OK, so, the set up. All the airlines go bust. Hmm, don’t think so, but it could happen. OK, so we’ll accept arguendo. What then?
What we will see is a reversion to the type of airline industry that existed when I was in my youth. Back then ( and it really was ‘back then’ in these terms) the vast majority of airlines were state-owned, and existed as what were known as ‘national flag carriers’. National pride required that every country had such an operator, however much it cost to support it, and that cost was very often quite significant. This, I suspect, will be the new normal in this industry. But the result will be that states will make the decisions on air travel, and if they take climate change seriously this is going to mean that the era of massive air travel growth (which has been up about 50% since 2008) will be over.
Now for the bit Snippa is missing. The world is littered with entirely fine aircraft that are doing nothing. We’ve the same number of qualified pilots and staff as we had before. Airports exist everywhere. There’s demand to be able to fly.
So, we’ve all the equipment and infrastructure necessary, already extant. The demand for the product is there. It’s never been cheaper to start an airline.
And Snippa insists that only governments will start airlines?