AN optimistic mindset, a positive outlook, a never-say-die attitude and perseverance will take us through this crisis: that’s the bold prediction of Inderjit Singh, International Civil Aviation Organization (Icao) airport consultant and former CEO of Indira Gandhi International Airport.
That rousing announcement was a breath of fresh air to all the gloom and doom coming out of the aviation sector in the wake of the deadly Covid-19 pandemic.
Singh said the aviation industry has recovered from the shock of 9/11, when air travel stood still following the terrorist attacks on New York’s Twin Towers. There were other trials hurdled after that, like the Severe Acute Respiratory Syndrome (SARS) coronavirus in 2003, the H5N1 “bird flu” in 1997 and the H1N1 swine flu pandemic in 2009.
“Aviation is the business of freedom. We are resilient. And this gathering will help us to build an even stronger future,” Icao director general and CEO Alexandre de Juniac said, as he announced the November gathering of the world’s airlines to peek into the immediate future of the industry and address the challenges it is facing.
“The fight against Covid-19 is the world’s top priority. In the post-pandemic world, a viable air transport industry will be critical. It will be a leader in the economic recovery by performing its traditional role of linking people, goods and businesses globally,” de Juniac added, typifying the fighting spirit of the industry.
Airlines have turned to increasingly inventive ways of keeping cash flowing into the business. For some, a rapid pivot to cargo has helped sustain the bank balance, while others have focused on repatriation flights and other passenger services.
Foremost practitioners of this never-say-die attitude is Air Asia Group CEO Tony Fernandes, who said, “We’re not standing still, we’re not putting our heads in the sand and crying; it’s a new world, and we’re very, very excited by this new world, we have to take a risk sometime in our lives.”
The airline maverick has turned to online selling—of practically everything from avocado to zucchini. Fernandes noted that Jeff Bezos’s Amazon started selling books online and has since expanded to a wide variety of other e-commerce products and services, including video and audio streaming, cloud computing, and AI.
The BusinessMirror, during a webinar, asked Fernandes whether there’s light at the end of the tunnel, to which he replied a resounding, “Yes.” He added, “Air Asia would be a challenger, we will make ourselves relevant for all customers. The airline business is a challenge but we’ll bounce back, we’ll keep pushing.
“It’s an exciting journey and I look forward to this, in the digital period, our business will grow faster.”
Initially stranded passengers were repatriated, based on urgency and an emergency basis, followed by normal air travel under strict guidelines. ICAO’s strategy is three-pronged: To instill confidence among traveling people; initiate action to revive the economy; and, more important, to gear up and upgrade airports with appropriate technology. “The show must go on!” crows Singh.
Months after assessing the airline industry, the International Air Transport Association (Iata) initiated efforts to end the embargo on air travel to kickstart air traffic activities on a country-wide and case-to-case basis, “in a judicious, cautious, calibrated and strategic manner.”
The Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) responded and allowed the repatriation of stranded overseas Filipinos and migrant workers, and the outbound flow of stranded foreigners back to their homeland.
Lifeline
Meanwhile, the aviation sector appealed for a lifeline from governments. Earlier in October, the Malaysian government was reported willing to guarantee 80 percent of a 1-billion Malaysian ringgit ($240 million) loan to AirAsia Group from a consortium of banks under the country’s Covid-19 relief fund. AirAsia Berhad, too, has agreed fresh funding for an undisclosed amount.
Tycoon Lucio Tan poured in at least P15.2 billion into flag-carrier Philippine Airlines (PAL). From June up to October, PAL has gradually increased its commercial flights. It also mounts all-cargo flights to transport vital medical supplies from Manila to various provinces, as well as airlift cargo from across the world to Manila.
Since mid-March, PAL flew close to a thousand local and international cargo flights and over 300 domestic sweepers and repatriation flights.
PAL is working to secure government support to help weather the tremendous impact of the ongoing pandemic. Since March 2020, PAL has suspended capital expenditures, adopted a skeleton work force, reduced management salaries and slashed non-essential expenses to control costs. Shareholders have infused capital and provided funding to sustain the airline’s liquidity.
Cebu Pacific rose to the challenges of Covid-19 and raised $500 million in fresh capital, “to strengthen its balance sheet and ensure that it is well-positioned to recover from the impact” of Covid-19.
“We need to create a longer runway for CEB so that we can continue providing affordable and accessible air transport services for Everyjuan,” said Lance Gokongwei, President and CEO of Cebu Pacific and JG Summit Holdings Inc.
“CEB is an important part of the conglomerate’s investment portfolio,” he emphasized, believing that the airline’s vital mission is “providing fundamental and value-for-money air travel in and out of our country, and its crucial role as a driver for economic growth.”
Innovations
Meanwhile, passengers are being lured with innovations, such as the “fly to nowhere” began by some foreign airlines and which PAL is experimenting on. Air Canada found another way to attract passengers, by allowing them business class experience, “the way top-level athletes, musicians and the 1 percent do, if they’re flying to the sun.”
From December 12 to January 6, the airline will operate its Jetz aircraft—configured for a business-class-only experience—on routes between Canada and popular winter sun destinations, from Palm Springs and Florida to Mexico and the Caribbean.
Ticket prices start from the same as regular business-class fares.
The four Airbus A319 aircraft— usually chartered by sports teams, bands and corporate clients—were configured with just 58 seats, fewer than half the seats on a regular Air Canada configuration.
The seat pitch is between 42 and 49 inches, compared to 31 inches in a regular economy configuration, and 37 for a standard business-class seat.
Customers who book a Jetz flight also receive an upgraded meal, and get iPads preloaded with inflight entertainment, and with fewer passengers, boarding and disembarkation times are shorter, too.
And for those traveling in a group, there’s a meeting-style arrangement with four seats facing each other around a table.