The aviation industry itself is a world, it includes a huge workforce and contributes a significant percentage to the world economy. The sector was destined for large growth until the epidemic hit, but despite the challenges, it has declined significantly. Nevertheless, it is fair to say that despite the economic impact of COVID-19 on the aviation industry, it is on the way to recovery and could return to the mainstream in a few years.
According to a study published by the Air Transport Action Group (ATAG) in 2018, the outlook for the global aviation market was quite positive a few years ago. At the time, the global aviation sector supported more than 65.5 million jobs and accounted for 2. 2.7 trillion in global economic activity, the report said. Additionally, the report claims that the free-trade approach will further support the growth of aviation and will record USD 5.7 trillion in economic activity by 2036, supporting about 97.8 million jobs.
Therefore, the airline sector plays a fundamental role in today’s society, but it is also important to highlight that it has its fair share of challenges. From fighting the recession to government regulations and terrorism to labor shortages, the sector has faced countless problems.
The following paragraphs list some of the challenges facing the aviation industry before the epidemic:
# 1 Fuel efficiency
Aircraft fuel Availability and cost have remained a major economic factor affecting the airline industry for nearly three decades. High jet fuel prices have a direct impact on the airline’s financial portfolio As the number of airline companies increased each year, fuel prices were at an all-time high, creating a vicious circle. Alternative fuels have not really been as effective, so maintaining energy efficiency is one of the major challenges facing the aviation industry.
# 2 Global Economy
The state of the world economy is one of the primary challenges facing the airline market. The 2008 economic downturn, for example, had a devastating effect on the size of the aviation industry. Travel and fuel costs increase as the global economy collapses, while passenger numbers decline. The impact of the recession on the tourism sector is also one of the major economic factors affecting the airline industry.
As air travel companies seek to expand and explore new routes across different countries, they must keep in mind market conditions and regional instability. Also, different countries have different economic conditions for growth, a factor that airlines need to keep in mind when they want international expansion.
# 3 Passenger comfort and experience
Aviation industry service-driven; Its success depends largely on how satisfied the passengers are. The reason why passenger comfort is one of the main reasons for the challenges facing the airline industry is that no passenger is the same; At some point, a section of customers may always be dissatisfied. However, this has pushed airlines to ensure uninterrupted operation everywhere – real air travel, excellent security, low / no hassle on airport lines, convenient luggage claims, customer care and much more.
Achieving these flawlessly is a series of different struggles. Customer reviews and feedback always illustrate that not all passenger travel experiences are great. For example, IATA’s 2017 Global Passenger Survey shows that approximately 56% of North American customers are happy with their last travel experience. To that end, there is always room to improve customer comfort, with which airlines will continue to fight.
# 4 Airline Infrastructure
Airports must constantly upgrade their infrastructure – runways, terminals, concourses, hotels, shopping centers, lounges and much more. There is great competition in this area; To maintain the reputation of the airline and to stay ahead of the competition, such as onsite benefits Aircraft ground handling system Reforms will need to be done in phases. Although it is sometimes convenient to do so, it increases the number of passengers, each repetition of the upgrade will have a significant impact on the airline’s finances.
Aircraft need to be upgraded and maintained periodically – in fact this is even more important, since passenger safety depends on the same. If there is a defective aircraft door or seat seating, a lawsuit is filed against the airline. Airline infrastructure is one of the most important challenges in the aviation market, as carriers need to maintain their existing fleet and ensure new, modern purchases while ensuring energy efficiency and low cost.
# 5 Global congestion
Decades ago, air travel was a luxury; The game of the rich, especially in developing countries. The landscape has changed drastically, today, airports around the world are so crowded that it has led to unnecessary flight delays. Most flights seem to be full, the terminals are always congested and more importantly, the sky is overcrowded.
Air traffic and airport congestion are the main challenges facing the airline market, which at least in the near future does not seem to have a viable solution. Carriers continue to make uninterrupted trips for flyers, but will remain an effective challenge.
# 6 Technological advances
It may come as a surprise that technological advances are considered one of the biggest challenges facing the airline industry. Technology, however, is a double-edged sword, and despite the revolution it has brought, increasing reliance on it can weaken the industry as a whole. For example, in the case of a software problem, the airline’s operations may be disrupted until it is resolved. In case of insufficient funds, such as upgrading important infrastructure Air communication system May be impossible, causing the whole system to collapse.
# 7 Terror
The tragic events of the past have created a wave of fear not only among the public but also among the airport staff. Although terrorist activity has waned in recent times, it is still a major threat, as airlines must continue to be vigilant. Increased fear of terrorism leads to stricter check-ins and consequently longer lines and delays. This puts pressure on airlines to come up with more secure state-of-the-art screening methods and equipment.
In a related note, even the political feud between the two countries could pose one of the major challenges to the aviation industry. After all, airlines are a link between two countries, and unreasonable government regulations due to disputes between the two countries can make it very difficult for carriers to transport passengers and cargo in and out of international borders.
# 8 Climate change
Undoubtedly, climate change and environmental issues have long been among the major challenges in the airline market. Since commercial aviation is responsible for a significant percentage of carbon emissions, the airline industry is under tremendous pressure to take measures that will reduce the environmental impact of air travel.
As part of responding to this challenge, IATA has proposed a multifaceted, four-pillar strategy that includes advanced technology, efficient aircraft management, advanced infrastructure and a single global market-based measure. Until these are fully and seamlessly met, climate change will continue to be one of the current challenges in the airline industry.
The aviation industry forms an important part of the world economy. Pre-covid, the airlines had to face considerable challenges, the solutions of which were periodically thought out and evaluated by industry experts. However, the emergence of the epidemic has opened up a set of groundbreaking challenges for the airline industry that have not faced any previous global catastrophe, such as the 9/11 attacks or the 2008 recession. A complete 180-degree change in the way previous challenges were perceived, but a new set of risks that will now form the basis of how the industry will function in the coming decades.