Transport industry perhaps most weakened by pandemic

Transport

Even in normal times, companies from the transport industry were struggling with the timely payment of liabilities and increasing operating costs. The economic crisis and restrictions related to the pandemic caused four out of 10 entrepreneurs to fear that their financial liquidity will not be enough for more than three months. Carriers also have difficulties in accessing state support, as some of them are not eligible to participate in the anti-crisis shield, according to a report by the Warsaw Business Journal.

"Many consumers do not notice on a daily basis how much impact the uncertain and dynamically changing economic situation in the country and in Europe has on transport companies. In January this year, nearly 13% of companies from the TFL sector expected the arrival or worsening of problems with payment gridlocks, including those that may threaten their stability. Many entrepreneurs report problems with covering fixed costs and employee wages because the current turnover is insufficient. Currently, as much as 43%. companies believe that their financial liquidity will not be sufficient for more than three months," Jan Enno Einfeld, Managing Director of Finiata Group, said.

Bus companies have been in the most difficult situation for almost a year – in the period from March to June 2020, the industry was overnight blocked by government regulations. During the summer and winter holidays, Poles gave up long-distance excursions, and pupils and students (commuting to schools from small towns and villages) have been learning remotely for several months. The situation of the industry was not improved by the so-called Shield 5.0, because it eliminated carriers who provide urban and suburban transport.

ADVERTISEMENT

Business confidence edges up as consumer sentiment weakens Analysis

Business confidence edges up as consumer sentiment weakens

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

Energy Efficiency: End-users, Energy Traders and Other Stake... Inside View

Energy Efficiency: End-users, Energy Traders and Other Stake...

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.