CAPA: US carriers need to address six elements for international success

CAPA executive chairman Peter Harbison, speaking at the CAPA Americas Aviation Summit 2016, stated (11-Apr-2016) US airlines need six things for international success: product, patience, passenger, partnership, protectionism and profitability. Mr Harbison said improving the international product is "a must", although the domestic product is beginning to improve due to consolidation. Passengers increasingly have a preference for nonstop service and a high-value product, Mr Harbison noted, and airlines need to recognise and adapt strategies appropriately for each market. He noted international partnerships are a "vital means to achieve market reach and penetration", and must necessarily be the cornerstone of any international policy today. It is in US airlines interest to "secure an open aviation environment", with ownership and control limits gradually being eroded by cross border equity purchases. Ultimately, the airline enterprise must be profitable, Mr Harbison commented, pointing out it is "dangerous to rely on the relatively mature domestic market" to feed financial growth.