Ending the COVID-19 crisis is seen as an opportunity for many entrepreneurs.
As Richard Branson, owner of Virgin Group, put it: “Becoming a millionaire is easy. Start as a billionaire then buy an airline.” The British businessman is referring to the financial abyss shown by his investments in the aviation sector.
In the industry, it is often repeated that creating an airline is certainly not the most profitable business, but many are tempted by the “reputation” that an investment like so bring. Besides major traditional airlines, airlines risky investment regularly “burns his wings” in the sky where there is fierce competition. The arrival of COVID-19 caused half of the airline startups that tried to launch before the health crisis failed two years later.
But because nature “hates” the void, the establishment of new airlines often entails bankruptcy. Last year, the number of newly established cases in this sector was 39, which is even more than the number of bankruptcy filings (15) worldwide. However, there are still 48 companies that are not in good shape with less than 10 flight every month.
[Dự báo ngành hàng không toàn cầu sẽ phục hồi vào giữa năm 2023]
Surprisingly, more than half (20) of these new companies were founded in Europe, where “only” experienced seven bankrupt. Among new airline Established in recent months, British Hans Airways and Flypop both specialize in flights to India. Low-cost Norwegian airline Norse Atlantic Airways wants to take over the low-cost long-haul operation that Norway has abandoned. SkyAlps connects Antwerp (Belgium) with Bolzano in Italy’s Dolomites or even Flybe or ITA “revived” from the ashes of Alitalia.
“Investors and entrepreneurs believe that the situation caused by COVID-19 is a unique opportunity to enter a very attractive industry,” said Shudor Yusof, founder of aviation consulting firm Endau, Airplane prices, new, used or leased, will therefore fall even further in the wake of COVID-19, the most severe crisis in aviation history.
Europe’s dynamism can also be explained by the fragmentation of the Old Continent’s skies where there are still many small “players”, unlike the US, whose market is monopolized by four large companies. /.
Huong Giang (VNA/Vietnam+)
