PanaTimes

Sunday, Mar 26, 2023

From Australia to India, massive passenger demand sparks travel chaos

From Australia to India, massive passenger demand sparks travel chaos

As borders reopen, travel has sprang back with such voracity that it’s resulted in an unprecedented labour crunch for the aviation industry.

Airline and airport executives spent the past two years trying to convince everyone it’s safe to fly during a pandemic, touting reduced touch points and hospital-grade filters. Little did they know how overwhelmed they’d be once travel came roaring back.

From Australia, where passengers are waiting for hours at Sydney airport to check in, to chaotic scenes in India and Europe, where Deutsche Lufthansa AG is cancelling hundreds of flights, the aviation industry doesn’t have nearly enough people to run operations smoothly, even as post-summer demand for travel is still unclear.

As countries reopen borders and Covid-19 curbs fall away, travel has sprang back with such voracity that it’s resulted in an unprecedented labour crunch, made worse by the pandemic-induced lay-offs of hundreds of thousands of workers, from pilots to cabin crew and ground-handling staff. Many are in no mood to come back but even if they were, scaling up at such pace is a risk for airlines and airports, with spiralling inflation and economic pressures putting a question mark over how sustainable the current demand really is.

A Singapore Airlines plane lands at the international terminal of Sydney Airport.


“All airports and airlines are short staffed at the moment,” said Geoff Culbert, the chief executive officer of Sydney Airport, where almost half the 33,000-strong workforce lost their jobs during Covid-19. The aerodrome is furiously trying to rebuild, but “we’re not as attractive a place to work as before,” he said. “There’s still an element of concern around job security.”

Having lost their jobs because of the pandemic, many aviation-sector employees have moved on to other, less volatile careers and wooing them back is proving tough. Singapore’s Changi Airport is looking for 6,600 workers, from security to catering staff. One outfit, Certis Group, is offering a S$25,000 (US$18,000) sign-on bonus, about 10 times the basic monthly salary, for an auxiliary police officer role that would help with traffic and crowd control.

The severe staff shortage, sure to be a topic of discussion at the International Air Transport Association’s 78th annual general meeting that kicks off in Doha on Sunday, has led to delays, cancellations and extreme frustration for both airlines and travellers across geographies. The situation has become so bad that Ryanair Holdings Plc Chief Executive Officer Michael O’Leary called for help from British military personnel and Australia’s Qantas Airways Ltd. has taken to cajoling head office staff to work as airport volunteers during the peak July holiday period.

“The staff shortages mean that we are struggling to operate our planned schedule with the quality and punctuality we promise,” Jens Ritter, the CEO of Lufthansa, said in a LinkedIn post last week, apologising for cancelled flights in Munich and Frankfurt. “Many people have left the aviation sector during the pandemic and found work elsewhere. Now, our system partners such as airports and caterers are experiencing an acute staff shortage and are struggling to hire new staff.”

The security clearances required for airport work are also dragging on hiring. British Airways has some 3,000 potential recruits stuck in background checks while over at easyJet Plc, there are 140 crew trained and ready but who don’t yet have the necessary airside passes.

Travellers queue at Geneva Airport in Switzerland this week amid long delays caused by a technical glitch.


All that means it may take as long as 12 months for shortages to ease, according to Izham Ismail, CEO of Malaysian Airlines. “We see this predominantly, very clearly in Europe. We see this in North America. We see it in Malaysia,” Izham said at a forum in Singapore earlier this week. “I believe that stakeholders, policymakers need to work together to resolve all issues.”

How airlines and airports are managing varies from region to region. In Asia, airports have typically been more proactive when it comes to avoiding meltdowns, at times denying airlines permission to add new flights or asking them to reschedule, said Brendan Sobie, Singapore-based founder of consultancy Sobie Aviation. Other parts of the world are just hoping for a breather as demand holds, or even begins to wane.

“No market is immune to the manpower issues so any window to address these can be seen as beneficial,” Sobie said.

The need to play catch up was evident during a visit to Sydney Airport last Friday, the start of a long weekend. Queues to clear security for Virgin Australia and Jetstar flights snaked out the door. Beyond the security checks at a Toby’s Estate cafe, one barista said he’d made at least 300 coffees by midday, 50 per cent more than usual. People waited 20 deep at McDonald’s.

Behind the push to hire more staff, however, is a lingering concern demand may not last. Then airlines could face a problem of overcapacity – both in terms of fleet and manpower – if they bring all their idle jets back and hire aggressively. Air fares are already far higher than most travellers’ comfort levels, inflation everywhere is driving up living costs and there’s the definite possibility people may prefer to stay home or holiday domestically once the initial euphoria is over.

“After the Northern hemisphere peak travel months of June to August, the combination of accelerating return to school and work and the normal seasonal decline in demand will force air carriers to relax leisure and business fares, or risk further demand destruction,” said Robert Mann, the New York-based head of aviation consulting firm R.W. Mann & Co.

“Airline margins will deteriorate,” he said, meaning tough decisions will have to be made on “how much capacity can realistically be flown, especially midweek when business travel historically predominates.”

Newsletter

Related Articles

PanaTimes
Close
0:00
0:00
Singapore’s Prime Minister says China and US need to stabilize relations because world can't afford a confict between the two superpowers
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Bordeaux town hall set on fire in France pro democracy protest
Police violence in Paris
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Drew Barrymore
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
Kamala Harris: "The United States has formally determined that Russia has committed crimes against humanity."
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
Miracle: El Salvador Search and Rescue teams, with the support of Turkish teams, rescued a woman and a child from the rubble 150 hours after the earthquake
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
×