Travelport head of global supplier strategy Ian Heywood, speaking at the CAPA Australia Pacific Aviation Summit, noted (08-Aug-2013) the need of GDS' to change its product and offering and not force its existing products on LCCs, which will not accept adherence to full-service developed products. He also said the company would soon make an announcement on future content which will "change the scope of the GDS going forward". He said an announcement, towards the end of year, will involve changing the GDS screens from "black and white TV to colour screen" to improve the sale of products and to present them in the way that airlines want their brand to be seen. This will ensure consistency in sales and branding to customers across all distribution platforms.
Travelport adapting product to improve sale of ancillaries, be more useful to LCCs
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LATAM and GOL: Excess capacity could threaten arrival of crucial recovery in Brazil domestic market
After two years of weak demand and pricing, some signs of stabilisation are emerging in Brazil; however the country’s two largest airlines are adopting an understandably cautious tone in their assessment of the operating environment. Although both LATAM Airlines Brazil and Gol have significantly reduced their domestic capacity during the last year and a half, both airlines have concluded that some excess supply remains in the market place. Fast-growing Azul has opted to slow its capacity growth in 2016, but Brazil’s fourth largest airline Avianca Brazil has continued growth in order to build its market share within the country.
LATAM Airlines Brazil also believes its performance on routes between the US and Brazil is improving, which is a similar conclusion drawn by US airlines operating between the two countries. For LATAM, the improved performance is offsetting some weakness on other long haul routes from its Spanish-speaking countries.
Neither airline has offered specific capacity guidance for 2017, but LATAM Airlines Brazil and Gol are likely to keep their supply restraint intact. Pricing in the domestic market has yet to stabilise, and competitive capacity actions will result in those airlines keeping their own ASK increases at bay in order to sustain a favourable supply/demand balance.
CAPA Asia Aviation Summit Day 2: AirAsia X & Spring Airlines discuss opportunities in China
The second day of the CAPA Asia Aviation Summit began with a Q&A featuring AirAsia X CEO Benyamin Ismail and Spring Airlines VP Jonathan Hutt. The Chinese market dominated the conversation, particularly opportunities between China and Southeast Asia for both airlines.
The CAPA Asia Aviation Summit was held on 16-Nov-2016 and 17-Nov-2016, attracting over 300 delegates. The summit also included a gala dinner on 16-Nov-2016 featuring the CAPA Asia Pacific Aviation Awards for Excellence.
The remainder of Day 2 featured three panels: on distribution, ancillaries, and a wrap-up of the market outlook.