The impact of the COVID-19 pandemic and the European Green Deal on the air traffic industry competitivity and on Moldavian certified air carriers

Abstract

The unprecedented contraction of the airflight transport sector caused by the COVID-19 pandemic, European Commission’s regulations aiming for carbon neutrality by 2050, as well as the industry’s slow recovery rate and high demand for capital for the implementation of costly carbon neutral air traffic solutions, are the main challenges that will shape the way the competitive forces will affect global, regional, and Moldovan air transport industry. The competitivity of airflight companies pivots on the competitivity of the entire air traffic mobility chain. To succeed Moldovan air carriers must rely on suppliers, partners and stakeholders who can solve the paradox of a lower carbon footprint while decreasing the overall cost of mobility, and all this in a very uncertain business environment. Integrated intermodal mobility solutions around Chisinau airport and ensuring a carbon efficient value chain are essential in resisting the regional competitive pressure and loss of traffic. JEL: M3.