The Impact of Emergent Circumstances on the Economy of Civil Aviation Companies: Applied to Saudi Arabian Airlines

Turki bin Talib bin Abdullah Al-Atas presented his research on the impact of emergent circumstances on the economy of civil aviation companies, applied to Saudi Arabian airlines, at the Gate Academy celebration.

 

Introduction

The topic of emergent circumstances has garnered the interest of many researchers in various fields due to its impact on the course of life. Numerous classifications fall under the umbrella of emergent circumstances, including environmental issues, natural disasters, economic crises, political instability, epidemics, and global diseases.

Financial crises are among the most widely discussed topics in economics due to their continuous recurrence and the profound effects they have on the economies and societies of nations. In 2008, the global economy experienced a severe financial crisis that originated with the subprime mortgage crisis in the United States and escalated into a deep crisis affecting the global economy as a whole. Economists described it as one of the most severe and dangerous crises since the Great Depression of 1929.

Historically, economic crises often arose from circumstances beyond human control, such as droughts, famines, wars, and others. However, in modern times, they have become more complex and result from economic and social behaviors of individuals and organizations. With the advent of globalization and increased trade between nations since World War I, the world witnessed the first global economic crisis in 1929, followed by the structural economic crisis caused by the oil shock in 1973.

Global pandemics, which are large-scale disease outbreaks affecting multiple countries, pose significant health, social, and economic risks worldwide. The rapid spread of infectious diseases across regions can lead to the deaths of millions, economic disruptions, and national security threats. Factors such as climate change, urban expansion, and inadequate water and sanitation services can contribute to the spread of catastrophic diseases. One such pandemic is the COVID-19 pandemic, which continues to affect societies and will continue to do so in the future.

As a result of precautionary measures taken by governments worldwide to contain the spread of the virus, the aviation sector, being the fastest means of global transportation, saw its operations suspended between countries to contain the pandemic. Governments worldwide advised their citizens against unnecessary travel, and countries like those in the European Union, Australia, New Zealand, and others closed their borders to foreign visitors. With the increasing closure of venues to visits, many tourists had to cancel their vacations, while others found themselves stranded outside their countries. Consequently, civil aviation operations came to a halt.

Asian airlines were among the most affected companies, followed by European, American, and Canadian airlines, then airlines in Latin America, followed by Middle Eastern airlines. African airlines were at the bottom of the list of affected airlines, possibly due to the limited spread of the virus in African countries compared to other regions worldwide.

Like other countries, Saudi Arabia took several measures to combat the COVID-19 pandemic. In this regard, Saudi Arabia imposed restrictions on air travel and movement, with exceptions allowing public sector employees, military personnel "on official duties," diplomats and their families, scholarship students, sports teams, and patients seeking medical treatment abroad to enter and leave the country. However, the kingdom soon closed its borders as the number of infections increased. Despite this, Saudi Arabia's economy, like that of other countries worldwide, was significantly affected. Nevertheless, the kingdom possesses a set of capabilities that enable it to overcome this stage without severe losses, with the possibility of compensating for any future losses.

 

Significance of the Study

This study derives its significance from clarifying the concept of emergent circumstances as they affect various sectors worldwide, including civil aviation, which is one of the sectors affected by emergent circumstances. This study can serve as a source for researchers and scholars seeking to learn more about the reality of emergent circumstances, such as economic crises, and others. It may serve as a starting point for researchers and enthusiasts to conduct further research in this field.

 

Study Objectives

This study aims to:

Define emergent circumstances.

Define financial crises, especially the 2008 global financial crisis.

Understand the impact of the COVID-19 pandemic on the global economy.

Understand the impact of the COVID-19 pandemic on the civil aviation sector.

Understand the strategies of the Kingdom of Saudi Arabia in combating the COVID-19 pandemic.

 

Research Problem

The study revolves around answering the question: "What is the impact of emergent circumstances on the economy of civil aviation companies in the Kingdom of Saudi Arabia?" From this, several sub-questions arise, including:

What is meant by emergent circumstances?

What is the 2008 global financial crisis?

What are global pandemics, and what are some examples?

How did the COVID-19 pandemic affect the global aviation sector?

What are the strategies of the Kingdom of Saudi Arabia in facing the emergent COVID-19 pandemic?