If this coronavirus panic drags on, we may see otherwise healthy airlines go bust. But that is not the case here. Flybe was in trouble well before coronavirus.
Connecting to the ends of the Earth with nonstop flights is an increasingly attractive prospect for flyers. The growing popularity of nearly day-long flights, however, is set to disrupt the economics of the airline business. Adapting will be crucial as demand from the travel industry grows.
Airline partnerships connecting North and South America look different in 2020, with Delta a stronger contender in the region than ever before. Its $1.9 billion investment for a 20 percent stake in Chile’s Latam Airlines helps. Now, the question is how it will shape the industry — and the strategies of competitors like American Airlines.
If — or more likely when — coronavirus hits the United States, few travelers will act rationally. That's bad news for U.S. airlines, which could be flying empty airplanes in the not-too-distant future.
United President Scott Kirby has a reputation for being a skilled negotiator. But because of a mistake by previous management, he had little leverage with JP Morgan Chase. That makes for tough contract renewal talks.
What choice does JetBlue have but to downplay its competitive problems in Boston? But this is not good for the airline. It was bad enough when JetBlue had to worry about new routes from Delta. Now American is joining the mix.
David Neeleman's new airline promises to have good service at competitive prices. That's his strategy at every airline, and it's commendable. But Neeleman is also planning to operate what is essentially two business models at once. Can he pull it off?
Don't fault airlines for lack of innovation. It's a risky business that doesn't always reward companies that act boldly. Instead, take solace in knowing that airlines are embracing smaller innovations that could make travel better.