- On time departures: 68.5%;
- On time arrivals: 69.3%;
- Cancellations: 2.9%;
Consumers are at the heart of digital transformation and the pandemic has only accelerated the shift to digital retailing and e-commerce, backed by sophisticated IT platforms. And we have seen how effective the non-travel online retailers, like Amazon, have been – and they’ve grown their wallet share substantially.
These new players have gathered more data and learned more about us over the past two years than ever before and the worry is, for a heavily indebted and struggling airline industry – can it keep up and regain its fair share of the ‘economic wallet’ and unlock new revenue streams, as well as meeting shifting customer needs.
Airlines are at a disadvantage in that their starting point are often ageing tech systems of IT platforms, software and hardware. Added to this, an ever-more demanding customer, who wants greater ticketing flexibility, instant refunds, better service, disruption recovery that’s fast and effective and a seamless online and journey experience. The digital experience expectation also extends into the role of the airline’s loyalty programme, as well as its alliances and partnerships.
New selling strategies are also going to be key for the region. From branded fares to subscription services, airlines are shifting the ways they sell tickets.
- How is the distribution chain adapting to changing strategies?
- What are other trends in selling that are emerging that will work well specifically in Asia?
Moderator: Skyscanner, VP Commercial, Hugh Aitken
- AWS, Head of EMEA Travel Industry, Nikiforos Chatzopoulos
- Sabre, Head of Sales, Asia Pacific, John Chapman
- Flyr Labs, VP of Growth, Matt Brown
New York's Governor Kathy Hochul announced (17-Nov-2022) the USD4.2 billion Terminal 6 construction project at New York John F Kennedy International Airport is scheduled to commence in 1Q2023, following a financial close and lease signing and US FAA environmental approval for Phase I of the project. The 1.2 million sqft facility is a public-private partnership (PPP) between Port Authority of New York and New Jersey (PANYNJ) and JFK Millennium Partners (JMP) and will feature 10 gates, connection to JetBlue Airways' Terminal 5, advanced security processing technology and over 100,000sqft of restaurant and retail concessions space. PANYNJ will commit USD130 million in capital funding towards enabling infrastructure as part of the PPP, including airside improvements and utility enhancements such as electrical support. The terminal will be constructed in two phases, with the first new gates to open in 2026 and project completion anticipated in 2028. The project is expected to create over 4000 jobs and direct wages of USD1.9 billion. Vantage Airport Group will the principal developer and operator of the new terminal, with Corsair Capital serving as the project's principal financial sponsor. [more - original PR - I] [more - original PR - II]
US and Ecuador signed (17-Nov-2022) a bilateral open skies agreement, enabling the expansion of passenger and freight services between the countries. The agreement is expected to promote increased travel and trade, thereby catalysing economic growth and job opportunities. Negotiations on the agreement concluded in Dec-2021. The US now has reciprocal open skies agreements with over 130 partners. [more - original PR - US Department of State] [more - original PR - Ecuador Ministry of Transport - Spanish]
JetBlue Airways announced (16-Nov-2022) plans to launch New York JFK-Paris CDG and Boston-Paris CDG services from summer 2023. Launch dates and frequencies have yet to be announced. Paris will be the carrier's second trans Atlantic destination following the launch of London services in Aug-2021. According to OAG, Air France and Delta Air Lines are also scheduled to operate each route, while American Airlines will also serve Paris from New York JFK. [more - original PR]
Aena presented (16-Nov-2022) its strategic plan for 2022 to 2026, with projections including:
- Pre-pandemic traffic levels (275 million passengers p/a) to return in 2024, rising to 300 million in 2026;
- Commercial revenue per passenger in 2026 to increase by 12% compared to 2019;
- Total commercial revenue in 2026 to increase by 23% compared to 2019;
- Recovery of 2019 levels of consolidated EBITDA between 2024 and 2025;
- EBITDA margin in Spain to reach 55% in 2025;
- International assets to contribute 15% to the group's EBITDA in 2026.
The projected traffic recovery will allow Aena to resume dividend payments, with an 80% payout over the entire period to be proposed to shareholders. The dividend proposed for 2022 will be increased by an additional EUR1.37 per share over the resulting profit at the end of the fiscal year. [more - original PR]
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The CAPA-Envest Global Sustainability Benchmarking Report - 2022 provides an understanding of the status of emissions in the airline industry. It provides an independently evaluated “airline sustainability rating” system, based upon a range of key emissio
This report, jointly prepared by CAPA - Centre for Aviation (CAPA) and Envest Global (Envest), is designed to highlight some of the core elements of sustainable aviation, methods of quantifying individual airline sustainability credentials, and emissions.