The airline industry will wear the scars of the coronavirus pandemic for a very long time.
On Thursday, Qantas announced it was grounding its entire international fleet. American Airlines suspended three quarters of its long haul international flights on Monday.
Significant demand shocks aren’t new to the airline industry. In this century alone it has weathered the storms caused by the 2001 September 11 attacks and the 2002-04 Severe Acute Respiratory Syndrome pandemic.
But we have never before seen a shock of this magnitude affecting the entire world for what looks as if it will be a very long time.
So, will the airline industry be able to handle this predicament? What role will and should the governments play? And, when all this is over, what will have changed for good?