Aviation on edge post COVID-19
Aviation industry experts outlined that COVID-19 could provide a unique opportunity for the industry to reset to a more sustainable model that meets the demands of the climate emergency, WOLE Shadare writes
Rescue option
The International Air Transport Association (IATA) has predicted that airlines will lose over $400 billion in revenue this year. COVID-19 impact on aviation sector has been huge and recovery time is likely to be lengthy.
Without financial aid from their governments, half of the world’s approximately 800 airlines could be bankrupt by the end of May because of the unprecedentedly swift and deep drop in air travel demand amid the coronavirus pandemic, a decline that has exceeded the fright-driven falloff that followed the 9/11 terrorist attacks.
“It’s a ‘no-brainer,’ really. Most of the 800 or so airlines in the world are going to fold if they have no income for three or four months,” said Peter Harbison, CAPA’s chairman.
That’s because airlines are, from a financial structure perspective, heavily dependent on cash flow.
Because their primary assets – their aircraft – are 20-plus year assets, they must be financed via 20- to 25-year term loans or 12- to 15-year leases.
Cash dry up
Thus, airlines must continue to take in large enough streams of cash to make their substantial monthly loan or lease payments.
But when planes get grounded, or have to operate with only a fraction of their normal passenger loads, carriers see their incoming cash fall instantly as their loan and lease payments continue. When that happens, airlines can burn through their cash reserves quickly.
However, with lockdowns easing across Europe, people are beginning to cautiously make plans for the future and search for where their next viable holiday destination will be. But with the industry in tatters, air travel – at least for the next few months – will be markedly different post-COVID-19.
For instance, to alleviate any passenger fears about air travel during the pandemic, some airlines have started exploring the idea of keeping middle seats empty.
Dana’s initiative
Nigerian carrier, Dana Air has announced that it will keep the middle seats on all its aircraft empty upon resumption of flights.
The Accountable Manager of Dana Air, Obi Mbanuzo said Dana Air will commence this initiative when flights resume, maintain it for a while and listen to the feedback from the airline’s customers.
According to him ”Majority of our aircraft are configured with mainly three seats in a row, on either side of the aisle, so when we resume flights anytime soon, we will keep the middle seats empty so passengers can sit on the window and aisle seats to ensure some physical distancing onboard all our flights.
”This is just to give our guests some sense of security about their health and well-being when flying with us immediately after the pandemic and it will be for some time, while we continue to review feedback from our guests on their thoughts, but we believe it what customers might like to see.”
Obi stated that, ”Our first concern is the safety and well-being of our staff and customers and we have made firm arrangements to ensure that our thorough cleaning and disinfection program continues. We are taking this seriously as we do not know how long this will last.”
EasyJet is the latest airline to float this idea, with chief executive Johan Lundgren describing the measure as “something that customers would like to see” – Alaska Airlines and European budget carrier Wizz Air have proposed similar plans.
Hindrance to travel
But while these social distancing policies may be a temporary hindrance to travel post-COVID-19, it is likely that in the long-term we will see airlines hike ancillary charges to try and recoup some of the revenue lost to the coronavirus crisis
With the UK still under lockdown restrictions, many of us are understandably getting itchy fit and desperate for a trip abroad soon. But the road to recovery for the aviation sector is going to be long.
Airlines will need to adjust to the ‘new normal’ of social distancing and try and find a way to recoup the billions of revenue lost to COVID-19. This will likely look like empty seats on planes and more hidden costs for consumers.
Touchless travel
The most immediate and perhaps most visible change will be a shift to touchless travel from airport curbside to hotel check-in. Even with strict cleaning protocols in place, exchanging travel documents and touching surfaces through check-in, security, border control, and boarding still represent a significant risk of infection for both travellers and staff.
Automation across the entire sector will become the new norm. Biometrics are already a widely accepted solution for identity verification, and their use will become more widespread as physical fingerprint and hand scanners are phased out.
More touch-less options will come into play including contactless fingerprint, as well as iris and face recognition. Moreover, technology for touchless data-entry such as gesture control, touch-less document scanning and voice commands are already being tested.
Care must be taken to ensure these technologies are inclusive and to eliminate the risk of potential biases.
Last line
This crisis is of course the worst in all aviation history and one of the worst in the history of mankind. It will most certainly change attitudes in human interaction but perhaps such changes could extend to aviation; will we continue to have planes with passengers not adequately spaced out.
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