With an unprecedented crisis come unprecedented opportunities: meet the new entrants
With an unprecedented crisis come unprecedented opportunities. It may sound counter-intuitive that at a time when an industry has contracted considerably due to the COVID-19 pandemic, strong consideration should be given to starting up a new business. But in fact there is evidence that it could actually be the perfect opportunity to turn a start-up idea into a reality.
There’s nothing like an actual crisis to uncover new pains and needs, or amplify an existing problem, or add a huge breadth of available talent, providing access to potential funding and cheap assets. And then the fact that any new business would be lean and minimise expenditure, preserve cash, and avoid corporate debt and you have a positive pathway to success.
In the aviation industry new airlines will cause more pain for incumbents.
As incumbent airlines of whatever colour are weighed down by debt and high costs, conditions are perfect for new entry: money is cheap, there is a glut of skills, and of cheap aircraft. Even airport slots are opening up.
The time is as right as it has ever been – but at a time when the incumbents can least afford it.
Since the coronavirus pandemic struck in early-2020 no less than 80 new airlines have prepared, or are in the throes of preparing, to operate. These new entrants will be fundamentally low cost and mostly narrowbody, supporting the latest trends in the industry.
While most of them are relatively small, many are well funded and more than sufficient to disrupt existing markets.
The questions remain:
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What opportunities exist across North America and the Caribbean for potential new entrants?
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How are some of the new arrivals performing and what progress are others making in reaching their goals to launch?
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How do their prospects look as demand begins to rebuild?
Moderator: Arthur D. Little, Principal, Sabine Reim
Speakers:
- Arajet, Executive Officer & Founder, Victor Pacheco
- Flair Airlines, President & CEO, Stephen Jones
- Global Crossing Airlines, Chairman and CEO, Ed Wegel
- Northern Pacific Airways/Flycoin, President & Co-Founder, Tom Hsieh