Can Airlines Survive the Worst Year in Airline History?
Even with a COVID 19 vaccine looming in the future, it will be a long time before we will be traveling in masses for client meetings, go to large gatherings, or see millions of travelers take trips around the globe. I have taken five trips in the last month and flown mostly empty planes. The last time this happened was 9/11 but that lasted only a few weeks.
2020 has been a horrific year for the airline and hospitality industry and one which will go on for potentially another year, with so many mass events going virtual. Also, cultures are changing, and millions of deals are being closed without needing/using in-person meetings. Road warriors are taking a breather and family life is improving. This culture/societal shift could be permanent. Companies are saving millions of dollars in travel costs, so will they ever approve travel at scale again?
It may be necessary to Re-Think the airline business as with millions of fewer business travelers paying premium ticket prices, airlines can not function with super saver fares, flying with half empty cabins. Re-Thinking in this context means a completely new business model shaped for the new world!