Launching an airline at a time when the industry is in a unique crisis, and after seeing much of the world’s fleet grounded we’re just content with a slow recovery, may seem crazy or far-fetched. A bit like opening a nightclub in the middle of a pandemic. And yet a number of airlines have or will be operating their first flights in this very special context, suggesting that on the contrary, it’s an excellent time to launch.
New airlines all over the world
In April, and a year late, Aero_K, a Korean low-cost airline, started operations linking Cheongju to Jeju Island. We wish it the best of luck, given how crowded the low-cost segment already is. For the record, it claims to be a “progressive” airline that wants to put an end to discrimination in the sector, and provides its staff with gender-neutral uniforms.
Still in Korea and still among the low-cost carriers, we are also awaiting the start of Air Premia operations. This long-haul low-cost carrier has just received its first aircraft, a B787-9, but we still don’t know what it intends to serve, or from when.
In May, another low-cost carrier, Avelo Airlines, made its first flight and announced that it would soon be operating a fleet of B737-700s and -800s from secondary U.S. airports.
At the same time, in Indonesia, Super Air Jet also received its first aircraft. At this stage, we know absolutely nothing more about this airline or the market it intends to address, and only one thing gives it a little credibility: its founder is none other than that of Lion Air, infamous for its repeated accidents. A way to rebuild his reputation?
Still at the promise stage: Breeze Airways, which should quickly begin operations in the United States. And here again, what makes us pay attention is that behind the project we find David Neeleman, who launched JetBlue, owns Azul and was until recently a majority shareholder in TAP.
Closer to home, Lattitude Hub is due to open soon in the Canary Islands. To date, the airline has only one aircraft, and little more is known about it.
Neos on the other hand, is very real and is a new Italian low-cost airline which, from this summer, will be offering both medium- and long-haul services, often in direct competition with Alitalia or what’s left of it.
Nostalgic fans of Iceland’s now-defunct low-cost airline Wow will find one of its former managers at the helm of Play, which will gradually serve half a dozen European destinations from Reykjavik.
Then, on September 9, Sentra Airways will launch its first flights between Manchester and Accra, with the ambition of becoming a key player on the West African route from Europe. Until an airline has made its first flights, you never know what to expect, or even if the project will actually see the light of day (and as far as I’m concerned, not even proposing a secure website, even if it’s just a landing page, doesn’t look very serious at the moment).
The list could be longer, but I think that’s enough for you. Often low-cost, regional or international, at least twenty new airlines have been or will be launched in 2021.
A favorable economic climate for launching an airline
Surprising as it may seem, the context is ideal for launching an airline, and it’s not for nothing that serious investors are backing these projects.
Firstly, because they don’t arrive in a crowded landscape. Today, their competitors operate a reduced volume of flights and will have to relaunch their “industrial tool”. This will make it easier for them to exist.
Moreover, the competition will start up again, albeit weakened and very often in debt. When you haven’t had to endure the crisis, you’re going into the recovery in better financial shape, even if you’re a young airline with just a few aircraft.
Finally, there are some excellent bargains to be had. Many aircraft are available at low prices on the second-hand market as their former operators part with them. That they are not paragons of energy efficiency is not a problem in the medium term, since fuel is much cheaper than it was in the past. Some of these new airlines can even position themselves on the new aircraft market by taking advantage of orders cancelled by others….
Of course, they’ll need to prove themselves over time and build up a profitable business. But to get the ball rolling, the context couldn’t be more favorable.
Image : Airlines created during the crisis by aapsky via Shutterstock