The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
Kenya Airways MD and CEO Sebastian Mikosz on plans to decrease Nairobi-New York frequency from seven to five times weekly:
“As the only airline that offers a nonstop flight between East Africa and the USA, this route remains significant to us because of the role it plays in opening more economic and tourism growth opportunities for Kenya and East Africa. The decision to adjust our schedule is to cater for seasonality in line with global practices that allows airlines to reduce or add frequencies based on low or high seasons”.
Cargolux Airlines International CEO Richard Forson on the carrier expecting to exceed its 2017 profit result in 2018:
“2018 profits will be higher. There will be an improvement.” He added: “We have better yield and revenue management, and we’ve got the right capacity at the right time. We have also had successful developments in our charter business, and demand has been buoyant. There has been growth in the number of charters, and our model is flexible”.
IATA Director general and CEO Alexandre de Juniac on global RPKs increasing 6.3% year-on-year in Oct-2018, a rebound from an eight month low of 5.5% growth in Sep-2018, and capacity increasing 6.3% and load factor was flat at 81.1%, a record for the month:
“October’s healthy performance is reassuring after the slower demand growth in September – some of which was attributable to weather-related disruptions. However, the bigger picture is that traffic growth has moderated compared to earlier in the year, reflecting a more mixed economic backdrop and reduced demand stimulation from lower fares”. He added: “Demand for air travel is strong as we head into the holiday travel season. Trade wars and uncertainty around the political and economic impact of Brexit remain concerns but the recent easing of fuel prices is a welcome development”.
Kenya Airways Group MD and CEO Sebastian Mikosz on the adoption of the Single African Air Transport Market:
“There is need for bilateral agreements between countries first that will be regulated, ensuring similar financial structure and passenger rights” and added: “If not well looked at, it can harm the whole traffic in the continent”. Regarding Kenya Airways Mr Mikosz commented: “Our strategy is to compete in a healthy competition and be self sustainable without government funding and grow our network”.
Virgin Atlantic CEO Craig Kreeger on the possibility of the airline establishing a standalone LCC unit:
“It would be untruthful to say that we didn’t look at whether there was an opportunity for us to do something different… But it never really felt in keeping with what we do, with our brand and our ethos after 34 years as a full service carrier”. Mr Kreeger said the airline will instead increase its collaboration with Flybe, including the possibility of a takeover.