On the effects of technology and innovation on people, companies and society (writing in Spanish at since 2003)
Member-only story
If the airline industry is going to have a future, it will need to change its business model
The drastic reduction in mobility at all levels caused by the pandemic is impacting an industry in serious need of a rethink: air transport.
The sharp fall-off in air travel during 2020 has led to significant losses for most airlines, especially low-cost companies operating on narrower margins: , while and have announced heavy losses and significant staff cuts. Given that things are unlikely to change much next year, and that and these travelers are expected to travel less in forthcoming years, it doesn’t take much imagination to predict a major crisis in the industry and the closure of a good number of companies.
The airline industry is the driving force behind another that is vital to many countries: tourism. That is why it has received so many benefits over the years, including in many cases . Many countries’ legislation allows them to tax fuel, and it is estimated that a levy of 33 eurocents per liter of kerosene, similar to that on road transport, would generate some €9.5 billion annually in the European Union, while a 15% tax on all flights originating in Europe would result in revenue of some €15…
