New Realities the Airline Industry Got to Work With on its Path to Recovery

We all know how badly the COVID-19 pandemic took the world in its grasp. And one of the industries that got the worst impacted is the airline industry. The industry is, however, now on its path to recovery and reformation, and as such, a lot of new changes are being speculated to find their place in the airline industry of the post-pandemic world.

30-second summary:

  • Leisure trips will recover faster than corporate travels in the post-pandemic world.
  • Airlines will revisit flight economies for long-haul flights by eliminating point-to-point nonstop and connect pricing.
  • Cargo became the lifeline for the aviation industry because of the pandemic.
  • Carriers would look into short to medium term opportunities to increase their cargo services in an agile way.
  • Airlines to invest more in digitalization and IT in order to streamline and automate their operations.

For an industry that grew at a compound annual growth rate of 12.91 percent between financial years 2016 and 2020, the pandemic came as a completely unexpected shock. However, the airline industry has always been a resilient one in terms of responding to and making a comeback from a crisis. Thus, the industry is already on its way to plan its path to recovery in the face of the new normal.

Now, when we speak of the long-term effects of the pandemic, some of these are obvious, and others are more profound. For instance, the fact that safety and hygiene standards will be more stringent is obvious, but the changes in consumer behavior are going to be pretty profound.

So, with all that in mind, we, at Avlon Shiksha Niketan, positioned among the best aviation colleges in Kolkata, have brought for you today a closer look at the new realities the airline industry is being expected to work within the post-pandemic times.

More leisure trips than business trips during the recovery

Business travel will take some time to recover, and even then, estimates suggest that it will only recover to around 80 percent of pre-pandemic levels by 2024. Remote work arrangements will continue in some form, making people take fewer business trips. Just as all previous crises, such as the global financial crisis and 9/11, have shown us, leisure trips always outpace the recovery of corporate travels. This is noteworthy because most of the profits earned on long-distance flights are usually generated by the group of high-yielding passengers who travel for business.

Furthermore, we can expect to see airlines revisiting flight economies for long-haul flights. The difference between point-to-point nonstop flight pricing and connect pricing might be narrowed during this time.

An increase in air freight supply due to the pandemic

Cargo became the lifeline for the aviation industry because of the pandemic. Before COVID-19 hit us, cargos made up around 12 percent of the total revenue of the sector, and that tripled last year.

Moreover, the airlines that achieved good profits in the third quarter of 2020 unequivocally claimed that cargo revenue accounted for 49 percent of their total revenues on average. The main reason behind this is the fact that e-commerce sales soared due to the pandemic.

Now, cargo supply will increase for at least a couple of years, though not to pre COVID-19 levels. This means that the airlines will focus on responding to the low supply and high demand for air freight in the years to come. Carriers would look into short to medium term opportunities to increase their cargo services. Also, airlines will have to grow cargo in an agile way that allows for quick adjustments as per demands.

Aircraft markets might be oversupplied for some time

Aircrafts happen to be a major expense for an airline, which makes up about ten to fifteen percent of the cost base of a carrier.

In the years before the pandemic, aircraft OEMs (Original Equipment Manufacturers) had ramped up production in the hope of continued growth. And this has turned out to be an issue in the face of the pandemic and will continue to be something to consider in the path to recovery.

If finances allow, carriers can start acting counter-cyclically. They would be trying to lock in orders for new aircraft or confirm operating leases at present when demand is low. With lease rates and OEM prices fluctuating with demand and supply levels, inking deals during this time would let carriers get a major cost advantage in the years to come.

Disparity of performance for the lack of innovation

Some airlines are likely to respond to the pandemic by restructuring for greater efficiency, while others might not be able to showcase such agility. Airlines that do not proactively transform under risk failing will look forward to setting up the business for long-term structural value creation.

Before the pandemic, several airlines boasted an ROIC (Return on Invested Capital) well over the industry average. For such airlines, the stronger pre-COVID position has helped to navigate the crisis better, without resorting to loans and subsidies. It also helped them in restructuring to come up with a greater competitive cost base. But the other group of carriers renegotiated midlife leases, shed extra debt, and emerged leaner in the face of the pandemic. And it is these carriers that are more likely to come up as fierce competitors in the near future.

Regardless of the route chosen by the airlines, becoming better after the pandemic will need investment. The industry experts recommend airlines to invest more in digitalization and IT in order to streamline and automate their operations. Carriers also need to invest in customer experience to ensure absolute efficiency at each stage, from support services to check-in and boarding.

Needless to say, the airline industry on its path to recovery will have to look for fresh new talents that come with the technical know-how, practical knowledge, and the skills to contribute to the company’s progress. And this is exactly what we, at Avlon Shiksha Niketan, a well-known aviation college in Kolkata, are here to prepare you for!

At Avlon, we make sure that the young professionals we groom and train for the airline sector possess all the qualities and more that the airline industry seeks for. Under the dedicated supervision of our experienced mentors and our advanced curriculum, you will be nothing short of an asset to the industry. So, if you are waiting to make your career dreams soar high and above, join Avlon Shiksha Niketan, the Best Aviation College in Kolkata, and attain the wings to rise and shine.

