Posted on: 23 April 2018 by Chloe Greenbank
The second day of Routes Europe kick started on Monday 23 April with a panel discussion on the state of Europe’s aviation industry.
With the International Air Transport Association (IATA) predicting that Europe’s aviation market will grow at 2.3% per year over the next two decades, adding an additional 550 million passengers by 2036, the concern is that airport infrastructure isn’t up to scratch, according to Rafael Schvartzman, regional vice-president, IATA.
“Passengers will double by 2036, but airport infrastructure isn’t being addressed as it should and European airspace is inefficient,” he said.
Schvartzman also noted that the passenger compensation system in Europe is not fit for purpose, saying “we need a more fair and balanced system.”
On a more positive note Mark Clarkson, EVP product development, OAG, revealed that with the increase in passenger traffic and low-fare travel, “airlines are increasingly looking at secondary markets and developing forgotten markets.”
According to data from OAG, European capacity grew by 3% in 2017, compared with the previous 12 months. Of this, low-fare seats accounted for 32%, up from 30.4% in 2016, emphasising the rise in the market of low-fare carriers, such as easyJet, Ryanair and Eurowings.
BA’s battle against LCCs
Meanwhile, an interview with British Airways’ (BA) Chairman and CEO, Alex Cruz, saw a packed-out conference room tune in to hear what Cruz had to say about the airline’s plans over the next few years and how it aims to battle the rise of low-cost carriers (LCC).
Referencing the airline’s centenary celebrations next year, Cruz stated that the airline’s focus is on showing the world that British Airways is “still the leader in its field, when it comes to the quality of the service and product it offers.”
On the subject of long-haul, low-fare flights, Cruz stated that when he first joined the airline in 2016, the challenge particularly with flights from Gatwick was how British Airways could continue being competitive while delivering a quality service.
“The trick has been our newly refurbished 777s,” he revealed, explaining that the aircraft’s cabin reconfiguration “has enabled us to compete satisfactorily with low-cost, long-haul services.”
Cruz added that while in the short term, the acquisition of Monarch’s slots at Gatwick has provided the airline with access to short-haul leisure destinations, the UK’s flag-carrying airline plans to explore new long-haul routes with these slots.
The airline has also launched its new long-haul ‘basic’ fare together with its transatlantic joint business partner airlines: American Airlines, Finnair and Iberia on flights from London to Austin, Boston, Delhi, Denver, Dubai, Hong Kong, Lagos, Oakland, Philadelphia, Punta Cana and Singapore.
A session on aviation disruptors covered the inevitable subject of Brexit, as well as political instability and security concerns such as terrorism.
bmi Regional’s CCO, Jochen Schnadt, highlighted that the primary issue with Brexit is the level of uncertainty it creates. “If you ask 100 people what it means you get 101 answers,” he said, before adding that Brexit is a massive disrupter to the industry.
Referencing recent security measures that have been taken as a result of terrorist threats, Sergio Fernandez, regional director airports Europe, IATA, stated: “With the electronics ban and the raising of the bar of security measures, airports and airlines are required to act more and more as security layers.”
While Leon Verhallen, head of aviation marketing at Brussels Airport underlined the need for government support to maintain confidence in the aviation market in the light of recent attacks.
“After the Brussels attacks some US travellers weren’t allowed to travel to Belgium,” he said, divulging that as a result of this disruption Boeing had to meet with its Belgian clients in the Netherlands.
As the second day of pounding the show floor and networking with airlines and airports drew to a close, delegates and exhibitors alike headed off into the night for the Routes Europe 2018 marketing awards ceremony at Bilbao’s Euskalduna Conference Centre.