2) 40+ airlines collapsed during the COVID-19 pandemic so far
3) 118.5 billion in losses: Can Governments bail airlines out?
Vijay Poonoosamy, Chairman of the Aviation Group of World Tourism Network commented on the collapse of more than 40 airlines due to the COVID-19 pandemic.
By disrupting the model whereby airlines survived or thrived by being the wings of booming global tourism and trade, COVID-19 has clipped the wings of most airlines. More than 40 airlines have collapsed since COVID-19 despite USD173 billion of government support. Airlines lost USD 118.5 billion in 2020, have debts in excess of USD 651 billion and, according to IATA, need another USD 80 billion from governments.
Beyond the harsh realities of a government’s capacity to finance troubled airlines, are the harsher questions about such financings if the airlines are unable to re-invent themselves during these exceptionally challenging times for the world.
Nobody knows how all this will play out, but we must all wake up to the fact that the new normal urgently requires new mindsets to find new models for a viable and sustainable airline business which communities can embrace.
Travel Industry Professionals Members from all sectors are invited to join the rebuilding.travel discussion by the World Tourism Network.
More information: www.wtn.travel