The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Norwegian CEO Bjørn Kjos on the airline’s 1Q2018 results:
“In this quarter, we in particular see the effects of higher fuel costs. At the same time, we have doubled our fleet of Dreamliners and still manage to fill the aircraft, attracting more customers both in new and more established markets. Our long haul operation is now well established, proving that customers want affordable fares on intercontinental routes”.
InterGlobe Aviation Ltd (IndiGo) exiting CEO Aditya Ghosh on his time at the airline:
“For the last ten years, it has been a relentless, exhilarating and a most satisfying task building IndiGo. It is now time for me to step off the treadmill and sometime in the near future embark on my next adventure”.
Asset Management Corporation of Nigeria (AMCON) MD and CEO Ahmed Kuru on improved conditions since AMCON took over Arik Air in Feb-2017:
“Several service providers including fuel marketers, maintenance and spare part companies were withdrawing services or were unwilling to extend credits. There were indeed significant concerns at various governmental cycles for safety and the possible impact of the collapse of the company on the economy. We are glad to report that this position has been largely arrested”. Regarding Aero Contractors, which AMCON took over in Feb-2016, Mr Kuru said: “With the strengthening of its management, we have seen a refocus on the strengths and capabilities of the airline”.
ACI-NA president and CEO Kevin Burke and American Association of Airport Executives (AAAE) president and CEO Todd Hauptli commented on the US FAA Reauthorisation Act of 2018 (H.R. 4) stating it:
“misses a significant opportunity to provide airports with the resources they require to repair aging infrastructure, make needed investments in their facilities to accommodate rising passenger and cargo volume, and enhance air service competition for the benefit of passengers. H.R. 4 falls short in addressing the long-term infrastructure needs of our aviation system by failing to adjust the outdated federal cap on the locally set Passenger Facility Charge (PFC) user fee and by holding guaranteed federal support for the Airport Improvement Program flat for the duration of the bill even though the annual AIP funding shortfall exceeds USD3 billion according to the FAA”.
ForwardKeys CEO Olivier Jager on the underperformance” in travel to the US since a travel ban was instigated by the Trump Administration:
“In the period between Donald Trump announcing his first travel ban and the federal judge’s initial temporary blockage, bookings for inbound travel to the USA fell 6.5%, a phenomenon which has since been named the Trump Slump”. In the 15 months leading up to 20-Apr-2018, ForwardKeys said inbound travel to the USA was 1.4% down while global international travel grew 5.0%. Mr Jager also acknowledged the exchange rates have been challenging.
AirAsia X CEO Benyamin Ismail on the carrier’s expansion plans into India, including the new four times weekly Kuala Lumpur-Amritsar service which launches on 16-Aug-2018:
“This new route is part of our efforts to strengthen our position in India, which offers us the possibility of expanding Europe and North America. AirAsia X will focus on promoting Amritsar along with our existing destinations, New Delhi and Jaipur as part of our overall campaign focusing on Fly-Thru traffic from markets like Indonesia, Australia and New Zealand”.
Qantas Group CEO Alan Joyce on the carrier’s performance in Q3FY2018:
“We expect an AUD200 million (USD149.5 million) increase in total fuel bill in FY2018, but despite this Qantas is on track to deliver another record full year result. A large part of our earnings momentum is driven by ongoing investment in customer experience Improvements to aircraft interiors, rollout of free WiFi, changes to our route network and lounge upgrades are why Qantas and Jetstar have a strong place in the market”.
Etihad Aviation Group CEO Tony Douglas on the airline’s local aviation industry:
“There is a huge tourism proposition on offer here in Abu Dhabi… The geography plays to our advantage as well. Two thirds of the world’s population live within a six hour radius. In our line of work, the network is all important. I believe the fundamentals are in place so that anyone who has an innovative and competitive product to offer can succeed”.
WOW air CEO Skuli Mogensen on IAG’s interest in Norwegian:
“I can see a lot of logic for both groups. Of course, Bjørn [Kjos] wants more money and IAG doesn’t want to overpay. But he’ll have got good prices on those aircraft and IAG could use them”.