David Siegel, via his personal LinkedIn account, reported (Apr-2018) his appointment as executive chairman with Sun Country Airlines, effective Apr-2018.
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Ryanair, Europe's biggest airline by passenger numbers and most profitable by operating margin, has always focused on low fares and low costs. But that alone is not enough to keep it at the top in a highly competitive industry. Ryanair aims to be the 'Amazon of Travel'. This involves building on its annual customer base of 130 million passengers, most of whom buy directly from the airline's website and mobile app, to sell a much wider range of travel-related services.
Ryanair has made great strides with its digital strategy since relaunching it in 2014, but it is determined to remain at the forefront. This focus by one of the world's most successful airlines, at a time when the airline sector has been experiencing a period of historically high profit margins, points the way for others to follow. Successful customer engagement, through harnessing the IT revolution, is a major challenge for an industry that has often been slow to embrace innovation and change.
At CAPA's Airline Leader Summit in Dublin on 17/18-May-2018 Kenny Jacobs, Ryanair Chief Marketing Officer, and Bobby Healy, CarTrawler Chief Technology Officer, will jointly present their views and experience of this challenge in a keynote talk entitled 'Special Vision 2030 - What will the Travel Digital Ecosystem look like; and the opportunities it presents'.
Featured Article
CAPA's World Aviation Summit in Berlin, 27/28-Nov-2018CAPA – Centre for Aviation has established a major new partnership with Berlin Airports, which will host the annual CAPA World Aviation Summit and Awards for Excellence on 27/28-Nov-2018 in Berlin.
The Summit will provide an aviation market outlook for the Europe, Asia, Middle East and Americas regions and review the commercial and operational pillars that will drive airline strategic decision-making in 2019.
To introduce proceedings, CAPA will provide an in-depth, big picture overview of the global aviation outlook. This will be followed by presentations on the global macroeconomic, travel and geopolitical environment and interactive panel discussions and debates on industry specific issues such as:
- The growth and sustainability of low cost long haul airlines, including the establishment of low cost brands by full service carriers and the role of new long range narrowbodies in driving market expansion
- Navigating through changing operating and regulatory conditions in a post Brexit world
- Partnerships, alliances and JVs
- The transformation of airlines into global retailers
- Leveraging data, AI and new technologies for greater customer engagement (and revenues)
- Understanding the impact and role of new disruptive players in the distribution ecosystem
Premium Analysis
JetSuite charter airline: more mainstream with Qatar, JetBlueAfter generating a buzz two years ago from an investment by JetBlue, the public charter operator JetSuiteX has operated largely under the radar. But an expanded investment by JetBlue, and Qatar’s decision to invest in JetSuiteX, have once again lifted the charter company’s profile.
Theories abound for the reasoning behind Qatar’s decision to invest in JetSuiteX, but the charter company’s model – scheduled, private jet-like service for a fraction of the price – is gaining some traction in the US as frustration with commercial air travel grows.
JetSuiteX has significant ambitions to grow its fleet from six small jets to possibly 100, which means it aims to broaden its reach beyond a few markets in California and Nevada significantly. Obviously there is a gap between ambition and profitability, but JetSuiteX has no lack of confidence that its model can reach greater scale.
Air New Zealand and Virgin Australia have both unveiled plans to add capacity in the Australia-New Zealand market after their joint venture ends on 27-Oct-2018. The two airlines will compete against each other on 11 cross-Tasman routes following the launch of two new routes for each airline.
The Air New Zealand-Virgin Australia JV covers 20 routes and accounted for a 52% share of the Australia-New Zealand market in FY2017. Air New Zealand has more than twice as much capacity as Virgin Australia and should be able to maintain this gap as both airlines add approximately 15% capacity following their divorce.
The Qantas Group, the only other main competitor in the Australia-New Zealand market, will lose market share unless it also decides to pursue strategic expansion. Qantas has already expanded capacity to New Zealand by approximately 25% to fill the void left by three cross-Tasman route suspensions by its partner Emirates.
Premium Analysis
Australia-China market: Donghai Airlines launches DarwinDarwin will become the seventh Australian airport with scheduled services from China at the end of May-2018 as Donghai Airlines launches two weekly flights from its Shenzhen hub. Donghai will become the ninth Chinese airline serving the fast expanding Australia-China market.
The Shenzhen-Darwin route, which will be served with 737s, marks important milestones for both Donghai Airlines and Darwin airport. For Donghai, Darwin will be only its third international and its first long haul destination. Longer routes deeper into Australia could be launched after Donghai takes delivery of 787s.
