Airlines in the Asia Pacific region have two priorities lately: short-term survival and figuring out how they adapt to the post-COVID-19 industry landscape. The former is obviously the most urgent challenge at the moment, but airlines cannot lose sight of the long-term scenario either.
With many aircraft parked and foreign traffic stagnant, airlines strive to negotiate new financing and defer as many aircraft deliveries as possible in the short term.obsolete through the pandemic, forcing them to publish trade reviews because they identified a desire to optimize their operations.
In the Asia-Pacific region, some business models and markets have better results than others.In many cases, governments provide a major lifeline, for years to come.
Summary:
One of the maximum positive developments in the Asia-Pacific region has been the immediate uptick in many primary domestic markets.Domestic markets were expected to be the first, followed by short-range intra-regional services, and long-distance foreign markets were expected to peak time.
In fact, this has been proven in practice.As internal restrictions have been removed in some markets, airlines have been able to reintroduce domestic routes fairly quickly, as happened in the Chinese, Japanese, New Zealand and Vietnamese markets.
In many cases, of course, skill doesn’t tell the whole story.Although the routes have been restored, filling the planes has been a challenge for airlines.Demand has been delayed in capacity increases, but some airlines are re-establishing their networks in proactive effort to encourage travel.
However, there are some dangers to domestic demand. Economic recessions will not and airlines will have minimal foreign force in their domestic networks for some time.But the biggest risk is the prospect of additional outbreaks of COVID-19 infections.
The second waves of coronavirus have recently affected several Asia-Pacific markets, slowing domestic expansion in Australia and stagnant Japan’s impressive reserve recovery.for some cities, as happened in Vietnam (Da Nang) in late July 2020 and the Philippines (Manila) in August 2020.A sustained setback of broader bans can be a fatal blow to some Asian airlines.
The wave effect of the moment is shown in the graph below for vietnam’s VietJet.National capacity peaked in April 2020, before emerging rapidly, but then fell in August 2020 due to a ban on flights to the popular recreational destination Da Nang due to an epidemic.There.
International capacity remains at very low levels and is expanding only slightly.With a maximum number of countries imposing border closures or 14-day quarantine requirements, most foreign traffic has consisted of repatriation flights or has been operated primarily for cargo.
Some countries have established corridors between them, allowing readers deemed essential to request entry from a country with reduced quarantine if they meet verification requirements.China signed such agreements with South Korea in May 2020 and Singapore in June 2020.. Malaysia and Singapore also plan to launch a room in August 2020 for a must-have and for some employees who “regularly travel to work.”
Bilateral agreements like these were expected to enlarge multilateral corridors and emerge more in the region, but while some are under discussion, progress has been slow.
In more limited cases, discussions have been positioned on broader “travel bubbles” between countries, allowing quarantine-free access for all travelers.Australia and New Zealand are expected to be the first to adopt such an agreement, although infection rates soar in Australia have particularly slowed this effort.
For Singapore Airlines (SIA) and Cathay Pacific, the resumption of foreign traffic is much more important because they do not have a domestic network to withdraw from.SIA said progress in cutting foreign restrictions has been slower than expected, meaning that its recovery trajectory will also not meet its initial projections.
The governments of Singapore and Hong Kong have legal resumption of transit traffic at their major airports, which is a step for Cathay and SIA, however, they will want to reopen key foreign markets to build the scale required to make their connecting networks viable.
Fortunately, both governments were among the top five of their airlines: state-owned Temasek Holdings prepared a $15 billion SGD fundraising plan for SIA, and the Hong Kong government took the lead role in a Hong Kong$39 billion program for Cathay.
Cathay and SIA are also conducting primary reviews of their operations to adapt to new market realities. Cathay intends to complete its review until the fourth quarter, but is already making progress in renegotiating aircraft delivery schedules. Deliveries of Airbus A350 and A321neos will last for two years, and Cathay is also in talks related to the postponement of its Boeing 777-9s.
SIA expects to complete its review towards the end of its first fiscal semester in September 2020, providing an indication of the long-term adjustments to be made to its network and fleet.
China’s domestic market was the first to suffer a heavy blow in the initial phase of COVID-19, but it also recovered earlier than others.upwards and has now necessarily recovered.
Demand has been delayed in terms of capacity, and airlines and the government are eager to repair the networks.China’s 3 domestic airlines cannot reduce as much as other countries, so it is less difficult to increase capacity.
