The Blue Swan Daily brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.
SmartLynx CEO Zygimantas Surintas on SmartLynx Airlines integrated Conduce’s eTechLog8 and Commsoft’s OASES service systems to raise safety standards by allowing faster access to data, reducing the risk of human error, and saving time for SmartLynx crews and ground personnel:
“We have now become the first airline in the Baltic States which has already introduced processes that will become a generally accepted aviation industry standard in the future. We can already see today that modern companies are abandoning time-consuming and paper-based procedures”.
Aero Contractors CEO Ado Sanusi called for Nigeria’s Government to support airlines by improving the supply of fuel, reducing fuel prices and reducing taxes:
“The first government intervention to reduce cost of operation should be in the supply of fuel… if we can have a constant supply of Jet A1 at constant price, airlines will know how to plan their budget and how they can bring down the cost of ticket”. Regarding taxes imposed on airlines, he stated: “The most important thing government should tackle is multiple taxation”. Mr Sanusi added: “The last time they reviewed taxes in aviation was a very long time ago… if they continue to heavily tax the airlines it will continue to impact on their finances… high taxation is one of the root causes of the reason our airlines are dying”.
Ryanair CEO Michael O’Leary:
- Said he expects the carrier to win “attritional fare wars”: “Frankly, if we are in a period where there’s going to be attritional fare wars for a year or two that’s good for Ryanair… As we have the lowest cost base… Profits will suffer for a year or two and I think that is what our shareholders should expect”. He added: “However it is clear in my mind that within the next four to five years you are seeing the emergence of four or five large European airline groups”. Ryanair’s average fares fell 6% to EUR37 in FY2019, although this was offset by ancillary revenues from hotel bookings and car hire.
- Confirmed the carrier delayed delivery of its first five Boeing 737 MAX aircraft to winter 2019, subject to regulatory approval by EASA: “We continue to have utmost confidence in these aircraft… They are hedged at an average EUR/USD rate of 1.24 out to FY2024, and will deliver significant unit cost savings for the next five years, although the delayed deliveries in 2019 means that we will not see any meaningful cost benefit until FY2021”.
Neste CEO Peter Vanacker on sustainable aviation jet fuel use in aviation:
“In Europe our renewable diesel has a 90% lower CO2 footprint compared to fossil fuels… That’s already a big contribution to society. There are 900 million tonnes of fossil based diesel that is being consumed… people want to move from A to B, they want to travel.” He added renewable jet fuel “is not going to be palm oil based”, and that the company currently makes “absolutely sure” palm oil currently used is audited and traceable to its origin.
Corporacion America CEO Martín Eurnekian on 1Q2019 results, noting that:
“In Argentina, soft consumer demand and sharp FX fluctuation continued to drive mix-shift to domestic destinations and lower commercial revenues, particularly when compared to a record 1Q2018”. He added that operations in Argentina “is facing a more difficult macro environment […] with the added volatility from 2019 being a Presidential election year [suggesting…] a more subdued economic recovery towards year-end”. Mr Eurnekian forecasts “slow revenue growth” for 2019 in the Argentina market.