SMBC Aviation Capital expects LCCs will have upper hand in COVID-19 recovery

9 June, 2020

SMBC Aviation Capital CEO Peter Barrett said he expects that the "strong will get stronger" in the wake of the COVID-19 crisis, projecting that LCCs will benefit in the recovery phase as they have greater ability to keep costs and fares lower than traditional airlines (Nikkei Asian Review, 07-Jun-2020). Mr Barrett said once flying resumes airlines are "going to have to discount to get people back on aircraft", selling cheaper tickets to "encourage and stimulate demand." He added there are "some very small green shoots" for air travel emerging in South Korea, Vietnam and Malaysia, as well as some European markets.