Crisis management airlines

Employees in the aviation industry in times of crisis

Many employees in the aviation industry like the current 'forced leave' at the beginning. However, this is not a more sustainable and satisfactory state of affairs for them in the long term.

Within the aviation industry there is a high degree of identification of the employees with the respective products (essentially this means the aircraft) and the associated services.

In many cases, the monetary remuneration of employees in this industry plays a subordinate role. The main motivators are, among other things, the opportunity to work in a highly technological and complex environment (which is not accessible to the average person), to represent the airline and its image, flexibility in scheduling - and, last but not least, the opportunity to travel the world while working.

In addition, customer satisfaction and safety are the industry's most important assets.

Educational and sightseeing flights

Original post from 25.05.2020: Educational and sightseeing flights

Interested industries and companies can become active as sponsors for educational and sightseeing flights for e.g. school and study classes. For these flights, only the window seats are occupied in order to guarantee each participant an optimal view to the outside. The flights themselves can lead over certain regions worth seeing (e.g. the Alps or coastal regions) and can be backed up with corresponding audio commentaries.

The industrial sponsors can promote their industry during the flights by means of infotainment on the audio and video track. These types of flights are also conceivable without sponsorship as a general offer for groups and individuals with appropriate payment.

Background information on this idea:

Our idea for airlines to make a profit with so-called sight-seeing flights even during the crisis, which seems simple at first glance, is quite tricky when you take a closer look. On the one hand, it is simply not possible for some airlines to offer their customers international flights at the moment due to the ongoing travel restrictions of certain countries. On the other hand, airlines have to move their aircraft on the ground as well as in the air from time to time as part of their storage and maintenance operations during the crisis. As part of the tight-seeing flights, they are able to operate these necessary flights in part with paying customers. With ticket prices of up to 2,300 euros and high demand from passengers, this is certainly not a negative business for the airlines. Quite incidentally, the airlines can maintain direct contact with their customers even during the crisis and thus strengthen customer loyalty and trust in air traffic beyond the pandemic.

In our latitudes, this type of flight is likely to generate criticism rather than the desired demand for climate reasons. Our global view of the crisis situation in aviation has shown that this idea is nevertheless valid in certain regions of the world and achieves the desired result for the airlines there.

First applications of this idea:

Our idea of sight-seeing flights was first taken up in the Asian region by Eva Air and Starlux Airlines. The airlines lure their customers with routes over impressive landscapes or with star cuisine and champagne in the air. China Airlines, on the other hand, has geared its offering specifically to families and their children. At Quantas, too, the "Flight to Nowhere" over the Australian continent was sold out within 10 minutes. Singapore Airlines also offered its customers sight-seeing flights.

LINKS:

• https://www.aerotelegraph.com/taiwans-airlines-verkaufen-fluege-nach-nirgendwo
• https://edition.cnn.com/travel/article/flights-to-nowhere-qantas/index.html
• https://www.aerotelegraph.com/via-facebookall-nippon-fans-organisieren-sich-a380-rundflug
• https://edition.cnn.com/travel/article/thai-airways-buddhist-flight-to-nowhere-intl-hnk/index.html
• https://www.aerotelegraph.com/geparkter-airbus-a380-wird-zum-restaurant

Flying on Demand

Original post from 25.05.2020: Flying on Demand

A new and particularly favorable way of traveling for passengers is offered by "flying on demand". With this concept, certain flights only arise when the scheduled aircraft are filled to capacity. The flights can be offered to passengers at above-average prices because the planes are always fully utilized in this scenario. This concept requires a certain degree of flexibility on the part of passengers in the event of flight cancellation or postponement in the event of under-occupancy, but the favorable price means that this is accepted by customers.

Background information on this idea:

Innovative airlines have long since recognized that they should not rely exclusively on conventional concepts for their offerings during the crisis. Particularly in times of crisis, it is important for an airline to remain flexible and to adapt as well as possible to constantly changing conditions. After all, what is the point of having the best route network if you cannot operate it profitably due to a lack of demand or legal travel restrictions? This is where our idea of "flying on demand" comes in, which is possible in different variants.

Optimally, the airlines work closely with the tourism industry to create attractive and flexible travel packages for their customers, as we have seen under the original Immediate action regarding tourism & prices have described.

