Airlines in a Crisis

In Norway we have several examples on this. Norwegian was/is hq'd at Fornebyu that haven't been an airport for over 20 years. Flyr was hq'd in the overexpensive Oslo city center. And Norse hq'd in Arendal, a town without an airport and even further from Oslo airport than Oslo itself. The train connections from hq to airport might be frequent and only take halve to an hour but its not the same as a 10 minute walk to oversee where your real operations happens. The place where your customers experience your service and most of your critical costs are spent. But also the costs most easily squeezable. Closenes let you reduce the costs before they occur rather than just financially overseeing the bills in accounts after they have happened. That makes a difference when it comes to reducing costs through strict control.  And low costs are the most important for being able to underprise your competitors. Something all the beforementioned airlines tried and tries because they see...

Airlines will hve to negotiate with insurance companies to come up with a soulution for that most travel insurances have been suspendd for the time being. If a solution could be found for that insurances sold with an airline ticket could have a certain minimum of cover also during these pandemic times, a lot more potential passenger would be reassured that they wouldn't just be abandoned to their own fate in some foreign country. This would of course include that airlines commit to arrange rescue flights if travel restictions will again be increased while people are away on a holliday. And that at a ticket price not overly goughing. Countries like Cyprus have shown the way forward by guaranteeing that a certain minimum amount of care will be given also to foreign CoVid19 patiens. Only if the different sectors within the travel industry come together with solutions and agreed on sharing the burdon can customers be entized back in numbers that will make things commecially viable...

Have Ryanair's O'Leary lost the ability to ajust. He is complaining left right and center about why not everything is like before. Why should they have to practise distancing, why is there quarantines and why do the airline have to do any changes instead of somebody else like the airports taking care of all the bothersome stuff. Did he completely forget his schoolyear teachings about price unelastic demand. We see every day reports about people who would be willing to pay a bit more if there just was flights. They who want to and/or are desperate to travel will pay what it costs. But many will not travel for any price because they are scared. Either scared because they don't trust airlines to adapt to the new distancing safety standards or hardline practice the masks thing. Or scared they will be on a plane full of ignoramas who not only will not practice it there but do the same everywhere else and therefor be pestilence carriers. Better sit back and wait for better time...