To help them reach their additional capacity, some of China’s leading airlines have introduced offers “at will.”Regulations for those vary by airline, but allow unlimited flights for a specific time era.Such efforts deserve help, filling the seats, however, it is clear that returns will take much longer to return.
However, China has maintained strict control over foreign services.In addition to non-unusual quarantine needs for peak countries, the Chinese government limits Chinese and foreign airlines to a key point of a week-consistent flight.- You can also reduce the allocation if there are too many cases of COVID-19 on a singles flight.
However, the call for flights in China is obviously higher than allowed.
U.S. airlines searched for moreArray after being blocked because they had temporarily suspended all flights to China.South Korean airlines had planned a faster resumption of flights to China, but had to cut their plans.China is now such a vital foreign market for so many Asian airlines that winning more will be a very sensible priority.
Japan is another country where national networks have returned strongly.The Japanese market did not close completely during the first wave of the pandemic as others did, although the facilities were particularly reduced.Japan Airlines operated only 28% of its normal domestic flights last May.2020 and early June 2020.
Flights have been temporarily added since internal restrictions were loosened on 19 June 2020: JAL plans to operate up to 72% of its national capacity at the time of August 2020 and 66% at the beginning of September 2020, and ANA terminates operating 71% until the end of August 2020; however, these estimates have been particularly reduced compared to previous recovery assumptions due to the emergence of a momentary wave of coronavirus cases.
The arrival of COVID-19 was a bad time for Japanese airlines as they sought to make 2020 a peak year due to the headquarters of the Olympic Games in Tokyo.Now the Olympic Games have been postponed by 2021, and it cannot be guaranteed that the games will then take position either.
Japanese airlines and the government had targeted 2020 as the start of the expansion phase in foreign guest arrivals. But this expansion drive will clearly be suspended for the foreseeable future.
Fortunately, the two great Japanese were in a monetary position, leading to the latest crisis, they will have to re-think their long-term methods and assumptions like other airlines, and are negotiating to postpone aircraft deliveries in the short term.survival, however, is not at stake.
COVID-19 disrupts some mergers and acquisitions of primary airlines in the South Korean airline industry, one of which is the proposal to acquire Jeju Air from its partner LCC Eastar Jet, which has now been cancelled.
The acquisition is expected to provide much-needed consolidation in South Korea’s crowded LCC market.Jeju is the largest LCC in the country, and would have greater dominance by adding Eastar, which is the fifth largest LCC before the pandemic.
The acquisition was accepted in principle, but it had not been completed before the coronavirus crisis erupted, which has replaced the equation particularly for Jeju: expansion is now less acceptable, and eastar, already in monetary difficulties, is in worse condition and represents a primary prospective risk Jeju Air officially withdrew from the agreement on July 23, 2020 , leaving Eastar’s long term in serious doubt.
Another main agreement is the proposed acquisition through Hyundai Development Corp., a main stake in Asiana.Once again, the prospective benefits of the acquisition are now much lower than in December 2020, when the agreement was reached in principle.who sought to renegotiate the terms and asked for some other stage of due diligence.The agreement seems increasingly fragile and the parties are negotiating whether it can be recovered.
The collapse of the acquisition would leave few features for Asiana and its state banking creditors, and would also provide one for the government, as it needs two major airlines in the South Korean market for festive reasons.
The graph below shows that in January, before the pandemic, Asiana had the highest number of foreign seats in the South Korean market, with a percentage of 14.8%.
Interestingly, if Jeju and Eastar had combined, they would have been left behind, with 13%.
Three of Southeast Asia’s major domestic airlines were already in a fragile monetary position before the COVID-19 outbreak, and their scenario has worsened due to flight suspensions.Malaysia Airlines, Garuda Indonesia and Thai Airways were in the midst of a change of course or had just finished one.
The trio is basically owned by the state. The assumption has been that their governments would continue to rescue airlines to survive, but with many other economic priorities due to the pandemic, the government’s patience with airlines is running low.
For example, instead of providing Thai Airways with some other rescue plan, the Thai government decided to send the airline to bankruptcy court for restructuring. airlines, such as AIS.
Garuda Indonesia has been in rotation for some time and, as a component of that process, is looking to postpone or cancel aircraft orders for its monetary health.The COVID-19 crisis has made these efforts more urgent, and the airline has shown that it has no plans to receive any of its 49 Boeing 737 MAX orders.
Garuda reached a vital milestone in June 2020 with an agreement to delay primary Islamic bond bills for 3 years, and the Indonesian government has made an 8.5 billion IDR bailout., the last update happened in January 2020.
