CAPA Australia Pacific Aviation Summit
CAPA Outlook | State of the Industry September 2023
CAPA employs a global team of highly-experienced analysts who deliver a wealth of commentary about the aviation and travel industry. Our analysts don’t just report the news, they look at the big picture to help you understand how the latest news, issues and trends will affect your business. CAPA’s commitment to independence and integrity means every report is filled with accurate data and actionable insights to help you stay ahead of the game.
Innovation Roadshow | FLYR
Clayton is FLYR's General Manager for Asia Pacific. With over 20 years of experience in both travel and technology roles, Clayton has a wealth of knowledge and expertise in the industry and particularly the Asia Pacific region. Having worked and led airline revenue management and commercial teams, Clayton brings a unique perspective to the table. With time spent at travel technology organisations Sabre and PROS, Clayton has a strong background in the technology behind airline revenue management. Passionate about airline revenue management, Clayton is dedicated to helping companies optimize their revenue and drive growth.
Airline Leader Interview | Velocity Frequent Flyer
Nick joined Virgin Australia in September 2021. Prior to this, Nick held several executive positions at Jetstar, including Co-CEO and Executive Director (Jetstar Japan) and Executive Manager of Customer and Strategy. He also directed the launch of Jetstar in Hong Kong. Before joining Jetstar, Nick was at The Boston Consulting Group, working in the Sydney and Dubai offices, for nearly eight years. He was a management consultant, providing advice to a range of international clients, including several airlines.
The role of Government in supporting aviation and travel in Australia
Moderator: Brisbane Airport, Executive General Manager Communications and Public Affairs, Rachel Crowley
Panel
- Brisbane City Council, Lord Mayor of Brisbane, Adrian Schrinner
- Queensland Government, Deputy Premier, Minister for State Development, Infrastructure, Local Government & Planning, Hon Steven Miles MP
The post COVID-19 travel and tourism megatrends in South Pacific
COVID-19 produced the greatest shift in international traveller behaviour since the start of the Jet Age. The South Pacific has been at the forefront of those changes. Travellers are increasingly embracing technology as part of the travel process. They are also more aware of the impacts of their travel and are increasingly seeking out unique cultural, religious and social encounters, often replacing urban tourism with a broader mix of destinations. At the same time, business travel remains well below pre-pandemic levels, with technology serving as a notable substitute, while luxury travel is reaching new highs.
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How do regional travel and tourism providers pivot to accommodate these changing traveller preferences?
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With the Asia Pacific now largely reopen to international travel, how have the dynamics of the inbound travel market changed for Australia, New Zealand and the Pacific?
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What sort of new destinations are being marketed to outbound travellers from Australasia?
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What does the changing travel mix mean for airlines and other air travel partners?
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How do the tourism-dependent economies of the South Pacific chart a path to greater travel sustainability and resilience in the face of future crises?
Moderator: CAPA - Centre for Aviation, Head of Research, Simon Elsegood
Panel
- Air Tahiti, CEO, Manate Vivish
- Air Caledonie, COO, Phil Busson
- Fiji Airways, Chief Strategy Officer, John Checketts
- Nauru Airlines, CEO, Brett Gebers
Host Welcome | Brisbane Airport
The Australia Pacific Aviation Summit 2023 was held in Brisbane, Australia over 14-15 September 2023. The event, hosted in conjunction with Brisbane Airport Corporation, brought CAPA’s home event to Brisbane for a two-day summit exploring the key strategic issues facing airlines, airports, and the wider travel industry in the region.
Brisbane Airport CEO Gert-Jan de Graaff commented: “Every year, millions of passengers pass through our airport, and for most of them BNE is their first and last impression of Australia. We have a responsibility, as a connecting hub, to proudly display Australia to the world. As our city prepares for the 2032 Olympic and Paralympic Games, we look forward to showcasing our city to all of the 2023 CAPA delegates with a warm Brisbane welcome.”
Airline Leader Interview | Air New Zealand
Greg started as Air New Zealand's Chief Executive Officer on 3 February 2020. Greg joined the airline from Walmart U.S where he was Chief Executive Officer from 2014 to 2019. He was responsible for the strategic direction and performance of the company's 4,600 stores and more than 1 million employees. In 2019 Walmart U.S. served more than 140 million customers each week and had revenues of $307 billion. Greg joined Walmart International in 2011 and served in several capacities, including President and Chief Executive Officer of Walmart China. Prior to joining Walmart International he held several senior positions with Woolworths, the leading retailer in Australia and New Zealand. Greg has attended Advanced Management Programs at Harvard University and the University of Virginia. He also holds a Diploma in Management from the New Zealand Institute of Management.
