Finding a new regime on the North Atlantic as regulatory and operating norms change

28 March, 2018

According to the International Air Transport Association (IATA), the North Atlantic provides the world's most profitable major international traffic flow. It is also the most tightly held, with three groups effectively controlling over three quarters of the seats and the bulk of the premium market.

After several years of open skies on the North Atlantic and the introduction of Low Cost Carriers (LCCs) such as Norwegian in its various incarnations, the impact of Brexit now requires a renegotiation of the agreement to restore the UK to open skies once it leaves the European Union.

The major trans-Atlantic joint ventures depend on open skies for them to gain anti-trust immunity to operate in the UK market, the largest premium route. This will not be straightforward, as for example US pilot unions have opposed the freedom it provides for airlines to establish there.

Aside from the UK there are many untapped opportunities for LCCs. New aircraft types are providing route opportunities that were not previously viable, for non-stop and one-stop service between Europe and the US (and Canada).

But many questions remain...

  • What issues are involved in the UK renegotiation and what are the positions of the protagonists?
  • How significant will the impact of narrowbody aircraft be on trans-Atlantic routes
  • How are the traditional operators responding to long haul low cost competition?
  • How are low cost airlines innovating to enhance long haul connectivity?

This will be one of the topic areas discussed at the forthcoming CAPA- Centre for Aviation Americas Aviation Summit that takes place in Houston, USA between April 16-17, 2018.

Understanding aviation markets is CAPA's great strength and passion and this year's agenda includes a variety of topics sure to generate interest. Finding a new regime on the North Atlantic - as regulatory and operating norms change will be the opening discussion of Session Three, entitled 'North America' and will take place on the afternoon of 16-Apr-2018.

The high-level Americas Aviation Summit is a forum for debate and discussion of strategic issues facing the region's aviation industry and it is attracting airline and travel industry CEOs from across the Americas region, Asia, Europe and the Middle East.

It is a key time in the United States as it approaches the next generation of aviation. As consumer demands change rapidly, as infrastructure needs remain unsatisfied, and as longstanding policies are under attack, the US airlines are unprecedentedly profitable. There is much that needs to be fixed if they are not to be marooned in the present, domestically and internationally.

FIND OUT MORE... visit the CAPA Americas Aviation Summit homepage to find out more about this not-to-be-missed opportunity to discuss relevant issues impacting the US aviation sector and learn meaningful insights from your industry peers.