The Malaysian government is also contemplating its features for Malaysia Airlines Berhad (MAB).The airline is now 100 percent state-owned and is in the midst of a multi-year recovery project.
The government then sought to locate a client to take a significant component in the MAB, but no serious suitors emerged.It also (again) introduced the concept of merging MAB with AirAsia, but this is even less likely.new components with JAL, delayed due to the coronavirus pandemic, but this will not imply any investment.
Other public investments or loan promises are the most likely result for these 3 airlines to weather the COVID-19 crisis, however, they will also want to take a closer look at their operations and make deeper changes than they had implemented in the past.The pandemic is driving them to make significant changes to aircraft fleets and plans as they realign networks and strategies.These efforts can lead to a more “rational” and indeed more moderate airline industry in Southeast Asia when they demand returns.
The Asia-Pacific CCCs have some benefits and a wide variety of disadvantages for the post-COVID-19 trading environment.A major challenge is that CCCs in the region sometimes do not get the same degrees of government as some of the domestic carrier service.
Some of LCC’s teams gain advantages from being at least partially owned by giant airline equipment, meaning they can be financed with the parent company.Peach, Jin Air, Jetstar and Scoot fall into this category.
But independent airlines such as AirAsia, Lion Air, VietJet and Cebu Pacific do not have this advantage.Some of the region’s smallest independent CCLs may not raise enough budgets to survive.
Narrow car-driven LCC fleets would likely adapt well to the new market environment in Asia as restrictions fade.making smaller aircraft preferable in the near future.
However, an imminent headache for low-income Asian countries lies in their huge order book.
Only 4 LCCs (AirAsia, IndiGo, Lion Air and Vietjet) make up a total of 1,700 orders for narrow vehicles.It seemed an unrealistic figure before the pandemic, and now it is even more so.The following graphic illustrates how Asia-Pacific CCCs have more orders.than their peers elsewhere.
AirAsia, the region’s largest CCL, is working to raise enough new budget to get ahead of the pandemic.Its main Malaysian unit is seeking government-backed loans and is also discussing a variety of investment and financing characteristics with other parties.
AirAsia’s Malaysian and Thai airlines are their largest and most successful units, and are likely to be the ultimate in facing the COVID-19 crisis unscathed.Japan.
AirAsia’s sister airline, AirAsia X, is also vulnerable as it operates wide-body A330 aircraft on medium- and long-range routes.In the absence of a national network to withdraw from, he had to operate indefinitely.
Long-term LCC operations in Asia-Pacific have still shown that they can be sustainably successful, and the COVID-19 pandemic has specifically affected them.Its reliance on larger aircraft and longer foreign routes is a disadvantage in today’s environment.
Most LCC operating wide-body aircraft also have giant fleets of narrow-body cars serving short-range networks.AirAsia X is not, nor is NokScoot, a long-term LCC that was liquidated in June 2020.
In the Australasia region, Air New Zealand received support through a primary government lending program and an internal market that recovered faster than expected due to the country’s good luck in controlling COVID-19; however, a new infection organization led to the reintroduction of restrictions on August 12, 2020.
Australia has noticed a further resurgence of infections, mainly in Victoria, which has led to state border closures that have slowed the national recovery.The state capital, Melbourne, is at one end of two of the world’s five most sensitive city pair links in terms of passenger numbers before it hit the pandemic.
The following graphic shows how the country’s domestic capacity increase stabilized in July.
Qantas is another airline that has entered the COVID-19 crisis in a forged monetary position with a healthy balance sheet; has enough if the foreign call remains in a recession of several years.
Virgin Australia was in a much weaker monetary position and had to participate in voluntary management in April to locate a buyer.Virgin will exit this procedure with a simplified operation and a safer monetary basis that ensures its survival.
An attractive dynamic in the Australian market has been that some airlines have countered the shrink trend by uploading new types of aircraft and expanding their fleets.
Regional Express Holdings (Rex) to introduce narrow-bodied jets to make a foray into major east coast routes, and Alliance Aviation has secured investment to acquire a fleet of 14 used Embraer E190 regional jets.
Both corporations will benefit from an aircraft acquisition market and weaken the festival in their markets. Even in the depths of the industry’s worst crisis, there are still opportunities to seize.
Airlines in the Asia-Pacific region have three priorities lately: short-term survival and finding out how they adapt to the post-COVID-19 industry landscape.The first is obviously the most urgent challenge right now, but airlines can’t lose sight of the longer-term scenario either.
