Irish industrialist Willie Walsh has warned that air travel will not be the same even if the COVID epidemic is under control.
Walsh, the former chief executive of the International Airlines Group (IAG), was recently retired as owner of Air Lingus, British Airways, Spain’s Iberia and Vueling.
Air travel is not expected to be the way it was before COVID. Because there’s a lot of work to be done in this area, Walsh said.
He says this will be the case for airlines that have received billions of euros in aid from EU member governments.
Most of the assistance received by the airlines is either a direct loan from the government or a guarantee for commercial debt. He also points out that these loans will have to be repaid. Therefore, he said, airlines should handle their balance sheets very carefully after the COVID crisis.
Mr. Walsh was speaking at an online seminar hosted by EUROCONTROL, an organization of European air traffic control agencies.
According to Walsh, the last two months have seen planes flying at half the capacity of the aircraft’s capacity, the worst the region has experienced during the COVID crisis.
For a while, airlines could not go back to the old ways. But Walsh said some airlines could take advantage of the situation.
He cited Ryanair chief executive Michael O’Leary use of a crash as demand fell on demand when the industry stalled following the 2001 terrorist attacks in New York.
Walsh says perhaps a handful of airlines have taken advantage of the COVID crisis. Airlines that were previously weak may collapse completely due to the COVID crisis.
He also argues that the introduction of quarantine for air travelers has prevented the airline sector from recovering from the COVID crisis.
People are not reluctant to travel by air. Air travel is the safest way to travel. He says passengers are worried about whether the quarantine will be needed when they reach their destination and back.
Ireland has the most severe restrictions in the European Union.
He alleges that the introduction, omission and re-introduction of quarantine for air travel to various destinations has disrupted air services in the UK.
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