IMAGE: Bilaleldaou — Pixabay

Could coronavirus expose the real cost of low-cost air travel?

Enrique Dans
Enrique Dans

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As the coronavirus crisis deepens, many airlines are now flying empty planes, fearful of losing their slots in a “use it or lose it” industry. Coupled with other practices such as padding — exaggerating flight times to avoid complaints and relieve pressure on fuel efficiency — these and other issues highlight the extent to which an industry, air passenger transport, has become one of the most harmful to the planet.

First of all, this is a highly subsidized sector, historically protected by governments, which pays no taxes on its huge fuel consumption, and which, from the 1960s and 1970s saw airlines enjoy strong growth derived from the progressive adoption of low-cost models based on mass standardization and a no frills approach, even saving money on olives in business class. This model completely changed the industry and made it possible to increase both the number of flights and the number of passengers: in 2004 there were 23.8 million around the world, carrying almost two billion passengers, in 2020, before coronavirus, estimates put the number of flights at 40.3 million, and some 4.7 billion passengers. By 2017, low cost air travel already dominated 57.2% of the market in Asia, 37.9% in Europe, and 32.7% in the United States, with prospects for further growth.

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)