Changes in strategic responses of selected low budget airlines from different continents in response to the global Covid-19 pandemic

Abstract

Purpose: The aim of this paper is to indicate changes in strategy, financial, hygienic and service behaviour in relation to customers and aviation personnel. These changes are a response to the global COVID-19 pandemic. Design/methodology/approach: The paper uses the desk research method of analysis. The analysis of publicly available values from the annual reports of selected low-cost airlines from six continents, i.e. Europe, Asia, North America, Australia, Africa and New Zealand and the examples described in the work made it possible to establish facts, verify data and present results. The research concerns not only the situation before and during the COVID-19 pandemic, but also predicts the future of individual companies. Findings: The considerations presented in the paper indicate that low-cost airlines representing individual regions of the world had utmost difficulties in adapting to the changing conditions which resulted from the COVID-19 pandemic. They needed government support. A third of the air fleet was grounded, many employees in the aviation sector lost their jobs or received only 50% of their wages; furthermore, international travel decreased significantly. Only the cargo sector, which had been unprofitable for years, benefited from the pandemic due to the transport of global cargo. Practical implications: Several types of support for the aviation sector are recommended, i.e. rebuilding passenger confidence in air transport, introducing a uniform and globally recognized digital COVID certification, and quick and affordable access to tests. Social implications: Social needs should always come first and implemented solutions should be adapted accordingly. Originality/value: The article is an original approach to finding solutions in crisis situations that could improve the situation of the aviation industry and its passengers. Keywords: airlines, world travel, airline staff during the pandemic, COVID-19, crisis management. Category of the paper: research paper.