Research on Airline Strategy under COVID-19: Flight Pricing and Human Resources Perspectives

Abstract

The COVID-19 pandemic has led to a global recession in the economy. People travel less due to stricter restrictions set by governments worldwide and fewer business activities due to the spread of the disease. This means that the airlines will receive a sharp decrease in income, which is a disaster for them because the cost is inelastic. To help change the situation of the airlines, this paper presents a calibration method based on the data of Chinese airlines and international flight data. The proposed method contains three parts: long-term price strategy, including pricing setting for domestic and international flights; new ways of price discrimination and pricing differences pushing up the demands, the new policies for the flight attendants, including wearing masks and introducing policies to prevent the virus from spreading. The experimental method’s result shows that COVID-19’s impact on airlines can be significantly improved with an accurate way to regain customers’ trust and willingness to travel by air compared to the pre-COVID method of working.