Your weekly travel and aviation Quote-a

27 November, 2020

CTC - Corporate Travel Community brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.


Incoming IATA DG: Association must be a forceful advocate, moving forward crisis recovery priorities
IATA director general designate Willie Walsh stated the association "must be a forceful advocate for the industry - moving forward crisis recovery priorities, ensuring sustainability and helping airlines to survive by lowering costs, reducing taxes and eliminating regulatory blockers to success". Mr Walsh said he looks forward to continuing transformation efforts started by incumbent director general and CEO Alexandre de Juniac, making the association "an even more effective association that meets the needs of its members and exceeds their expectations".

JetBlue Airways CEO: US-UK service from summer 2021 is 'brilliantly timed'
JetBlue Airways CEO Robin Hayes believes the carrier's planned launch of US-UK service from summer 2021 is "brilliantly timed", as demand during that period is expected to be "relatively strong". "One of the advantages a US-based carrier has is there's a number of markets in Europe that work well in the summer, but they don't necessarily work well in the winter", he observed, noting this gives JetBlue the opportunity to "fly to Europe in the summer and then... south to the Caribbean or Latin America in the winter". Mr Hayes said a "big opportunity" for JetBlue in Europe will be its ability to "significantly reduce the price" of travel, which will "bring down fares in the entire market". He stated: "There's a reluctance to fly right now but very few people say that they don't ever want to fly again... By the time we get to next summer it'll be nearly 18 months for some people before they've had a vacation or seen friends and family".

Expedia Group CEO: Vaccine news will support a return in international bookings
Expedia Group CEO Peter Kern said he thinks the news of a coronavirus vaccine will support a return to international travel bookings, with people looking forward to the point where vaccine availability will open up destinations. Outside of the coronavirus vaccine situation, Mr Kern said his "sense is that people were getting increasingly comfortable with how safe air travel and hotels are" thanks to precautions taken by the tourism and travel industry, which has resulted in booking levels "creeping up".

Lufthansa CEO: 'People are getting tired of video conferences, are getting ready to travel'
Lufthansa Group chairman and CEO Carsten Spohr stated "people are getting tired of video conferences and are getting ready to fly again". He argued while there are many advantages of using video conference technology and that it will likely still be used widely after the COVID-19 crisis, Mr Spohr concluded: "It's not anywhere near as good as airlines provide in connecting people, cultures and economies".

Southwest Airlines expects 'natural uplift' of travel demand during holiday season
Southwest Airlines CEO Gary Kelly stated the carrier expects a "natural uplift" of people travelling during the Thanksgiving and Christmas period, which it is "certainly seeing... reflected in the bookings". Mr Kelly said Nov-2020 will be a "better month" than Oct-2020, "even with some of the spike in cancellations", although it will still be a "huge drop" from 2019 levels. As regards Dec-2020, Mr Kelly noted: "Yes, the cancellations are up, but it still looks like it will be in line with what we're seeing here for Nov-2020, and maybe slightly improved from Nov-2020".

AirAsia Group reports 'strong domestic recovery' due to travel demand in 3Q2020
AirAsia Group president (airlines) Bo Lingam reported the group "stabilised" operations in 2Q2020 and noted a "strong domestic recovery" in 3Q2020 due to "pent up travel demand" across key markets. Mr Lingam added: "We are prepared to maintain sustainable operations solely on the back of our domestic sectors into 2021 if restrictions remain".

Azul: one of the only carriers in the world 'that didn't burn cash in the 2Q2020 and 3Q2020 when there really wasn't a lot of demand'
Azul founder and chairman David Neeleman commented on Azul's aircraft leasing arrangements and the carrier's results, stating: "I think the way we established the management plan is really unique to what we're doing… when we paid our aircraft rent flying incrementally, we don't have to pay anything additional, that's not the same that's been… with other carriers in the region". He explained: "So every incremental flight has required incremental ownership cost for that flying and so it's actually cash flow positive for Azul to build its network back online". Mr Neeleman concluded: "That's why we are one of the only carriers in the world that didn't burn cash in the 2Q2020 and 3Q2020 when there really wasn't a lot of demand".

