During 2020 the skies went dark, but 2021 has brought new light and hope for the future of aviation. This is the year of the airline startup. Why has COVID-19 sparked a surge of new airlines, despite ongoing financial struggles for major airlines?
According to data from Cirium, more than 40 airlines paused operations or shut down since the start of 2020. In conjunction with collapsing revenue, thousands of aviation workers were laid off in the last year. All of that said, the hardships of 2020 also opened the door for new, smaller airlines to lay ground. Increased availability at airports coupled with the selling of airline assets at a discounted price, small startups are taking advantage of the bargains and the demand.
The most well-known startup of the year has been Avelo Airlines, offering low-cost airfare to hungry travelers. Breeze Airways is another new name in the game, who’s initial launch was pushed from 2020 to this year. These two new giants aside, who else is heading to the skies this year?
According to aircraft leasing firm Avolon Holdings Ltd., upstart airlines are popping up across the globe, with more than 90 new carriers securing funding and preparing for takeoff.
The bottom line is this- aviation manufacturers are dropping costs in an effort to sell aircrafts, airports are looking to fill vacancies, pilots and cabin crew are seeking new jobs after being laid off by major airlines, and grounded travelers are returning to the sky. All of these factors have come together to make 2021 the perfect year to launch a new airline.