In this paper, the author examines the background of government intervention in the airline industry due to the grounding forced by the coronavirus disease 2019 (COVID‐19). Political involvement can mean assets and drawbacks. In the end, it will be interesting how the government‐airline relationship will evolve in the post‐pandemic phase.
Out of the blue, the black swan COVID‐19 circles planet earth. Closure of borders and travel bans spread like supersonic expansion. The pandemic paralyses flying principles. Within days, many airlines around the globe ground their entire fleets and run into difficulties through no faults. Why do governments intervene in the airline business? IATA believes it is the only solution As long as travel bans exist, it will be almost impossible for passenger airlines to connect countries and continents again. The author provides a critical evaluation of some airlines in different countries and continents. It remains questionable which airlines can make the journey through the crisis.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- BACKGROUND OF GOVERNMENT INTERVENTION IN THE AIRLINE BUSINESS SINCE THE COVID-19 CRISIS
- Does government support work?
- Airlines in Europe
- Situation in Africa
- THE COVID-19 SITUATION
- Why is government support crucial?
- Financial support
- Business Continuity
- Global Domestic Product (GDP)
- Air Connectivity
- Secondary effects
- Sustainability
- Potential pitfalls of government support
- Government management and strings attached
- Independence means economic freedom
- Distortion of competition
- Burden of debt
- Viable airlines
- Reversal of the privatisation
- THE GOVERNMENT-AIRLINE RELATIONSHIP OF THE FUTURE
- Is a fresh start needed?
- New Normal
- Government-airline relationship
- Europe
- Domestic traffic
- Government strategy
- CONCLUSION
- REFERENCES
- Journals
- Webpages
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper examines the role of government intervention in the airline industry during the COVID-19 pandemic. It analyzes the motivations behind government support and explores the potential benefits and drawbacks of such intervention.
- The impact of the COVID-19 pandemic on the airline industry
- The rationale and effectiveness of government support for airlines
- The potential consequences of government intervention, including both positive and negative aspects
- The future of the government-airline relationship in the post-pandemic era
Zusammenfassung der Kapitel (Chapter Summaries)
The paper begins with an introduction that highlights the critical nature of government involvement in the airline industry during the COVID-19 crisis. It outlines the potential benefits and drawbacks of government intervention and emphasizes the need to analyze the long-term impact of such actions.
Chapter 2 delves into the historical context of government intervention in the airline business. It explores various perspectives on the effectiveness of government support, using examples from both Europe and Africa.
Chapter 3 examines the specific challenges posed by the COVID-19 pandemic to the airline industry. It argues why government support is crucial for the survival and recovery of the industry, highlighting the potential economic and societal consequences of inaction. The chapter also explores potential pitfalls of government support, such as the risk of government overreach and distortions in competition.
Chapter 4 focuses on the future of the government-airline relationship in the post-pandemic era. It proposes the need for a fresh start, recognizing the potential for a "new normal" in the industry. The chapter explores potential adjustments to the relationship, including new strategies for government intervention and a shift towards a greater emphasis on domestic air travel.
Schlüsselwörter (Keywords)
This work centers on the interplay between government intervention and the airline industry, particularly during the COVID-19 pandemic. Key terms include government support, airline industry, COVID-19 impact, economic consequences, potential pitfalls, government-airline relationship, and the "new normal" in the post-pandemic era.
- Quote paper
- Julia Werner (Author), 2021, Airline Business. The Role of Governments in Supporting Airlines in the COVID-19 Crisis, Munich, GRIN Verlag, https://www.grin.com/document/1248726
