The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Air Vanuatu CEO Derek Nice on inbound passenger arrivals to Vanuatu “increasing very rapidly”:
“Not just China, but the rest of Asia is growing at about 12% a year consistently for the last five or six years, followed by EU passengers at approximately 7.5% and North American arrival growth of 5% p/a”. Mr Nice reported the carrier’s latest “constraint” is connectivity and as the carrier solves that problem, growth will “continue or even accelerate”.
Gol Linhas Aéreas CEO Paulo Kakinoff on the carrier posting its highest ever second quarter revenue result in 2Q2019 with BRL3.1 billion (USD807.5 million), a 33.4% year-on-year increase:
“Strong customer demand, especially in the corporate segment, combined with our capacity discipline, enabled us to deliver exceptional operating results in the 2Q2019, the traditional low-season for air travel in Brazil”.
IAG Cargo CEO Lynne Embleton reported revenue decreased 3.2% year-on-year at constant exchange to EUR281 million for the period 01-Apr-2019 to 30-Jun-2019. Tonnes sold decreased 1.1%, CTK volumes decreased 0.4%, capacity increased 2.6% and yield decreased 2.9% at constant exchange:
“Industry data continues to show a year on year decline in the global airfreight market… As our business is linked to global trade, our reported revenue reflects the difficult market conditions”. She added: “Whilst our influence on short term market performance remains limited, our focus on implementing long term transformation for our business and leading the industry in investment and digital innovation remains unchanged”. Ms Embleton reported the carrier now receives 28% of global bookings online. She commented: “Going into the second half of 2019, we remain focused on investing in the future of our business to enhance how we deliver for our customers”.
Aeromexico CEO Andres Conesa on Emirates’ plans to launch Dubai-Barcelona-Mexico City service, stating “We asked the Mexican authorities to present to us which documents the foreign carrier has acquired”:
“If they want to operate Mexico-Dubai, do it. We do not have any issue with Mexico-Dubai… But we do have an issue with Mexico City-Barcelona… [Emirates] are not Mexican and they are not Spanish”. Mr Conesa is seeking clarity on whether or not Emirates commenced reservation for the service without the appropriate permissions.
Firefly CEO Phillip See on the carrier announced plans to launch an inflight beverage carton recycling programme, becoming the first full service carrier in Malaysia to separate the cartons on board:
“We will gradually begin transitioning to more sustainable initiatives in the near future as we will need to consider space and time pressures on cabin crew to collect materials separately”. Mr See added: “It has been our goal to introduce recycling to as many Malaysians as possible, and it has been a great journey towards educating more people on the usefulness of beverage cartons even after it has served its purpose”.
IATA reported global FTKs decreased 4.8% year-on-year in Jun-2019, marking the eighth consecutive month of declines. Capacity growth “remains subdued” and load factor continues to decrease.
The association stated: “Signs of a modest recovery in recent months appear to have been premature, with the June contraction broad-based across all regions with the exception of Africa”, and added: “Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the US-China trade dispute”. Director general and CEO Alexandre de Juniac stated: “Global trade continues to suffer as trade tensions – particularly between the US and China – deepen. As a result, air cargo markets continue to contract”.