Airline industry: From a chronic crisis to chaos
- Anouar Ouali Alami
- Dec 9, 2020
- 2 min read
The airline industry’s metabolism is ordinarily slow: capacity is perishable, price below forecast during tough times is a usual recovery practice and this didn´t change over the years.
The dynamics that already led to unprofitability are still there.
Turbulence in the Air...
Covid 19 is a big hit to the aviation ecosystem that was already in crises. The ecosystem of air travel is being 𝗱𝗲𝗲𝗽𝗹𝘆 𝗱𝗶𝘀𝘂𝗽𝘁𝗲𝗱 worldwide with some small variation between countries.
We need to see more studies analysing 𝗵𝗼𝘄 𝗽𝗮𝘀𝘀𝗲𝗻𝗴𝗲𝗿 𝗵𝗮𝗯𝗶𝘁𝘀 𝗰𝗵𝗮𝗻𝗴𝗲𝗱:
Do we know what is the new travel plan for passengers who were used to travel 3 , 4, 5 times a year?
What about Business travellers? What is the recovery rate?
A Portion Of Business Travel Will Never Return
What about passengers who will not be able to fly in next 2, 3 or 4 years because of the micro-economics of today´s job market and financial unstability?
Remote working will be the new normal, even after Covid19. Many companies decided to move to a virtual HQ indefinitely and cut the renting cost and other utilities cost.
Beating anxiety and encourage passengers to fly again is a psychological issue
Preparing airports to process tests will have a limited impact on increasing the load factor, aviation today needs to beat :
Anxiety about flying,
Compete with remote working
Cope with customer´s expectation to get even lower prices.
Making tests available at the airport is one measure out of many to pave the path for customers, but first we need passengers to be willing to travel again
Measure and Predict
Aviation needs economists, psychologists and experts of aviation working together to make predictive analysis on the psychology around travelling and help air travel to move forward with a realistic view of the world, Aviation will have to reinvent the revenue and business model and offer something new and adaptable to this new era.
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