Air Traffic in China May Post Strong Rebound in Second Half: Morningstar

The video discusses the financial impact of a contagious virus on Asian airlines, comparing it to the SARS outbreak. It highlights the increased risk for Chinese carriers, especially those not state-owned, and the government's supportive measures like tax cuts. The potential PR hit for Chinese airlines is considered, but the industry's resilience is emphasized, with expectations of a strong rebound. The video also covers the impact on Chinese automakers, noting that those with higher inventory levels may benefit as production ramps up slowly post-epidemic.

What is the estimated financial impact on Asian airlines compared to the SARS outbreak?

• Similar to SARS

• No impact

• Higher than during SARS

• Lower than during SARS

Which type of Chinese airlines are expected to receive government support?

• State-owned enterprises

• International airlines

• Private airlines

• Low-cost carriers

How is the airline industry expected to recover after the epidemic?

• Permanent decline in air traffic

• Strong rebound in the second and third quarters

• No recovery expected

• Slow recovery over several years

What is a potential public relations challenge for Chinese airlines during the epidemic?

• Increased ticket prices

• Anti-China sentiment

• Lack of government support

• Overbooking flights

Which automakers are likely to benefit once the epidemic is under control?

• Those that stopped production

• Those with low inventory levels

• Those that increased prices

• Those with high inventory levels