The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
KLM CEO: Millennials ‘fly everywhere by plane’, climate debates don’t change this behaviour
KLM Royal Dutch Airlines president and CEO Pieter Elbers said he is not concerned with millennials choosing air travel less, arguing it is “nonsense” this age group is doing so (austrianaviation.net, 09-Oct-2019). He said millennials “fly everywhere by plane”, arguing debates over climate have not changed this behaviour.
Delta Air Lines CEO: Sustainability a ‘bigger issue’ in Europe, but coming to the US
Delta Air Lines CEO Ed Bastian stated sustainability is “one of the existential threats” to the industry (Bloomberg Businessweek, 04-Oct-2019). He noted sustainability is a matter which consumers “need to hear” and said the industry is “doing much more in that realm than we give ourselves credit”. Mr Bastian also said that while sustainability is a “bigger issue” in Europe, it is also “coming here to the US“.
IATA CEO: ‘Carbon is the enemy, not flying’
IATA director general and CEO Alexandre de Juniac urged (04-Oct-2019) governments to work in collaboration with aviation to combat carbon emissions and aid industry sustainability, stating “carbon is the enemy, not flying” as aviation continues to receive criticism surrounding emissions levels. Mr de Juniac said that the implementation of the Carbon Offset and Reduction Scheme for International Aviation (CORSIA) scheme requires a more cohesive approach from ICAO member states that signed the agreement in 2016. According to IATA, CORSIA has been designed to help offset the growth of international aviation CO2 from 2020, alongside technological improvements, further use of sustainable aviation fuels and infrastructure advances aimed at reducing the sector’s carbon emissions. Mr de Juniac said that although governments brand such pricing instruments as “green taxes”, the industry has yet to see funds specifically allocated to reducing carbon.
Biofuel production a ‘chicken and egg’ scenario: KLM CEO
KLM Royal Dutch Airlines president and CEO Pieter Elbers argued increasing production of biofuel is a “chicken and egg” situation (Tagesspiegel, 07-Oct-2019). The high cost of biofuel production results in little demand for the product, however the small demand leads to low investment in production, Mr Elbers said.
Norwegian outlook remains ‘promising’, on track for EUR200m cost reduction target in 2019: CEO
Norwegian acting CEO and CFO Geir Karlsen stated (04-Oct-2019) the group’s outlook remains “promising” for the winter 2019/2020 season, adding it has adjusted its route portfolio and capacity to “ensure that we are well-positioned to meet the actual demand”. “Norwegian’s operational performance continues to improve, and we are on track to reach the targeted cost reductions of NOK2 billion (EUR200.1 million) in 2019”, Mr Karlsen reiterated.
Los Angeles World Airports CEO: UAS ‘present a security, operational and economic challenge’
Los Angeles World Airports CEO Deborah Flint advised (02-Oct-2019) unmanned aircraft systems (UAS) incidents “present a security, operational and economic challenge” to North American airports regardless of whether UAS operators are “careless, clueless or criminal”. Ms Flint stated: “The time has come to take meaningful action on this issue to protect the nation’s travelling public”.