COVID-19 Airlines
Airlines now have to restructure and reinvent with the changed scenario. Gaining consumer confidence specifically with safety and convenient procedures will be significant.
New Normal While uncertainty looms large over global travel’s restoration, the airline industry has to overcome the financial grievances as well as innovate for transforming consumer behavior
Photograph: Delhi Airport/Twitter
By Ayushee Chaudhary After the widespread travel restrictions across the globe due the pandemic and the fallen demand, the destinations worldwide welcomed 1 billion fewer international arrivals in 2020. Since then the airline industry has been through a downturn as deep as any it has ever experienced, stated the United Nations World Tourism Organisation (UNWTO). As the restrictions started to ease, the emergence of new variants of the novel coronavirus have again nudged the governments to reverse the opening, with almost entire closures most prevalent in Asia and the Pacific and Europe. A report from McKinsey industry action group reported that in 2020, the airline industry revenues totaled $328 billion, around 40 per cent of the previous years. “In nominal terms, that’s the same as in 2000. The sector is expected to be smaller for years to come; we project traffic won’t return to 2019 levels before 2024,” it stated. While uncertainty looms large over global travel getting back to normal, the pandemic has also transformed travel behaviours. As airlines deal with the hit, they not only have to
www.sps-aviation.com
recover but also restructure and reinvent with the changed scenario. Gaining consumer confidence specifically with safety and hygiene along with convenient procedures will be significant. The international marketplace, Skyscanner’s Horizons report also revealed the emergence of new travel behaviours. These changed behaviours are likely to stay long-term and profound. The 2008 crisis was largely economical, however this one is also transforming consumer behaviour and operational structures, which is what the airline sector will have to look into. Restructuring and redesigning the aircrafts and routes, exploring innovative technologies, treading the cost-effectiveness with the change in demand, ensuring safety await the airlines ahead. Some of the areas that will define the new normal for the airlines, are listed below. Restructuring, redesigning & rerouting With more and more people getting vaccinated, travelling within the country certainly has an upper hand as international travel is still likely to face delay. Passengers are also willing to
ISSUE 5 • 2021
17
