CAPA Americas Aviation & LCCs Summit

Atif Elkadi has more than 17 years of extensive senior-level experience in all aspects of airport operations, strategic marketing, social media, brand management, public relations, marketing, advertising, and strategic communications.

Lori Ranson is currently a Senior Analyst at the Centre For Aviation (CAPA). Her coverage has touched on all aspects of commercial aviation, including marketing and distribution, network development, safety, maintenance, repair and overhaul, aircraft programmes, alliances, regulatory developments, finance and the passenger experience.

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Airlines spent 2021 and 2022 striving to rebuild workforces that were slashed during the pandemic. Airline employment has now retuned to close to normal, although some skilled roles remain in high demand and the dynamics of the labor market have shifted. Employees at most North American airlines, particularly pilots, have unprecedented leverage in the latest rounds of negotiations. Will those operators be successful in gaining some productivity improvements to offset some of the labor costs increases? Have the pay increases already instituted by some airlines succeeded in retaining pilots? Have training bottlenecks that hampered some US operators last year smoothed out?

CAPA will host a selection of North American aviation leaders in a roundtable discussion covering some of the most important topics to the air transport industry. Join these high-profile speakers as they offer their insights into the state of airlines and airports in the region, the outlook for market consolidation, the changing nature of passenger expectations and the onboard experience, progress on industry financial recovery and more.

Key themes to be discussed during this Think Tank include but not limited to:

• Consolidation: US lawmakers and regulators have recently spoken out against the consolidation of the US airline market. Five airlines now control more than 80% of domestic seats and nearly 50% of international seats. Given the concentration in the market, will there be more regulatory opposition to future attempts at mergers and consolidation?

• Share buyback: US airlines are projected to make around USD9 billion in profits in 2023. In the previous decades, US airlines spent much of their available cash on share buybacks. These have attracted significant negative attention from consumers, unions and lawmakers in recent years. Is there an expectation that share buybacks will resume or are airlines going to take a more circumspect approach?

• Workforce: Airlines have invested heavily in their workforces in the last 12 months, expanding employment above pre-pandemic levels in order to avoid a repeat of recent operational issues. Yet, employee and skills shortages remain an issue. What are the key bottlenecks for staffing in the sector and how do airlines ensure that these don’t ripple out into yet more operational issues?

• Unions: Airlines remain one of the most unionized industries in the US, and the end of the pandemic has also brought with it an uptick in labor unrest and union activity. With unemployment continuing to drop, staffing shortages and unions threatening strike action, has the balance of power in the workplace shifted?

• Leasing: With demand back to normal, slow OEM delivery rates and interest rates climbing, lease rates climbed sharply in 2022. What is the outlook for aircraft lease rates for 2023 and what can airlines do to get more aircraft out into the market?

• Debt: US airlines took on more than USD50 billion in debt to ensure their survival during the pandemic. As interest rates continue to rise, how are airlines coping with the increased debt load?

• Passenger experience: US airlines continue to receive criticism over the passenger experience onboard the aircraft and delays and cancellations on the ground. 2022 saw the US DOT levy an all-time record for civil penalties against airlines. What do airlines do to restore passenger confidence in their operational reliability and how do airlines ensure that the onboard experience is more enjoyable for passengers?

• Airports: Is there any political reality in coming years which will normalize/encourage the adoption of PPP agreements at airports in North America?

• ULCCs: What sort of impact has the expansion of the ultra low cost, leisure focused model had on the industry?

