Economist Podcasts Carriers and the disease: the airlines set for hard landings
May 18, 2020
In this insightful discussion, Charles Reid, a travel writer for The Economist, and Max Rodenbeck, South Asia bureau chief, delve into the airline industry's tough recovery post-pandemic. They highlight the resilience of low-cost carriers and the inevitability of industry consolidation. Kerala's exceptional COVID-19 response is showcased, thanks to innovative strategies and a popular health minister. Additionally, the future of New York's Irish pubs is examined, revealing a blend of tradition and modern adaptation in the face of evolving consumer demands.
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Airline Industry Winners and Losers
- Low-cost carriers like Ryanair and Wizz, with strong finances and low costs, are predicted to survive the industry downturn.
- Airlines with weak balance sheets, like Norwegian, and smaller niche carriers are more likely to fail.
Bailouts and State Aid Controversy
- Ryanair criticizes state aid to flag carriers, calling it illegal and anti-competitive.
- A growing political coalition opposes airline subsidies and bailouts, including economic liberals, fiscal conservatives, and environmentalists.
Future Fare Predictions
- If you want cheap flights, consider flying next year as fares are predicted to drop 35%.
- Fares are expected to double between 2024 and 2025 after initial drops and industry consolidation.