CAPA Australia Pacific Aviation & Corporate Travel Summit

Sydney, Australia

1-2 Aug 2018

2 August 2018

08:00	Registration, Networking and Coffee
09:00	Chairman's Welcome CAPA - Centre for Aviation, Executive Chairman, Peter Harbison
PLENARY SESSION
09:05	Airline Keynote Hawaiian Airlines, President & Chief Executive Officer, Peter Ingram [Download Presentation]
09:30	Keynote: NDC - What, Why, How and the Journey to 2020 Travelport, Global Head of New Distribution, Ian Heywood [Download Presentation]
09:50	Airline Keynote Tigerair Australia, CEO, Merren McArthur [Download Presentation]
10:15	Liberalisation of the South Pacific: unlocking the key to further inter-region connectivity ASPA, CEO/Secretary General, George Faktaufon [Download Presentation]
10:40	Coffee Break & Networking
11:30	Panel: Are Australian/New Zealand airport charges “fare”? Unpacking the economic reality of airport privatisation Australasia’s airports and airports exist in an uncomfortable dichotomy. Each relies on the other, yet both have accused the other of taking advantage of market power, whether it's charging excessive airport fees or inflating airfares on regional routes, depending on who is levelling the accusation. Despite a number of Productivity Commission reviews supporting the current regulatory framework, A4ANZ claims that airport charges have provided one of the biggest roadblocks to fleet renewal and route development and that airports have abused their monopolistic power to capture “a disproportionate share” of Australia’s aviation growth, citing Frontier Access reports . AAA argues such claims “ignored the robust negotiations between airlines and airports that take place across the country to deliver runways, terminals and technology to meet passenger needs”. The airport body has also expressed concerns over the airline industry’s market power, arguing “the domestic airline duopoly disadvantages the passenger – particularly in the regions”. In this debate both A4ANZ and AAA will be given equal opportunity to share their views on the economic reality in the post airport privatisation environment and what this has really meant for airlines, airports and - most importantly - the consumer. Moderator: CAPA - Centre for Aviation, Executive Chairman, Peter Harbison Panellists: Airlines for Australia & New Zealand, CEO, Alison Roberts Adelaide Airport, Managing Director, Mark Young Australian Airports Association, Chief Economist, Warren Mundy Qantas Airways, Group Executive, Government, Industry, International, Environment, Andrew Parker
12:15	Panel: As the low cost long haul model continues to flourish globally, what role will Australia play? Low cost long haul airlines are rapidly attaining mainstream status globally - it has tripled its share of international seat capacity over the last four years. This is thanks to a confluence of factors including fuel efficient aircraft technologies opening up economically viable new city pairs, stable fuel prices and the recent launch of several new low cost subsidiaries by full service carriers seeking growth opportunities from servicing leisure/ price sensitive customers on long, thin routes. Australia has played a key role in the growth of low cost long haul airlines (at one stage it held the majority of low cost long haul seat capacity), though there has been little to no growth in recent years, and the country now holds only about 15% of global low cost long haul capacity. However, this is still a significant figure given that Australia has only the tenth largest aviation market globally based on total seat capacity. And the country has a relatively high ratio of long haul low cost to overall capacity - 4% of total capacity, and 10% of international capacity, compared with global long haul low cost operations accounting for less than 1% of total capacity and less than 4% of international capacity. Is there room for further growth in O & D markets or is the focus now on linking Australia with long haul destinations through sixth freedom traffic? Has Australia’s role in pioneering the growth of the model diminished? What future role will the country play in this space, as the global market continues to grow? Will the arrival of new long range narrowbodies like the A321neoLR drive further expansion of the low cost long haul model in this market? Moderator: Mentor Aviation Services, Executive Director, Andrew Drysdale Panellists: Cebu Pacific, Chief Operations Adviser, Rick Howell Japan Airlines, Vice President Asia & Oceania Region Marketing & Strategy Research, Akihide Yoguchi Scoot, General Manager ANZ, Jared Simcox
13:00	Lunch Break & Networking
14:00	Fireside Chat with Virgin Australia CEO, John Borghetti Virgin Australia Group, Managing Director & CEO, John Borghetti
14:30	Closing Debate: The future of selling for airlines and the travel industry The travel industry has made a major breakthrough following industry agreement to adopt NewGen ISS from Mar-2018, which includes amendments to IATA Resolution 890 allowing agents to pay for tickets with their own payment cards, and subsequent creation of the Transparency in Payments framework, put in place to enable airlines to gain both greater visibility over the costs of using different payment payments and greater control over payment methods accepted through the agency channel. Other than heralding efficiency improvements in processes and payments for agencies, these changes allows airlines to drive down costs by removing acceptance of high interchange payment methods, and incentivises payment providers to create low cost, innovative forms of payment. It also potentially allows airlines to build, create and establish B2C relationships, for example by working with card providers to merge data sets and gain full visibility over the value of a corporate customer’s spend. But what’s the true benefit of these changes for both agencies and airlines? This debate will unpack the implications of these industry reforms in the Australian context. Will the industry collaborate to make the most of these changes? What does TIP implementation look like in practice? Do suppliers have the capability to accept newer, lower cost payment methods? How are agents amending their payment strategies in light of IATA Resolution 890? Will there be much of a balance shift between use of traditional cards and alternative payments, or the use of agent cards over individual consumer/corporate cards, IATA easyPay? What is the likelihood of Australian agencies fully participating in adopting IATA Resolution 890? Are there any obvious benefits - to both the agent and the airline? What are the Risks for Airlines? How would risks be managed? Are the airlines willing to allow accept this new form of debt? Who is liable for unpaid debt? What are the opportunities for airlines to strengthen their B2C relationships and track corporate spend in the new payment landscape? How will these forms of payment impact NDC/One Order? Moderator: The Initiatives Group, Managing Director, Lance Blockley Panellists: AFTA, Chief Executive, Jayson Westbury Corporate Travel Management, Global Head of Partnerships, Scott Ward Mastercard, Director, Gregor Lochtie Paypal, Director, Head of Enterprise Business, Anthony Drury Travelport, Vice President Global Payment Solutions, Alexandra Fitzpatrick
15:15	Summit Close
15:15 - 16:30	Closing Reception Drinks