3 Lesson 9/11 Incidents Can Teach Airlines About Overcoming the COVID-19 Financial Losses

by Admin on September 6, 2020

The aviation industry is currently in a state of instability caused by one of the severest pandemics of all time. All airlines, airports, and international aviation organizations are dedicating all their resources to prove it’s safe to fly again.

Based on this situation, have you ever asked yourself about the historic incident that caused aviation the biggest negative impacts of all time? If you did before the outbreak of COVID-19, the answer you might have concluded would definitely be the 9/11 incidents in New York, USA.

Ever since 2001, the 9/11 incidents have been registered as the event that shook the aviation sector the most, not just in the USA but in the whole world. However, from now on, the COVID-19 pandemic is the new answer to our question, costing the worldwide airline revenues estimated losses of about $314 billion until today, according to Statista.

This blog discusses the repercussions of both events, summing up some lessons to overcome the COVID-19 crisis at ease.

The Similarities Between 9/11 Incidents & the COVID-19 Pandemic

Even though each crisis is different, but they share some common characteristics and consequences, the aviation sector witnessed many of the complexities we are going through today after the 9/11 incidents:

  • Airline revenues were drained, and their survival was jeopardized.
  • Governments offered the sector financial support to help in rescuing its essential services.
  • Aviophobia: In 2001 Passengers had a severe fear of flying, as they needed security measures to guarantee that the planes are danger-free, just like today’s travelers, who need trusted health measures to know that planes are virus-free.
  • Closing airports temporarily and postponing or canceling thousands of flights.
  • Huge drops in ticket sales, ranging between 80-90%.

We have already experienced all these effects during COVID-19. Fortunately, airports are reopened, international flights are resumed in most countries, while others are preparing to resume soon.

Concerning the health concerns passengers are still having, professional ground handling and flight support companies like iJET are implementing all the safety procedures needed to assure a virus-free aircraft, everything is getting better now.

Is This All We Need to Consider in Order to Avoid Long-Term Effects?

Overviewing the similarities between both crises brings one important point to the attention of all airports, airlines, or flight operators, which is avoiding the economic disasters of the 9/11 incidents that lasted for years.

For example, it took the airline industry 17 years to regain the same stock value it had on September 10, 2020, according to the NYSE Arca Airline Index, (the international tracker of the performance, prices, and stock revenues of high-capitalized global airlines.) As a result, we should learn from this previous crisis how to go through the recent one quickly and with the least losses possible.

How to Avoid the 9/11 Financial Losses During COVID-19?

  • Establishing international health organizations specialized in handling COVID-19 issues related specifically to the aviation industry and assuring the containment of coronavirus in any future potential occurrence. The concept is similar to the Transportation Security Administration, which was founded in response to the 9/11 incidents, to prevent similar violent accidents in the future.
  • In 2001, when the lockdown was over, a lot of people were still worried about their safety while traveling, and it took a few years until we reached a state of complete reassurance. After COVID-19, probably people will stay concerned for a while, and the numbers of worldwide travelers will remain lower than usual for at least a couple of years. Additionally, full seat bookings are prohibited until further notice. So, airlines and flight operators should consider putting more efforts to avail other flight types that can serve the needs of the crises situation, not just passenger and commercial trips, for example  Cargo Flights: In times of crisis, material shortages of all kinds occur, thus the demand for cargo flights increases. During COVID-19, every country around the world needs medical aids, medicines, and other equipment. It’s the best time to invest more in cargo flights, and think about other new opportunities.
    iJET can fully support your cargo flights on short notice, following the highest standards of goods protection.
  • Many countries are still imposing a quarantine on arrival laws, the fees are sometimes paid by travelers. Some of these potential travelers cancel their plans to travel just because they can’t afford extra fees. To encourage people into traveling, flight operators should coordinate with governments to reach an agreement about providing free quarantine accommodation for their passengers.

Aviation crises and catastrophes are unpredictable, the effects could be huge and uneven. However, if airlines and flight operators have a solid risk management plan and commit to logical procedures, they will always go through the best-case scenario during every incident. Who knows, maybe your company will be always praised for being one of the smartest airlines to handle the COVID-19 effects!

iJET is helping airlines and flight operators to survive the hardest circumstances.

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