Leader Interview | Flight Centre Travel Group
Graham ‘Skroo’ Turner was raised near Stanthorpe, and trained as a veterinary surgeon. In 1973, he and two mates bought a couple of double-decker buses in England and began a holiday travel company, Top Deck Travel. With only a bus load of energy, entrepreneurship and youthful exuberance, they organised bus tours to the continent and parts of North Africa. By 1980 the business had a fleet of seventy to eighty buses. In 1981, Skroo returned to Australia and established the Flight Centre travel business. It was an opportune moment as the airline ticketing industry had recently been deregulated, allowing the sale of discounted tickets for the first time. Under Skroo’s dynamic leadership Flight Centre took off, providing the cheapest possible pricing, deriving profits from the volume of sales. Skroo floated the company in 1995, as much to allow employees to become part owners of the business as to raise capital. Fifty percent of the staff bought shares. Graham Turner – In recognition of creating Australia’s leading domestic and international travel sales business through outstanding entrepreneurship and innovation. Graham Turner is not your usual corporate leader. He remains down to earth without the need to surround himself with the trappings of his success. The financial bottom line at Flight Centre is important, but it has been achieved because Skroo also believes in empowering employees, rewarding initiative and fostering the spirit of a large tribe throughout the company. There are no extra perks for senior executives at Flight Centre unless everyone gets them. Shareholders will be more than pleased that Graham Turner hopes to continue at the helm of the business for years to come. His nickname, Skroo, acquired as a school boy, derives from the then famous Turner brand of screw drivers. In making an outstanding contribution to business in Queensland and Australia, Skroo has demonstrated great vision, high energy and entrepreneurial spirit.
CAPA Australia Pacific Aviation Summit 2023 Highlights
Recap of the CAPA Australia Pacific Aviation Summit, Brisbane, 2023.
A return to international travel – is Australia/New Zealand ready?
Globally, international air travel continues to rebuild, with the latest projections indicating global air travel will return to pre-pandemic levels during 2024. This broad global recovery masks the fact that significant variations exist from region to region and between individual markets, which has important implications for airlines through Australasia.
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After a slow start, the US-Australasia travel market rebounded strongly in late 2022 and early 2023. The US-Australia and US-New Zealand markets have undergone a robust recovery and airlines are still planning major capacity additions. What competitive moves are left in these markets and how will things play out once capacity fully returns?
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Southeast Asia’s travel market saw LCCs come to the fore during the pandemic, helping to rapidly restore regional connectivity. At the same time, LCCs are pulling back from some of the long-haul markets where they had previously made inroads. Are LCCs going to re-enter the long haul markets connecting Southeast Asia with destinations in Australia, New Zealand and the rest of the Pacific, or will it default back to full service carriers?
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The recovery of the East-West long haul market between Australasia, the Middle East and Europe has largely performed ahead of expectations, with several of the largest players in the market now back at pre-pandemic levels. With travel demand remaining high, is the market’s health as robust as it appears?
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China formally re-opened its borders to international travel in early Jan-2023, and momentum in the Chinese outbound travel market. However, returning Chinese outbound travellers are showing distinctly different market and travel preferences than before the onset of COVID-19. Are Australasian travel markets ready for a returning and different Chinese traveller?
CAPA Think Tank | A meeting of minds
CAPA will host a selection of high profile Australia Pacific aviation and travel leaders in a roundtable discussion, covering key topics and important trends in the regional air transport industry. Thought-leaders from across the breadth of the regional aviation market will provide insights into the competitive landscape for airlines and airports in the region, regional progress on traffic and financial recovery, opportunities for future development, trends towards privatisation and consolidation and more.
Moderator: L.E.K Consulting, Partner, George Woods
Panel
- TTF, CEO, Margy Osmond
- Brisbane Airport, CEO, Gert-Jan de Graaff
- ACT Government, Chief Minister, Andrew Barr
- Department of Infrastructure, Transport, Communications & the Arts, Assistant Secretary, Jim Wolfe
- Board of Airline Representatives Australia (BARA), Executive Director, Stephen Pearse
Bonza, CEO, Tim Jordan, at the CAPA Australia Pacific Aviation Summit 2023
Bonza, CEO, Tim Jordan, spoke to CAPA TV at the CAPA Australia Pacific Aviation Summit 2023 in Brisbane 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.
Flight Centre Travel Group, CEO, Graham 'Skroo' Turner, at the CAPA Australia Pacific Aviation Summit 2023
Flight Centre Travel Group, CEO, Graham 'Skroo' Turner, spoke to CAPA TV at the CAPA Australia Pacific Aviation Summit 2023 in Brisbane 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.
