In an era where demand for air travel continues to grow, and where competition in the dynamic aviation is getting fierce, airports and airlines must rethink tomorrow’s travel and provide travellers with more pleasant, seamless experience. But, how are general market conditions impacting how they are working? The Blue Swan Daily spoke to key industry executives at the recent CAPA Asia Aviation Summit in Singapore to learn their views.
Cebu Pacific’s chief executive adviser, Mike Szücs, reinforces the view that on a global scale, but particularly across Asia, airlines have over ordered aircraft and there is a clear over capacity in the market. “There are a lot of carriers out there that have got explosive growth,” he says. “I’m not sure how they are going to deliver it!”
flyadeal’s chief executive officer, Con Korfiatis, says the long-term prognosis for the industry is great as lifestyle changes across generations have built a thirst for travel. “We still have a number of markets emerging globally,” he says, but warns that when the market does turn “it turns quickly and can turn very aggressively”.
Aeroflot’s director general, director strategy and alliances, Giorgio Callegari, says the view of the industry from an investor’s viewpoint is changing “as they fear the cyclicality of the airline industry”.
Dubai Airports’ chief executive officer, Paul Griffiths, says the market “is softer” than it was and that is creating “some challenges”. However, he says “growth will continue to be on the agenda,” but there will be a “much more microscopic view of the quality of that growth” to deliver profitability.
Association of Asia Pacific Airlines’ director general, Andrew Herdman, says the global economy is “in good shape,” but he acknowledges “we may see the growth rates come down a little if fuel prices go up”.