Flight Centre up 59%, that's crazy, global aviation may never be the same for quite awhile.
Yes, even with a vaccine. And here's why.
Would anyone contemplate going anywhere overseas to travel if you have to spend two weeks self-quarantine in a hotel or Government nominated place in the country of your visit? Even if you are prepared to do so, if you have the luxury of time, it would cost you dearly and in addition to that, the travel experience is one bogged down by lots of hurdles , then you may have to wait to return and perhaps quarantined again upon return. Ok if we have the vaccine and global aviation can begin in a limited fashion, you would need to show your vaccine certificate and if there is a requirement to demonstrate that you are COVID free, you could run the risk of not being able to board after booking if one is struck by the virus and you'd wonder if there is such a thing as a COVID travel insurance cover. All certainly would make it one hell of an expensive trip.
FLT is in a worst position than QAN because you'd expect a Government bailout of the national carrier on national interest grounds. Travel agencies can be easily replaced.
Look at the Aussie flying - that's not what our economy needs. But that's what comes with a Biden administration and there is little RBA can do to stop it. Unless China stops buying our iron ore.
Sadly just when our Aussie is perking higher, we are grounded and can't travel. But one way to thrive from a rising Aussie is Betashares AUDS. I had been onboard for some time now.
