Feeding cuckoo in the national nest.
Airline business in COVID-19 year 2020
National carrier, Finnair Oyj (FIA1S), reported 7th July that the number of air travel passangers has decreased 96% compared to the same period last year. Cargo business is down ca. 70% and company makes loss ca. 2 mill € per day.
Finland, Europe and rest of the world is in survival mode excluding opportunistic countries. Hundreds of airplanes have been grounded for months. In logical business conduct the companies would divest their plane fleet and adjust the current demand-supply imbalance. So does BA. British Airways announced 17th July to stop using Boeing 747 planes for good due to low passenger demand.
However, many airline companies have governments as shareholders, and they are used to rely on deep pockets of the faceless owner with frequently changing politicians in power. Enjoy the intra-government smooth flying, I would say.
N.b. Airplanes are often owned by holding companies and various investment arms of big banks. I.e. there is a fleet of stakeholders who see just numbers, not national pride and flag.
Do something, change the airline business model and adapt! Yet the govt.´s loans interest rate today are zero or negative, ”feeding cuckoo in the national nest” is not the way develop the nation.
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