Many airline business models are not optimised for the product and pricing dynamics that are characterising the industry’s journey out of the Covid-19 crisis, in the view of Etihad Aviation Group CE Tony Douglas. Douglas observed that “yield management considerations are probably more important now in pricing and positioning than they have ever been before”. That is a complicated task, however, because ”revenue management used to be a heavy degree of science and a sprinkle of art, but today it’s a heavy degree of art and little bit of science”, Douglas says. While this shake-up means there are some “incredible deals out there” for customers, it will ultimately “force many operators to have to rethink their business models”, he suggests. “The trick is to make sure that one has a blend of propositions that give choice to the marketplace,” Douglas says. Within this context, he mentions British Airways’ recently announced intention to launch a lower-cost unit at London Gatwick airport, alongside Etihad’s launch of joint-venture budget carrier Air Arabia Abu Dhabi last year as part of its transformation plan.<br/>