Impact of Covid on Airlines Prt 2

Like many other airlines, this means more resources had to be channeled towards maintenance on a large scale compared to normal shifts. On any other day, planes are usually scattered, some in other destinations or on their way there.

Bookings that were done days, weeks and months earlier posed a big challenge. Firstly, the ticketing companies endured the labour of re-confirming tickets without remuneration. Secondly, refunding clients was not an option because of the high costs, considering the complexities of flight connections. Riding in the storm until they resume, plans to complete trips for earlier bookings became a priority. After having dug deeper into their financial coffers, going back to the sky, inflation caught up with them as they figured out how to absorb the huge losses.

Employees from in-flight attendants to mechanics, and marketing managers were urged to consider early retirement packages to enable the companies cut down on expenses after the demand in air travel plummeted. The extremely low levels of air travel demand could only be compared to the 1950’s in the month of April. For instance, U.S. airlines largest expenditure is labour and the number of workforce rose by 20 percent in the last ten years to 459,000 people as noted in the federal data.

The Boeing 737 variants Max 8 and 9 touted to be excellent in range and economical in fuel consumption had caused a stir in the industry. An improved version of the 737 NG model, the Max 8 raked in a lot of orders based on the reliability of its predecessor. It began well, but two fatal accidents caused by the faulty Maneuvering Characteristic Augmentation System (MCAS) condemned the jet.

The Max was immediately suspended worldwide by airlines subject to investigations concerning its safety standards. The Federal Aviation Administration categorically stated that the plane’s approval would not be done before 2020. Unfortunately, in March 2019, two fatal crashes where 346 lives were lost, caused slightly over 700 Max jets to be grounded worldwide.

After lengthy re-calibrations and re-certifications, it looked to be on its way back to the skies until the advent of covid 19, escalating the already bad situation to worse. The 737 model is the most operated jet by airlines around the world and the highest selling unit for Boeing since its introduction with Lufthansa in February 1968. Recently, they made the 10,000th plane which is not a mean feat. This briefly explains the financial woes Boeing is currently wallowing in, considering the 737 model is the company’s backbone in the passenger jet segment.

The road amidst the pandemic was not tough for Boeing but its rival Airbus too.  The A380 built by Airbus is the largest passenger jet ever with a capacity of five hundred to eight hundred passengers, depending on the configuration preferred by the respective airline. Signaling a new dawn in flying the largest number of passengers, the A380 double decker plane was a marvel, unfortunately, its reign did not last long like its counterpart Boeing 747 dubbed, “Queen of the sky”.

Traveling longer distances on less fuel was the subtle noise that emanated from airlines which gained traction by the day. The A380 and the 747 did not fit the bill. Presumed to be on their deathbed, the virus didn't just kill, but buried them too. CNBC (2020) succinctly puts it, “But the end for the program has been hanging in the air for years amid falling orders and pricing pressure. The corona virus pandemic has also crushed passenger travel and demand for new jets.” The Sunday Morning Herald (2020) stated, “Besides Etihad, Air France also announced that it would no longer use the model with immediate effect. Meanwhile, Emirates, which owns 113 A380s the most amongst airlines, is planning to decommission them earlier than originally planned”.