It'll take more than bravado to survive Coronavirus scare: Anand Mahindra

We will need to 'ensure that we all follow practices which limit the import and spread of the virus', he Anand Mahindra in a Twitter post.

Mahindra Group Chairman Anand Mahindra on Tuesday expressed confidence that the world will survive the raging Coronavirus epidemic scare, but cautioned that this would not be done through “bravado”; we would need to “ensure that we all follow practices which limit the import and spread of the virus”, he said in a twitter post.

A partly humourous image that he attached to the tweet showed the various epidemics and threats of the past that we had been able to overcome, such as SARS, H5N1 bird flu and “Doomsday prediction of Nostradamus for 1999”, among others.

ALSO READ: Coronavirus LIVE updates: Death toll hits 3,056; nearly 90,000 infected

“An interesting & brave reaction to Covid-19 that is making the WhatsApp rounds. True, we will survive this. But it will require more than bravado. We need to ensure that we all follow practices which limit the import & spread of the virus,” he noted in his post.

To survive Coronavirus, he said, all the practices that limit the import and spread of virus must be followed. To overcome… “it requires more than bravado,” he said.

Coronavirus is spreading at a rapid speed. According to the World Health Organization, there are 89,527 confirmed COVID-19 cases and 3,056 deaths reported globally across 67 countries so far. Coronavirus death toll in China climbed to 2,943 on Monday.

India on Monday reported three new Coronavirus cases — one each in Delhi, Telangana and Jaipur — prompting the government to issue a travel advisory to affected countries and widening screening at airports and sea ports.

Coronavirus: Hong Kong stocks plunge at reopen even as Asia markets bounce

Among the worst-hit sectors on global trading floors are firms linked to travel and tourism, as big-spending Chinese tourists stay at home with Beijing clamping down on people's movement.

Hong Kong stocks plunged Wednesday as investors in the city returned from their Lunar New Year break to a global panic over the deadly coronavirus, though most other Asian markets were lifted by bargain-buying after recent losses.

Healthy US data reinforced hopes for the global economic outlook and supported a rally across US and European markets, which provided a strong lead for Asia, while a record earnings report from Apple also helped the mood.

Still, the focus remains on developments in the virus outbreak -- which has now killed at least 132 people and infected more people in China than SARS did 17 years ago -- and concerns about the impact on the world economy.

Among the worst-hit sectors on global trading floors are firms linked to travel and tourism, as big-spending Chinese tourists stay at home with Beijing clamping down on people's movement.

The outbreak carries echoes of the SARS crisis, which paralysed regional travel and battered local economies. Chinese tourist numbers then fell by around a third.

ALSO READ: Coronavirus LIVE: 132 dead, 6,000 infected in China; US weighs flight ban

The latest outbreak is expected to deal a massive blow to China's already-fragile economy, coming during the Lunar New Year holidays when millions criss-cross the country and spend billions of dollars. It also comes just as data indicated some sort of stability in the economy after a long-running slowdown.

"We expected to see strong economic momentum in China before, but now the pace of growth may slow," Banny Lam, at CEB International Investment, said.

"Markets will remain very volatile due to the uncertainty, and the swings won't subside until we have clear evidence that the virus is fading. That may happen when the weather gets warmer in the summer."

India to Singapore: How airlines, passengers are responding to China virus

An explainer on the airline industry's response to the outbreak so far and its potential financial exposure compared to SARS in 2003.

Airlines and passengers are on guard against a new flu-like virus that originated in Wuhan, China.

Here's an explainer on the airline industry's response to the outbreak so far and its potential financial exposure compared to SARS in 2003, which killed nearly 800 people:

What is the expected financial impact on airlines?

The biggest concern is a sharp drop in travel demand if the virus becomes a pandemic.

During the height of the SARS outbreak in April 2003, passenger demand in Asia plunged 45%, according to the International Air Transport Association (IATA).

Cathay cut nearly 40% of its flights and reported a financial loss, as did Singapore Airlines Ltd, Japan Airlines Co Ltd and ANA Holdings Inc.

The industry is now more reliant on Chinese travellers.

For example, in Australia, Chinese travellers account for more than 15% of international arrivals, up from just 4% in 2003, according to Moody's ratings service.

Those travellers, who arrive mostly via mainland carriers, often take domestic flights once they arrive in Australia, pointing to the potential for knock on effects for the likes of local airline Qantas Airways Ltd if there is a fall in travel demand.

Since 2003, the number of annual air passengers has more than doubled, with China growing to become the world's largest outbound travel market.

In 2003, 6.8 million passengers from China travelled on international flights, and that number has grown by close to 10 times to 63.7 million in 2018, according to data from the country's aviation authority.

Global airline industry revenues more than doubled to $838 billion in 2019 from just $322 billion in 2003, according to IATA data.

"Whether only one secondary market, an entire country or the wider region is impacted is obviously unpredictable and outside of the industry's control," said Brendan Sobie, an independent aviation analyst in Singapore.

Business Standard