For Darwin, the new service enables a resumption of international growth after the loss of three international airlines. The suspension of services from Malaysia Airlines, AirAsia and Philippine Airlines over the past year has left Darwin with only two foreign airlines – Singapore-based Jetstar Asia and SilkAir.
CAPA TV
Recorded at CAPA Global LCC Summit, 1-2 Mar 2018
APEX Update
Airline Passenger Experience Association (APEX) CEO Joe Leader talks about how LCCs in the US are at the forefront of passenger experience innovation. APEX sees opportunities for similar innovation at LCCs in Southeast Asia, which are generally behind in areas such as providing Internet connectivity. Mr Leader also talks about the fast expanding long haul low cost sector, where passenger experience is particularly important.
CAPA Global Airport Leaders' ForumMore
Upcoming Event
7
May
Dubai: CAPA Global Airport Leaders' Forum
The Global Airport Leaders' Forum brings together global airport leaders to discuss key strategic issues and challenges facing airports as new technologies come online and tougher regulations create downward pressure on traditional revenue streams
CAPA Airline Leader SummitMore
Upcoming Event
17-18
May
Dublin: CAPA Airline Leader Summit
CEOs from all regions and business models gather for high level panel discussions and the CAPA CEO Dinner. You will leave the summit with new perspectives on the outlook for airlines globally. Plus, new insights into strategy options!
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20-Apr-2018 12:22 PM
CAAC confirms Chinese airlines pax up 16% to 51.4m in Mar-2018, 615,000 tonnes of cargo
CAAC confirmed (19-Apr-2018) the following traffic highlights for Chinese airlines for Mar-2018:
- Passengers: 51.4 million, +15.9% year-on-year;
- Domestic: 461 million, +15.4%;
- International: 5.3 million, +20.3%;
- Cargo: 615,000 tonnes, +4.0%;
- On time performance: 81.2%, +5.9ppts;
- Fleet: 3339 aircraft. [more - original PR - Chinese]
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20-Apr-2018 12:07 PM
Today in BlueSwanDaily.com: Australian inbound tourism, Delta, LCC growth in Honduras,
BlueSwanDaily.com published (20-Apr-2018) the following exclusive analysis pieces:
- China eclipses New Zealand as largest tourism source market for Australia
- Trade tiffs are not dimming Delta's positive outlook for a recovery in corporate pricing
- Australian domestic aviation activity for Feb-2018: 4% traffic growth overall, fuelled by strong performance by major trunk routes
- The rise and rise of LCCs and ULCCs, that big long haul question, new technology and how taxes are a barrier to LCC growth in Honduras – further insights from the CAPA Americas Aviation Summit
- Trapped in the geriatric framework – clear cracks emerge for Europe and the North Atlantic as Brexit looms
- Your weekly travel and aviation Quote-a
- Airline Insight: Japan Transocean Air
- Airport Insight: Izmir Adnan Menderes International Airport
- Bitcoin Watch – Sweden could launch the world's first central bank operated crytocurrency
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20-Apr-2018 11:24 AM
Aerolíneas Argentinas reports an 8% reduction in average fare price; 20% on cheapest fares
Aerolineas Argentinas announced (19-Apr-2018) the average price of its cheapest fare declined by 20% in the last two years. The carrier reported that 21% of its sales are for the cheapest fare. Aerolineas Argentinas CEO Mario Dell'Acqua stated: "The drop in prices is part of an exhaustive work from our commercial teams to offer more competitive fares in an increasingly more demanding market". The carrier's overall average fare reduced by 8%. [more - original PR - Spanish]
Garuda Indonesia stated (19-Apr-2018) it is targeting passenger capacity growth of 9% to 10% in 2018. The carrier said meeting the target will be challenging due to projected fluctuations in foreign exchange rates and fuel prices. [more - original PR - Indonesian]
Chile DGAC awarded (19-Apr-2018) Aerovalle an AOC for the transportation of passengers on 19-Apr-2018. [more - original PR - Spanish]
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CAPA Global Aviation Outlook 2018
Issue 43
- Aviation Outlook: 2017 was aviation’s sweetest spot ever, but oil prices could spoil the party in 2018
- Northeast Asia: Chinese airlines begin to take on the role of disruptor
- Asian Airports: Asia on the ascent
Problems with legacy airline information systems
Issue 42
- Open API channels in airline distribution
- Offering mobility as a service
- Airport technology - what passengers want
- The FFP spinoff model after Air Canada
- Environmental sustainability for aviation