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Asia-Pacific start-ups push ahead with launch plans, despite COVID-19

Analysis

The COVID-19 pandemic has sent many airlines spinning into financial ruin, and some will not survive the industry's largest crisis.

However, there are still a handful of Asia-Pacific start-up airlines that are defying the bleak environment and persevering with plans to launch operations.

In Hong Kong, Vietnam, South Korea and Pakistan, new airlines are pushing ahead with their market entrances. In most cases the pandemic has delayed their plans, either due to disruptions to their own preparations, slower regulatory approvals, or changes to aircraft delivery schedules.

There is no doubt they are entering service during extremely challenging market conditions. However, they do have some advantages.

Aircraft are much cheaper to obtain now, and the airlines can start at a scale that suits the depressed demand - which is a luxury the incumbents do not have, with their fleets that were designed to suit the pre-pandemic world. Competition will also be less fierce for the immediate future, giving the start-ups some breathing room to establish a foothold.

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