Airline Sector Poised for a Major Change Post Covid-19
The consequences of the Covid-19 pandemic are still having felt today. Even though vaccines are now getting seen in many parts of the world, it will be several years before air travel has fully done recovery. Taking a step back from the pandemic, we suggest problems and solutions for airlines as they prepare for the future realities in the industry. If the airlines strategize well, then nobody can stop the Char Dham yatra by helicopter from taking place.
Aviation safety increasingly includes aspects of health safety
Aviation safety and security have been increasing as industry standards. It was cruelly proven by the pandemic that health safety is a third pillar that may represent an equal threat.
As regulators, we’re trying to figure out how this new position will affect ours. Aviation Health Safety Protocol met urgent industry demands. But, Europe now figures out how to make health safety an integral part of aviation operations. Unfortunately, additional pandemics will strike in the future.
The industry’s financial health will be long-term
The well-publicized financial losses affect the airports and airlines as a result of reduced passenger traffic. The crisis also called into question the industry’s entire financial structure.
For example, what happens when a niche aircraft part supplier goes bankrupt, leaving the manufacturing industry with delivery gaps because they don’t have any other customers or competitors?
It’s a problem when air navigation service providers have to maintain service capabilities even when there is virtually no traffic. ANSPs are usually paid by those who use them.
It’s more critical than ever to have a green economic recovery
The desire to make aviation more environmentally friendly and sustainable was at the top of the priority list in early 2020. It’s still there but overshadowed for the time by more pressing health issues. A record number of old, fuel-guzzler planes have been put into storage or retired as a result of the crisis. However, that hasn’t spurred industry investment in newer, more fuel-efficient models to replace them.
The flygskam movement, which was very active at the beginning of the year, has got quite slow down for the time. But it is gathering steam as people see it as a civic duty to encourage others to avoid flying. Counter-arguments and concrete measures are needed to make flying more sustainable by the industry. Thankfully, private charter companies like Megamax Aviation are striving hard to provide eco-friendly Tour by Helicopter during the season.
Don’t stop putting money into innovation
Any kind of crisis offers a plethora of new possibilities. Finding the resources and energy to propel the aviation industry into a new age is the biggest issue. Most people agree that the systemic capacity of European air navigation service providers can only expand by using new technology. This occurs, especially in the air traffic control field. The time to invest in ATM technology has never been better than right now.
In the future, there will be a greater gap between airline performance
However, some airlines have again begun while others are struggling. These programs may demotivate required activities. These activities include pricing, structural and operational restructuring that is occasionally linked to this problem. Airlines that fail to change themselves in a proactive way risk failing to produce long-term structural value.
For the time being, there could be a shortage of air freight
The unprofitability of the cargo sector has forced several airlines to curtail their cargo freighter fleets during the last decade. However, throughout Covid-19, freight has been essential lifeblood for the aviation sector.
Prior to the outbreak, freight accounted for about 12% of total sector income.
- Last year, that figure increased thrice. Only 21 (down from 77 in 2019) of the world’s airlines that declared their financial performance in the third quarter of 2020 earned positive operating profits. It is usually the industry’s most successful quarter, according to statistics from the Airline Analyst.
- Cargo revenue contributed an average of 49% of overall revenue for these 21 airlines. Last year, cargo yields grew by 30percent. There will be a rise in belly supply over time when commercial flights resume, but not to pre-Covid-19 levels for some years.
The recuperation process will be aided by vacations
It will take longer for business travel to return to pre-pandemic levels. Also even then, only around 80% is projected to recover by 2024.
- People will take fewer business travels if flexible working alternatives such as remote work continue.
- Carriers like American Airlines and Delta rely heavily on business customers, whether they’re flying first or business class. While leisure passengers occupy the bulk of seats and contribute to certain fixed costs, their overall financial contributions are low.
- Long-haul airline revenues are mostly derived from high-yielding groups of business travellers. Due to the pandemic, this number of prospective clients has shrunk.
Vitality of Customer Centricity
In the retail and media industry, where the process is much more efficient, most airlines’ customer service lags dramatically behind top digital-native businesses. While booking reference numbers provide vital information about a specific trip, they disclose nothing about the passenger.
- Airlines’ customization and client centricity will change dramatically during the next five years. Because they generate a unified client image across all systems and touch-points. Companies will be able to utilize customer data to adapt offers to their preferences and trip objectives.
- Customers will get more personalized service before, during, and after flights.
- During the flight, the attendants of the flight will have access to entertainment and other services tailored to their preferences.
To become more customer-centric, airlines are anticipated to increase data exchange across suppliers.
Leading airlines will develop or join ecosystems to better understand the customer experience. This will improve client satisfaction. For example, flight delays will immediately change hotel reservations. By improving the consumer experience, the ecosystem will gain loyalty and a bigger share of their spending. Flying less often will be easier if these ecosystems include lifestyle companies, commodities, and services.
We hope you would understand the main challenges that are or could be a part of the aviation industry. Considering this fact, certain private charter companies are planning to organize trips such as Char Dham Yatra by Helicopter 2021. If the airline industry adjusts to these changes or implements the right actions, then a bright future ahead is possible. This will also pave the way for the Trips by Helicopter trios this year.
Are you excited about it? Let us know in the comments below