Aviation industry - challenges and uncertainties after the Covid-19 pandemic

¹ Bucharest University of Economic Studies, 6 Piata Romana, Bucharest, Romania
² MA student, Bucharest Romania

^* Corresponding author: razvan.dobrea@man.ase.ro

Abstract

Research background: After the recent restart of global economy, at least in Asia, Europe and U.S., one of the main suffering industries is aviation. As a principal consequence of quarantine and closing borders, most of the people cancelled their flights pushing the airlines companies to the edge of abyss therefore it looks interesting to understand how far they could go and what the operating limit are. If at the moment we have heard news about bankruptcy only about few companies (LGW –a regional German airline and Latam Airlines - South America’s biggest carrier) is because, generally, they still have cash reserves and important demands for help was sent to the governments but the situation is quite dramatic.

Purpose of the article: In this article we will analyse why the aviation sector is facing one of the most complicated times after the 9/11 WTO, what are the main constraints for the industry future and what real measures can be taken in order to recover the situation.

Methods: By means of descriptive and comparative analysis the paper reveals the financial and technical difficulties to implement certain health safety rules imposed by regulators.

Findings & Value added: This new type of pressure caused by Covid-19 pandemic outlines once again the stress in which the aviation sector is found out. Despite the fact that there is a permanent preoccupation to improve technology and performance, governments and health international organisation should take into consideration all the business aspects before launching impossible requests.