With many aircraft parked and foreign traffic stagnant, airlines are struggling to negotiate new financing and defer as many aircraft deliveries as possible in the short term.obsolete through the pandemic, forcing them to publish trade reviews because they identified a desire to optimize their operations.
In the Asia-Pacific region, some business models and markets are getting better results than others.In many cases, governments provide a major lifeline, for years to come.
Summary:
One of the maximum positive developments in the Asia-Pacific region has been the immediate uptick in many primary domestic markets.Domestic markets were expected to be the first, followed by short-range intra-regional services, and long-distance foreign markets were expected to peak time.
In fact, this has been proven in practice.As internal restrictions have been removed in some markets, airlines have been able to reintroduce domestic routes fairly quickly, as happened in the Chinese, Japanese, New Zealand and Vietnamese markets.
In many cases, of course, skill doesn’t tell the whole story.Although the routes have been restored, filling the planes has been a challenge for airlines.Demand has been delayed in capacity increases, but some airlines are re-establishing their networks in proactive effort to encourage travel.
However, there are some dangers to domestic demand. Economic recessions will not and airlines will have minimal foreign force in their domestic networks for some time.But the biggest risk is the prospect of additional outbreaks of COVID-19 infections.
The second waves of coronavirus have recently affected several markets in Asia and the Pacific, curbing domestic expansion in Australia and stagnant Japan’s impressive reserve recovery.Increasing the number of infections also increases the threat of restrictions from the government.for some cities, as happened in Vietnam (Da Nang) in late July 2020 and the Philippines (Manila) in August 2020.A sustained setback of broader bans can be a fatal blow to some Asian airlines.
The moment wave effect is shown in the graph below for the Vietnam VietJet.National capacity peaked in April 2020, before emerging rapidly, but then fell in August 2020 due to a ban on flights to the popular recreational destination Da Nang due to an epidemic.There.
VietJet: weekly national seats, 2017-2020. Exceeds 2019 from June-2020
Source: CAPA and OAG.
International capacity remains at very low levels and is expanding only slightly.With a maximum number of countries imposing border closures or 14-day quarantine requirements, most foreign traffic has consisted of repatriation flights or has been operated primarily for cargo.
Some countries have established corridors between them, allowing readers deemed essential to request entry from a country with reduced quarantine if they meet verification requirements.China signed such agreements with South Korea in May 2020 and Singapore in June 2020.. Malaysia and Singapore also plan to launch a room in August 2020 for a must-have and for some employees who “regularly travel to work.”
Bilateral agreements like these were expected to enlarge multilateral corridors and emerge more in the region, but while some are under discussion, progress has been slow.
In more limited cases, discussions have been on broader “travel bubbles” between countries, allowing quarantine-free access for all travelers. Australia and New Zealand are expected to be the first to adopt such an agreement, although soaring infection rates in Australia have particularly slowed this effort.
For Singapore Airlines (SIA) and Cathay Pacific, the resumption of foreign traffic is much more important because they do not have a domestic network to withdraw from.SIA said progress in cutting foreign restrictions has been slower than expected, meaning that its recovery trajectory will also not meet its initial projections.
Singapore Airlines: weekly departure frequencies, 2017-2020
Source: CAPA and OAG.
The governments of Singapore and Hong Kong have legal resumption of transit traffic at their major airports, which is a step for Cathay and SIA, however, they will want to reopen key foreign markets to build the scale required to make their connecting networks viable.
Fortunately, both governments were among the top five of their airlines: state-owned Temasek Holdings prepared a $15 billion SGD fundraising plan for SIA, and the Hong Kong government took the lead role in a Hong Kong$39 billion program for Cathay.
Cathay and SIA are also major reviews of their operations to adapt to new market realities.Cathay intends to complete its review until the fourth quarter, but is already making progress in renegotiating aircraft delivery schedules.Deliveries of Airbus A350 and A321neos will last for two years, and Cathay is also in talks about the postponement of its Boeing 777-9s.
SIA expects to complete its review towards the end of its first fiscal semester in September 2020, providing an indication of the long-term adjustments to be made to its network and fleet.
China’s domestic market was the first to suffer a heavy blow in the initial phase of COVID-19, but it also recovered earlier than others.upwards and has now necessarily recovered.
China’s weekly national headquarters until August 17, 2020, now at 2019 levels
Source: CAPA and OAG.
Demand has been delayed in terms of capacity, and airlines and the government are eager to repair the networks.China’s three domestic airlines cannot reduce as much as other countries, making it less difficult to increase capacity.
