camberiu
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Latam also has about $1.3 billion in cash on hand.
The prices of air travel, worldwide, will become impossible, un-affordable for middle-class tourists, with half of the global competency going broke. Well done, ecologists are happy. Middle class tourists shall be less happy, but hey, they'll still be able to go on holiday at the cheap trailer camping camp twenty kilometers from their city apartment. Nice.
Once these covid regulations come out you'll only be able to fit half the people on the plane. To assist in distancing, I anticipate one level of accommodation on the plane and less staged tiers of service. Previously, the coach flier were barely contributing to the cost of the flight where the 1st class and business people were doing most of the lifting. The coach is really a filler to bridge the gap between the higher tier demand and space in the plane. Basically airlines monitor the demand for business class and adjust the number of seats based on how many they think they can consistently fill. If airlines could have it their way the plane would be full of business class seats (of course). I can see a fare somewhere between the current business and coach fares.I am not sure how the price of air travel will evolve. It actually rather think it will become cheaper to travel. For sure airlines would want to charge more, but air travel is a low margin business, meaning that companies do not have the power to set the price. All the aircraft that are out there will not disappear and if people change their behaviour by travelling less, there will be too many planes. Operators of planes will then prefer to use their planes at a loss instead of not using them at a greater loss even if they know that once the plane has to be decomissioned in 10 or 20 years, they will not be able to replace it (as happens with ships).
It is maybe not the time to invest in Boeing or Airbus...
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