Shift from Commercial to Private Flight Due to COVID-19

A discussion on the noticeable shift from commercial to private airline travel.

Without a doubt, 2020 was one of the most devastating years economically, socially, and just overall. Many different industries suffered greatly due to COVID and all of the negative impacts brought with it like quarantine, understaffing, reduced demand, and reduced pay. The airlines were profoundly impacted by this pandemic and according to data, "Passenger traffic in April 2020 was 96% lower than April 2019, and stayed 60% below 2019 levels in 2020" (U.S. Government Accountability Office, 2021). Effects cascaded across airports, repair shops, and the supply chain. For example, in response to reduced demand, airlines parked or retired many aircraft, which reduced demand for maintenance. Stakeholders noted the importance of "over $100 billion in federal assistance for payrolls, rents, and more" (U.S. Government Accountability Office, 2021). FAA actions included temporary relief from some regulatory requirements which included managing costs, such as by implementing early retirement programs, raising funds in the private market to increase liquidity, and taking steps to mitigate COVID-19's spread among employees and customers by reducing flight numbers.

Due to COVID, there was a noticeable shift from commercial flights to regional and private jet firm flights due to passengers' fears of flying commercially and potentially being exposed to the virus. ABC News (n.d.) describes how lingering health concerns about commercial air travel during the COVID-19 pandemic have fueled a boom in private jet travel, a trend that has led to fresh scrutiny of the industry's taxpayer bailout, which some critics are calling a "handout to the wealthy" and can be viewed as an ethical concern. A multi-trillion-dollar federal rescue for businesses clobbered by the coronavirus included billions for airlines grounded by travel restrictions and safety concerns -- and, according to one report, more than half a billion dollars for boutique aviation firms that deliver private jet travel to the super-rich. "This was the rest of us paying to subsidize the luxury consumption of the very richest people in the country," Dean Baker, co-founder of the progressive think tank Center for Economic and Policy Research, told ABC News" (ABC News, n.d.).

References

ABC News. (n.d.). Private jet firms are soaring in popularity after big COVID-19 bailouts. ABC News. https://abcnews.go.com/US/private-jet-firms-soaring-popularity-big-covid-19/story?id=81773530

U.S. Government Accountability Office (2021, November 9). Covid-19 pandemic: Observations on the ongoing recovery of the aviation industry. COVID-19 Pandemic: Observations on the Ongoing Recovery of the Aviation Industry | U.S. GAO. https://www.gao.gov/products/gao-22-104429