Originally Posted by
Eric Hartman
I am surprised that the redundant A380 guys are still defending the A380. There is a direct link between 115 A380s and your redundancies. Last year’s profit margin was around 1% and there were signs of worldwide economy slowdown even before the Covid. What people don’t understand is that the recession was inevitable due to many other factors, Covid just made things worse. EK has never had a contingency plan and that is worrying to say the least.
Yes, that is a popular view. But Covid hit cash-flows much more dramatically / quickly than the base case recession. Whereas a "normal" recession has you managing your P/L and B/S, the Covid-fueled one has upended business models far and wide, and there is a lot of uncertainty what the next winning business models will look like in the airline business. Most likely it leaves the likes of EK and its neighbors holding a pretty useless hand of cards.