Brisbane Airport CEO, Gert-Jan de Graaff, at the CAPA Australia Pacific Aviation Summit 2023
Brisbane Airport CEO, Gert-Jan de Graaff, spoke to CAPA TV at the CAPA Australia Pacific Aviation Summit 2023 in Brisbane 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.
Environmental credentials and sustainability ever more important for travellers
One of the lasting effects of the COVID-19 pandemic is expanded awareness among consumers of the impacts of their travel - be they environmental, social or otherwise – and a greater embrace of nature tourism. While consumers across the Asia Pacific are more interested in sustainable travel options than any other region globally, regional carriers generally lag their peers in Europe and North America in offering sustainable options. How do regional markets build on the increased attractiveness of nature tourism, while also highlighting their own environmental credentials?
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How do air transport stakeholders ensure there is easy access to clear and meaningful information needed to make sustainable travel choices? How can transport providers ensure the reliability of environmental and sustainability data being provided to them?
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How do airlines in the region ensure they meet the aviation industry’s ambitious environmental targets, without the same levels of investment and regulatory support enjoyed by airlines in some other regions? What roles do regional governments have in pushing forward sustainability from regional airlines?
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What lessons can be applied in the Asia Pacific from other national and multi-national approaches to mitigating aviation emissions?
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How can regional states - which owe much of their international tourism success to perceptions around their natural beauty and pristine conditions - capitalise on the pivot towards more nature travel?
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Is there a role for businesses and travellers to play in supporting aviation environmental targets?
Moderator: Envest, Executive Director, David Wills
Panel
- Virgin Australia, Chief Corporate Affairs and Sustainability Officer, Christian Bennett
- Air New Zealand, Chief Sustainability Officer, Kiri Hannifin
- Travelport, Head of Air Partners, Asia Pacific, Ailsa Brown
- Boeing, Regional Sustainability Lead APAC, Heidi Hauf
Air New Zealand, CEO, Greg Foran, at the CAPA Australia Pacific Aviation Summit 2023
Air New Zealand, CEO, Greg Foran, spoke to CAPA TV at the CAPA Australia Pacific Aviation Summit 2023 in Brisbane 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.
The post COVID-19 travel and tourism megatrends in South Pacific
COVID-19 produced the greatest shift in international traveller behaviour since the start of the Jet Age. The South Pacific has been at the forefront of those changes. Travellers are increasingly embracing technology as part of the travel process. They are also more aware of the impacts of their travel and are increasingly seeking out unique cultural, religious and social encounters, often replacing urban tourism with a broader mix of destinations. At the same time, business travel remains well below pre-pandemic levels, with technology serving as a notable substitute, while luxury travel is reaching new highs.
-
How do regional travel and tourism providers pivot to accommodate these changing traveller preferences?
-
With the Asia Pacific now largely reopen to international travel, how have the dynamics of the inbound travel market changed for Australia, New Zealand and the Pacific?
-
What sort of new destinations are being marketed to outbound travellers from Australasia?
-
What does the changing travel mix mean for airlines and other air travel partners?
-
How do the tourism-dependent economies of the South Pacific chart a path to greater travel sustainability and resilience in the face of future crises?
Moderator: CAPA - Centre for Aviation, Head of Research, Simon Elsegood
Panel
- Air Tahiti, CEO, Manate Vivish
- Air Caledonie, COO, Phil Busson
- Fiji Airways, Chief Strategy Officer, John Checketts
- Nauru Airlines, CEO, Brett Gebers
Australasian air cargo outlook for 2023
Air cargo went through a boom during the pandemic, triggered by enforced savings and ecommerce spending, but saw activity slowing through 2022. The outlook for the sector in 2023 is mixed: China is returning to normal and supply chains continue to stabilise, but at some time capacity continues to expand ahead of demand, yields are down and the macroeconomic outlook for much of the world remains dark.
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With trade volumes still buoyant through the South Pacific, how are regional airlines taking advantage of the current situation in the cargo market?
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How will the resumption of international flying by Chinese airlines into Australia and New Zealand affect the regional cargo market?
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What will be the impact on air freight of falling ocean shipping prices and improved timeliness?
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What role will autonomous aircraft, drones and other innovations have in the near future?
