Through the Covid-19 pandemic airlines are stuck in the worst economic crisis of all times. As travel restrictions are rather intensified than eased, airlines nowadays intensively concentrate on minimal cash drain and cost savings to survive this worldwide depression.
As the initially anticipated duration of the massive capacity reductions and the timing of the restart phase turned out to be “wishful thinking”, fast changes and short notice measures cannot meet the necessary cost reductions over this long period of time. Instead, structural changes and sustainable adjustments are needed.
As Lufthansa Group CEO Carsten Spohr expects that after the crisis a new market situation with a concentration of airline groups in each region of the world will be the new reality, also European airline groups need to strengthen their competitive situation. Many international carriers are (partially) owned by national governments and are strongly subsidized during these times. Moreover, as their business is located outside of the EU these airline groups can follow leaner, more competitive organizational structures under their national law instead of EASA.
Therefore, the grouping named Airlines for Europe (A4E), which advocates on behalf of its members to help shape EU aviation policy, is currently driving a change in aviation law for continuing airworthiness organizations (CAMO) to foster a competitive situation for and the possibility of enormous cost savings in European airline groups.
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