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Based on SARS 2003 and early infection rates, a projection for the effect of Covid-19 on the airlines shows a dip for six to nine months (Pearce 2020). Although we hope that they will be temporary, they may well have some lasting effects. For example, civil aviation is particularly vulnerable.
The three largest airlines in the world temporarily had to ground their fleets, but only one stood out a week later as still struggling to get back up and running – and taking a massive financial loss whilst its CEO attended the Olympic Games 6. They also own all of the downside though and all of the risk – including third-party risk.
These services are also used by airlines, insurance companies, agricultural agencies, transportation services, freight companies, and event organizers. Airlines also use it to predict wind patterns and map the most fuel-efficient routes for their aircraft.
For instance, banks and insurance carriers with robust ERM programs realize that investment research consultants and credit rating agencies, although they may have a relatively small spend, can have a significant impact on their investment portfolios if conflicts of interest, bias, or fraud go undetected.
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