Authors :
Michael Lawrence C. Ulep, CHP
Volume/Issue :
Volume 5 - 2020, Issue 11 - November
Google Scholar :
http://bitly.ws/9nMw
Scribd :
https://bit.ly/39t5ej9
Abstract :
The Novel Coronavirus (COVID-19) has
caused a global dilemma as it created major disruptions
not just the health of the people, but also to the economy
of the countries. One of the industries that has a major
impact is the airline industry as they are one of the
essential means of transportation around the world.
Since countries have closed their borders, the airline
industry was also grounded for several months, leading
to financial loses, and seeking for assistance.
Because of this, airlines are now in the midst of
survival, questioning their ownership if they would
maintain as a private airline or a state-owned, and vis-àvis. Airline M is a privately-owned airline that is faced
with financial losses and is barely surviving with their
current phase. As for Airline G, a state-owned airline, is
also facing even more financial losses as they have been
struggling to survive even before the crisis.
Both airlines are now under restructuring their
organization and entering equity injections for them to
survive and not permanently close. For Airline M,
realigning their costs should be one of their priorities for
them to have a more efficient and effective in increasing
their utilization of costs, simplifying the processes, and
invest in automation. Airline G’s management should
consider the government authorities to not get involved
in the decision-making of the airline as this might lead to
different political issues.
Ultimately, whether they will be state-owned or
privately owned, the management of the airline will play
a huge role in the survival of the airlines during this
global crisis as not all strategies can be implemented for
their betterment. Not just the management themselves,
but every stakeholder would have to play their own part
as everyone should work together for them to endure this
pandemic.
Keywords :
State Ownership, Private Ownership, Flag Carriers, COVID-19, Airlines.
The Novel Coronavirus (COVID-19) has
caused a global dilemma as it created major disruptions
not just the health of the people, but also to the economy
of the countries. One of the industries that has a major
impact is the airline industry as they are one of the
essential means of transportation around the world.
Since countries have closed their borders, the airline
industry was also grounded for several months, leading
to financial loses, and seeking for assistance.
Because of this, airlines are now in the midst of
survival, questioning their ownership if they would
maintain as a private airline or a state-owned, and vis-àvis. Airline M is a privately-owned airline that is faced
with financial losses and is barely surviving with their
current phase. As for Airline G, a state-owned airline, is
also facing even more financial losses as they have been
struggling to survive even before the crisis.
Both airlines are now under restructuring their
organization and entering equity injections for them to
survive and not permanently close. For Airline M,
realigning their costs should be one of their priorities for
them to have a more efficient and effective in increasing
their utilization of costs, simplifying the processes, and
invest in automation. Airline G’s management should
consider the government authorities to not get involved
in the decision-making of the airline as this might lead to
different political issues.
Ultimately, whether they will be state-owned or
privately owned, the management of the airline will play
a huge role in the survival of the airlines during this
global crisis as not all strategies can be implemented for
their betterment. Not just the management themselves,
but every stakeholder would have to play their own part
as everyone should work together for them to endure this
pandemic.
Keywords :
State Ownership, Private Ownership, Flag Carriers, COVID-19, Airlines.