Moderator: The University of Sydney Business School, Chair in Transport and Supply Chain Management, Deputy Director, Professor Rico Merkert
Panel
- Macrolytics, CEO & Founder, Peter Negline
- Cathay Pacific, General Manager Cargo Service Delivery & Regional General Manager, South West Pacific (designate), Frosti Lau
- AMSL Aero, Commercial Officer, David Orszaczky
- Team Global Express, Executive General Manager - Priority, Joshua Peacock
Australia’s domestic market going into high gear
With the addition of Rex as a jet operator and the recent launch of Bonza, Australia now has four airline groups operating narrowbody aircraft in the domestic market. New entrants and LCC growth in the Australia market has historically driven down airfares, triggered network expansion and supported smaller destinations and secondary airports. The result has been significant benefits for travellers, often at the expense of airlines’ bottom lines.
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How is Australia’s domestic market performing?
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What impact has new entrants on the market had on the overall competitiveness of the industry?
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Is there space for airlines like Rex and Bonza to pursue further growth on different routes?
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With cost of living and inflation a major concern for consumers, will new market entry and lower airfares help to sustain the recovery in leisure Australia?
- What sort of competitive responses will be seen from incumbents Qantas, Jetstar and Virgin Australia?
Moderator: Aviation Week, Senior Air Transport Editor, Adrian Schofield
Panel
- 777 Partners, CEO, Manish Raniga
- Brisbane Airport, Executive General Manager Aviation, Ryan Both
- Queensland Airports, CCO, Adam Rowe
Restoring traveller confidence through cooperation and innovation
The resurgence in travel in the last year has brought with it unprecedented disruptions. The air travel industry has been working hard to cope with further growth and changing traveller expectations and requirements. Many in the industry are looking to technology providers to assist with solving issues and help drive improved traveller confidence.
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What is the new traveller requesting of the industry?
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How does the sector come together to ensure improved customer satisfaction?
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What is the role of airlines, airports and suppliers?
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What technology exists to help support airlines and airports?
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How is the distribution landscape shifting as airlines, their customers and suppliers map out new relationships?
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As passengers continue to seek more personalised and flexible content, what digital strategies are being embraced to meet this demand shift?
Moderator: Pangiam, President, Steven Greenway
Panel
- Avalon Airport, CEO, Tony Brun
- Japan Airlines, Vice President Asia, India and Oceania, Richard Engelmann
- Skyscanner, Vice President Strategic Relations & Development, Hugh Aitken
- SITA, Head of Sydney Border Practice, Paul Cross
Airline Leader Interview | Bonza
Tim Jordan is a founder and CEO of Bonza, the only independent Low Cost Carrier (LCC) in the Australian domestic market which started scheduled commercial operations in early 2023. Tim has more than 25 years of air transport experience most notably in low-cost airline operations.
Prior to his current role with Bonza, Tim was the Managing Director of FlyArystan the first LCC in Central Asia based in Kazakhstan. Tim successfully planned and launched the new airline which now has the largest market share of traffic in the Kazakh domestic market. As a consequence of FlyArystan, Kazakhstan is now one of the fastest growing domestic aviation markets in the world.
Tim is also the former Chief Commercial Officer of Philippines based LCC Cebu Pacific Air where he led the airline through a major transformation while also overseeing significant profitable market growth for both domestic and international operations. Cebu Pacific Air is now the domestic market share leader in the Philippines.
Prior to Cebu Pacific Air, Tim was head of Commercial Distribution for Virgin Blue Airlines in Australia where he oversaw the successful commercial growth of the airline from 15 to 48 aircraft. During Tim’s tenure, both Cebu Pacific and Virgin Blue had profit margins that were amongst the highest in the world for aviation. Both Cebu Pacific and Virgin Blue went on to offer highly successful IPO's, with the Air Astana Group owned FlyArystan now expected to also IPO in 2023.
The post-pandemic industrial relations landscape – high wages or more strikes or both?
The industrial relations landscape for aviation in Australia, New Zealand and the Pacific Island states continues to evolve. Aviation businesses continue to face a workforce shortage and have responded by increasing wages, enhancing training and committing more resources to workforce development. At the same time, aviation unions are increasingly dissatisfied with wage offers from aviation business, publicly rejecting offers and openly talking about industrial action.
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Where has the balance of power ended up in aviation in the post-pandemic period?
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With thousands of experienced workers having permanently departed the sector, what are the key recruiting areas for aviation businesses?
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How do airlines address the enormous challenges in recruiting and accessing skilled workers?
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What is the role of the public sector in helping to build the skills pipelines needed for the long term success of the regional aviation sector?
Moderator: 777 Partners, CEO, Manish Raniga
Panel
- AAA, CEO, James Goodwin
- Australia & International Pilots Association (AIPA), President, Tony Lucas
- Flight Attendant Association of Australia, Secretary, Teri O'Toole