As the pandemic has severely impacted the aviation sector, a report by Kearney has suggested that there is a need for airport service providers to reassess their business models to become more resilient to external shocks.
The report noted that Covid-19 has brought the aviation sector to a grinding halt. External disruptions and catastrophes in the past indicate that the sector is particularly prone to being severely hit by such events.
Demand has taken a significant downturn, which inevitably impacts the supply-side ecosystem and erodes value for service providers, including airlines and airport developers and operators.
“As a result, there is an urgent need for these service providers to reassess their business models and explore business diversification strategies to make themselves more resilient to external shocks,” said the report titled aBuilding future-ready airport business models’.
Manish Mathur, partner and head of Kearney’s Asia Pacific, Transportation and Infrastructure Practice noted that