Bill Franke is the Managing Partner of Indigo Partners LLC, a private equity fund focused on air transportation investments. The fund currently has major investments in Volaris Airlines (Mexico), Wizz Air (Hungary) and Frontier Airlines (U.S.). During Mr. Franke’s business career he has been the Chief Executive Officer of a Fortune 500 forest products company, which he repositioned strategically, tripled its revenues and achieved record profits before merging it with another company at the industry’s highest per ton valuation; Chairman of the Executive Committee of a large regional bank whose management he restructured; Chief Executive Officer of a large U.S. convenience store company, which he restructured; and, from 1993 to August 2001, Chief Executive Officer of America West Airlines (now American Airlines), which he managed through a bankruptcy into an airline that from 1994 to 2000 had the highest EBITDAR margins of the major U.S. airlines and won two J.D. Power awards for its service. Mr. Franke was Managing Partner of Newbridge Latin America, a private equity fund focused on Latin America, which made investments in Mexico, Brazil, Colombia and Argentina in a variety of businesses including retail, manufacturing and insurance. Newbridge was wound up in 2012 on sale of its last investment. Mr. Franke served as the founding chairman of Airplanes Group, Ltd., a US$5 billion aircraft finance vehicle created from the aircraft portfolio of GPA Group plc, the Irish aircraft leasing company, and supported by GE Capital Aviation Services (GECAS). He was involved in the 1998 acquisition of GPA (then renamed AerFi Group) by Texas Pacific Group and served on AerFi’s board of directors until it was sold in 2000. Also, along with an investment group led by David Bonderman, Mr. Franke was a pre-IPO investor in Ryanair and a founder of Hotwire, the travel internet site. Mr. Franke was the Founding Chairman of Tiger Airways (Singapore), was the Chairman of Spirit Airlines (U.S.), serves as Chairman of Wizz Air Limited (Hungary), is a director of Volaris (Mexico), and is the Chairman of Frontier Airlines (U.S.) In addition, he has served on several public company boards of directors in a variety of industries. Mr. Franke was born in Texas and raised in Latin America. He has undergraduate and graduate degrees from Stanford University and was awarded an honorary Ph.D. from Northern Arizona University, whose business college is named after him.

US carriers experienced tough operating conditions in 2022, for a variety of reasons. Despite returning operational performance to normal levels, issues across the national aviation system are yet to be fully ironed out, as clearly indicated by several high-profile instances in late 2022 and early 2023. 

• Have operations really stabilized, and what changes are operators making to ensure they have an enhanced ability to quickly recover from irregular operations? 

• Will the consumer angst triggered by those disruptions spur more stringent regulations regarding passenger refunds and accommodation? 

Tom Doxey joined Breeze Airways as its president in June of 2022. Breeze began service in May 2021 from 16 destinations primarily in the east and southeast of the United States. One year later, it was ranked as the No. 2 U.S. best domestic airline by Travel + Leisure World’s Best Awards. In 2022, Breeze expanded west across the U.S., including coast-to-coast flights, and now offers over 130 nonstop routes between more than 35 cities. Founded by aviation entrepreneur David Neeleman, Breeze operates a fleet of Embraer 190/195 and Airbus A220-300 aircraft, with a focus on providing efficient and affordable flights between secondary airports, bypassing hubs for shorter travel times. With seamless booking, no change or cancellation fees, up to 24-months of reusable flight credit and customized flight features – including complimentary family seating - delivered via a sleek and simple app, Breeze makes it easy to buy and easy to fly.

COVID-19 produced an immense impetus for changes in aviation distribution and retailing. On the customer side, buying patterns and expectations about selling, booking and personalization all shifted. On the airline side, the pandemic saw many airlines reevaluate their distribution, retailing and technology approaches. For the intermediaries and other third parties, an opportunity was created to adopt new approaches and technologies and negotiate new partnerships. 

• How is the distribution landscape shifting as airlines, their customers and suppliers map out new relationships? 

• As passengers continue to seek more personalized and flexible content, what digital strategies are being embraced to meet this demand shift?

Traffic and capacity between North America and Europe have largely recovered and this summer could see record numbers of flights across the North Atlantic.  

The soaring transatlantic market has resumed the momentum seen before the COVID-19 pandemic, and airlines operating across this key global aviation market are bullish about the future. In fact, if future schedules for Jul-2023 hold, more flights will cross the North Atlantic than in any month in the history of commercial aviation. 

This is being driven by legacy airlines supported by a strong leisure demand market willing to pay premium fares and a continued business travel recovery. It is also being supported by a renewed dynamism in the Europe to North America low cost market, which has undergone a reboot since the depths of the COVID-19 pandemic. 

With widebodies continuing to be pulled out of storage and connectivity being re-established, this session addresses the dynamics of the return of long-haul travel in this market. 

