The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
IATA director general and CEO Alexandre de Juniac on the organisations prediction passenger numbers will reach 7.8 billion in 2036:
“All indicators lead to growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years. It’s fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand”.
Outgoing Malaysia Airlines (MAS) CEO Peter Bellew on the airline focussing on increasing revenue rather than reducing costs:
“The cost is at a good place and I don’t think there is much more cost to be cut. I think it is now all about adding 3% to 6% of revenue”. He said the airline’s new reservations system, installed in Jun-2017, “is working very well and… will give the company a better ability to sell seats”. Mr Bellew stated: “Our brand has improved around the world. Our business rebounded from China, Australia and other parts of the world. It is about rebuilding cost and the brand. I think there is a great opportunity for MAS over the next couple of years”.
Finnair CEO Juha Jarvinen on the positive impact Japan and US JVs:
“The joint business gives you a much wider network, you are part of the corporate deals in respective markets and we can actually utilise the strength of each carrier at their respective home markets. We’ve seen improving position to both joint businesses this year”.
Delta Air Lines CEO Ed Bastian on claims that the carrier controls Virgin Atlantic:
“Virgin Atlantic is a great company, a great brand. That last thing that Delta ever wants to do is to try to bring Delta into that brand. We paid for that brand to stand alone”. He added: “Delta is not in control of Virgin Atlantic. We’re not in an economic position to control that airline”.
NZ Airports CEO Kevin Ward on central government funding to support regional airports and routes:
“Local councils support their airports willingly because of the importance of air links, but many of them have small ratepayer bases and many competing demands for core services. Being part of the national air transport network shouldn’t have to rely on hard-pressed local funding… Air links are essential to regional economic growth, jobs, social cohesion, and disaster response”.
TAV Airports CEO Dr Sani Sener on the local aviation market:
“2017 has been a year of recovery from an aviation market that has been in downtrend for approximately 18 months. Dr Sener stated the recovery in TAV’s Turkish airports commenced recovery in 2Q2017 and “picked up full traction” in 3Q2017. He detailed the following growth: “Istanbul Ataturk Airport’s international Origin & Destination passenger growth was 6% for the first nine months. Ankara Esenboga Airport enjoyed significant growth in international passengers (35%), thanks to year-on-year effect of routes that started late 2016. Georgia showed 44% growth in first 9 months, as a result of increased traffic to Russia, former CIS countries, Middle East and Israel. Medinah continued its eye catching expansion with 20% growth. Macedonia traffic managed a double digit growth of 12%, as Wizz Air based its 4th aircraft at Skopje in July”.
Philippines AirAsia CEO Dexter Comendador on the airline planning to develop Clark International Airport as its primary hub:
“We plan to establish Clark as our main hub, because Manila is too crowded. If I have 70 planes in 10 years, I do not have a place to park in Manila. Since we are opening Clark as a hub, we plan to fly to Korea, China, Malaysia, Singapore, Hong Kong, Macauand Taipei”.
Air France-KLM chairman and CEO Jean-Marc Janaillac on the impact of Brexit for British and continental operators:
“Brexit is more a problem for British airlines than continental operators. For Air France-KLM, and other airlines, the British market is important but it is not a huge part of our activity. I think the [British] government should… plan in order to assure that things are going to be smooth in March 2019, if there is no agreement… I hope it is possible to have an intermediary period”. Mr Janaillac concluded: “We would approve the British airlines flying within Europe as European operators on one condition: if they have the same rights, they should have the same obligations as European carriers”.