Despite the current COVID-19 pandemic, which is causing many airlines to shut down, there are many new startup airlines emerging.Through this article, you will learn everything you need to know regarding why this is happening.
What are start-up airlines?
A start-up airline is a new airline that is planning to start operations soon. An example of a successful start-up airline is FlyBosnia, an airline based in Sarajevo. With its first flight in early 2019, FlyBosnia has expanded steadily and has placed 4 more orders for the Airbus A320!
Reasons why start-up airlines are emerging despite the pandemic:
With the effects of the COVID-19 pandemic, nobody would have thought that new airlines would announce plans for operations. However, lately, there has been a trend of new start-up airlines. Here are some reasons why:
Costs of operating an airline have decreased:
Due to the pandemic, the costs of operating a new airline have decreased. For instance, manufacturers like Airbus and Boeing have been selling their aircraft at lower rates in order to secure sales. With low airplane prices, new airlines with fresh funding will be able to buy airplanes at an affordable price!
The rise of fuel-efficient jets:
The aviation industry is getting more advanced. With fuel-efficient jets like the Airbus A220, many new airlines can purchase the most efficient jets and turn a profit from them. However, older airlines have already bought lesser fuel-efficient jets and do not have money to buy new and better jets. Thus, new airlines will be able to earn more profit from new and advanced jets.
More airlines are going bankrupt:
As the COVID-19 pandemic continues, many airlines are going bankrupt due to high operating cause. This leaves a lot of market share left for new and efficient airlines. For example, Norwegian Air is currently losing money fast and downsizing its operations. Due to this, a new startup airline, Flyr, is ready to fill this market space by October!