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.

    Malaysia Airlines Group CEO Izham Ismail on the airline improving year-on-year performance in 1H2018 and having revenue growth as a key focus for FY2018:

    “This will be underpinned by continuous improvement in customer experience, product quality and operational excellence whilst maintaining a productive and competitive cost base”. He also reported improvement in the airline’s cost base, productivity, IT systems, customer service, engineering supply chain and on time performance.

    Deutsche Lufthansa AG CEO Carsten Spohr on capacity constraints at German hubs:

    “It is my great fear that we have planned a greater number of flights in German airspace than the current infrastructure can take. Mr Spohr added the German government “has at least assured us that the number of flights at the biggest German airports will not increase, despite the attempt by some airports to still push more flights through”.

    DHL Global Forwarding, Freight CEO Tim Scharwath on potentially adding freighter capacity:

    “A big peak will bolster interest, and the will to invest – and it is a big investment – in cargo planes for the fleet. But they are a risk, for if the market for air freight capacity drops, you cannot drop these aircraft as easily”. Regarding adding a third Boeing 747F to be operated on DHL’s behalf by Atlas Air, Mr Scharwath said: “Any discussion of bringing in a third freighter… is not something we are able to talk about now”.

    SA Express interim CEO Siza Mzimela on the airline would recording a ZAR600 million (USD43.8 million) loss for FY2018/19, but predicts the airline will break even by Apr-2019:

    “In order for us to break even we need to fly more aircraft, more often and sweat our assets”. Ms Mzimela also commented: “SA Express is critical. It is a feeder airline and so has a very important role to play. We are waiting to see what shape and form the future alignment takes. Normally feeder airlines are a lot more profitable than mainline carriers”.

    Southwest Airlines CEO Gary Kelly stated the airline has no plans to change capacity guidance for 2019, despite a recent decrease in fuel costs. He stated:

    “We are prepared for USD100 a barrel oil, but we will certainly be a lot more prosperous at USD50”. While the fall in fuel prices will give the airline “more confidence” in making long term business commitments, Mr Kelly said the airline will stick to its 5% capacity growth estimate. He said: “It makes us more confident in committing to fixed delivery schedules with Boeing as we are growing the fleet roughly 20 airplanes a year”.