The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Emirates Group CEO and chairman Sheikh Ahmed bin Saeed Al Maktoum “steady revenue growth” for H1FY2018/19:
“We are proactively managing the myriad challenges faced by the airline and travel industry, including the relentless downward pressure on yields, and uncertain economic and political realities in our region and in other parts of the world. We are keeping a tight rein on controllable costs and will continue to drive efficiency improvement through the implementation of new technology and business processes”.
JetBlue CEO Robin Hayes on competition regulators reviewing trans Atlantic JVs between US and European legacy carriers:
“We believe that regulators should be doing everything they can to make it possible for new players and new models to have a fair shot at competing”.
Qantas Group CEO Alan Joyce on Qatar Airways’ consideration of its future as a member of oneworld:
“If they decide to leave, it is because it is no longer working for them. Nobody should be in an alliance where they believe its not working for them. If Qatar feel they do better outside of oneworld, that is up to them.”
Mango acting CEO Marelize Labuschagne on growing fuel costs, “deterioration” of the rand and an economic downturn representing “challenges” for the aviation sector:
“There has been a decrease in overall capacity, though the increase in demand is lower than the decrease in capacity. This has resulted in higher overall load factors, but at similar fares than the prior year. Everyone is currently just trying to defend their market share”. Ms Labuschagne noted the economic downturn resulted in a shift in demand from full service to low cost carriers. She added: “In line with the market trend, there is pressure on margins and focus is being placed on the control of expenses and retention of market share”. Ms Labuschagne also said: “Positive cash flow will be the key to the survival of the low cost carrier market. As the domestic demand has not grown, investment in alternative markets will be important. Focus on service delivery and providing value for money is important for market share retention”. She stated: “Due to current market density in the domestic market, there are no further opportunities for Mango at this stage, but we are looking at various possibilities on a regional level”.
fastjet CEO Nico Bezuidenhout on the performance of the carrier:
“Business in our continuing operations in Zimbabwe and growth markets of South Africa and Mozambique is on the right track and revenues from these markets now cumulatively exceed that generated in Tanzania… The steps taken in acquiring the fastjet brand in 2017 allows fastjet to change the deployment model in Tanzania away from one where we assume equity risk and funding obligation, in its stead aiming to deploy the brand in Tanzania on a franchise basis”.
easyJet CEO Johan Lundgren on forward booking performance for H1FY2019:
“We are confident in our positioning for the future and are focused on driving future returns, positive free cash flow over the longer term and maximising our headline profit per seat”.