Helping aviation recover
The impact of the Covid-19 global pandemic on aviation is profound. While declines in air passenger traffic are plain to see, the specific impacts to individual airlines, airports and air navigation service providers - the airspace operators, present a highly complex interdependent picture, which for any analyst, government or otherwise, is difficult to discern in any detail.
The future size and shape of the Industry will be markedly different from that of 2019. Airlines, airports and ANSPs will use the event to resize work forces, reconsider long standing capacity plans, increase the use of technology and improve efficiency. This will be undertaken while delivering improvements to environmental performance and balancing prior excessive demand for resources, such as aircraft, runway slots and airspace, with infrastructure available elsewhere.
Some actors will be ahead of the rest and will already be thinking about the future, it will take at least a year before policy debates mature to the point where some clarity will emerge.
Government bailouts will increase the role of government (and policy) in the running of airlines and the architecture of the industry. The nature of competition will change; how should airlines such as Ryanair compete alongside airlines that only continue to exist because of government intervention, such as Alitalia.
The drop off in aviation activity as a result of Covid-19 has already meant a reduction in aviation pollution. Fewer planes mean less noise and a dramatic reduction in emissions. Maintaining a reduced environmental impact of aviation is a global priority for the future.
Identifying and achieving a balance of these conflicting imperatives will be difficult for industry, regulators and policy makers to achieve.
Given the inter-connectedness and interdependence of the industry that COVID-19 is now highlighting, it is clear that significant structural re-alignment and sizing is required in order for the industry to emerge in a better place. So, what might airports and other industry participants now consider?
The 'new normal' will impact the evolution of all the stakeholders. Five Aero can help revisit policies, regulations, performance requirements and ownership obligations to ensure help re-establish civil aviation as the enabler of economic development worldwide.