As the global airline industry prepares to head to Doha for the annual IATA AGM on 19-21 June, there is plenty to be positive about – alongside continuing reasons for caution regarding the outlook.
Worst is Behind us.
Airlines have survived their biggest crisis with loss of just few carriers along the way, surprisingly. Though the sector is still recovering and gap reducing (April passenger demand was dow 37.% on 2019), what remains to be seen is how the industry and states face the new challenges.
These challenges are sky rocketing fuel prices, high inflation, slowing down of world economy due to geopolitical concerns, setback in cargo operation after strong performance in 2021 and in the long term – sustainability and environmental challenges. There would be plenty to discuss at Doha.
However, in this blog I wish to focus on some unlike and disparate issues which I believe aren’t being considered.
Human Resource Issues
During COVID19 pandemic, lot of airline staff were sent home which was understandable to cut cost. However, it has induced and continues to present extra ordinary issues – such as health anxiety and job security amongst the airline and aviation industry staff. Two years is a very very long period and this highly trained staff has either moved to different industry or unwilling to jeopardise their career because crisis seems to be afflicting aviation industry very often. This is despite the fact that airlines and aviation industry is one of the most regulated industry in the world unlike other industries which can be characterised with freedom and competition. With re-open borders, airlines are forced to operate with limited staff while looking for trained staff which is hard to find. Attracting new talent and retaining them would be the biggest human resource challenge that the industry would be facing in future. Airlines will have to find ways to engage and assure staff for health and wellbeing.
“Train people well enough so they can leave. Treat them well enough so they don’t have to.”
Sir Richard Branson
Insulating Industry
Post 9/11, unprecedented measures were taken to ensure security and safety in aviation and airline operations. Similarly post pandemic, when the airline industry is still struggling, it requires reassurance. For airlines to recover and thrive against future uncertainties, the first step is building trust and confidence that border control and lock down measure will not be enforced and if enforced would be evidence based, simple and consistent across the globe. It is for the governments to recognise the importance of aviation and to support our sector as we are important part of Global economy.
Airlines have learnt that business resilience means they need to prepare for anything that comes their way. With COVID-19 emaciating airlines on a global scale leaving them with skeleton staff, limited resources and budget, airlines have had little choice but to pick up operations again. This is the time to make right noise, to be united and be heard only to implement policies to prevent reoccurrence of complete shut down.. Though industry would like to move on from discussion of COVID -19 in Doha, it has to get this right and secure the future of aviation and airline industry.
Let’s strive to keep turbulence limited to flying and keep airline operations smooth and calm.
All the very best.
