The Netherlands and Indonesia signed a revised bilateral air services agreement, its first such agreement with an EU country following the signing of a horizontal aviation agreement with the EU last week (Tempo Interactif, 25-Aug-09). The agreement is in line with Garuda Indonesia’s plans to resume services to Amsterdam in 2010 under a codeshare agreement with KLM.
Indonesia and The Netherlands revise bilateral air services agreement
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KLM CEO Pieter Elbers at the CAPA-ACTE Global Aviation Summit: Responding to digital disruption
The CAPA-ACTE Global Aviation Summit kicked off at Hotel Okura in Amsterdam on 27-Oct-2016 with a keynote presentation from KLM CEO Pieter Elbers.
Mr Elbers addressed the 850 CAPA-ACTE attendees from 45 countries on the topic of 'Digitizing the Airline': Connecting the dots towards 2025. KLM, with its Amsterdam Schiphol hub, was a disruptor in how and where passengers connect, and now Mr Elbers is bringing change to the digital world.
KLM has experienced a rise in passenger website usage, with 33% of tickets sold online and 70% of passengers using online check-in. Mr Elbers is preparing for a shift from mobile first to mobile only: "Whatever people do, it should fit in this small machine".
KLM has embraced third-party apps like Facebook Messenger and WeChat, and believes the future is with these types of platforms. KLM is the first airline in the world to use Facebook Messenger. Mr Elbers wants KLM to be able to respond to customer service issues during the journey, eliminating situations where a passenger writes a follow-up letter or e-mail. This saves KLM time and makes for a better experience. KLM's average online response time is 42 minutes, with a target to lower this further.
Amadeus and Navitaire: a dual brand strategy allowing greater airline hybridisation
As airlines have embraced dual brand strategies to reach full service and low cost growth aviation IT has responded, as seen with Amadeus' acquisition of Navitaire, which mostly but not exclusively powered the passenger service systems (PSS) of LCCs. In the first six months since the deal closed Navitaire has added 230m passengers boarded, to Amadeus Altea's 393m. Navitaire passengers account for 37% of Amadeus' total.
Having significantly grown its market share, and with past LCC product forays not having worked out, Amadeus receives a new business stream. Some Navitaire customers (Ryanair, AirAsia, IndiGo) are larger than Altea customers and have high growth ahead of them. A second benefit is the Navitaire acquisition supporting Altea customers. By owning both products Amadeus can improve connectivity between Altea and Navitaire airlines. Most of Altea's large customers – Lufthansa, IAG, AF-KLM, Qantas and JAL – have an LCC operating Navitaire software. Of Navitaire's passengers – 35% are on airlines that are LCC units of full service airlines. Other airlines may be holding out on pursuing partnerships and connectivity until there is a cheaper, simpler and streamlined way.
It may seem that the Amadeus-Navitaire marriage is about full service and low cost segments, but its greatest strength is the role it will have in the hybrid segment. Hybridity is growing, and Amadeus-Navitaire could galvanise further expansion.