Other
TRL3703 ASSIGNMENT 1 SEMESTER 1 2024
- Course
- TRL3703
- Institution
- University Of South Africa (Unisa)
UNIQUE NUMBER 639064 REFERENCES INCLUDED AND UP TO DATE ANSWERS CORRECT PASS GUARANTEED
[Show more]
Content preview
TRL3703ASSIGNMENT 1
SEMESTER 1
UNIQUE NUMBER 639064
2024
INTRODUCTION
The global aviation industry has been undoubtedly one of the hardest hit by the COVID-19
pandemic. The decline in passenger traffic and subsequent financial losses have posed
significant challenges for airlines of all sizes and business models. This presentation will
, explore the specific impact of the pandemic on low-cost carriers (LCCs) operating in South
Africa and beyond, examining both the global trends and the unique situation faced by South
African airlines. Through practical examples. We will also gain insight into the aviation
industry and explore no frills services and Tabulate airlines operating between South Africa
and the SADC region that offer no frill services and those that do not giving examples of the
offered services in those that offer such.
Q1The Impact of COVID-19 on Low-Cost Carriers (LCCs) Worldwide and in South Africa
The COVID-19 pandemic brought the global aviation industry to a standstill, severely
impacting all airlines, including low-cost carriers (LCCs). This presentation will explore the
specific challenges faced by LCCs worldwide and in South Africa, using practical examples.
Global Impact on LCCs
Passenger traffic plummeted: LCCs experienced a significant drop in passenger numbers, with
the International Air Transport Association (IATA) reporting a 66% decline in 2020 compared
to 2019 (IATA, 2022). Our first example is Ryanair, a European LCC which saw a 91% drop in
passenger traffic in 2020 compared to 2019 (Ryanair, 2021). This resulted in a €1.3 billion net
loss for the year. Spirit Airlines which is a US-based LCC experienced a 78% decrease in
passengers in 2020 (Spirit Airlines, 2021). To manage costs, they deferred aircraft deliveries
and negotiated furloughs with employees
Financial strain: Reduced revenue led to financial losses and liquidity issues, forcing many
LCCs to seek government aid or restructure their debts (Kaplan & Singhania, 2020).
AirAsia: Malaysian LCC faced severe financial difficulties and undertook a significant
restructuring, including fleet reduction, salary cuts, and route network adjustments
(AirAsia, 2020).
Fleet grounding: Airlines grounded a large portion of their fleets to conserve cash, impacting
aircraft utilization and maintenance costs (Taneja & Dhar, 2021). JetBlue is also an example of
a US-based LCC temporarily grounded 65% of its aircraft and implemented cost-saving
measures like early retirements and reduced flight schedules (JetBlue, 2020).
The global air travel shutdown caused a drastic decline in passenger traffic for LCCs, leading
to financial difficulties and operational challenges. Many airlines grounded their fleets to
survive, further impacting costs and efficiency.
South African LCC
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Regal00. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R119,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now