Seven features of the ‘unrecognisable’ airline industry structure that will appear in the post-Covid world have been identified by CAPA – Centre for Aviation founder and chairman emeritus Peter Harbison.
1. Airline revenue streams, already rapidly evolving, will change greatly;
It is surprising how few airlines went out of business in an ‘unimaginably dreadful year, where international capacity fell to around one tenth of its previous level and many domestic operations fared only slightly better,’ according to CAPA – Centre for Aviation founder and chairman emeritus, Peter Harbison.
However Harbison warns that despite the story of survival we could be fast approaching the ‘tipping point.’
For most of the year vaccines will ‘really just be a sideshow’ for international aviation, according to CAPA – Centre for Aviation chairman emeritus Peter Harbison.
Giving his chairman’s lounge outlook 2021 address at CAPA Live this week, Harbison asserted that the real key to reopening remains effective and improved testing and tracing methods that are
Airlines will need to focus on attracting new and return clients as the world emerges from the Covid crisis, with loyalty initiatives likely to take a back seat initially, according to a speaker at the virtual CAPA Live event this week.
Brent Coker, consumer psychologist at the University of Melbourne, is also predicting ‘a scramble to grab consumers’ through price competition as the world moves back towards international travel.
The impact of Covid-19 on airports ‘has hastened trends of change that were already in motion before the pandemic’, according to Foster + Partners architect and senior partner Antoinette Nassopoulos-Erickson.
This includes advancing the implementation of biometrics and contactless technologies at airports, she told the audience at a recent CAPA - Centre for Aviation Masterclass event
The first thing Australia needs to do for its tourism recovery is reopen the country’s state borders where it is safe, says John Hart, executive chair of the Australia Chamber of Tourism.
‘There seems to be the attitude that keeping people safe is about locking them down, rather than allowing safe travel. While that happens there won’t be a recovery.’
The airline industry has plenty of disruption still to come and desperately needs restructuring, a high level virtual conference heard this week.
In his introduction to the 2020 Aviation Summit, CAPA Centre of Aviation chairman emeritus, Peter Harbison, said that the industry has seen about a 60% drop in passenger numbers globally during the crisis.
People in the Asia Pacific region are less likely to feel confident about international travel right now than those in Europe and USA.
Gavin Harris, commercial director of strategic partnerships with Skyscanner, says the company’s latest weekly travel pulse data shows that globally, 19% of people say they would feel safe travelling internationally now.
Despite QF’s ultra-long haul flights, dubbed Project Sunrise, currently being shelved, Qantas Group chief executive Alan Joyce predicts that when borders open it will be the type of service to resonate even more with passengers.
‘There is likely to be a stronger business case for flights like Sydney / Melbourne to London or New York, without the necessity to stop anywhere on the way.’
Having a certain percentage of the aircraft unoccupied may serve to reassure passengers in the early emergence from Covid restrictions, but it is not a sustainable business model, according to Bill Franke, managing director of Indigo Partners.
Speaking on a CAPA Centre for Aviation webinar this week, Franke says there has been a lot of talk and photos in the media and on social sites showing where all the seats are taken and people are complaining about the lack of social distancing.