With the advent of rainy weather associated with La Nina upon us, we are in for months of cloudy and often dark skies that add another layer of gloom over our predicament as COVID 19 continues to ravage the Philippines making us the No. 18th in the top 20 of the most infected countries world-wide due to the pandemic. So, it is perhaps for the sake of our mental health that we should look for the silver lining behind the dark clouds and imagine another time when we are on the other side of the pandemic’s peak and headed into our way to economic recovery. It makes sense to try to imagine that future and considering that the pandemic has altered lives as well as social, economic and political structures on its wake, it may be wise to build new institutions to replace the old and rework our business models into something that is more resilient, more environment friendly, more practical to the new reality emerging from the clutches of the COVID-19 virus.
One such area for forward thinking is transportation. Our transport sector has been one of the hardest hit by the closures and travel restrictions caused by COVID-19 and still is bearing the high costs in lost opportunity, manpower and finance that the virus has wrought. Take the case of the airline industry and the global crisis that many national and international companies are going through. For example, EasyJet Plc was one of the carriers better-placed to survive thanks to its low-cost structure and strong balance sheet. Nonetheless, it is in talks with the British government about a second wave of state support after a 600 million-pound ($775 million) state-guaranteed loan earlier in the year ran out.
Our very own Cebu Pacific Inc. is raising $500 million in bonds and preferred shares after the government ruled out taking over troubled airlines. There is also Malaysian-based discount rival AirAsia Group Bhd. announcing a restructuring of its long-haul affiliate AirAsia X Bhd. this week while ceasing operations on its Japanese carrier. The state-owned Malaysia Airlines Bhd. is talking to creditors about a restructuring and one or other Malaysian carrier may fail by the end of the year. In the U.S., the industry has been kept on life support since Congress passed a bailout bill in March — but that money has now run out and the major carriers, Delta and United have announced thousands of layoffs by the end of the month.
And this is where a future rethinking becomes relevant. Almost every airline on the planet faces the spiral of weak revenues, poor service, fat interest payments and irreducible debts that will saddle business growth for years, if not decades. Accordingly, “Governments may soon have to choose whether to restructure, nationalize or liquidate a wave of failing airlines, or else loosen their cherished ownership restrictions that have hitherto prevented the creation of truly transcontinental giants.” In the current crisis, few private companies will be strong enough to survive on their own so the era of consolidation as well as cross-border ownership will have to do away with the “national patrimony” clauses that restricts the flow of capital. Governments have never run successful businesses so it is for the sake of the future that we need to look at the survival of the airline industry which is essential in the life of an archipelagic country such as ours.
From the biggest (the airlines), to the smallest of new changes: the transformation of e-bikes into something as handy and as easy as ordering food online. The next time you open Lime’s smartphone app (in the US), for example, you may see a new type of vehicle of what we call an e-bike that you can rent without much fuss or red-tape. E-bikes are limited to a top speed of 20 miles per hour, and the electric motor works only when the rider is pedaling. Some have a throttle on the handlebars that offers an extra power boost, but the throttle works only if you’re also pedaling. You don’t have to be pedaling very hard, though. You can throw it into a low gear and just free-spin the pedals forward slowly and that’s enough to let the throttle work.
Lime plans to add more shared mobility services to its app in the coming months as it seeks to become both a provider and platform for all two-wheeled electric transport. The “ultimate goal,” a spokesperson said, is to own “all light electric vehicle trips under 5 miles.”
There is a global momentum on the use of bikes and adding more bicycle lanes as COVID-19 has made people aware of the danger of virus infection in crowded transport vehicles and at the same time contributing to lessening the carbon infestation of the planet. What makes this initiative something worthy of future consideration by policy-makers and financiers is that e-bikes would have a broader mass appeal and if the convenience, the pricing and the support infrastructure is there; i.e., bicycle lanes, etc., the public may just adopt it as their vehicle of choice.
And here is another mind-altering news. Buick, the luxury car division of General Motors (GM) is incorporating the “Legally Blonde” star, Reese Witherspoon, “Book Club” with a reported 1.7 million followers on Instagram on its Buick infotainment systems. The Hollywood star each month selects a book to read and discuss, with the common element being that each work features a woman at its center.
The app, which features audiobooks and podcasts, is a product of Witherspoon’s Hello Sunshine media company. “As more women are making vehicle-buying decisions, we want to be thinking creatively about tailoring the driving experience to them,” said Buick advertising and media operations manager Kate Hrabovsky. So, there you have it. With the car market on a spin and as new marketing values emerge, a more focused sales approach that looks at the driver’s needs and wants has to be re-imagined. It’s a brave new future; and we are all on it.
Peachy Vibal – Guioguio is a PR strategist who has lead communications departments in GMA Network, ABS-CBN, and TV5. She enjoys long drives, taking scenic routes, and finds a thrill going wherever she pleases behind a wheel. She has yet to learn how to replace a flat tire.