Airline Planning During Prolonged Uncertainty A year and a half ago we published a blog with a similar title, and last year we updated it. At the outset of a third Covid year, it is timely to look back at our earlier thinking and to offer some predictions for 2022. Our thesis in 2020 was [...]
One year ago, we published an article with the same title. It was our view on emerging trends in aviation post-Covid. As consultants, we have a duty to look back at our past guidance to see what we got right and where we missed the mark. Our clients expect no less. Prediction: Profound change [...]
Data analytics is key to airline success. Highly developed models have been created to forecast demand and thus predict future seat load factor and yield. Yet the challenge is: Algorithms that form the base for these forecasts are no longer valid. So, what to do in a situation in which last year’s demand is undocked [...]
Air transport is an important contributor to a globalized world. However, its contribution to human-induced CO2 emission is seen as a threat to sustainability. With the flying shame movement from Sweden (“flygskam”), airline emissions have gained focus in the sustainability debate. In all fairness, air traffic contributes only around 2% of global human-induced CO2 emissions. [...]
Airlines around the world have received immense financial aid since the onset of Covid. New York Times estimates that Washington paid $600,000 for each airline job saved. The reason is obvious: Governments are justly concerned about the vital role of airlines to the economy. After all, civil aviation is a highly specialized complex system which, [...]
High status levels mean a lot to frequent travellers. Not only because they come with some very valuable privileges but also as a symbol of being someone special. What does it do to these customers if they lose their status because of Corona? The airlines’ network offering is significantly down. Corona has put a stop [...]
As most of the world has benefited from the low fare, ultra-low-cost carrier model, the U.S. remains a notable exception. In most mature short-haul markets around the world, ULCCs typically command 30% passenger market shares. However, in the U.S. ULCC penetration has hovered around 5%, but that dramatically changed in 2020 growing to over 10%. Why [...]
As you board your next flight isn’t it reassuring to know that two well trained pilots will be operating your airplane safely to its destination? But how does this emotion reconcile with statistics whereby 90 percent of recorded incidents in aviation accidents being human errors, according to Tom Enders, Ex-CEO of Airbus? Do multiple humans [...]
Airports used to benefit from an overall growth path in aviation since decades. But with COVID it seems the model shows the disadvantage of solely being aligned with natural growth patterns. Airlines have always faced competition and once Alliances showed their limitations, new business models appeared and challenged established airlines to adapt and accept the [...]
Why Airline Retailing should be a priority right now! Airlines in these unprecedented times are confronted with enormous struggles to protect their core business. Most often this means to focus on cost-cutting and innovative methods of rescuing revenue generation wherever possible. Even though these struggles from the coronavirus pandemic are still in full swing, it [...]