” it said. “In order to remain viable in this uncertain landscape, the group’s airlines will operate a smaller fleet for a reduced network compared to their pre-Covid operations in the coming years.”
SIA said that it is working with Singapore-based unions to finalise the arrangements for those affected, and will try to minimise their stress and anxiety.
In a memo to staff, SIA CEO Goh Choon Phong said that no one could have predicted the pandemic’s devastating impact on the global aviation industry at its onset early this year.
“Having to let go of our valuable and dedicated people is the hardest and most agonising decision that I have had to make in my 30 years with SIA,” he wrote.
“For our impacted colleagues, please know that this is not a reflection of your individual strengths and capabilities. It is the result of an unprecedented travel paralysis brought about by a global pandemic.
“Please also be assured that we will conduct the process in a fair and respectful manner, and do our best to ensure that you receive all the necessary support during this very trying time.”