Tips How to launch an airline during a global pandemic
Thu Mar 18, 12:00 AM - Fri Mar 19, 2:00 AM

The coronavirus pandemic has forced even the biggest airlines to ground planes, slash jobs and bolster their finances to survive the worst crisis in aviation history. A full recovery is still years away, but a handful of gutsy CEOs think now is the perfect time to launch new carriers.

"We wouldn't [be launching] without the pandemic," said Tonje Wikstrøm Frislid, CEO of the Norwegian low-cost startup Flyr.
Flyr, which is planning its first flight in the coming months, is not alone. Flypop, a UK startup that wants to offer low-cost long haul flights, is preparing for takeoff this year, along with Breeze Airways, the latest offering from serial airline entrepreneur David Neeleman, who founded carriers including JetBlue (JBLU), Azul (AZUL) and WestJet.

The upstarts are betting that the failures and cutbacks suffered by other airlines during the pandemic have opened new areas of opportunity. They're also hoping to score huge discounts on aircraft from desperate suppliers, and to have their pick of pilots, air crew and support staff.
"A pandemic is the best time to start an airline because your costs are so low," said Flypop CEO Nino Judge. "Everything's half price — you name it, it's half price."
Still, much depends on the timing of the recovery. The pandemic has hobbled the aviation industry, with global passenger traffic dropping by 94% at the peak of lockdowns last April, according to the International Air Transport Association (IATA).
Travel restrictions imposed by governments coupled with the huge amount of cash airlines have burned to keep going — which IATA estimated at $140 billion between April and December 2020 — had dramatic consequences. Almost two dozen airlines with fleets of more than 10 aircraft ceased operations in 2020, roughly double the number of failures in a typical year. Flybe, SunExpress Germany, LATAM Argentina and Tigerair Australia were among the victims.