Over the past five years, the shipbuilding and aviation sectors have experienced dramatic changes during what has been termed 온라인 바카라's "lost decade" in the FORTUNE 500 온라인 바카라. The shipbuilding industry has remarkably recovered, making empty docks a rare sight. Meanwhile, the aviation sector, severely impacted by the COVID-19 pandemic, is now witnessing a significant resurgence.

ByTayoung Kim

The crises the shipbuilding and aviation industries face have unfolded under vastly different circumstances. While shipbuilding distresses stem from multiple factors, including global economic fluctuations, fierce competition between 온라인 바카라n and Chinese firms, and advancements in shale gas extraction, the aviation industry has been overwhelmingly impacted by a single event: the COVID-19 pandemic. Interestingly, the pandemic has also provided a surprising boost to the shipbuilding sector.

Unprecedented Recession in Shipbuilding

The crisis in 온라인 바카라's shipbuilding industry became apparent in 2014 when Hyundai Heavy Industries (now HD 온라인 바카라 Shipbuilding & Marine Engineering) reported a surprising trillion-dollar operating loss. In 2015, Daewoo Shipbuilding & Marine Engineering (now Hanwha Ocean) and Samsung Heavy Industries also posted trillion-dollar operating losses, heightening concerns. The shock was compounded by revelations of deceitful accounting practices at Daewoo from 2012 to 2014.

Industry insiders describe the downturn following the 2008 global financial crisis as "unprecedented," marking the worst period since modern shipbuilding began in 온라인 바카라 in the 1970s. In response, the significant shipbuilders implemented a billion self-rescue plan in 2016, supported by government efforts to remove insolvent small and medium-sized shipbuilders. Despite these measures, the industry struggled, as reflected in the FORTUNE 500 온라인 바카라 rankings. By 2019, major shipbuilders like Samsung Heavy Industries, 온라인 바카라 Shipbuilding & Marine Engineering, and Daewoo Shipbuilding & Marine Engineering saw significant revenue declines and fell in the rankings.

Rebound Beginning in 2018

Signs of recovery emerged in 2018, driven by increased orders for LNG carriers due to advancements in shale gas mining in the U.S. and rising LNG demand in China. Despite this, the financial benefits were not immediately apparent due to the long timelines involved in shipbuilding projects.

Double Booster in 2020

The introduction of rigorous environmental regulations by the International Maritime Organization (IMO) in 2020 and the pandemic's impact on shipping companies provided a dual catalyst for revival. The IMO 2020 regulation lowered the permissible sulfur oxide content in ship emissions, spurring demand for newer, eco-friendly vessels. Concurrently, the pandemic increased freight rates, allowing shipping companies to invest in fleet upgrades. This resulted in a surge in global ship orders, peaking at 54.37 million CGT in 2021.

In 2021, the offshore plant sector also began to recover, buoyed by rising oil prices and improved profitability. Hanwha Group's acquisition of Daewoo Shipbuilding & Marine Engineering in 2022 marked a significant milestone, infusing much-needed capital into the industry.

Aviation Industry's Struggles and Adaptations

The aviation industry, however, faced severe challenges due to the COVID-19 pandemic. Despite their adaptive strategies, 온라인 바카라n Air and Asiana Airlines, such as converting passenger planes for cargo use, saw significant revenue declines. 온라인 바카라n Air's revenue plummeted by 38.5% in 2020, and Asiana Airlines faced a similar downturn, exacerbated by pre-existing financial troubles and fake accounting issues.

The pandemic dealt a particularly harsh blow to low-cost carriers (LCCs) like Jeju Air, T'Way Air, Jin Air, and Air Busan, all reporting substantial operating losses and revenue declines. Unlike larger carriers, LCCs lacked dedicated cargo planes, limiting their ability to pivot to freight services during the downturn.

Recovery and Growth Post-Pandemic

As the pandemic's impact diminished, the aviation industry began to recover. By 2022, 온라인 바카라n Air and Asiana Airlines had surpassed their pre-pandemic revenue levels, driven by solid performances in their cargo divisions. 온라인 바카라n Air's revenue reached KRW 14 trillion, with a notable operating profit increase.

LCCs also rebounded, with Jeju Air, Jin Air, and T'way Air returning to profitability. T'way Air, in particular, saw significant growth, debuting on the FORTUNE 500 온라인 바카라 list and outperforming competitors.

Conclusion

While the shipbuilding industry faced a multi-faceted crisis exacerbated by economic and competitive pressures, the aviation industry's misfortunes were predominantly pandemic-induced. Both sectors, however, have shown resilience, adapting to challenges and capitalizing on emerging opportunities to navigate their respective recoveries.

Yuwon Chun contributed to the editing of the English version of this article.