Question

Explain how vision, mission and strategies planning of a airline company affected by the covid19 ?

Answer 1

Covid-19 & Airlines

Covid-19 pandemic had huge impact on various economical and social activities. Many firms are facing hard negative impacts on their supply of output and services. Sudden shut down of many firms and industries leading to scarcity in production, export, transportation and closing of international boundaries had affected airline services. With a huge and sudden fall in the number of customers, many of the airline companies are facing problems on their vision, mission and strategic planning.

Lack of adequate economic environment can easily neglect the scope of strategic planning and visionary policies by firms. With restrictions on the functioning of firms and their ability to provide services, an efficiently performing firm may even fall into crisis. Airline services were facing a day by day increase in the number of consumers before the period of pandemic. Domestic and international services providing competition in the sector with various service providers was able to attract a huge number of customers especially in domestic services. The number of people using airlines for domestic journeys was increasing before the pandemic. Many of the firms were expanding their services with increased demand for journeys with strategic planning and vision. The sudden appearance of the pandemic affects the number of consumers to fall in a huge rate due to safety and other measures. The companies are unable to take advantage in the fall in fuel prices because of unavailability of the consumers. Strategic planning and visionary policies could only help a sector or market which faces a gradual or sudden increase in demand. Here, in case of airline services, with a large fall in demand due to various factors have nothing to do with planning or mission at least for a short run period. Government relaxations, with much safety measures cannot make a sudden stimulation in the demand for services. Also, people becoming more aware about the consequences of travel, they change their pattern of behavior and preferences of travelling thus reducing the demand for the service.