First applications of this idea:

Since the end of July, the Swiss airline Helvetic Airways has been offering its so-called pop-up flights, which are modeled on our idea of "flying on demand". Instead of a fixed scheduled network, the airline operates these flights with flexible connections that can be optimally adapted to customer wishes and changing travel restrictions. Helvetic Airways offers its flights with or without hotel accommodation.

LINKS:

• https://www.helvetic.com/de/popup-flights;jsessionid=NP6wzwgay2Dvabr8biCQxlhgoBcj87-cuVOEobWw.myhdc
• https://www.aerotelegraph.com/helvetic-airways-regionalairline-lanciert-pop-up-fluege-2
• https://www.aerotelegraph.com/helvetic-airways-fliegt-im-oktober-einmalig-nach-florenz
• https://www.cockpit.aero/rubriken/detailseite/news/groessere-maschinen-und-pop-up-fluege/

Crisis as an opportunity for airlines

The current crisis and the associated requirements are forcing the airlines to develop innovative solutions in a timely manner, which under normal circumstances would probably have lain dormant in the drawers of the companies for years to come.

As perplexing as it may sound at first glance in the current situation, the spectrum of new possibilities (solutions) is very broad and accessible to any competitor in the global market who sees the crisis as an opportunity.

Airlines as transmitters of viruses

The airlines are increasingly the focus of public interest in the context of the crisis. Many passengers can't wait for flight operations to return to normal as quickly as possible so they can go about their usual business. Not to be forgotten are the many people who, after the ongoing quarantine, are longing for a relaxing vacation on the beach and in freedom.

However, this euphoria is overshadowed by the fact that, from the public's point of view, air travel has been instrumental in spreading the virus worldwide and could continue to be so in the future.

The current prevailing opinion of health experts further underlines this picture. It is imperative that this circumstance be taken into account in the development of future, preventive solutions in order not to further damage passengers' trust in airlines. To this end, we have already developed our own concrete ideas in the following.

Airlines struggle for solutions

The airlines are currently trying to avert the greatest possible damage and are struggling behind the scenes to find solutions. The public is getting virtually no information about the extensive measures that are going on in the background. This is also a good thing, as the companies can present themselves in a new guise - which is hopefully more reality than appearance - after the crisis.

Efforts are being made to find solutions that are in harmony with society and do not have a negative impact on other areas of society. Possible innovations by the airlines may include a better and clearer price structure for the products offered, a greater sense of security for passengers and an industry-wide increase in environmental awareness.

Lufthansa's reaction to the crisis

We would be very surprised if Deutsche Lufthansa - irrespective of the prospect of government funding - has not yet set up a special task force to lead the company out of the crisis in the best possible way. Its main task would be to work out appropriate solutions and test them for their applicability. Ad-hoc prototyping would enable the solutions to be put into immediate use, thereby achieving the above-mentioned goals for a gradual increase in flight operations.

The areas of responsibility and the scope of such a task force would not be fully known within the Group, partly for reasons of confidentiality. This would be legitimate in order to protect Lufthansa's strategic realignment. The company would thus not be subject to unnecessary pressure from outside, especially from the government, regarding the implementation and application of the solutions it has found.

Lufthansa finds itself in a certain stalemate with the German government, which on the one hand is partly responsible for Lufthansa's plight due to the protective measures imposed, while on the other hand the company is dependent on financial support from the state. Lufthansa now has to find the best possible balance between financial protection and government independence.

Airline responses to the crisis

In this critical period, only a few companies allow themselves to deviate from the originally planned course they outlined before the crisis, letting go of the 'old familiar' or even taking the plunge. Those companies that do so nevertheless will be exceedingly successful.

Right now is an optimal time for all companies to clean up, sort out and restructure the entire portfolio. This has not been possible in the normally tightly timed operational process and is long overdue for many airlines. Most airlines have understood this and are already positioning themselves optimally according to their respective level of knowledge in order to be able to get going again immediately after the crisis.

Airlines that have already pursued an ailing or long-term unhealthy corporate organization and philosophy will not survive the crisis, or will do so only severely damaged. For example, companies that have been more profit-oriented than customer-oriented are now, and especially after the crisis has subsided, threatened with an enormous loss of image, including the associated financial consequences.

This enables the emergence of new airlines - surpassing the old ones in terms of efficiency and customer orientation - with significantly better and more ecologically sustainable concepts. See also Lufthansa's response to the crisis.