| GrayAnderson |
Apr 2, 2020 10:53 pm |
I think it will vary a lot on a case-by-case basis. My guess, FWIW, is that outside of certain common travel zones (e.g. Schengen and the CTA) or areas with frequent cross-border travel (Canada/US and US/Mexico) you're going to see at least something that looks suspiciously like a suspension of visa-free travel for a bit. I'd probably combine this with a regime of tests (alongside a reduced/circumstantial quarantine) for business travel (since there are times that physical presence cannot be avoided...the best example I can give is site walk-through for an event; pacing out floorspace is something that a VR tour just won't cut it for; some court proceedings can get tricky in this respect as well...or at least, could until recently).
When things open back up? Who knows? I suspect the airline industry is going to go through some nasty disruptions (partly owing to a loss of business...my spitballed guess is that for a year or so after the initial burn-through and pending herd immunity/a widely-administered and widely-effective vaccine, domestic air travel will be off at least 25% and intercontinental/long-haul international travel will be off over 50%) and there's a good chance this kills of the super-cheap airline circumstances we've known for the last few decades. The hit here is just too darned big to "fix" with discounts, and at some point lower load factors will force some combination of service cuts (I see some smaller airports either losing service, losing nonstop service to hubs, or losing one or more airlines) and higher fares to reach equilibrium. As a particular example, Dulles is probably in financial trouble (it wasn't in great shape a few years ago, but there was hope that the metro getting extended there would help). Oakland and some of the smaller LA airports are probably going to take this on the chin as well. And so on.
An optimistic scenario would be that airlines go and pull a few rows of seats out or expand their F/J cabins to compensate for having too much fleet and a lot of markets where a larger 737 or A32X is "too much plane" and they don't have the right fleet mix to go smaller (for whatever reason, including but not limited to being saddled with lots of planes that are surplus to requirements or situations where a smaller plane can't run the route...think some of the longer TATL/TPAC routes where you can't exactly put a regional jet into the mix). A pessimistic scenario would involve mostly the current cabins (I think Y is often reaching close to as far down as it can go) and worse games with baggage fees and the like. A moderate scenario might involve re-expanding the F cabin and seriously pushing W (effectively going to a full three-cabin setup where Y is pretty crappy, W is decent, and F is solid so pax are "pushed" to W).
And of course, I haven't mentioned the chance that the government has to step in and partially re-regulate things to avoid one or more majors going under. AA has big problems as I understand it, while DL has an unlucky debt balloon coming up. I can't say that much about UA, and WN looks like it is in good shape (AS's picture is perhaps more complicated because of issues stemming from the VX merger).
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