To help fill its additional capacity, some of China’s major airlines have introduced offers “at will.”Regulations for those vary by airline, but allow unlimited flights for a specific time era.seats, but it’s clear that returns will take much longer to return.
However, China has maintained strict control over foreign services.In addition to non-unusual quarantine needs for peak countries, the Chinese government limits Chinese and foreign airlines to a key point of a week-consistent flight.- You can also reduce the allocation if there are too many cases of COVID-19 on a singles flight.
However, the call for flights in China is obviously higher than allowed.
U.S. airlines sought further after being blocked because they temporarily suspended all flights to China.South Korean airlines had planned a faster resumption of flights in China, but had to cut their plans.China is now such a vital foreign market for many Asian airlines.that growing up will be a very sensible priority.
Japan is another country where national networks have returned strongly.The Japanese market did not completely close the first wave of the pandemic as others did, although the facilities suffered severe cuts.Japan Airlines operated only 28% of its same domestic flights at the end of May 2020 and early June 2020.
Flights have been temporarily added since internal restrictions were loosened on 19 June 2020: JAL plans to operate up to 72% of its national capacity at the time of August 2020 and 66% at the beginning of September 2020, and ANA terminates operating 71% until the end of August 2020; however, these estimates have been particularly reduced compared to previous recovery assumptions due to the emergence of a momentary wave of coronavirus cases.
The arrival of COVID-19 was a bad time for Japanese airlines as they sought to make 2020 a peak year due to the headquarters of the Olympic Games in Tokyo Now the Olympic Games have been postponed by 2021, and games cannot be guaranteed then will take position.
Japanese airlines and the government had targeted 2020 as the beginning of the expansion phase in foreign guest arrivals.But this momentum of expansion will be clearly suspended in the immediate future.
Fortunately, the two great Japanese were in a monetary position, leading to the latest crisis, they will have to re-think their long-term methods and assumptions like other airlines, and are negotiating to postpone aircraft deliveries in the short term.survival, however, is not at stake.
COVID-19 disrupts some mergers and acquisitions of primary airlines in the South Korean airline industry, one of which is the proposal to acquire Jeju Air from its partner LCC Eastar Jet, which has now been cancelled.
The acquisition is expected to provide much-needed consolidation in South Korea’s busy LCC market.Jeju is the largest LCC in the country, and would have greater dominance by adding Eastar, which is the fifth largest LCC before the pandemic.
The acquisition had been accepted in principle, but had closed until the coronavirus crisis erupted.This replaced the equation particularly for Jeju: expansion now seems less acceptable, and the Eastar, which already suffers financially, is worse off and poses a primary potential risk.Jeju Air officially withdrew from the agreement on July 23, 2020, leaving Eastar’s long-term long-term in doubt.
Another main agreement is the proposed acquisition through Hyundai Development Corp., a main stake in Asiana.Again, the potential benefits of the acquisition are now much lower than in December 2020, when the agreement was reached in principle.who then sought to renegotiate the terms and asked for some other stage of due diligence.The agreement seems increasingly fragile and the parties are in talks to save it.
The collapse of the acquisition would leave few features for Asiana and its state banking creditors, and would also provide one for the government, as it needs two major airlines in the South Korean market for festive reasons.
The graph below shows that in January, before the pandemic, Asiana had the highest number of foreign seats in the South Korean market, with a percentage of 14.8%.
Interestingly, if Jeju and Eastar had combined, they would have been left behind, with 13%.
International seats in the South Korean market for the week of January 13, 2020
Source: CAPA and OAG.
Three of Southeast Asia’s major domestic airlines were already in a fragile monetary position before the COVID-19 outbreak, and their scenario has worsened due to flight suspensions.Malaysia Airlines, Garuda Indonesia and Thai Airways were in the midst of a change of course or had just finished one.
The trio is basically owned by the state. The assumption has been that their governments would continue to rescue them to survive, but with many other economic priorities due to the pandemic, the government’s patience with airlines is running low.
For example, instead of providing Thai Airways with some other rescue plan, the Thai government decided to send the airline to bankruptcy court for restructuring. airlines, such as AIS.
Garuda Indonesia has been in rotation mode for some time and, as a component of this process, seeks to postpone or cancel aircraft orders for its monetary health.The COVID-19 crisis has made these efforts more urgent and the airline has shown that it has no goal of receiving any of its 49 Boeing 737 MAX orders.
Garuda reached a vital milestone in June 2020 with an agreement to delay the letters of primary Islamic bonds for 3 years, and the Indonesian government has made a ransom of IDR 8.5 billion.Garuda’s progress has also not been driven by an immediate rotation of the CEO in recent years., with the last replenishment taking place in January 2020.
