Covid-19 clips airlines' wings, plus 5 highlights from 'Vrye Weekblad'
Here's what's hot in the latest edition of the Afrikaans digital weekly
Image: 123RF/Natalia Bratslavsky
Even before the pandemic, it was clear that the industry was in trouble.
Airlines are complex businesses that are hard to manage, need huge capital, have high fixed expenses, and have to survive on paper-thin profit margins – that is if they make any profit at all.
Our local airlines are in trouble, and more around the world will likely fold in the months ahead.
And they are not the only ones affected. Aeroplane manufacturers, support crews, maintenance, and everyone else in the supply chain has taken a beating. And then there are the charter companies, Acsa and all the small businesses operating in airport buildings.
Read more on the damage to this industry and other corona-related news and analysis in this week's edition of Afrikaans digital weekly Vrye Weekblad.
We will only have more certainty about the future when an effective treatment for Covid-19 is found, but we have no idea when that will happen. It is safe to say though, that the recovery of the airline industry will take longer than the recovery of the rest of the global economy.
Many potential travellers have now realised that they can do at least part of their work from home, meaning fewer people will fly. Less business travel is also an easy way for cash-strapped companies to save money. And since most people have suffered financial losses, they are unlikely to buy plane tickets any time soon.
We do know that people will eventually start travelling again. The industry, however, will have to seriously reconsider its business model. Will the same routes still be profitable? Who are the people who will start travelling again first and how many are they?
Let's hope they find answers soon.