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38 total articles


Airlines in Transition: Disruption! Preparing for the next - inevitable - shocks

29-Apr-2014 4:02 PM

Shocks and disruption are all too commonplace in the airline industry, which has been subject to disruptions of all kinds over many decades. These have included liberalisation, oil price shocks, terrorism, volcanoes, pandemics, the global financial crisis and competition from carriers with new business models (including low-cost carriers and the Gulf carriers). Some cannot be prepared for; but there are others where reading the signs of consumer patterns and technological advances will reward richly.

At CAPA's Airlines in Transition 2014 summit in Dublin, airline strategist and author Nawal Taneja led a panel discussion looking at the kinds of disruption that the industry faces in the future. Changing consumer behaviour, new industry players, new technology and new intermediaries are powerful forces that will necessitate fundamental change in the airline industry.

CAPA-SITA Report: Indian air passengers ready to embrace self-service, mobile and social media

27-Sep-2013 5:32 PM

CAPA and SITA jointly released a study on 27-Sep-2013 on the potential for IT to transform the passenger experience in India by 2015.

The research found among other things that, although progress in India has been constrained by financial factors since our first study in 2010, management has now recognised that IT issues are integral ingredients of management strategy - rather than merely an operational matter. This will be essential if the system is to adapt to the high levels of traffic growth envisaged over coming years.

The study combined CAPA’s extensive ongoing research and analysis of the Indian aviation sector with SITA’s IT domain expertise. Key stakeholders were interviewed across airlines, airports, ground handlers, air navigation services and border protection.

Consumer research consisted of a survey of 500 passengers across six metro airports and qualitative focus group discussions with travellers from a variety of ages, backgrounds and travel experience.

Airlines in Transition 5. Lighting Candles: Innovating to make profits: Big Data, Advanced Analytics

26-Apr-2013 7:15 PM

“It is better to light a candle than to curse the darkness” – Confucius

The size, variety, speed and complexity of data available to the airline industry is growing rapidly, as with other industries. The importance of data use, the roles of intermediaries, the arrival of new players into the aviation data arena – such as social media, Google and Apple – and developments in consolidation, partnerships and collaboration along the supply chain make innovation essential.

Moreover, airlines need to work with airports, to facilitate connections and passenger flows, to reduce costs and to enhance revenues; and with IT solution providers to improve data interfaces across the “aviation ecosystem”, to improve efficiency and to enhance the revenue-generating opportunities arising from data sources. In this fifth report on CAPA’s Airlines in Transition conference, we examine the framework presented by airline strategist Nawal Taneja and the subsequent panel discussion.

Airlines in Transition part 4: Bridging the gap between full service and low-cost or hybrid airlines

25-Apr-2013 8:00 AM

Our previous report on CAPA’s Airlines in Transition conference (Airlines in Transition part 3: How full service airlines are reshaping models to be more competitive) looked at how full service carriers are responding to the challenges of a weak global economy, high fuel prices and growing competition from LCCs on short-haul and Gulf carriers on long-haul. The low-cost sector is also going through a period of change, characterised by features summarised at the conference by Professor Rigas Doganis.

Like the FSCs, the LCC sector has seen concentration and consolidation and the two sectors have established a growing number of linkages. Moreover, the relaxation of the pure low-cost model of simplicity and the adoption by FSCs of LCC pricing strategies has narrowed the differences between them. Have the differences been eliminated? What are the challenges faced by LCCs/hybrids? What is the right number of fares to offer? We examine these questions and more in this fourth conference report.

ACI Europe Assembly report Part 1 – definitely not ‘business as usual’

26-Jun-2012 7:11 PM

The economic portents were not good as delegates congregated for the 22nd ACI Europe General Assembly, Congress and Exhibition in Madrid on 20-Jun-2012 but the organisers neatly sidestepped what could have led to a depressing Congress by largely focusing instead on measures to keep the passenger happy and on improving airport-airline relations. Some of the issues raised are reported here.

Profitability in Brazilian domestic market plummets as yields drop

12-Aug-2011 9:09 PM

Intense competition in the Brazilian domestic market led to a sharp drop in yields in 2Q2011 and is expected to have a major impact on profitability throughout the Brazilian airline sector for the remainder of the year. Gol, which is primarily a domestic operator, has particularly been impacted by the suddenly unfavourable market conditions with a BRL359 million (USD221 million) net loss incurred in 2Q2011. TAM also has been impacted but has the benefit of a large profitable international operation, allowing it to remain in the black in 2Q2011.