CHANGES IN THE ECONOMIC ORDER AFFECTING AIRLINE COMPANIES WITH THE COVID-19 PANDEMIC: ARE LIBERALIZATION, GLOBALIZATION AND PRIVATIZATION DEFEATED BY COVID-19?


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Macit A. , Macit D.

in: Theory and Research in Social, Human and Administrative Sciences, Assoc. Prof. Dr. Erdem Sarıkaya, Editor, Gece Publishing, Ankara, pp.523-541, 2020

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2020
  • Publisher: Gece Publishing
  • City: Ankara
  • Page Numbers: pp.523-541
  • Editors: Assoc. Prof. Dr. Erdem Sarıkaya, Editor

Abstract

The epidemic caused by a mutated virus belonging to the influenza virus family, which first started in Wuhan, China at the end of 2019, has had an impact on the world in a short time (Gilbert et al., 2020). Due to the virus, which was found to have a high risk of respiratory transmission, the travel restriction that started in Wuhan on 23 January 2020 was not sufficient to prevent the spread of the disease. Scientists have expressed the opinion that many infected people have gone out of Wuhan and spread the virus until this ban has been imposed (Chinazzi et al., 2020). Especially the fact that there is a large population movement for the New Year celebrations in China is shown as the reason for the epidemic reaching global dimensions (Chen et al., 2020). The virus called coronavirus by the World Health Organization (WHO) was named “Covid-19” by making an official name definition (2019-nCoV) (WHO, 2020). With the onset of the Covid-19 outbreak, the eyes were turned into the aviation industry. All countries that have to fight the virus, especially China, have started taking measures from the aviation industry. There are reasons such as the fact that aviation is the most effective mode of transportation used in global travel, high international passenger potential at airports, and airports play an important role in controlling the entrances and exits to the country. In the aviation industry, the measures taken to prevent the spread of Covid-19 have brought global air traffic to a halt, and many airports were closed to use and the biggest crisis in the aviation history started (Macit and Macit, 2020). Crises such as Ebola, SARS, the September 11 attacks and the 2008 economic crisis have had significant impacts in the aviation industry. Undoubtedly, it is clear that the Covid-19 pandemic crisis will also have important effects in the aviation industry. However, how and in what direction these effects will be discussed. In the reports published by international organizations, public authorities’ statements and managers of aviation companies; It is seen that a lot of information is shared about numerical projections, post pandemic process and strategies related to normalization. However, a projection regarding the basic building blocks of the sector is not revealed. The concepts of liberalization, globalization and privatization have determined the way of the industry from past to present and enabled the aviation sector to take its current form. If the large-scale crisis is effective on these building blocks, changes in the sectoral environment will occur and a new order may be formed for all stakeholders. In this study, the effects of the concepts of liberalization, globalization and privatization on the sector will be discussed, and how the events experienced during the pandemic crisis affected the sector, and the compatibility of these effects with liberalization, globalization and privatization will be discussed. The main problems of sectoral changes for the post pandemic period will be tried to be clarified with the evidence presented.