KLM CEO: Market recovery was 'somewhat on track' prior to second COVID-19 wave in Europe
KLM Royal Dutch Airlines president and CEO Pieter Elbers stated a market recovery was "somewhat on track" prior to the second wave of COVID-19 in Europe, adding that from Oct-2020 this had a negative impact on capacity levels heading into winter 2020/2021. He noted that vaccine news has had "positive momentum... but clearly the recover trajectory has taken somewhat of a delay in the past couple of weeks".

United Airlines: Pandemic triggers discussion of intersection of travel, climate and sustainability
United Airlines MD of global environmental affairs and sustainability Lauren Riley, stated the COVID-19 pandemic has a sustainability silver lining, as it has allowed the airline to think about how it can thrive as a business while bringing its core values to life for customers. The pandemic has "brought to the forefront the discussion of how travel, climate and sustainability intersect, and the role that human activity plays in temperature rise," said Ms Riley.

Ryanair Group CEO: 'I think we should be more optimistic about a recovery into summer 2021'
Ryanair Group CEO Michael O'Leary said the group is "finalising the summer '21 schedules and we're in active discussions with progressive airports", adding: "I think we should be more optimistic about a recovery into summer 2021". Mr O'Leary said there is a "reasonable prospect" of passenger recovery to 70% of pre-coronavirus levels, with short haul expected to reach pre-coronavirus levels by the 2022 summer schedule, dependent on coronavirus vaccine availability. Mr O'Leary said: "Long-haul will be longer because I think there is a significant distrust. The capacity destruction on long-haul has also been deeper and will take longer to come back".

Delta Air Lines CEO: New York-London travel corridor is 'complicated'
Delta Air Lines CEO Ed Bastian stated he believes a New York-London travel corridor is "complicated". Under current restrictions passengers arriving from countries that are not included in the UK's travel corridor list must self isolate for two weeks. "I think you will find on the continent several countries that are more open", Mr Bastian noted.

Nice Airport chairman: 'It is not a crisis that will be forgotten in a few months'
Nice Cote d'Azur Airport chairman Franck Goldnadel said the COVID-19 crisis is "as tough as it gets", adding: "Air traffic is not expected to return to its 2019 level before 2024". "It is not a crisis that will be forgotten in a few months, it is a crisis whose weight we will carry for several years", Mr Goldnadel continued. He also noted that the airport has closed terminal 1 to concentrate activities in T2.

Qantas Group expecting 'a boom in domestic travel' as domestic borders reopen: CEO
Qantas Group CEO Alan Joyce stated a return to "full strength" on Sydney-Melbourne service is "still a long way off", but added: "The sharp rebound in travel demand we're seeing gives us a lot of confidence". Mr Joyce said the carrier is expecting "a boom in domestic travel" as Australia's state borders continue to reopen.

Austrian Airlines burning through EUR40m of liquidity monthly: CEO
Austrian Airlines CEO Alexis von Hoensbroech reported the carrier is burning through roughly EUR40 million of its cash reserves monthly but can "definitely get through" winter 2020/2021 with its current liquidity situation. He said that "it should be possible to make use of part time work arrangements until business comes back". He explained that while part time working subsidies are currently in place until Mar-2021, he expects this can be extended until 1Q2022.

IATA: SAATM 'the defining factor' in determining speed of African recovery
IATA regional VP for Africa and the Middle East Muhammad Ali Albakri stated increasing intra-Africa air connectivity has always been a struggle for the industry. Mr Albakri called for governments and regulators to remove all hurdles to connectivity to take full advantage of the recovery situation. He noted only 10 states have fully implemented the Single African Air Transport Market (SAATM) initiative and IATA described SAATM as "the defining factor in determining the speed at which the African aviation industry will recover".

Prague Airport CEO: 'Prague is very popular', airlines don't need extra incentives
Prague Václav Havel Airport CEO Vaclav Rehor said he is not worried about the airport's ability to attract carriers in the post-COVID-19 period. He said the airport has a "very transparent" incentive programme for airlines, adding that "Prague is very popular... there is no point to give any airline, even a low cost, a special incentives to fly to Prague".