The Malaysian government is also contemplating its features for Malaysia Airlines Berhad (MAB).The airline is now 100 percent state-owned and is in the midst of a multi-year recovery project.
The government then sought to locate a client to take a significant component in the MAB, but no serious suitors emerged. It also (again) introduced the concept of merging MAB with AirAsia, but this is even less likely. new components with JAL, delayed due to the coronavirus pandemic, but this will not involve any investment.
Other public investments or loan promises are the most likely end results for these 3 airlines to weather the COVID-19 crisis.However, they will also want to take a closer look at their operations and make deeper changes than they had before.The pandemic is pushing them to make significant changes to fleet and aircraft plans as they realign networks and strategies.These efforts can result in a more “rational” and indeed more moderate Southeast Asian airline industry when a recovery is requested.
The Asia-Pacific CCCs have some benefits and a wide variety of disadvantages for the post-COVID-19 trading environment.A major challenge is that CCCs in the region sometimes do not get the same degrees of government as some of the domestic carrier service.
Some of LCC’s equipment benefits from being at least partially owned by giant aerial equipment, meaning they can finance the parent company.Peach, Jin Air, Jetstar and Scoot are in this category.
But independent airlines such as AirAsia, Lion Air, VietJet and Cebu Pacific do not have this advantage.Some of the region’s smallest independent CCLs may not raise enough budgets to survive.
Narrow car-driven LCC fleets would likely adapt well to the new market environment in Asia as restrictions become smaller.declining on those routes, making smaller aircraft preferable in the immediate future.
However, an imminent headache for low-income Asian countries lies in their huge order book.
Only 4 LCCs (AirAsia, IndiGo, Lion Air and Vietjet) make up a total of 1,700 orders for narrow vehicles.It seemed an unrealistic figure before the pandemic, and now it is even more so.The following graphic illustrates how Asia-Pacific CCCs have more orders.than their peers elsewhere.
LCC fleet orders, as of August 7, 2020
Source: CAPA.
AirAsia, the region’s largest CCL, is working to raise enough new budget to get ahead of the pandemic.Its main Malaysian unit is seeking government-backed loans and is also discussing a variety of investment and financing characteristics with other parties.
AirAsia’s Malaysian and Thai airlines are their largest and most successful units, and are likely to be the maxims to face the COVID-19 crisis unscathed.However, survival will be a major challenge for the group’s small franchises in Indonesia, the Philippines, India and Asia Japan.
AirAsia’s sister airline, AirAsia X, is also vulnerable as it operates wide-body A330 aircraft on medium- and long-range routes.In the absence of a national network to withdraw from, he had to operate indefinitely.
Long-term LCC operations in Asia-Pacific have still shown that they can be sustainable, and the COVID-19 pandemic has affected them, as their reliance on larger aircraft and longer foreign routes is a disadvantage in today’s environment.
Most LCC operating wide-body aircraft also have giant fleets of narrow-body cars serving short-range networks.AirAsia X is not, nor is NokScoot, a long-term LCC that was liquidated in June 2020.
In the Australasia region, Air New Zealand received support through a primary government loan program and a domestic market that recovered faster than expected due to the country’s good luck in controlling COVID-19; However, a new infection organization led to the reintroduction of restrictions on August 12, 2020.
Australia has noticed a further resurgence of infections, mainly in Victoria, which has led to state border closures that have slowed the national recovery.numbers before the pandemic.
The following graphic shows how the country’s domestic capacity increase stabilized in July.
Australian Weekly National Capacity, Measured Through Seats, 2017-2021
Source: CAPA and OAG.
Qantas is another airline that has entered the COVID-19 crisis in a forged monetary position with a healthy balance sheet; has enough if the foreign call remains in a depression of several years.
Virgin Australia was in a much weaker monetary position and had to participate in voluntary management in April to locate a buyer. Virgin will exit this procedure with a simplified operation and a more secure monetary base that ensures its survival.
An attractive dynamic in the Australian market has been that some airlines have countered the shrink trend by uploading new types of aircraft and expanding their fleets.
Regional Express Holdings (Rex) to introduce narrow-body aircraft to make a foray into major East Coast routes, and Alliance Aviation has secured investment to acquire a fleet of 14 used Embraer E190 regional aircraft.
Both companies will benefit from an aircraft acquisition market and weaken the festival in their markets.Even in the depths of the industry’s worst crisis, there are still opportunities to take advantage of.