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Covid-19 crisis opens doors to a leaner British Airways

Graham Watson

3rd May 2020

This article looks at the impact of the pandemic on aviation, noting the recent announcement of job losses at British Airways.

It gives real depth in analysing how the coronavirus outbreak has dramatically affected demand in the sector, and also how the airlines have responded by looking to cut cost, both fixed costs - in terms of the maintenance of BA's Gatwick Hub, and variable costs in the form of labour costs.

All of which has implications for the equilibrium position of firms, their short-run and long-run shutdown points, and, as a result, long-term viability. It would be a brave examination board that set this sort of thing as an essay question but it would stimulate some fascinating answers.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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