Lynx Air CEO and president Merren McArthur, speaking at CAPA Airline Leader Summit, stated (17-Mar-2023) ultra LCCs are focused on simplicity, high utilisation and stimulation of traffic. Ms McArthur added "who we are targeting is the most price sensitive customer".
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Qantas is looking to boost its fleet and workforce numbers as it attempts to ramp up capacity and complete its post-pandemic recovery. Part one of this analysis examined how aircraft delivery delays are complicating the Qantas Group’s fleet plans. This second part focuses on the airline’s efforts to expand its workforce, and the challenges it faces in that regard.
Qantas has launched a recruitment drive aimed at boosting staff numbers to match its capacity goals. Like most of the airline industry, it will have to contend with a tight labour market and training bottlenecks – for the near term, at least.
The airline is looking to improve its training pipelines, most notably by establishing its own engineering academy. This will help it meet its longer term hiring targets.
Changes are also under way in the airline’s leadership team, with a well-regarded executive joining the company and a realignment of roles. More serious leadership moves could be on the horizon, as speculation builds about the CEO succession plan.
Like many airlines around the world, Qantas is facing multiple frustrating growth constraints that are preventing it from taking full advantage of the strong rebound in demand. The airline is attempting to address some of these headaches with new fleet and training investments.
The likelihood of further narrowbody aircraft delivery delays has prompted Qantas to tap into the used aircraft market for short term narrowbody capacity, and it plans to wet-lease more regional jets. Rebuilding the widebody fleet has also been slowed by the need for lengthy maintenance checks as aircraft come out of storage, and by delayed deliveries.
Qantas has launched a recruitment drive aimed at boosting staff numbers to match its capacity growth plans. However, a tight labour market and training bottlenecks complicate these efforts. The airline is also looking to improve its training pipelines, partly by establishing its own engineering academy. This will help it meet its longer term hiring goals.
Part one of this analysis will examine the fleet aspects, and part two the workforce moves.
Premium Analysis
Stockholm Bromma Airport escapes becoming housing estate: part two – strong environmental credential17-Mar-2023
Stockholm Bromma Airport escapes becoming housing estate: part two – strong environmental credential
Commercial aviation in Sweden is heavily impacted by the environment. Sweden is one of the world’s most accommodating countries in environmental safeguarding – and doesn’t the air transport business know it (?), having been hit by stiff taxes since 2018.
So it is somewhat ironic that one of the reasons for the reversal, by a new government, of a decision to close Stockholm’s mainly domestic airport, Bromma, and to shift its services to Arlanda Airport, and to build houses and apartment blocks where Bromma stood, is that it could be used as an ‘electric aviation hub’.
That probably means the centralisation of the country’s development of all aspects of electric aviation on one site close to the centre of the capital city, where the world can come and view it in situ; while Bromma itself, located close to heavily built-up areas, would be a perfect test bed for prototype flights and whatever impact they have on communities.
This is part two of a two-part report.
Price inflation for passenger air travel in the European Union and the UK eased in Jan-2023, according to official statistics. However, prices continued to grow year-on-year at double digit percentage rates after many months.
As a result, the price of air travel has risen considerably above 2019 levels.
These official data are reflected in revenue per passenger data for Europe's leading airlines, according to CAPA's analysis of the accounts of Lufthansa Group, IAG, Air France-KLM, Ryanair, Wizz Air and easyJet from 2019 to 2022. For all of these airlines, revenue per passenger in 2022 was above 2019 by double digit percentages.
On short/medium haul routes in Europe – the market where the legacy airlines and the LCCs overlap – the available data suggests that LCCs still enjoy a significant discount to legacy airline prices, albeit a narrower one than in 2019.
Analysis
Stockholm Bromma Airport escapes becoming housing estate: part one – possible electric aviation hub16-Mar-2023
Stockholm Bromma Airport escapes becoming housing estate: part one – possible electric aviation hub
Commercial aviation in Sweden is heavily impacted by the environment. Sweden is one of the world’s most accommodating countries in environmental safeguarding – and doesn’t the air transport business there know it, having been hit by stiff taxes since 2018.
So it is somewhat ironic that one of the reasons for the reversal, by a new government, of a decision to close Stockholm’s mainly domestic airport, Bromma, and to shift its services to Arlanda Airport, and to build houses and apartment blocks where Bromma stood, is that it could be used as an ‘electric aviation hub’.
That probably means the centralisation of the country’s development of all aspects of electric aviation on one site close to the centre of the capital city, where the world can come and view it in situ; while Bromma itself, located close to heavily built-up areas, would be a perfect test bed for prototype flights and whatever impact they have on communities.
This is part one of a two-part report.
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A part of CAPA’s benchmark 2023 regional summit series, the two-day Americas Aviation Summit will gather executives from hundreds of airlines, airports and travel industry suppliers from North America and key international markets.
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Hong Kong: CTC Hong Kong Corporate Travel Summit
CTC Corporate Travel Summit returns to Hong Kong.
Recorded at CAPA World Aviation Summit & Awards for Excellence, 02-Dec-2022
Partnerships and alliances take on an increased purpose
For the surviving airlines, partnership and alliances appear as an increasingly attractive option. Before the pandemic many had started to question the value of alliances. Now they are providing an important safety net for carriers enabling them to serve strong, profitable markets and allow partners to support wider connectivity.
Mergers and consolidation have accelerated as a result. JetBlue’s acquisition of Spirit Airlines from under the nose of Frontier Airlines – and the premium it paid – could be the start of a trend as airlines seek to solidify their market penetration.
The expansion of partnership has not just been within the industry though – it is also looking at expanding collaboration with other transport providers, technology partners, environmental organisations and more.
The global pandemic has significantly accelerated the pace at which companies are bringing new ideas to market, including massively expediting some processes and applying pressure on industry ecosystems to deliver services in new ways.
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How should companies use partnerships to build business resiliency?
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Can strategic joint ventures bridge the supply and demand gap?
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Will the COVID pandemic break down the Mergers & Acquisitions wall or actually make it stronger?
Wizz Air president Robert Carey, speaking at CAPA Airline Leader Summit, stated (17-Mar-2023) the carrier has "always had a large presence in London", and is "the largest operator in Luton". Mr Carey said London Gatwick made sense as a "natural extension point", adding the carrier will "look to grow at every opportunity we have" in London.
Wizz Air president Robert Carey, speaking at CAPA Airline Leader Summit, stated (17-Mar-2023) the carrier has "made a lot of additions in the network". Mr Carey highlighted expansion in Italy, London Gatwick, Albania and Abu Dhabi, and added "everybody wants to travel, everybody is back out there flying".
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18-Mar-2023 10:43 AM
Norse Atlantic Airways CEO: SAF costs to decrease as production and demand grows
Norse Atlantic Airways CEO Bjørn Tore Larsen, speaking at CAPA Airline Leader Summit, on the impact of sustainability on the LCC model, stated (17-Mar-2023) "people will fly regardless, but we'll enable them to fly in the most efficient manner". Mr Larsen added the carrier believes the increased costs of sustainable aviation fuel (SAF) "will come down as production is growing and demand is growing".
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