STARTUPS: Founding airlines during COVID-19 - A hopeless endeavor or an ample opportunity for a better aviation system?

Xiaoqian Sun, Sebastian Wandelt and Anming Zhang

Transport Policy, 2022, vol. 118, issue C, 10-19

Abstract: The devastating impact of COVID-19 on aviation is unprecedented and undoubted in the recent sci-entific literature, with many studies having dissected different facets of COVID-19-induced changes to the industry. A few studies have stepped further and highlighted that the COVID-19 pandemic could have positive long-term impacts on aviation. Given that traditional air carriers are known to be reluctant for performing high-risk experiments outside their business-as-usual, parts of hope for a better aviation future rests on novel players entering the industry. The pandemic - against common perception and odds - might have created a rare opportunity for airline startups to enter the market. In this study, we first dissect the impact of the COVID-19 pandemic on aviation and how it possibly created a breeding ground for new airlines. We propose a framework of eight facets, STARTUPS, covering flight Suspensions, Talents, Aircraft, Recovery, Travel demand, Uniquity, Policy making, and Strategy. Moreover, we analyze the business model and markets of 46 airline startups, established or becoming active during the pandemic. Our study is concluded with a dis-cussion on the risk factors for airline startups during the COVID-19 pandemic and induced policy challenges. Our analysis, we believe, is complementary to existing studies on COVID-19, leveraging a novel perspective on the pandemic and the aviation industry.

Keywords: COVID-19; Airline; Startups (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tranpol.2022.01.013

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