Industry rationalisation has helped the US majors enjoy very healthy profits over the last year. But this has not always been kind to airports which previously enjoyed hub status. Also, the infrastructure that supports the airline industry’s growth is in urgent need of reform. Despite a decades-long acknowledgement that the country’s airports and air traffic management system needs to modernise, little progress has been made.
ULCCs are also making an impact, forcing the US majors to deploy an array of tactics to keep them at bay, in the form of segmented fare families and product unbundling. Further north, in Canada, ULCC start ups have injected renewed competition into the tightly held Canadian market.
Long haul low cost international operations are becoming a feature of the US-Europe market, introducing a new dynamic into the equation. These have until now been the territory of foreign airlines, but with airlines like the mid-cost/mid-frills jetBlue now about to embark on trans-Atlantic operations, a new era of competition could be in the wind.
Meanwhile, new aircraft technology is also reshaping route economics and opening up new markets in ultra long haul destinations to and from the continental US.
In Mar-2019 delegates at the CAPA – Centre for Aviation Americas Aviation Summit discussed many of these areas. The Blue Swan Daily spoke to some of the attendees to learn their views on the industry, the key factors impacting their own businesses and their development aspirations.
You can watch these video interviews and more via CAPA TV…
Delta works with its partners to ease passenger friction in the customer experience
Delta Air Lines EVP and chief legal officer Peter Carter talks about the airline’s combined efforts with its partners to remove friction from the passenger experience and the types of technology the airline is using to improve the customer experience.
New fare structure has been a positive change for LATAM Airlines group
LATAM Airlines Group VP of corporate affairs Gisela Escobar discusses the company’s outlook for 2019 in both domestic and international markets, the positive effects of LATAM’s new fare structure and the company’s plans to nearly double its capacity in Colombia’s domestic market during the next three years.
American Airlines believes some sort of commercialisation of the US ATC system remains beneficial
American Airlines VP of operations and industry affairs Lorne Cass offers insight into ways to improve management of the US airspace system and the airline’s work with US government agencies on a pilot programme to combat delays at its Charlotte hub.
London Heathrow remains at the top of Orlando International’s wish list
Orlando International airport senior director of marketing and air service development Vicki Jaramillo offers insight into the airport’s solid mix of airlines operating under various business models, provides an update on the airport’s biometric programme and the airport’s desire to establish links to London Heathrow.