Your weekly travel and aviation Quote-a

    The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.

    AirAsia CEO Riad Asmat on the carrier’s ongoing legal dispute with Malaysia Airports (MAHB):

    “MAHB should seriously consider building a dedicated and functional low cost carrier terminal, which charges lower rates like in Jakarta and Tokyo”. Mr Asmat added: “This will provide the much needed boost for the local aviation industry and position Kuala Lumpur as a key aviation hub”. AirAisa maintains that a “considerable portion of MAHB’s revenue and profit is contributed by air passengers through the PSC [passenger service charge], which AirAsia has diligently collected and remitted to MAHB in full according to payment terms as agreed by both parties”.

    Cobham Aviation Services Australia (CAS) CEO Ryan Both reported the company is “about to enter an exciting new phase” with the arrival of its first Q400 aircraft in early Aug-2019:

    The Q400 “brings a game-changing modern in-production aircraft” to the fly-in fly-out sector. Mr Both stated aircraft like the Q400 and the recently introduced Embraer E190 “aren’t cheap” and are “transforming our business but we need more capital to drive our growth so we can realise our full potential”. He added Cobham plc has “high expectations for our business and remains committed to the success of CAvS in Australia during this process”.  

    Air New Zealand outgoing CEO Christopher Luxon stated innovation in the aviation landscape “needs to be settled down, and commissioned and stabilised, as we work our way through it”: 

    “If you zoom out you have gone from a world where every 25 years you get these big innovation breakthroughs that seem to come in aviation and then things settle down” and now “there is the demand of 170-odd airlines saying to Boeing and Airbus ‘we want more fuel-efficient aircraft'”. Mr Luxon reported Airbus and Boeing “go and push three engine manufacturers to deliver those engines” resulting in “quite a lot of new innovation coming through”.

    Grupo Viva Aerobus CEO Gian Carlo Nucci on 2Q2019 results:

    “In a nutshell [results] are summarized in our very target of strengthening our position as the fastest growing airline in terms of passengers, route expansion and profitability”. 

    Air India Express CEO K Shyam Sundar on the carrier reportedly recording an INR1.7 billion (USD24.7 million) net profit in FY2018/2019, a 35.5% year-on-year decrease:

    “The unit cost incurred on fuel alone, increased by around 35% during this period”. Mr Sundar added: “The impact of this on profitability was huge, as more than 40% of the airline’s operating cost were incurred on fuel”. He reported the LCC improved its average aircraft utilisation by 4.7% to 13.3 hours in FY2019, while average load factor increased by 4% to 79.6%. Air India Express recorded INR42 billion (USD610.1 million) in revenue during the fiscal year, a 16.1% increase.

    IATA announced it is “confident a solution will be found” in Zimbabwe for the repatriation of USD196 million in blocked airline funds. During a meeting between IATA director general and CEO Alexandre de Juniac and Zimbabwe’s President Emmerson Mnangagwa, Mr de Juniac reported: 

    “It will be negative for business, trade and tourism if airlines are forced to reduce their service to Zimbabwe”. Mr de Juniac additionally stated: “It was clear from our fruitful meeting that we are united in our commitment to finding an appropriate solution that will address this and support Zimbabwe’s economic development”.