Aviation recovery to pre pandemic level likely by 2023 end

Many challenges even after industry recovers: André Martins

PRAVASISAMWAD.COM

Aviation recovery to pre pandemic level of 2019 is likely by the end of 2023. There has been movement in the sector but there are many other challenges in front of the aviation operators, as the world has not yet fully recovered from the pandemic.

Uniformity in travel protocol has not yet been achieved in terms of PCR tests and quarantine procedures, and there is confusion of approved and non-approved vaccines in some countries.

Ahead of the November 14-18 Dubai Airshow, which happens to be the mega event for the airlines and operators, Oliver Wyman’s expert comments mentioned about the challenges in front of the industry even if it recovers.

“The global aviation industry will be back to its 2019 levels by the end of 2023, with a faster recovery in North/Central/South America and with the South Pacific, the Middle East and Africa lagging further behind,” André Martins, Partner, Oliver Wyman, said.

The industry needs to focus on doubling down the efforts on digital and automation whilst addressing key medium-long term challenges, particularly related to environmental emissions, more strict regulations on CO2 and the need to ensure long term sustainability

 As the industry recovers, many challenges need to be addressed. In the next two to three years, it will be particularly relevant to revamp the commercial offer to bring back air traffic, address production and supply chain issues from original equipment manufacturer (OEMs) and key suppliers, whilst also addressing pilot shortages and debt repayments.

In parallel, the industry needs to focus on doubling down the efforts on digital and automation whilst addressing key medium-long term challenges, particularly related to environmental emissions, more strict regulations on CO2 and the need to ensure long term sustainability.

“In the regional market, we expect in the short-term strong demand for the UAE and Qatar markets driven by the Expo 2020 and the FIFA World Cup, along with a slow recovery of the long-haul to long-haul connecting model and an increase of Low-Cost Carrier (LCC) regional traffic. Furthermore, we should expect an intensification of the regional competition given new potential airlines, the need to revisit the business model of some of the airlines and airports, and the need to successfully transform some of the carriers in the region into more agile organizations, with the right-size fleets and value proposition.”

Commenting on the Dubai Airshow, Martins said: “The Dubai Airshow will be a great event to reconnect the key industry leaders. Stakeholders will be keen to understand the latest perspectives on the recovery and rebuild of the aviation industry, along with airline growth and sustainability plans, scale-up production plans from suppliers as well as new innovations.”

(Picture supplied by Oliver Wyman) 

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