AMG is proud to launch the first ever Covid-19 Lockdown Lifting Customer Demand Tool to support airline and aviation industry leaders plan for a more successful virus-exit.
During this period of unprecedented uncertainty, AMG’s new tool allows modelling of the multiple economic, social and behavioural impacts on customer demand at global, regional and country level. AMG’s experienced team have hands on responsibility in leading airline start-ups and turnarounds in challenging international environments.
Beyond the Virus – Too Many Unknowns
AMG’s Covid-19 Exit Customer Demand Tool Now Available for Airlines & Industry Stakeholders
Prof Rigas Doganis, Peter Davies, Augusto Viansson-Ponte, Ben Leon
After a decade of unprecedented global profits, the airline industry is now facing its deepest crisis ever.
The aviation sector has been one of the most profoundly hit by the Covid-19 global pandemic. Widespread lockdown, imposed travel restrictions and a severe economic downturn have resulted in a near total collapse of customer demand domestically and on a global level. Many airlines have virtually shut down 90-95% of their services to see out the crisis.
As the situation persists, the consequences of the collapse of customer demand are growing deeper. Recovery is further dampened by damaged economies, with lower disposable incomes and serious shifts in business and leisure travel behaviours. These are likely to have a permanent impact and severe repercussions on the demand recovery in the years to come, profoundly affecting the sector growth rate trajectories.
In planning their re-emergence, as travel restrictions are relaxed, airlines face many unknowns. They must organise their future operations yet great uncertainty prevails about future demand levels.
Airline Management Group Ltd (AMG), a team of experienced airline professional practitioners, has developed a sophisticated tool to model Covid-19 exit customer demand scenarios and help airlines and industry stakeholders to better plan. AMG’s tool allows modelling of the multiple economic, social and behavioural Covid-19 impacts on customer demand, both at a global level, and at individual region or country level, with specific networks or airline types.
History has shown the airline industry’s remarkable ability to rapidly evolve and adapt to changing market conditions. Whilst customer demand will return, the question is on the rapidity and velocity of that retur and how to plan for this period of uncertainty. AMG believes reduction in customer demand will remain substantial and recovery is unlikely to return to pre-Covid-19 levels within at least the next two years or more.
This AMG Covid-19 Exit Customer Demand Tool will support airline and industry leaders to better understand the impact of different scenarios on customer demand, and act as a decision-making support in preparing for a more successful Covid-19 exit.
AMG’s skills lie not only in decision-making support through modelling and strategic planning but crucially in the practical implementation of the changes required to ensure airlines’ sustainability. AMG’s experienced team have hands on responsibility in leading airline start-ups and turnarounds in challenging international environments, from legacy to low cost, regional to network carriers, in both private and public ownership globally.