The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Ryanair CEO says Norwegian will follow Thomas Cook and Aigle Azur into insolvency
Ryanair CEO Michael O’Leary again reiterated his belief that Norwegian is heading towards insolvency, claiming that the rival LCC is “doomed” (CNBC, 04-Nov-2019). Mr O’Leary said: “We’re seeing the emergence of four or five large airlines across Europe and Ryanair is by far the largest in passenger number terms, and you’ve seen in our numbers this morning that we’ve delivered 11% traffic growth… We are continually cutting costs, Ryanair is continually passing on those lower fares, and that’s what stimulating our growth and it’s what’s accelerating the demise of airlines like Thomas Cook, Aigle Azur and Norwegian, who I think won’t be far behind them”.
Wizz Air CEO considers long haul low cost will develop once appropriate aircraft are available
Wizz Air CEO Jozsef Varadi considers long haul low cost is “inevitable” but requires “super efficient narrowbodies” (ttgmedia.com, 05-Nov-2019). Mr Varadi expects the necessary equipment could become available by 2029. Mr Varadi added: “It will be done at some point [but] it is not going to be us, we are not trying to set up a long haul carrier”.
A4A CEO: Railway cross subsidisation ‘violates the US-EU Air Transport Agreement’
Airlines for America (A4A) president and CEO Nicholas E Calio, in a letter to European Commission DG for Mobility and Transport Henrik Hololei, stated: “The cross subsidisation of the railways at the expense of the airlines violates the US–EU Air Transport Agreement” (Euractiv, 04-Nov-2019). He noted this will “burden” international aviation in a way which is “unnecessary and counterproductive for reducing emissions”.
IndiGo and Qatar Airways to make strategic business announcement on 07-Nov-2019
IndiGo and Qatar Airways reportedly plan to make a strategic business partnership announcement on 07-Nov-2019 (Bloomberg/Reuters/Times of India/Economic Times/Bloomberg Quint/The Hindu BusinessLine, 05/06-Nov-2019). Qatar Airways CEO Akbar Al Baker stated the announcement “is not something about buying a stake [in IndiGo], it’s commercial”. As previously reported by CAPA, in Jan-2019 Mr Al Baker reported Qatar Airways was engaged in discussions with IndiGo regarding “a possible codeshare partnership”.
Wellington Airport welcomes Singapore Airlines A350-900
Wellington International Airport welcomed (01-Nov-2019) Singapore Airline’s inaugural A350-900 Wellington-Melbourne-Singapore service, replacing Boeing 777-200ER on the route. Wellington Airport CEO Steve Sanderson stated: “Thanks to the connectivity Singapore Airlines provides, visitors from Asia and Europe are now spending NZD79 million (USD51 million) more per year in Wellington than before the service”. Mr Sanderson reported there has been a 37% increase in visitors from Asia overall, with “Singaporean visitor numbers up by 118%, Indian visitors up by 105%, and Indonesia up 50%”. [more – original PR]
Air France to launch dedicated business class offer on its domestic network in 1Q2020
Air France CEO Anne Rigail, speaking at Air France-KLM‘s investor day presentation, announced (05-Nov-2019) the carrier plans to roll out a dedicated business class offer on its domestic network in 1Q2020. The product will aim to be consistent with business class offer across Air France‘s entire network. It will include SkyTeam Sky Priority and lounge access, with a dedicated front cabin, blocked middle seat and dedicated catering offer.