CNN anchor Richard Quest at CAPA’s Airlines in Transition 2022 summit
Respected broadcaster Richard Quest spoke to CAPA TV on the sidelines of the CAPA Airline Leader Summit - 'Airlines in Transition 2022’. Hear exclusive views from the CNN anchor on the Covid crisis, the industry’s recovery, the impact of the Russia-Ukraine conflict, the future of meetings and business travel, the impact of ESG factors on travel, and the growing importance of sustainability.
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Transcript
Richard Quest:The extent, the depth, the range of the crisis that hit travel in all its extremities, in all aspects, has been so enormous. But I think one has to focus on the ability of the industry to thrive and survive. And a lot of that came as a result of government help. Through many different schemes, the aviation industry got more help perhaps than other parts. Let's not forget the tourism side. Let's not forget the waiters, the hoteliers, those people who work in theme parks who had to rely on other forms of help. But if you talk about aviation as such, to have come out or in Europe particularly to come out of the pandemic and immediately get hit again by the war in Ukraine. It's extraordinary. Yeah, there's always a crisis du jour, and the ability to respond to it is very much part of the DNA of aviation. But there are crises such as the pandemic which were existential, existential. And when you get that, you need help, and they got it. Now, just— and I think the disappointing side, you know, the heart versus the head. The head will go through all the numbers and tell you why and how, but the heart says Just as people wanted to travel, just as the pent-up demand, which is real, it is there, it is huge. Just as that was coming back, then you end up with this other problem. Now admittedly, the war in Ukraine is going to have a slightly different effect, but it tell you what is happening. We're seeing an economic slowdown, and that could be in some cases a recession. It might be a recession in the EU, and it's arguable that that will take its toll on consumer spending, and they won't go abroad or they won't spend as much. I don't think that's going to happen to a large extent. I think people want to travel. They can't wait to travel. The day trip has gone. So Munich to Frankfurt for the day ain't going to happen. Chicago to Pittsburgh just to see a client or to that, not going to. That's gone. The internal meeting with five people where you all went to a jolly to Paris finished fini. Instead, they will be done Zoom WebEx and meets. Teams. However, there is no doubt that there is a desire, a wish, whatever you want to call it, to get back on the road to see clients. The ability to say hello, it's been a long time, nice to see you. You know, well, what can I say with what we've been through? Really good to see you, give me a hug. The ability to do that. And what I think you're going to notice is a shift So you will do trips that are longer, that are more detailed. You will do trips that are more curated. I'm going to see this client. I'm going to spend a week, two days with this client. I'm going to have meetings with this client, and you may do jumping trips. Ba doo ba doo ba doo ba doo ba doo. So as we came out of the pandemic, the best guess was thirty percent, thirty percent off travel. Companies are going to do it, and there's one other point to bear in mind, which I've just been hearing at this excellent conference. Let's not forget the effect of ESGs on travel as companies start to implement the ESGs across the range of corporate activities, and suddenly you have to justify. Now, at the moment, most companies are only in the well, what does the ESG say about that trip? But when benchmarks go in, and when targets are added, and when Profit-related pay is put in there on ESG targets. Then I think you're going to see people saying we're not traveling. Sustainability is the big issue. It is also the elephant in the room. It is the gorilla that'll sit where it wants to sit. It is the existential crisis that could— whatever you want to say. But the real issue is not sustainability. You can't change that. That's here whether we like it or not. The real issue is what we're going to do about it, as what the industry is going to do about it. And there, I'm afraid, it is woefully lacking. Woefully. Individual participants are doing things. There is a lack of joined-up coordination. Nobody wants to grasp the nettle. I think that it's going to take some time. But let me be clear, the industry is losing the battle. The industry is losing the battle of perception as to how it is performing on ESGs and sustainability. You can fool yourself otherwise, but the reality is people believe the industry is worse than it is. I think this conference has reinforced the view that there is real merit in people coming together to meet. When it is curated, when it is targeted, when it is directed. So the big hoopla, the jolly gone, but serious people getting together to discuss business and have some fun on the side—that I think is absolutely going to come back.
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