Your weekly travel and aviation Quote-a

The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.

Ethiopian Airlines Group CEO Tewolde GebreMariam on finalising agreements with the Government of Chad to help launch Chad’s new national carrier:

“The strategic equity partnership in the launching of the new Chad national carrier is part of our Vision 2025 multiple hub strategy in Africa. The new Chad national carrier will serve as a strong hub in Central Africa availing domestic, regional and eventually international air connectivity to the major destinations in the Middle East, Europe and Asia”.

Cebu Pacific commercial planning VP and Cebgo president and CEO Alexander Lao on the carrier’s plans to add an average of nine new aircraft p/a from 2018 to 2022:

“We see expansion opportunities in new markets, as well as pent up demand in areas where we currently operate. The introduction of the new generation, fuel efficient A320neo aircraft to the Philippine market will help us to strengthen our position in the Philippines and expand our international route network”.

Jet Airways CEO Vinay Dube on the airline’s Jun-2018 loss result:

“The rise in the price of Brent fuel, a depreciating rupee and a resulting mismatch between high fuel prices and low fares have adversely impacted the Indian aviation industry, including Jet Airways. We are implementing a host of measures to reduce costs and grow revenue, while retaining our focus on our guests. I am confident that the various transformation initiatives identified and under implementation by the Company will help in addressing the challenges faced by us. In fact, several such transformation initiatives have already started to deliver positive results”.

Icelandair president and CEO Björgólfur Jóhannsson on the airline estimating its results for 2018 will be worse than projected:

“The updated forecast is mainly based on the fact that the company’s revenue will be lower than anticipated”. He said this is primarily due to two reasons:

  • The airline anticipates average fares will rise later than expected in 2019. Icelandair originally expected to see a rise in average fares during the final months of 2018 due to cost increases among airlines;
  • The structural changes at the company’s sales and marketing department, which were made in summer 2017, have not been implemented well enough and changes in the company’s network have resulted in an imbalance between Europe and North America services. Due to this, the company’s revenue forecasts, which are among other things based on historical development, have not been providing accurate results and thus the current revenue forecast has been lowered.

HEICO chairman and CEO Laurans Mendelson on the company’s 3Q2018 results stating:

“We are very pleased to report record quarterly highs in consolidated net sales, operating income and net income on the strength of record net sales and operating income at both the Flight Support Group and the Electronic Technologies Group”. He said: “Our outstanding quarterly performance principally reflects double-digit organic revenue growth at both operating segments, strong cash flow and the profitable contributions to earnings from our well-managed fiscal 2017 and 2018 acquisitions”.

Dubai Aerospace Enterprise (DAE) CEO Firaz Tarapore on the company planning to double its fleet by 2020:

“If you look at where we are today size-wise and in terms of industry evolution – the technology changes going through the fleets – we have to sell about 300 aircraft and buy about 500 new aircraft over the next eight to 10 years… It is very reasonable to say that the business should be at least two times what it is today, by the end of that period”.

WOW air CEO Skúli Mogensen plans to launch New Delhi-US service via Iceland:

“We are very excited to start flying to New Delhi in December. I am very happy with the feedback and demand we have gotten so far on our India flight and it’s clear that there is a great need for affordable travel between North America and Delhi”.

Jet Airways CEO Vinay Dube on current challenges in the aviation sector:

“The Indian aviation sector, although witnessing steady and robust traffic growth, has been passing through a tough phase. Airlines have been unable to pass through this increased cost to consumers by increasing fares”. He also reiterated that both the airline and its auditors are on the same page while noting that its account with lenders are “standard”, indicating there had been no delay in meeting loan obligations.