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Irish Mirror
Irish Mirror
National
Colin Brennan

Airline industry will never be back to where it was before, former Aer Lingus chief says

The airline industry is never going to get back to the way it was before coronavirus, one of the industry's leading figures has said.

Willie Walsh, former chief executive of Aer Lingus, said the industry would be smaller but more efficient in the future.

"It's never going to get back to the way it was," the Dubliner told Eurocontrol.

He also believes that Ireland has the most extreme travel restrictions in the European Union.

“They’ve effectively shut the island down," he said.

Looking five years ahead, Walsh forecast it would be a smaller industry and there would be fewer players.

Most of the consolidation would initially come through failures, he said, but he also predicted COVID-19 would make airlines more resilient.

"Most airlines are restructuring in a very positive way: they're going to be more efficient and the cost base will be more variable, they'll be able to respond to crises going forward," he said.

Willie Walsh, former chief executive of Aer Lingus owner IAG (Collins Photo Agency)

Looking at the next few months though, he said it would be "very, very tough". Flight data shows that a hoped-for recovery in air travel in Europe has gone into reverse.

Eurocontrol, Europe's organisation for the safety of air navigation, said that European airlines such as British Airways and Ryanair had shown traffic declines of 4% over the last two weeks.

But striking a positive note, Walsh said that airlines should take comfort from the fact that there was still demand for travel.

(AFP via Getty Images)

"People are comfortable getting on-board. What they're uncomfortable about is the uncertainty as to whether they're going to have to quarantine when they get to their destination or when they return from their destination.

"That's really what's undermining customer confidence," he said.

Aer Lingus is reviewing its processes and procedures (PA)

After 41 years in the airline industry, former pilot Walsh 58, was CEO of IAG from 2011 when it was founded.

He handed the reins to Spanish insider Luis Gallego on September 8.

"I've surprised myself at how easy it has been to adapt to retirement," Walsh said when asked about the last few weeks.

 
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