Airlines may now be a sub-scale business.
If their occupancy is below their “break even load factor” they are losing money on a route.
With durably lower demand, many routes may now be unprofitable.
Now add in 14 day quarantines for international travel & Zoom as alternative…
If their occupancy is below their “break even load factor” they are losing money on a route.
With durably lower demand, many routes may now be unprofitable.
Now add in 14 day quarantines for international travel & Zoom as alternative…
In one scenario, it all bounces back.
In another scenario, fewer passengers & more overhead (quarantines, health checks) means fewer flights.
Ultimately would mean expensive, infrequent flights only for the purpose of permanent physical relocation.
Very little casual travel.
In another scenario, fewer passengers & more overhead (quarantines, health checks) means fewer flights.
Ultimately would mean expensive, infrequent flights only for the purpose of permanent physical relocation.
Very little casual travel.
So, in the 2nd scenario, an airline bailout of the type contemplated would prop up a now-zombie industry where demand had evaporated.
On the other hand, if you don’t support it, this very complex machine called the airline industry may break in a hard to fix way. Tough choice.
On the other hand, if you don’t support it, this very complex machine called the airline industry may break in a hard to fix way. Tough choice.
