The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Airlines for Australia and New Zealand (A4ANZ) CEO Alison Roberts on Australia’s airports:
“They are monopolists and have the ability to use their monopoly positions to earn excessive profits, which they have been achieving in the absence of a credible regulatory threat.” Dr Roberts also commented that this profit trend “began over a decade ago and shows no sign of stopping”.
Australian Airports Association (AAA) CEO Caroline Wilkie in response to A4ANZ CEO Alison Roberts’ comments above:
“Airlines benefit from higher airfares to support higher profits and we are concerned the domestic airline duopoly disadvantages the passenger, particularly in the regions… To suggest airport charges have a major impact on airfares is simply wrong, with charges making up less than 10% of airfares”.
Aegean Airlines CEO Dimitris Gerogiannis on the airline’s 1Q2018 performance:
“We started the year delivering improved load factors and efficient capacity management. Higher load factors and marginally better fleet utilisation in winter helped mitigate losses in the seasonally weakest quarter despite the gradual fuel price increase. Outlook for summer demand remains positive, despite the significant increase of competitor capacity. Recent further increases in the fuel price will however have an impact on our costs despite our effective hedging policy”.
Sveaflyg CEO Jimmy Nilsson on NextJet’s declaration of bankruptcy:
“Yes, bankruptcy opens opportunities, but otherwise I do not want to comment on it. We have decided to open an office in Arlanda and recruitment is taking place for a lot of crews and technical staff. We have been working on creating the airline since last autumn so Nextjet’s bankruptcy was of course nothing we had a clue about. Sveaflyg fills a clear need in the Swedish market and we will be alone in our setup”.
Pakistan International Airlines CEO Musharraf Rasool on his aim to revive the business:
“I, personally, believe that a country of 200 million should have its own national airline, but it should be a thriving airline, an airline that Pakistanis should be proud of… My refrain, whenever confronted by the topic, is that till when will we keep on selling everything? The heydays of privatisation are behind us, nobody’s privatising anymore. So why are we twenty years late in everything? I think in my own self and I feel confident, that if anybody in the world can do anything, we as Pakistanis should be able to do that”.
KLM Royal Dutch Airlines president and CEO Pieter Elbers on Europe’s aviation market:
“European airlines are working to avoid making the same mistakes as we did 20 years ago with the market entry of low cost long haul operators. We try in fact to sort of proactively adjust what we’re doing… So we have increased our utilisation, we have sort of increased our efforts in some of our partnerships, and with that offering a great network to our customers. We have made our prices and our proposition to the customers more dynamic, more flexible… so we really sort of do things much more in advance than we would have done 20 years ago on the European side”.
Primera Air CEO Hrafn Thorgeirsson on the future of the long haul low cost trans Atlantic market:
“The low cost market across the Atlantic is just going to grow. People are unsure about it but that was the same 25 years ago when Ryanair and easyJet started. As a consumer, if I think the product is safe, comfortable and accessible and goes to the right airports, I’m going to go with the best price”.
Flybe CEO Christine Ourmières-Widener on the carrier’s distribution and digital strategy:
“We have a big investment in IT. We are migrating our commercial platform into Amadeus, to be even more standard, to be easy to work with for big partners, such as legacy airlines… We want to offer to our customers any platform they want to connect to”.
airBaltic CEO Martin Gauss on why the airline has executed a firm purchase agreement for 30 Bombardier CS300 aircraft:
“With demonstrated fuel savings of more than 22 per cent, the CS300 aircraft plays a vital role in maintaining our operating cost at a low level… We successfully executed our fleet modernisation strategy, and are excited to further grow our fleet up to 80 CS300 aircraft while phasing out our other aircraft types in the next three years. We are now commencing the implementation of our next business strategy – Destination 2025, which foresees airBaltic expanding the map of its operations. A critical part of this new strategy is the introduction of a larger and exclusive fleet of all-CS300 aircraft, which are the most suitable aircraft for the markets in which we operate”.