The Varied Career Opportunities in the Aviation Industry

The aviation industry is once again back to its previous glory and is again shining as one of the brightest career domains. So let’s shed some light today on the varied career opportunities that the aviation industry has to offer and also have a look at the salary and growth prospects in the same.

30-seconds summary:

  • India has the third-largest domestic aviation market and is slated to overtake the UK to become the third-largest air passenger market.
  • The demand for talent is the highest in customer services, cabin crew, and ground operations.
  • The opportunity for growth and lucrative salary packages are the two main features of the popular job roles in the industry.

If the facts and figures of the last three years are considered, the aviation industry in India emerges as one of the fastest-growing sectors in the country. In this period, India has not only become the third-largest domestic aviation market in the world but is also all set to overtake the United Kingdom in becoming the third-largest air passenger market by the year 2024. The consistent growth of the sector naturally translates into an increase in job opportunities. Experts also suggest that there is going to be a major rise in demand for talented and skilled professionals in the industry in the coming years.

So, our young and well-trained students looking forward to joining the aviation industry have much to rejoice in terms of having a glorious future ahead. On that note, we, at Avlon Shiksha Niketan, one of the most prominent aviation colleges in Kolkata, have brought to you today a brief overview of the varied career opportunities in the sector that are great in terms of growth as well as salary prospects.

Airline Customer Service Supervisor

In this fast-paced, highly competitive industry, the airline customer service supervisor holds a highly responsible middle management job role. These professionals have the responsibility of overseeing the inside gate or check-in/ticketing operations of the assigned flights during the scheduled shift. It also involves supervising the needs of their team of employees and answering customer inquiries that need managerial level assistance. The average base pay of ₹4.5 lakh makes this a lucrative opportunity to look forward to.

Airline Cabin Crew

Airline cabin crew hold the responsibility for the safety, welfare, and comfort of the passengers traveling on aircrafts during long-haul and short-haul flights. We, at Avlon Shiksha Niketan, one of the most esteemed aviation colleges in Kolkata, believe this to be the perfect career opportunity for someone who is a people’s person and loves the prospect of traveling far and wide.

Along with a degree and honed soft skills, being a part of the airline cabin crew also demands the presence of good general health and fitness. As you gain experience in this job role, you would get the chance to progress to the role of cabin management or senior cabin crew. 

Airport Ground Staff

There is practically no air carrier or airport that can sustainably operate without proficient ground staff. As such, it wouldn’t be an exaggeration to say that they are the vital cog in the wheel of the aviation sector, and no amount of machines or computers can replace them.

As the airport ground staff, you will have varied responsibilities, right from manning the check-in counters to taking reservations from the passengers who call. Moreover, if you want to progress further in this field, you need the ability to think on your feet and come up with effective solutions to unforeseen problems. One of the best aspects of this career is that the monthly pay package can be around one lakh and even more.

Cargo and Baggage Handling Staff

Taking up the job of cargo and baggage handling involves a lot more than simply lifting and moving all kinds of baggage and cargo. An important part of the job is to know about loading an aircraft in a way that the specified maximum allowable weight does not exceed and the center of gravity after loading stays within the permitted levels for a smooth operation of the aircraft.

Imagine being responsible for something that dictates the takeoff reference speed, stabilizer position, flap/slat position, and many other crucial parameters of an aircraft taking flight. That’s how crucial precision is in this job!

Fares and Ticketing Agent

Fare and ticketing agents work at the airport ticket counter for providing customer services to the incoming passengers, and their responsibilities include a complete range of customer service functions. A ticketing agent is generally the one who assists the passengers with tagging baggage and luggage check-in, ticketing, seat assignments, reservations, and answers queries related to flight fares and schedules. Besides working at the airport ticket counter, the ticketing agents also find their place in a hotel or at an airline ticket office in the city. Since the job involves direct interaction with the customers, the airlines prefer professionals with excellent written and verbal communication skills, along with basic mathematical and computer skills.

Airline Administrative Personnel

Airline administrative personnel are the ones who operate behind-the-scenes to keep everything smooth sailing on the ground and in the skies. With that being said, your job role as an airline administrative professional will depend on the department you are in. Some of the general duties and administrative tasks that you might need to deal with could include maintaining and preparing all kinds of records, record-keeping, entering and retrieving data, finding and compiling information, and so on. As an entry-level professional, you will be working in one of the administrative teams of the airline, but the ample scope of promotions would give you a top-notch position within years, along with a salary of over ₹5.8 lakh.

As you can well understand by now, each of these job roles requires the optimum honing of your skillset through advanced training, along with a thorough knowledge of the real-world scenarios at an airport. And, at Avlon Shiksha Niketan, one of the Best Aviation Colleges in Kolkata, those are exactly the things that we focus on to groom our students into the most sought-after, high-in-demand professionals with a rising career graph. When your dream is to fly high, let us, at Avlon Shiksha Niketan, be the ones to make those win