Competition and survival

Competition and survival are the mechanisms that will dictate the future of aviation post-covid. After 2 years of incredible disruption in the sector, it’s time to make a comeback and get back to normal as soon as possible. But the start may be bumpy for both passengers and airlines. The prices need to be competitive enough to bring passengers back, but they need to cover the high costs of running an airline, so it is a balance between competition and survival.

Demand is there

I think we all agree that theoretically demand won’t be a problem. After 2 years of border closures, lockdowns and restrictions, people want to get out there and start travelling. But we also need to consider that a lot of people lost their jobs and they are still struggling to get their lives back, so although they may want to travel, they may not able to do so because they can’t afford it. Therefore, what may seem like a lot of demand, might actually be wishful thinking and not demand at all.

The more the merrier

From a passenger’s perspective, competition is great. The more airlines they have available the better prices will be. Well, this is usually the case, if you have several airlines operating the same route, they are all competing for your business, so that may reflect in the prices. However, if there are still restrictions in place and capacity is not there, they all have to raise their prices to keep afloat and that means you won’t get the better deal. Or the best deal available is still above what you are able to pay.

Creativity means survival

I honestly don’t believe restrictions will last forever, and with covid passports and other safety measures, aviation will be able to return to a profitable life. Once borders reopen and people are free to go, I believe demand will be there. To help make it be more affordable, airlines may need to be creative and explore different options, offer different destinations, create new packages, who knows, it is certain that the industry will bounce back from this. We want to fly and they desperately want to fly us there, so with a little push, I think we all get there in the end.

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