The Postpandemic Future of Australian Regional Aviation

Abstract

This chapter provides an analysis of the journey an Australian regional airline has adopted to navigate the extreme challenges posed by the effect of COVID-19 on the passenger aviation sector. Operating in a deregulated and highly competitive sector characterized by competing stakeholder requirements, this regional airline initially responded to the crisis by ceasing almost all its passenger operations. Simultaneously, the airline proactively lobbied the Australian government on behalf of regional carriers in an attempt to highlight the severity of the crisis. The analysis of the financial reports of this airline presents a stark view of the financial consequences of the global pandemic. Despite the negative financial outcomes they recorded, the regional airline predicts a return to profitability as soon as the impact of their strategic response, supported by government intervention, is realized and as soon as the effect of the pandemic is mitigated by vaccination rates and by a gradual return to COVID-19 normal operations.