Airline industry in trouble

By Sunday, November 29, 2020 0 No tags Permalink 0

On November 28 the Report on Business section of The Globe and Mail published an article today titled, “Airline workers struggle to find employment as COVID-19 decimates industry.”

Some excerpts:

  • Canada’s industry was a $10 billion industry. Now $350 million, annualized.
  • There were 80,000 employees in the industry. Now 50,000, buoyed up by wage subsidies. That suggests more layoffs in the future.
  • As the economy recovers, demand in the airline industry will lag other industries.
  •  With the COVID-19 epidemic, Canadian airlines suffered a decline of demand of as much of 90%
  • Airline industry experts say a recovery of demand for air travel will take years, and the airlines that do survive will be smaller.
  • Family travel is expected to resume faster than business travel. There has been a huge switch to Zoom for business.

If this is the future, why does Toronto need two commercial airports? It is time to consolidate air travel in Pearson.


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