• What are the dynamics in different trans-Atlantic country pairs as carriers see a return to normalcy on long-haul routes? 

• As increasing numbers of the new generation of long-haul narrowbody aircraft enter service, what does this mean for operating profiles on some long-haul routes? 

• How will new partnerships, including Emirates’ agreements with Air Canada and United, shape the long-haul market going forward? 

Asian markets have now largely lifted international border restrictions that had delayed its COVID-19 recovery and this is already leading to a rapid upturn in travel to and from North America.  

While the rapid removal of COVID-19 restrictions for Chinese domestic and international travel has not delivered as strong an initial spike in demand as anticipated – partly instigated by new testing requirements – it still bodes well for the continued strong trans-Pacific market recovery from the pandemic throughout the year. 

Most international airlines adopted a wait-and-see approach before restoring capacity at any scale, but confirmation in mid-Mar-2023 from the US Centers for Disease Control and Prevention (CDC) on the end of mandatory COVID-19 tests for travellers from China will help build confidence. 

Asia-Pacific airlines posted a +376.3% increase in Jan-2023 international traffic compared to Jan-2022, by far the strongest year-over-year rate among all the world’s regions, but off of a very low base. Capacity rose 167.1% and the load factor increased 36.6 percentage points to 83.3%, the highest among the regions. 

With widebodies continuing to be pulled out of storage and connectivity being re-established, this session addresses the dynamics of the return of long-haul travel in this market. 

• What are the dynamics in different trans-Pacific country pairs as carriers see a return to normalcy on long-haul routes? 

• Do existing bilateral agreements have the scope to meet demand? Are countries open to coming to the table to discuss new access? 

More than 25 new airlines have started operations since the start of the COVID-19 pandemic, with the Americas proving particularly fertile ground for new airlines looking to take advantage of a disrupted market. In the US Breeze and Avelo – both launched in 2021 - have their own distinct business models that avoid direct competition with larger US operators. Meanwhile, Northern Pacific plans to launch later this year and believes Alaska is an attractive destination for travelers from North Asia, as well as a viable transit point. In Canada, Flair and Lynx Air are pursuing ultra low cost models and competing more directly with Air Canada and WestJet. How are these upstarts fairing in their respective markets, and what lessons have been learnt in their startup phases?

As Chief Commercial Officer of API, Ramzi is responsible for growth related activities of the company within the verticals of aviation, rail, and cruise lines, as well as other, smaller divisions. Ramzi’s organization includes a team that possesses knowledge and expertise to allow API to elevate their client focus, engage the market, and deliver exceptional value in a unique and specialized area of the crew accommodation industries we serve. Ramzi’s vision is to promote API’s solutions and value proposition of making sure the crew layover experience is safe, efficient, and uneventful and to maintain API’s position as the leader in world-wide crew accommodations management.

The competitive landscape in Latin America has been profoundly altered by the COVID-19 pandemic. Three of the region’s largest airlines have emerged from Chapter 11 bankruptcy protection, ULCCs continue to proliferate and consolidation is gathering pace and scale. But, some familiar challenges remain: heavy taxation of the industry by the region’s governments remains a distinct threat, and regulatory and infrastructure issues remain unresolved. Outside of this, clouds of uncertainty are being cast for Latin American operators, with persistent uncertainty, social unrest and macroeconomic and geopolitical challenges.

Norse Atlantic Airways, President, Charles Duncan spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.   

ALTA, Executive Director & CEO, Jose Ricardo Botelho spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.   

Arajet, Senior VP Customer Experience, Carlos Mesa spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.   

Delta Air Lines Senior Vice President, Alliances & International, Perry Cantarutti spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.   

IBS Software, President, Jitendra Sindhwani spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.   

Ontario International Airport, Chief Executive Officer, Atif Elkadi spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about the latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.  

Northern Pacific Airways, CEO, Rob McKinney spoke to CAPA TV at the CAPA Americas Aviation & LCCs Summit in Ontario, California in Apr-2023 about the latest industry trends and company developments. 

CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.