CAPA TV

Canadian airlines continue to carve out their positions in the marketplace. The country's major operators will continue to preserve their position, but the fate of the country's smaller airlines is less certain. In this session, local industry experts and thought leaders will analyze key factors influencing the Canadian aviation market, including state of the market, regulatory frameworks, technological advancements, and shifting consumer demands.

Although more competitors have entered Canada's domestic market during the past three to four years, Air Canada and WestJet have both maintained their leading positions in Canada.

Air Canada has joined other North American global network airlines in experiencing strong trans Atlantic demand - particularly in the summer high season in the Northern Hemisphere. The airline has also entered into a partnership with Emirates to broaden its network depth, and has expanded on its own metal into the Indian market.

WestJet has decided to shutter its ultra-low cost subsidiary Swoop and to fold that airline's operations back into the mainline. The company, which has also acquired Sunwing, is folding Sunwing's Boeing 737s into the WestJet brand.

The big question mark for Canada is whether all the start-up ultra-low cost carriers will have staying power. Lynx Air, which was headquartered in WestJet's hometown market of Calgary ceased operations in 2024, while Flair Airlines is based in another WestJet stronghold of Edmonton.

• What impact does the current consolidation/mergers & agreements occurring in Canada have on the market?
• What do international travel demands look like both to and from Canada?
• What will the market look like in 5 years?
• How can airports aid in boosting the market for local airlines?

Moderator: University of Winnipeg, Professor, David Duval

Panel:

Edmonton Airport, Vice President Air Service & Business Development, James Jackson

IATA, Regional VP Americas, Peter Cerda

Global Crossing, President & CFO, Ryan Goepel

Airline employment in the Americas has now reached levels not seen since the beginning of the millennium. The labor market is challenging with inflated workforce costs after a recent round of labor contract negotiations, while demand is arguably settling into more predictable patterns. How are airlines preparing for the next down cycle with much higher fixed labor costs? Do current contracts feature enough gains in efficiency to offset the inevitable headwinds airlines are going to face as macroeconomic uncertainty remains an overhang? Airlines spent 2021-2023 rebuilding workforces that were slashed during the pandemic but with some serious challenges and operational reliability remains a challenge. Have shortages in the workforce been resolved, or are airlines going to continue their hiring drive?

Moderator: KornFerry, Senior Client Partner, Michael Bell

Panel:

Porter, Executive Vice President and Chief People Officer, Lawrence Hughes

Avianca, Chief People & Talent Officer, Renato Covelo

Atlas Air, Chief Human Resources Officer, Patricia Goodwin-Peters

The North America to South America market has been one of the great airline success stories of recent history. The strength of the market has prompted a fresh wave of airlines to connect new markets in North America to South American sun destinations. Arajet and Sun Country have launched or are launching flights to Canada. LCCs/ULCCs have typically avoided Canada since airport costs are high.

• What has changed in the market that these airlines now think it can work?
• Is the recovery of the US/South America market at its peak?
• What opportunities still exist for this important market?

Moderator: HEICO, Senior VP Government & Industry Affairs, Alex de Gunten

Panel:

Sun Country, Chief Revenue Officer, Grant Whitney

IATA, Regional VP Americas, Peter Cerda

American Airlines, Director, South America Operations & Strategic Partnerships, Gonzalo Schames

Trans-Pacific flights have been among the slowest to recover from the COVID-19 pandemic, thanks to a messy combination of unclear rules and regulations, geopolitical tensions and substitution to other markets. Yet, airlines on both sides of the Pacific seem buoyant about the prospects in the market for 2024, with a flurry of capacity additions and new routes announced late in 2023. Traditional network carriers are eager to expand their somewhat limited operations, while LCCs are increasingly interested in the market.

• What are the prospects for a return of travel to/from mainland China and Asia and Australasia for 2024?
• What are the important new destinations in Asia and Australasia to look out for?
• Who is set to benefit from the delayed recovery?

Moderator: Arthur Little, Principal, Sabine Reim

Panel:

Cathay Pacific, Senior VP Americas, Chris van den Hooven

Qantas, Senior Executive VP Americas, Oronzo Miccoli

Japan Airlines, VP of Global Sales, the Americas, Steve Myer

CAPA - Centre for Aviation, Senior Analyst Americas, Lori Ranson

WestJet, Group EVP & CCO, John Weatherill

KornFerry, Senior Client Partner, Michael Bell

Frontier, President, James Dempsey

KornFerry, Senior Client Partner, Michael Bell

The low cost carrier (LCC) and ultra low cost carrier (ULCC) models are facing diverging competitive situations in North America. In the US, the models are under pressure with legacy airlines seeming to have success at segmentation, with ULCCs reporting challenging demand conditions. At the same time the ULCC concept is still somewhat fresh in Canada. However, WestJet is also adopting a different approach by folding Swoop into its operations and segmented products.

As market dynamics shift and travel demand patterns change, how are ULCCs and LCCs performing?

Moderator: IATA, Regional VP Americas, Peter Cerda

Panel:

WestJet, Group EVP & CCO, John Weatherill

Breeze, President, Tom Doxey

Viva Aerobus, EVP - Chief Planning & Alliances Officer, Javier Suarez Casado

Flair, President & CEO, Stephen Jones

2022 and 2023 saw some dramatic shifts in the airline competitive landscape. The Northeast Alliance between JetBlue and American Airlines was dissolved following a court judgment, and JetBlue's proposed take-over of Spirit Airlines is also at the mercy of the legal system.

At the same time, Alaska Air Group has started an acquisition merger with Hawaiian Airlines, while Air Transat and Porter are working to build scale through a new partnership and WestJet has finished its merger with its Swoop ULCC unit and is in the process of folding Sunwing into its operations over 2024.

What will the competitive landscape of the market in North America look like in 2024?

Moderator: Independent, Senior Advisor, Betsy Snyder

Panel:

Allegiant, VP Corporate Development & Government Affairs, John Pepper

Viva Aerobus, EVP - Chief Planning & Alliances Officer, Javier Suarez Casado

Porter Airlines, EVP & CCO, Edmond Eldebs

Air Canada, Vice-President International Affairs, Network and Partnerships,  Mary-Jane Lorette

Spending on outbound foreign air travel surged in 2022 and 2023, with many markets across the Americas and Europe seeing travel volumes substantially above 2019 levels. The surge was supported by the progressive return of inbound foreign travelers across 2023, although a number of trans-Pacific and trans-Atlantic markets are still well down on usual levels. Major North American airlines like United and Air Canada are now betting big on long-haul demand and bolstering their widebody fleets.

• What's driving their forecasts and outlooks for the foreseeable future?
• How are the fleet decisions of long-haul operators driving network planning?
• Will the surge in international demand be sustained, or will the pendulum swing back in the opposite direction?

Moderator: CAPA - Centre for Aviation, Senior Analyst Americas, Lori Ranson

Panel:

Virgin Atlantic, Head of Americas, Simon Hawkins

Skyscanner, VP Strategic Relations and Development, Hugh Aitken

The New Terminal One at JFK, Chief Revenue Officer, Carl Schultz