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PA IN THE MEDIA

COVID-19 has the ability to reset aviation to a more sustainable model

David Huttner, Commercial Aviation lead at PA Consulting, discusses impacts to the aviation industry from COVID-19.

Read the full International Airport Review article here

The impact of the COVID-19 pandemic on the aviation sector has been, and will continue to be, unprecedented in its scale and scope, but it can also provide a unique opportunity for the industry to reset to a more sustainable model that meets the demands of the climate emergency. 

David said: “COVID-19 is having an unprecedented impact on the aviation industry. Countries that cover 98 per cent of commercial air passenger revenues have restricted travel and the in-service fleet now represents just over one third of the global inventory of aircraft. We believe there has been a reset in the industry and the total numbers will be lower for some time, with sustained capacity reductions of at least 10 or 20 per cent.”

David adds: “Significant effort is being made to use a range of emergency measures to reduce costs and improve efficiency permanently as airlines seek to exit from the crisis. Not all airlines will make it through the months ahead, with significant failures due to administration, liquidation and consolidation likely to occur. Corporate travel budgets are likely to be cut as chief financial officers try to preserve cash and retain liquidity. Airlines may need to re-evaluate their business models and recognise the reduction in demand due to both cost and new work practices.” 

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