TRL3703
Assignment 6 PORTFOLIO Semester 1 2026
Unique number: 250648
Due Date: 17 June 2026
QUESTION 1
1.1 Impact of Covid-19 on low-cost carriers in the world and South Africa
Covid-19 damaged low-cost carriers because their business model depends on many
passengers, fast aircraft use, low fares and regular short-haul travel. When borders closed
and people became scared to travel, low-cost carriers lost the high passenger numbers that
normally keep their unit costs low. This was a serious problem because aircraft leases,
airport charges, salaries, maintenance and insurance did not disappear when flights were
stopped. The case study idea is useful here because it shows that transport businesses
suffer badly when operations are interrupted by coronavirus, weak economic conditions,
rising input costs and reduced investment ability (TRL3705 Study Guide, 2022: 8). At world
level, many low-cost carriers had to park aircraft, cancel routes, retrench workers, delay
aircraft orders and use refunds or travel vouchers to manage cash flow. Global passenger
demand fell sharply in 2020, and airlines faced very large losses because travel restrictions
reduced both domestic and international traffic (Sun et al., 2022).
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,orand
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Impact of Covid-19 on low-cost carriers in the world and South Africa
Covid-19 damaged low-cost carriers because their business model depends on
many passengers, fast aircraft use, low fares and regular short-haul travel. When
borders closed and people became scared to travel, low-cost carriers lost the high
passenger numbers that normally keep their unit costs low. This was a serious
problem because aircraft leases, airport charges, salaries, maintenance and
insurance did not disappear when flights were stopped. The case study idea is useful
here because it shows that transport businesses suffer badly when operations are
interrupted by coronavirus, weak economic conditions, rising input costs and
reduced investment ability (TRL3705 Study Guide, 2022: 8). At world level, many
low-cost carriers had to park aircraft, cancel routes, retrench workers, delay aircraft
orders and use refunds or travel vouchers to manage cash flow. Global passenger
demand fell sharply in 2020, and airlines faced very large losses because travel
restrictions reduced both domestic and international traffic (Sun et al., 2022).
Low-cost carriers were not affected in exactly the same way across the world
because some were helped by strong domestic markets after lockdowns eased.
Carriers such as Ryanair, Wizz Air and Southwest could recover faster than airlines
that depended heavily on long international routes, because leisure travellers
returned first when restrictions became lighter. However, the recovery was still
uneven because customers became price sensitive, fuel prices increased, airports
had staff shortages, and health rules made travel less simple than before. This links
to the transport cost principle that operators need strong capacity use to reduce
average costs, because low traffic makes each seat more expensive to provide
(TRL3705 Study Guide, 2022: 10 to 11). For low-cost carriers, empty seats were not
just a sales problem, but a direct threat to the whole low-fare model.
In South Africa, the impact was worse because the domestic aviation market was
already financially weak before full recovery could happen. Comair, which operated
Kulula and local British Airways flights, entered business rescue during the pandemic
and later stopped operating after it could not secure enough funding. This removed
Kulula from the market and reduced low-cost competition on major routes such as
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 6 PORTFOLIO Semester 1 2026
Unique number: 250648
Due Date: 17 June 2026
QUESTION 1
1.1 Impact of Covid-19 on low-cost carriers in the world and South Africa
Covid-19 damaged low-cost carriers because their business model depends on many
passengers, fast aircraft use, low fares and regular short-haul travel. When borders closed
and people became scared to travel, low-cost carriers lost the high passenger numbers that
normally keep their unit costs low. This was a serious problem because aircraft leases,
airport charges, salaries, maintenance and insurance did not disappear when flights were
stopped. The case study idea is useful here because it shows that transport businesses
suffer badly when operations are interrupted by coronavirus, weak economic conditions,
rising input costs and reduced investment ability (TRL3705 Study Guide, 2022: 8). At world
level, many low-cost carriers had to park aircraft, cancel routes, retrench workers, delay
aircraft orders and use refunds or travel vouchers to manage cash flow. Global passenger
demand fell sharply in 2020, and airlines faced very large losses because travel restrictions
reduced both domestic and international traffic (Sun et al., 2022).
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,orand
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Impact of Covid-19 on low-cost carriers in the world and South Africa
Covid-19 damaged low-cost carriers because their business model depends on
many passengers, fast aircraft use, low fares and regular short-haul travel. When
borders closed and people became scared to travel, low-cost carriers lost the high
passenger numbers that normally keep their unit costs low. This was a serious
problem because aircraft leases, airport charges, salaries, maintenance and
insurance did not disappear when flights were stopped. The case study idea is useful
here because it shows that transport businesses suffer badly when operations are
interrupted by coronavirus, weak economic conditions, rising input costs and
reduced investment ability (TRL3705 Study Guide, 2022: 8). At world level, many
low-cost carriers had to park aircraft, cancel routes, retrench workers, delay aircraft
orders and use refunds or travel vouchers to manage cash flow. Global passenger
demand fell sharply in 2020, and airlines faced very large losses because travel
restrictions reduced both domestic and international traffic (Sun et al., 2022).
Low-cost carriers were not affected in exactly the same way across the world
because some were helped by strong domestic markets after lockdowns eased.
Carriers such as Ryanair, Wizz Air and Southwest could recover faster than airlines
that depended heavily on long international routes, because leisure travellers
returned first when restrictions became lighter. However, the recovery was still
uneven because customers became price sensitive, fuel prices increased, airports
had staff shortages, and health rules made travel less simple than before. This links
to the transport cost principle that operators need strong capacity use to reduce
average costs, because low traffic makes each seat more expensive to provide
(TRL3705 Study Guide, 2022: 10 to 11). For low-cost carriers, empty seats were not
just a sales problem, but a direct threat to the whole low-fare model.
In South Africa, the impact was worse because the domestic aviation market was
already financially weak before full recovery could happen. Comair, which operated
Kulula and local British Airways flights, entered business rescue during the pandemic
and later stopped operating after it could not secure enough funding. This removed
Kulula from the market and reduced low-cost competition on major routes such as
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
