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Recorded at CAPA Americas Aviation Summit, 16-17 Apr 2018

IATA Update

IATA Regional Director Financial and Distribution Services for the Americas Alicia Lines discusses how emerging technologies fit into the NDC framework, GDS endorsement of NDC and also provides an update on NDC adoption in the Americas.

Association of Asia Pacific Airlines (AAPA) DG Andrew Herdman, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) he agrees with Ryanair chief marketing officer Kenny Jacobs that the classic labels of legacy airlines and LCCs are outdated. Mr Herdman said there is "a lot of convergence" on both sides, with LCCs adopting some full service functions and vice versa.

Association of Asia Pacific Airlines (AAPA) DG Andrew Herdman, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) LCCs have penetrated "significantly" in Southeast Asia, less significantly in North Asia and even less in China. On China he however stated: "But that's changing".

Association of Asia Pacific Airlines (AAPA) DG Andrew Herdman, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) the "secret to scaling" operations in Asia is with a complex group model with multiple operating entities, in order to circumvent ownership regulations. He said airlines based in Asia cannot operate with a true single airline model such as in Europe.

Google global travel and expense lead Michael Tangney, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) the company is "talking to pretty much everybody to some extent" on distribution and NDC. Mr Tangney said he is "open to whatever channels there are " with airlines attempting to build an API. Mr Tangney agrees with comments from Ryanair COO Peter Bellew that GDSs are "extortionist".

IAG CEO Willie Walsh, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) ownership and control regulations being revisited under more stringent Brexit laws "risks triggering a global crisis'. Mr Walsh said if someone were to challenge the ownership structure of IAG, "I'm going to start challenging others". Mr Walsh does not "seriously believe" that a country would inhibit a carrier from operating between the UK and EU based on ownership and control. He cited Cathay Pacific as an example, noting the Hong Kong based airline has a range of investors including in the UK, Qatar and Hong Kong. "We have turned a blind eye to these issues for years", he said.

IAG CEO Willie Walsh, speaking at the CAPA Airline Leader Summit, stated (18-May-2018) while the industry is doing "very well at the moment" with most carriers "enjoying the environment", there are "challenges down the road". Mr Walsh said fuel prices, infrastructure constraints, cost of airport charges and ATC are "critical issues" impacting both airlines and consumers "on a daily basis". Mr Walsh stated Europe needs to "move on initiatives that have been around for years", while citing the concept of a Single European sky as "absolutely critical".

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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
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