The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Jet Airways CEO Vinay Dube on talks with Delta Air Lines regarding a stake purchase:
“There have been no chats since I have taken over. We are focused on continuing to cement our partnership with Air France and KLM and with Delta to connect to the US. We are focused on when the customer connects in Schiphol that it is the best connection he gets. Those are the elements of the partnerships we are focused on. You sell a ticket here, you give access to the partner network. You transfer luggage, you try to do the transfer seamlessly. When you go to one gate, you get a reciprocating connection. These are the things consumers are looking for and that is what we are focused on currently”.
LATAM Airlines Group CEO Enrique Cueto on Peru’s airport infrastructure limitations:
“The major challenge for LATAM to reach the target of 50% growth in domestic passengers in Peru by 2020 is having an airport infrastructure that supports this growth. In what airport do we put them [the increasing number of passengers] if we’re not going to have a new runway and a new terminal by 2022? Lima and Cusco are two airports tremendously complicated for the upcoming growth”.
AirAsia Group CEO Tony Fernandes on investing in data and technology:
“The power of ancillary income is very exciting. I’m a big, big believer in data and technology and we’re investing heavily in it. With the power of data we can do lots of very sexy things with ancillary income in terms of e-commerce, in terms of fintech and in terms of content business. I believe our ancillary income pie is going to grow. In many ways we will transform from an airline to a tech company. That’s my vision over the next 10 years”.
Malaysia Airlines CEO Peter Bellew in response to Qantas’ planned nonstop Perth-London service:
“We had a lot of the business from Perth to ourselves so it will impact our operations – we’ll try to manoeuvre around the new departures and recreate our business out of Perth. We’ll either enhance the product to Perth or stay where we are but do something on re-timing the flights to make the connections more favourable for the marketplace”. He also said the airline’s Adelaide and Sydney services are performing strongly and noted improved business class demand on Adelaide, Melbourne and Sydney services following the introduction of lie flat business class seats.
British Airlines Pilots’ Association (BALPA) general secretary Brian Strutton responding to Ryanair CEO Michael O’Leary’s letter addressing pilot pay and rostering issues:
“Our feedback from Ryanair pilots who have seen Michael O’Leary’s letter suggests that he still doesn’t get it… Pilots from bases all over the UK have told us that they don’t want half-hearted excuses to shut them up. They tell us that they want genuine respect and for their European ERC to be the recognised representative body for Ryanair pilots. Until they are given that, Ryanair will have a problem with its pilots”.
Air France CEO Franck Terner and Vietnam Airlines president and CEO Duong Tri Thanh on the carriers’ plans to launch a JV in Nov-2017:
Air France: “This joint venture agreement will be a long-term source of value for our customers and for our two airlines. Our aim is to maintain and develop our position as European leader in this region with very strong growth potential”.
Vietnam Airlines: “Vietnam Airlines expects to take the current joint venture with Air France to a next level in order to reach our full potential in France and Europe. Thanks to the new strategic partnership, our customers, including businesses and individuals, will enjoy comprehensive services and further benefits”.
Thai AirAsia CEO Tassapon Bijleveld called for the Civil Aviation Authority of Thailand (CAAT) to be “more proactive” in monitoring airlines:
“At the moment, the market is saturated. There’s way more supply than demand. There’s too many aircraft flying in the ASEAN airspace, especially in Thailand” and added: “The authorities have to be more proactive in governing the airlines that don’t have strong financial performance. If they go bankrupt at any time, it will affect the economy and also the passengers. There are rules and regulations on governance, but none of them are actively pursued”.
Embraer commercial aviation CEO John Slattery on the World Trade Organisation’s case brought by Brazil against Bombardier to prevent the supplier benefitting from more than USD3 billion in “illegal subsidies” from the Canadian government:
“I have no interest in killing Bombardier, I just wants a level playing field. If they can keep going back to their government for equity or for loans, when the rest of the commercial market is closed to them for equity or debt, then that’s unfair by anybody’s sensible and sober calculus”.