Expert opinion- Global aviation industry in meltdown

Categories: Salford Business School

Dr Neil Robinson, travel and tourism expert from the University of Salford Business School, comments as Ryan Air and British Airways announce job cuts and Heathrow Airport signals that it may make cuts too as passenger numbers fall 97%.

Dr Robinson said: “The global aviation sector is in meltdown, recent events associated with CV 19 have not helped matters and have exposed fundamental flaws in the business model of many aviation providers which were there before the crisis bit.

“The ramifications of BA and Ryanair looking to shed employees and close terminals will reverberate for years, and we are likely to see many providers going bust. 

“These are long term, structural changes for the industry, which will not be reversed when we come out of lockdown. The sector expects to see lower travel numbers for many years to come.

“Long term the sector will need to restructure itself and ensure that business models factor in global diseases that impact on demand and ensure that preventative measures are up and running to prevent a CV 19 situation from occurring again.

“The aviation sector is a very peculiar sector that needs to ensure that long term it is better able to weather such storms. We did have a heads up via SARS, admittedly not on the same scale, but a possible wake-up call then with strategy designed to prevent any future outbreaks, might have saved many jobs in the aviation sector today.”

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