The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
SriLankan Airlines CEO Suren Ratwatte on launching daily Colombo-Melbourne services:
“We have been extending our route network in a systemic manner throughout Asia – from the Middle East to the Far East – and can now provide Australian travellers excellent options in connectivity, with one-stop journeys to the most popular destinations via Colombo”.
IAG CEO Willie Walsh on Monarch’s collapse:
“It didn’t come as a surprise to those close to the airline. From an industry point of view, airlines that aren’t efficient should be allowed to fail,” Mr Walsh said, adding that the Italian Government should stop state aid for Alitalia.
Air France-KLM chairman and CEO Jean-Marc Janaillac on LCC Joon:
“We don’t want to be only attracting millennials, we think that even for people of my age, we are influenced by new behaviour in the world, and even if we don’t have actually the same patterns and desires and needs when we are buying things or traveling, we are still influenced”
AirAsia Group CEO Tony Fernandes on the airline’s ground handling partnership with SATS:
“Now we have created a ground handling business and sold 50 percent”; “Delivering to shareholders what we promised. Special dividends”; “Strategy is clear. Create business from assets either physical or digital. Get a JV business partner to run and grow business”; “The benefits of the JV accrue to Airasia either in cost savings or income benefits. When JV sold benefits still accrue to Airasia”.
Royal Jordanian president and CEO Stefan Pichler commented on the airline’s new five year turnaround strategy:
“We have to act and behave like a commercial entity, not like a government subsidiary. We have to develop a strategy that makes us stand on our own feet, as a company”. He added: “Hopefully, at the end of the year, Royal Jordanian will be able to announce operating profits for the first time after many years of losses”.
Qantas Group CEO Alan Joyce on changes to its alliance with Emirates:
“The effects of the changes will start flowing fully through from FY2019. The network changes leverage our competitive strengths better by Qantas halting services to Dubai, allowing Emirates to take passengers on to continental Europe, while Qantas focuses on flying to London via Singapore and nonstop from Perth. Emirates has also announced it will be relying on Qantas to pick up some of its trans Tasman flying so it can focus more on long haul routes”.
Deutsche Lufthansa AG chairman and CEO Carsten Spohr on competition in Germany and Europe:
“In hardly any other country is competition so fierce as in Germany. The low-cost sector is securing considerable shares of the market, which is leading to a decline in revenue per-ticket overall. At the same time, the state-owned airlines in Asia and in particular the Gulf States – and increasingly in Turkey – are continuing their predatory competition. The consequences of such competition have been felt not only by airberlin and competition both in Germany and in Europe will continue to increase…for the foreseeable future”.
WestJet CEO Gregg Saretsky on incoming ULCC Swoop:
“Swoop is expected to generate more ancillary revenue than WestJet once it launches operations in Jun-2018, although its higher ancillary fees are expected to be offset by lower fares and cheaper airport charges.” Mr Saretsky anticipates Swoop’s total ticket prices will be 30% to 40% lower “at the end of the day”. The carrier will not be associated with WestJet, Mr Saretsky said, noting: “We have been very resolute in wanting to build this at the absolute lowest (cost), so there will not even be connectivity between Swoop and WestJet”.