Caution over capacity and consolidation look set to remain key themes for Europe’s airline industry in 2020 and the outlook is certainly characterised by uncertainty. Airline seat growth in Europe in 2019 was the slowest since 2013, reflecting a cautious and rational response to macroeconomic and geopolitical uncertainties.
What has been particularly notable is the gradual process of European airline consolidation by elimination continued during 2019, with Thomas Cook Airlines, Germania, WOW air, flybmi, Aigle Azur, XL Airways France and Adria Airways all ceasing operations during the year. Just two months into 2020 that theme shows obvious signs of continuing.
In fact, analysis shows that since 2001, over 300 airlines have failed around the world. There are many reasons, ranging from a poor business plan/value proposition, through to management execution, competitive responses and difficult economic conditions, including high fuel prices.
This ‘failure’ list includes a number of big names and raises the question of how important is it to achieving critical mass and how big does an airline need to be to avoid becoming a statistic in the column of failed airlines.
As one of the discussion topics at the forthcoming Airline Leader Summit: Making Money 2020, CAPA – Centre for Aviation will explore this subject and especially look at what other factors will determine whether we’ll see an increase in airline failures across the world over the next 12 months and investigate how airports can respond to airlines failing.
CAPA’s Global Airline Outlook for the 2020s predicted that at some stage during the first half of the decade there will also be an economic downturn, possibly very substantial. On historical trends it is already well overdue and there is little to predict just how great the scope will be. With such a downturn seemingly inevitable, how will airlines continue to be profitable? The answer may lie in technology.
As the foremost authority on aviation in the world, CAPA‘s events provide cutting edge knowledge about strategic market trends and dynamics to help attendees make informed decisions, delivering the information and connections needed to inspire and improve business. The CAPA Airline Leader Summit is back for another at the Powerscourt Hotel Resort & Spa in County Wicklow, taking place between 1-2 April 2020.
The summit will examine key commercial and operational issues affecting airlines and airports in Europe focusing on both domestic issues and growth prospects in key international markets. CAPA will challenge leaders of the aviation industry to reflect on what is needed to drive the industry forward, using examples of innovation in outside markets as a benchmark to follow.
The CAPA Airline Leader Summit: Making Money 2020 seeks to tap into the dynamic changes taking place in the airline industry in this part of the world and address the issues in creative and authoritative ways.
This event, hosted again at the Powerscourt Hotel Resort & Spa in County Wicklow, to the south of Dublin, is a forum for debate and discussion of this strategic issue within the aviation industry and it is attracting delegate interest from across the globe. It is a must attend for those seeking to do business in Europe, where they can gain first-hand inspiration from airlines, LCCs, airports, travel technology providers, OEMs and financiers.
FIND OUT MORE… visit the CAPA Airline Leader Summit: Making Money 2020 homepage to find out more about this not-to-be-missed opportunity to discuss relevant issues impacting the aviation sector and learn meaningful insights from your industry peers.