Reshaping the aviation industry after COVID-19
Hessa Al Ghurair
Passionate Thought Leader and Industry Expert. Featured in a Harvard Business School Case Study.
Make no mistake, we are undergoing some taxing times as the world continues to fight against the COVID-19 pandemic. Many industries have been hit hard: retail, infrastructure, health care, and aviation, are only just a few.
The air travel industry is a trillion-dollar industry globally, which includes: airlines, aircraft suppliers, plane-makers, airport infrastructure, travel websites, and more.
COVID-19 is not the first time that the aviation industry has hit hard times, it was challenged during the 2007-2009 financial crisis when airlines globally struggled to sell tickets, but ACI World predicts dark skies ahead, with an estimate 57% fall in revenues by 2020.
We have seen headlines of airlines bankrupting in Europe, restructuring, and employee layoffs. But the bounce back that lays ahead for the industry is looking like it will change the industry for the better.
Green Skys to come
The Economist believes that the “pre-COVID-19 call for sustainability will come back stronger than ever”.
This is already seen in Europe, for example in France’s USD 17bn aid package for aerospace sector includes a USD $1.7 R&D fund to support Airbus launch a zero-emissions short haul jet by 2035, which will potentially be powered by biofuel or hydrogen.
The UAE is opening again to business aviation, while adhering to “new normal” pandemic guidelines that support the health and safety of passengers.
In the middle of this pandemic, Air Arabia in Abu Dhabi received its Air Operating Certificate, becoming the fifth UAE airline, and the capital’s first low-cost carrier back in April 2020.
Air Arabia Abu Dhabi is working to finalize a launch date as market conditions continue to improve. While production has slumped, this announcements reflects a smart move in reading the horizon of what future consumers will want once the skies are open again at full capacity, which is leaner and cleaner air travel, in addition to a safe journey.
Increase in health and safety and new ‘air bridge’ efforts
We see airline carriers and airports taking a new step in providing health and safety for passengers.
Looking to Dubai, Flydubai has ‘re-engineered entire passenger journey’ to boost travel, introducing health and safety measures, such as fitting its cabins with high-efficiency particulate air (HEPA) filters to sterilise the air every two to three minutes.
The UAE became the first country in the world to use trial police sniffer dogs to help detect COVID-19. The UAE Ministry of Interior mentioned that they can correctly detect 92% of case in the successfully completed trial.
These pioneering steps, K9 line of defense, rapid checks, and modern temperature-checking technology are helping curb the spread of COVID-19 are innovative steps to ensure the safety of the UAE, tourists and aviation employees.
Finally, the UAE, in partnership with the WFP launched an international ‘air bridge’ operation that will provide a lifeline of essential health and humanitarian supplies to countries across the globe who are struggling with COVID-19 spikes and medical supply disruption.
Will ‘flightpooling’ become a new trend in aviation?
"Over 70 per cent of the demand for private jets in July 2020 came from first-time private jet travellers’ who used to fly first class on commercial airlines,” says Adel Mardini, founder and CEO of Jetex, who handles logistics, flight support and operator of private jet terminals in Dubai South.
This increase is not for the luxury, but for the reduction of health risks while traveling during the pandemic, as it is estimated that flying private reduces exposure to a virus by 30 times compared to flying commercially.
With over 27 private jet charter companies registered in the UAE and the infrastructure airstrips to support, private aviation might become a new demand in the future.
Especially when reimagined air travel has already started to occur, like the not-for-profit ‘Flightpooling’ services introduced by JetClass, which allows six people to sign up for a private jet on a specific route via airlines website, allowing passengers to split the cost equally.
The above are prime examples of how in times of crisis, industries will always look to innovate, adapt, and cater to changing environments and customers demands.
In a post-COVID-19 world we may see a new and improved global aviation industry.
Board-Certified Gastroenterologist & Private Healthcare Navigator | High-Touch Patient Advocacy for Family Offices, HNWIs, RIAs, Private Households, Individuals, C-Suites
4 年Hessa Al Ghurair Interesting. Thank you for sharing this. Seeing how different sectors and different industries are handling the reintroduction of business the way it needs to be continued and continually adapted is beneficial to the reader as there are always aspects of their industry and sector. Brian Dooreck MD | Gastroenterology | Gut Health ? Life Balance | @dr.dooreck | 100% FREE Health Guidance at browardgi.com/blog
looking for the good opportunity
4 年I am genuinely interested.
looking for the good opportunity
4 年Its exceptional and UNIQUE .
Senior Commercial Executive - DP World UAE Region
4 年I enjoyed reading the article! When I decided to go back to the U.S. and get an ATPL, unfortunately the pandemic hit so hard. In your opinion, do you think obtaining an ATPL would be a good idea? Will there be demand on new pilots?